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China’s Magnesium Shortages Will Affect Hard Aluminum Alloy Production Adding Headaches for Global Automakers

While the global semiconductor shortage continues to decimate the auto manufacturing industry, markets have begun to divert their attention to…



This article was originally published by The Deep Dive

While the global semiconductor shortage continues to decimate the auto manufacturing industry, markets have begun to divert their attention to magnesium, which is on the brink of a supply crisis that threatens to further weaken the world’s car manufacturers.

Magnesium, which is put in aluminum to create a hardened aluminum alloy, is used to make various vehicle parts such as rims, engine blocks, transmissions, body panels, and frames. However, according to a Bank of America note, low magnesium supplies could spark an aluminum shortage, which could inflict further damage on the already-struggling auto industry.

China’s concurrent coal and energy shortages have sparked widespread power outages across the country’s industrial regions, which is incidentally where energy-intensive smelters that produce magnesium are located. To make matters worse, China also holds a monopoly on the world’s magnesium production, and since there aren’t any substitutes for the metal in aluminum sheet production, the supply could essentially become frozen.

To put such potential implications into focus, nearly 85% of the entire global magnesium supply is derived from China, and more specifically, in the town of Yulin, which is located in the Shaanxi province. The current global energy crisis has forced the Chinese government to cut back magnesium smelters’ output by 70% in an effort to preserve energy supplies ahead of the winter season.

The money question is whether or not the Chinese government will greenlight the resumption of magnesium smelters before the end of the year. If not, then the global automotive industry will face a critical inflection point, one that is fuelled by a double crisis of semiconductor and aluminum shortages.

Information for this briefing was found via the BofA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Magnesium Shortages in China Could Create Added Headaches for Global Automakers appeared first on the deep dive.

Author: Hermina Paull

Precious Metals

Palladium One Extends High-Grade Mineralization 250m SW of Kaukua Open-Pit Resource

Palladium One Mining (TSXV: PDM) (FRA: 7N11) (OTC: NKORF)  
continues to advance its Läntinen Koillismaa (LK) platinum group element-copper-nickel…


Palladium One Mining (TSXV: PDM) (FRA: 7N11) (OTC: NKORF)  

continues to advance its Läntinen Koillismaa (LK) platinum group element-copper-nickel property in Finland — this week announcing that initial down plunge drilling has extended mineralization 250 meters southwest of the open-pit constrained resource estimate at the Kaukua deposit.

Hole LK21-101 intersected 1.5 g/t palladium equivalent (PdEq) over 74.5 meters starting at 273 meters down hole, and returned a higher-grade 2.2 g/t PdEq over 19.6 meters.

Other high-grade intercepts included:

  • Hole LK21-102, @ 3.2 g/t PdEq over 13.7 meters, within 1.6 g/t PdEq over 113.6m, with individual samples grading up to 9.6 g/t PdEq over 1m;
  • Hole LK21-100, @ 3.3 g/t PdEq over 9.6m, within 1.5 g/t over 113.4m, with individual samples grading up to 5.9 g/t PdEq over 1.5m.

“The high-grade ‘Core Zone’ of the Kaukua deposit has been extended to the southwest and remains open for expansion. These are among the thickest intercepts to date within the Kaukua deposit and will add significant tonnage to our existing resource endowment,” said Palladium One’s CEO, Derrick Weyrauch, in the Nov. 23 news release.

The news from Kaukua alters the geological model, in a good way. As Palladium One explains,

Previous geological interpretations suggested that the Kaukua deposit was cut-off by a northwest trending fault, occupying a distinct magnetic low and topographic lineament. Drilling has demonstrated that the magnetic low is the result of a later cross cutting dyke (now referred to as the high-titanium gabbro dyke) and that the Kaukua deposit remains open to the south.

Resource definition drilling at Kaukua and the western half of Kaukua South (together known as the Kaukua area) is complete, with an updated NI 43-101 resource estimate scheduled for the first quarter, 2022.

While the Haukiahio trend is more copper-nickel rich, the Kaukua deposit contains mostly platinum group elements, with two-thirds of the value in palladium and platinum.

Historic and current drilling in the Kaukua and Kaukua Southwest area. Assays have been received for holes up to LK21-103, the remainder are pending. Background is induced polarization (IP) chargeability.
Cross sections showing holes LK21-102, 107, along with historic holes KAU07-005, KAU12-057 and 068, and their position with respect to the 2019 Kaukua open-pit resource estimate.

The Kaukua mineralized system is also much larger than previously understood, as evidenced by last year’s major discovery about 500m away at Kaukua South, which hosts a >4 km-long IP chargeability anomaly, of which 3.5 km had never been tested prior to Palladium One’s drilling work.

Initial drilling last year, therefore, focused on expanding known mineralization to the east of existing drill intercepts in the Kaukua South Zone, taking priority over the planned drilling to upgrade and convert the historical resource estimate at Haukiaho.

