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Defense Metals announces positive preliminary economic assessment for the Wicheeda Rare Earth Element Project

Defense Metals Corp. (“Defense Metals” or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased…

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This article was originally published by Resource World

Defense Metals Corp. (“Defense Metals” or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to announce the results of its Preliminary Economic Assessment (PEA) and updated mineral resource estimate for the development of its Wicheeda Rare Earth Element (REE) deposit located in British Columbia, Canada. The PEA was prepared by SRK Consulting (Canada) Inc. (SRK). The effective date of the PEA is November 21, 2021 and a technical report relating to the PEA will be filed on SEDAR within 45 days of this news release.

PEA Highlights

Strong Financial Metrics

  • The project has a pre-tax net present value (NPV) of $765 million, and after-tax NPV of $512 million, at 8% discount rate.
  • The pre-tax internal rate of return (IRR) is 20%, and the after-tax IRR is 16%.
  • The capital payback is 5 years from start of production, and assumes partial self-funding of construction of hydrometallurgical plant from concentrate sales.
  • Revenues average $397 million per year from sale of REE mineral concentrate (years 2-4) and mixed REE hydrometallurgical precipitate (years 5-16).
  • Operating margin of 65.2%.
  • Production of a saleable high-grade flotation-concentrate, with average 43% total rare earth oxide (TREO) for the life of the mine. It will be sold to market directly for years 1-4 and will then feed a project hydrometallurgical plant starting in year 5.
  • Project near to key infrastructure.
  • Base case economics were calculated using rare earth oxide (REO) prices of US$5.76/kg TREO in flotation concentrate and US$14.04/kg TREO in mixed REE carbonate precipitates.

Significant Production Potential

  • The study contemplates a 1.8 Mtpa (million tonnes per year) mill throughput open pit mining operation with 1.75:1 (waste:mill feed) strip ratio over a 19 year mine (project) life that includes 3 years of construction, and early revenue generation via phased open pit development. Phase 1 initial pit strip ratio of 0.63:1 (waste:mill feed) yields rapid access to higher grade surface mineralization. Pre-production and first mill feed both in year 1.
  • Average annual REO production of 25,423 tonnes.
  • Operating costs average $137 million per year over a 16-year life of mine (LOM).

Development Capital

  • Initial capital expenditures (CAPEX) are $461 million (includes a contingency allowance of 20% to 25% for major items), and the expansion capex under a cash-funded scenario is $474 million. Sustaining capex for the life of the project is $401 million.
  • A scenario that uses concentrate sales to partially self fund the construction of a hydrometallurgical plant reduces overall project cash requirements compared to constructing the hydrometallurgical plant as part of Phase 1. This development scenario provides significant optionality to accelerate or defer the investment in the hydrometallurgical plant according to market conditions.

Mineral Resource Estimate

  • The updated Wicheeda Mineral Resource Estimate (MRE) comprises a 5.0 million tonne Indicated Mineral Resource, averaging 2.95% TREO and a 29.5 million tonne Inferred Mineral Resource, averaging 1.83% TREO, reported at a cut-off grade of 0.5% TREO within a conceptual Lerchs-Grossman (LG) pit shell. The current resource represents a 36% increase on a contained metal basis in comparison to the prior 2020 MRE due to the estimation of additional economically significant medium and heavy REE’s and a lower cut-off grade established based on consideration of TREO and concentrate payable, metallurgical recovery, and operating cost assumptions.

Exploration Upside

  • During 2021, in anticipation of a positive PEA outcome, Defense Metals completed a 29-hole 5,349 metre resource expansion and delineation diamond drill program at Wicheeda. The results of drilling are expected during Q1 2022 and as such have not been incorporated into the PEA. The drilling is expected to support ongoing advanced economic studies through the development of an updated geological model and mineral resource estimate.

Craig Taylor, CEO of Defense Metals, stated: “We are pleased to have delivered a positive PEA for the Wicheeda REE Project that has the potential to be one of the top REE projects in the world. We chose SRK due to its world class experience and reputation in the mining industry and in particular its ability to assemble a team with highly specialized knowledge of Rare Earth Elements projects. The results of the PEA reveal the Wicheeda Project demonstrates robust economics and relatively low initial CAPEX via a staged development scenario that provides the flexibility to capitalize on forecast REE demand pressure.”

Dr. Luisa Moreno, Director, added: “The Wicheeda project has the three main aspects for a successful rare earth project, favorable minerology dominated by coarse grained bastnasite family minerals, a metallurgical process that yielded high grade flotation concentrate and great infrastructure in a friendly jurisdiction. With the positive PEA, the project is undoubtedly a step closer to production.”

PEA Key Metrics

Table 1: Key financial and project metrics

Optimization Opportunities and Next Steps

The PEA describes a well-developed base case flotation concentration and hydrometallurgical pre-leach-caustic crack-leach flowsheet capable of achieving high REE recoveries into a mixed REE precipitate product. The base case represents a well-proven and widely adopted REE recovery flowsheet.

There are several alternative process and infrastructure development options that have shown promise in initial testing or based on the characteristics of Wicheeda REE feed are expected to be viable, that have the potential to yield simplifications that may contribute to decreased CAPEX and/or operating costs (OPEX). Future critical path bench and/or pilot-scale testwork and economic trade-off, and resource estimation studies are planned which include (but are not limited to):

  • Economic trade off studies designed to investigate the optimal hydrometallurgical plant location. CAPEX/OPEX reduction may be achievable in siting the hydrometallurgical plant more remote from the project site near industrial reagent suppliers versus the base case.
  • Front-end investigation of pre-concentration (e.g., x-ray transmission (XRT) particle sorting) and flotation flowsheet metallurgical optimization assessing the effect of grind size and lowered or alternative reagent dosages, as well required conditioning and flotation slurry temperature.
  • Hydrometallurgical optimization including investigation of potential process alternatives including direct caustic crack, sulphuric acid bake.
  • During 2021, in anticipation of a positive PEA outcome, Defense Metals completed a 29-hole 5,349 metre resource expansion and delineation diamond drill program at Wicheeda. The results of drilling are expected during Q1 2022 and as such have not been incorporated into the PEA. The drilling is expected to support ongoing advanced economic studies through the development of an updated geological model and mineral resource estimate.
  • Further metallurgical test work to confirm and improve recoveries and better define detailed design parameters such as liquid-solid separation requirements.
  • Further definition of the detailed characteristics of the tailings and water management components.
  • Engage with rights and stakeholders.
  • Design and implementation of a full environmental base line program in support of Federal and Provincial Environmental Assessment for the project.
  • Future infill and expansion drilling.

Updated Mineral Resource

The Wicheeda deposit is modelled as a southeast-trending, north to northeast dipping composite layered syenite-carbonatite sill complex having dimensions of approximately 400 m north-south by 100-250 m east-west. The mineralization is interpreted as a moderately north-northeast dipping, shallowly north plunging, layered sill complex having low REE grade syenite at its base, overlain by transitional intermediate REE grade hybrid xenolithic-carbonatite (fenite), and finally relatively higher REE grade dolomite-carbonatite rocks, which form the main mineralization of the Wicheeda REE deposit outcropping at surface.

The updated MRE comprises a 5.0 million tonnes Indicated Mineral Resource, averaging 2.95% TREO (Total Rare Earth Oxide: CeO2, La2O3, Nd2O3, Pr6O11, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3 and Ho2O3), and a 29.5 million tonnes Inferred Mineral Resource, averaging 1.83% TREO, reported at a cut-off grade of 0.5% TREO within a conceptual Lerchs-Grossman (LG) pit shell and is provided in Table 2.

The lower cut-off grade was established based on consideration of TREO and concentrate payable, metallurgical recovery, and operating cost assumptions.

The MRE is predominately based on an unchanged geological model and methodologies utilized to calculate the 2020 MRE. Differences relate to the incorporation of pulp REE multi-element fusion inductively coupled plasma mass spectrometry (ICP-MS), re-assay of the 2008 and 2009 drillholes, reducing the uncertainty regarding the historical incomplete X-ray fluorescence analytical results, updated estimation parameters, and a 2020 LiDAR survey. The increased resolution of the LiDAR allows for more robust mine planning, particularly when considering the high relief within the Project area.

Table 2: Wicheeda Mineral Resource (effective date November 21, 2021)

Notes for Resource Table:

  • The MRE was prepared by Warren Black, Sc., P.Geo. of APEX Geoscience Ltd under the supervision of the QP, André M. Deiss, Bsc (Hons), Pri.Sci.Nat. of SRK Consulting (Canada) Inc., in accordance with CIM Definition Standards.
  • The MRE is classified according to the CIM “Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines” dated November 29th, 2019 and CIM “Definition Standards for Mineral Resources and Mineral Reserves” dated May 10th, 2014.
  • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no guarantee that any part of the mineral resources discussed herein will be converted to a mineral reserve in the future.
  • All figures are rounded to reflect the relative accuracy of the estimates. Total may not sum due to rounding.
  • Mean rock densities supported by 795 measurements applied: 2.94 g/cm3 (dolomite-carbonatite), 2.87 g/cm3 (xenolithic-carbonatite), 2.70 g/cm3 (syenite), and 2.74 g/cm3 (limestone).
  • The reasonable prospect for eventual economic extraction is met by reporting the Mineral Resources at a cut-off grade of 0.50% TREO (total rare earth oxide, sum of 10 oxides: CeO2, La2O3, Nd2O3, Pr6O11, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3 and Ho2O3), contained within a Lerchs-Grossman (LG) optimized pit shell
  • The cut-off grade is calculated, and the LG pit is optimized based on the assumption that the hydrometallurgical processes can produce mixed REE carbonate precipitates. The parameters utilized include the following considerations:
    • TREO price: $18.66/kg
    • Exchange rate of 1.30 C$:US$
    • Precipitate production grades of 81.09% of TREO
    • Processing cost includes $21.47/t of mill feed for flotation plus a variable cost for hydrometallurgical plant that varies based on the feed grade. The average cost of hydrometallurgical plant is assumed to be $1,204/t of concentrate.
    • Mining cost of C$2.00/t for mill feed and waste
    • G&A Costs included in the processing cost is C$6M/yr
    • The overall process recoveries: For TREO>=2.3%, recovery is 69.6%; between 2.3% and 1.5% TREO, recovery is 65.3%; and less than 1.5% TREO, recovery is 52.2%. These assume variable flotation recoveries and a constant 87% hydrometallurgical recovery.
    • Overall pit slope angles vary by zone between 40 and 48 degrees