(As announced in a Sep. 7 news release, results from a 2,000m drill program at the Haukiaho Zone significantly increased this area’s resources (NI 43-101-compliant) to 32.7 million tonnes grading 1.15 g/t PdEq for 1.21 million ounces of contained PdEq. This resource update essentially doubles the resource endowment of the entire LK project, which now boasts 11 million tonnes of indicated resources grading 1.60 g/t PdEq (600,000 oz PdEq) and 44 million tonnes of inferred resources grading 1.19 g/t PdEq (1.7 million oz PdEq))

Kaukua South drilling successfully confirmed the eastern extension and the over-4 km strike length, insinuating the presence of a large-scale, shallow mineralized system with significant continuity.

Phase 2 drilling by Palladium One this year continued to return significant PGE grades and widths, including 47m at 2.3 g/t PdEq and 53m @ 2.1 g/t PdEq, and was successful in extending the strike length of the Upper Zone mineralization.

These results added to the company’s belief that it could add a significant amount of open-pit resources to the upcoming NI 43-101 resource estimate upgrade.

Last month the company announced the highest-grade hole to date at LK, which intersected 4.07 g/t PdEq over 24m within 2.08 g/t Pd_Eq over 112m, starting at 171.5m depth.

The question is not if, but by how much, the Kaukua drilling will add to the already doubled mineral resources at the LK property.

The Kaukua Zone at LK is mostly a palladium-platinum-gold play, however it may surprise readers to learn there are significant base metal values particularly at Haukiaho, where two-thirds of the zone’s value is in nickel and copper compared to Kaukua where 66% of the value is in palladium and platinum.

Indeed Haukiaho hosts some of the highest nickel grades on the LK project. At 17 km in length, the Haukiaho trend currently represents the largest continuous patch of blue-sky potential.

The latest resource estimate of 1.2 million ounces PdEq grading 1.15% g/t, comprises only 3 km of strike length; 2 km of strike extent, immediately east of the Haukiaho resource estimate, contains two significant IP chargeability anomalies with sufficient historic drilling to potentially be upgraded to inferred resources with modest additional drilling.

The remaining 12 km of the Haukiaho trend has not been drill-tested by the company, though widely spaced historic drilling has demonstrated that the trend is mineralized. This drilling provides a high level of confidence for potential additional nickel-copper resources to be delineated, Palladium One said.

Also worth noting is the fact that the Haukiaho Zone’s resource estimate contains cobalt. There is a reasonable expectation that the next resource estimate update at the Kaukua Zone where PDM is concentrating its drill program, will also contain notable values of the crucial lithium-ion battery component.


As for Palladium One’s Tyko nickel-copper project in Ontario, in a Nov. 16 project update the company says geophysical crews are on site conducting ground-based electromagnetic surveys on key areas; three new exploration permit applications have been filed for drill-testing the newly identified EM anomalies; and a fourth exploration permit application has been made to expand upon the existing Smoke Lake exploration permit, to allow for additional step-out drill pad locations.

“We eagerly await receipt of new exploration permits for Tyko so that we can get back to drilling and make additional discoveries.” said Derrick Weyrauch, President and CEO.

The project known for its high sufide nickel tenor, received the Bernie Schnieders 2020 Discovery of the Year Award, presented by the Northwestern Ontario Prospectors Association (NWOPA).  

It covers approximately 24,500 hectares within the highly prospective Mid-Continent Rift nickel province, including over 7,000 hectares of the mafic-ultramafic Bulldozer intrusion, which has seen virtually no geological mapping nor exploration.

The Tyko project is located 25 km north of the Hemlo mining complex, in northwestern Ontario.

The Archean-aged mafic-ultramafic intrusion is rich in nickel, containing twice as much the battery metal as copper, and equal amounts of platinum and palladium.

According to the company, the high tenor of the sulfide minerals suggests a valuable concentrate could be produced, and that even if the sulfides are disseminated, the deposit could still be economic.

Drilling in 2020 primarily focused on the Smoke Lake target, an EM anomaly identified through geophysical surveying. Magnetic survey undertaken shortly before drilling helped to refine the anomaly, resulting in the successful discovery of massive magmatic sulfides.

The first discovery of massive sulfide mineralization at Tyko was confirmed in January, when the company announced drill intercepts from massive magmatic sulfide of up to 9.9% nickel equivalent. Subsequent drill results reported from the 2020 program were a resounding success, confirming the high-grade nature of the deposit.

A second-phase, 2,000m drill program was initiated in April to follow up on these high-grade hits. The assays to date have been excellent, including massive magmatic sulfide intercepts grading up to 10.2% nickel equivalent, demonstrating a robust mineralization spread over a distance of at least 18 km.

In addition to the high-grade Smoke Lake Zone, Palladium One believes there are new zones of nickel-copper mineralization yet to be discovered.

Preliminary results of the recently completed airborne EM survey have identified as many as four significant multi-line EM anomalies on the Tyko nickel-copper project, which further support this hypothesis.

Of particular interest are two anomalies in the Bulldozer Intrusion. These are the first EM anomalies identified in this large mafic-ultramafic intrusion and hint at potentially large tonnage targets.

Assay results from the Phase 2 drill program at Smoke Lake are pending.

Palladium One Mining
Cdn$0.18, 2021.11.26
Shares Outstanding 248m
Market cap Cdn$43.4m
PDM website

Richard (Rick) Mills
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Author: Gail Mills

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2 Mining Stocks To Watch This Week

Will these mining stocks make your watchlist? At the moment, there are…
The post 2 Mining Stocks To Watch This Week appeared first on Gold Stocks to…

Will these mining stocks make your watchlist?

At the moment, there are concerns about inflation when it comes to mining stocks, and no one knows what impact this will have. However, if there is a significant amount of inflation, it will likely affect most, if not all, mining equities. There are still a lot of mining equities that are rising in value right now. These businesses often do well when the products they seek become more expensive.

Developing an investment strategy can be really useful. While more detailed information is accessible, let’s stick to the basics of mining business tracking. Keeping up with global happenings is crucial when investing in mining firms. This is especially true in 2021 due to the epidemic. Sector news is also important when it comes to investing in these shares. So which mining stocks are performing well right now?

Sandstorm Gold Ltd. (NYSE: SAND)

Sandstorm Gold is a gold royalty company that buys gold and other commodities from various mining companies. The companies in question are building or operating mines in varying stages of development. Sandstorm pays for gold streams or royalties in advance and has the right to purchase a portion of the mine’s output for the duration of the mine’s life.

On October 6th, the firm announced that it has increased its credit facility to $350 million. The ESG Revolving Loan includes terms for incentive pricing that are tied to sustainability. Sandstorm will be able to cut borrowing costs by up to 5 basis points if its sustainability goals are satisfied.

Chief Financial Officer of Sandstorm, Erfan Kazemi said, “We’re pleased to announce that Sandstorm is the first royalty company with a credit facility linked to sustainability goals. With this credit agreement, the Company is helping to lead a new era of corporate lending that benefits shareholders while promoting corporate responsibility.” Noting this info, will SAND be on your list of mining stocks to watch?

Eldorado Gold Corporation (NYSE: EGO)

Eldorado Gold Corporation is a company that specializes in mineral resource exploration, acquisition, development, production, and sale. Gold, silver, lead, zinc, and iron ores are among Eldorado’s key interests. It now operates five mines: Kisladag and Efemcukuru in Turkey, Lamque in Canada, Olympias and Stratoni in Greece.

Eldorado announced the start of a $500 million senior notes offering due in 2029 on August 9th. The money will be used to pay down the company’s $234 million 9.500 percent senior secured second lien notes, which are due in June 2024.

George Burns, President and CEO of Eldorado said, “This transaction provides Eldorado with immediate value for TZ, while also retaining meaningful exposure to future value creation through our equity stake in GMIN.” Based on this information, is EGO stock a contender for your mining stock watchlist in December?

Top Mining Stocks To Buy?

It might be tough to determine which mining stocks are the best to invest in. Because the market is so volatile right now, doing a lot of research before investing is crucial. In December 2021, it will be interesting to see how these equities perform. So, which gold mining stocks will you be monitoring?

The post 2 Mining Stocks To Watch This Week appeared first on Gold Stocks to Buy, Picks, News and Information |

eldorado gold corporation

Author: Jason Todd

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Nickel, Industrial Metals Rise As Optimism on China Returns 

Base metals are on the rise after a series of positive announcements…

Nickel, Industrial Metals Rise As China Property Optimism Returns 

Base metals are on the rise after a series of positive announcements over the week has brought new optimism to China’s property sector. 

On Thursday, Nickel paced gains by most industrial metals on the London Metal Exchange, rising 2.5%. As shown below, spot prices for Nickel are moving higher as inventories continue to shrink, pointing to mounting supply tightness. 

“Nickel now looks to be the new game in town with stocks falling daily,” Malcolm Freeman, a director at Kingdom Futures, wrote in a note. “For now the bullish mood persists and there seems little point in going against it in the very short term.”

As global refined-nickel inventories continue to draw down, prices face volatility, trending toward gains, Huatai Futures Co. wrote in a note. 

Earlier this week, iron ore futures trading in Singapore bounced back over $100/ton after reports of Chinese regulators dialing back crackdowns on the property market could soon lift steel demand and improve profitability for steelmakers. There’s also chatter the People’s Bank of China could unleash stimulus amid the economic growth slowdown in the world’s second-largest economy.  

“The market has higher expectations for steel production to resume,” Huatai Futures Co. wrote in another note. Property is a leading source of industrial metal demand in the country. 

Bloomberg Industrial Metals Subindex (BCOMIN) has broken out to an all-time-highs, surpassing 2007 and 2011 highs. 

Positive developments appear on the macro front as the PBoC could be close to easing and Beijing dials back on regulatory crackdowns. Institutional investors are also getting in on the action as China’s high-yield bonds have had a bid this month. 

Suppose the Chinese government continues to offer policy support to heal the ailing property market, which it crushed this year through regulatory crackdowns. In that case, this could mean industrial metals will rise some more, adding to inflation. 

Tyler Durden Thu, 11/25/2021 – 22:45

Author: Tyler Durden

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