The PEA for the Wicheeda REE Deposit is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment forecasts will be realized or that any of the resources will ever be upgraded to reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Mineral Resource Estimate Methodology

  1. The drillhole database comprised of 27 exploration diamond drillholes completed in 2008 and 2009 by previous operators (14 holes totalling 2,244 metres) and in 2019 by Defense Metals (13 holes totalling 2,005 metres), containing a total of 1,315 drill core samples analyzed for REE by multi-element fusion ICP-MS.
  2. The 3D geological modeling integrates assay and geological data collected from diamond core drilling; surface geologic mapping; soil geochemical; and airborne magnetic; and radiometric geophysical surveys.
  3. Search ellipsoids defined by metal modelled variograms, which range from 130 to 140 m in the major axis, 100 m in the minor axis, and 9 to 18 m in the vertical axis. The MRE was estimated with 3 m composites utilizing Ordinary kriging and local varying anisotropy.
  4. Indicated Resources were categorized within a search ellipse of 90 m by 60 m by 9 m with a minimum of 5 drillholes. Inferred blocks do not extend beyond the limits of the variograms.

Table 3: Mineral Resource cut-off sensitivity

Notes 1. 1 Tonnes constrained within a LG open pit. 2. 2 TREO % sum of CeO2, La2O3, Nd2O3, Pr6O11, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3 and Ho2O3. 3. Grades are reported as in-situ grades.

Table 3 above illustrates the sensitivity of the MRE to different cut-off grades for a potential open-pit operation scenario with reasonable outlook for economic extraction. The reader is cautioned that the figures provided in these tables should not be interpreted as a statement of mineral resources. Quantities and estimated grades for different cut-off grades are presented for the sole purpose of demonstrating the sensitivity of the resource model to the choice of a specific cut-off grade.

Mine Planning

SRK developed and evaluated a series of operational scenarios involving different production rates and saleable products to arrive at an optimum solution for mine development. An optimization model was used to check the sensitivity of the deposit against various key variables, and multiple high-level schedules were costed and economically assessed under varying pricing assumptions.

From this scenario analysis, a go-forward scenario was selected for further refinement. An updated pit optimization was run to select a pit based on optimizing the balance of NPV and risk. This pit was the basis of a production schedule for the LOM.  Over the LOM, the project will generate 26.1 Mt of mill feed at a strip ratio of 1.75:1 (waste:mill feed) and an average grade of 2.3% TREO.

Figure 1: PEA mine schedule

The Wicheeda deposit will be mined as a conventional open pit operation. In-pit haulage for both mill feed and waste will be by 65 tonne haulage trucks. Mill feed will be mined in six-metre benches and hauled to the crusher close to the pit rim. Crushed mill feed will be conveyed to the flotation mill.

Waste rock will be mined and hauled to an on-site rock storage facility as well as to the tailings storage facility (TSF) for embankment construction.

The mining operation has been costed as owner operated.

Flotation Concentrator

Material from the Wicheeda deposit is to be processed in a flotation concentrator to produce a flotation concentrate that is further processed at the hydrometallurgical plant. The flotation concentrator is to incorporate unit operations that are standard to the industry and include: crushing and grinding to liberate the REE minerals from the waste rock, followed by conditioning at elevated temperature with the required reagents followed by rougher and scavenger flotation. The resulting rougher-scavenger flotation concentrate is to be further upgraded during multiple stages of reagent conditioning and cleaner flotation. The upgraded flotation concentrate is then thickened, filtered and prepared for transport to the hydrometallurgical plant for further processing. The flotation concentrator tailings is to be pumped to the TSF for disposal.

An important aspect for a successful rare-earth project is the production of a flotation concentrate[1], and only a select number of companies have been able to report such achievement. A high-grade flotation concentrate leads to smaller hydrometallurgy plant equipment and consequently considerably lower capital expenditures. As lower volumes of mineral concentrate are processed, there are also operating costs benefits as less reagents are consumed.

Hydrometallurgical Plant

Flotation concentrate is subjected to a pre-leach process using hydrochloric acid (HCl) to remove gangue minerals that are present. The pre-leach residue is then processed by caustic cracking using a strong sodium hydroxide (NaOH) solution at elevated temperature. This converts the REE phosphate and fluorocarbonate minerals to hydroxides and dissolved phosphate, fluoride and carbonate species. The dissolved species are precipitated using lime and the NaOH thereby regenerated and re-used. The REE hydroxide is leached with HCl, impurities removed and the REE then precipitated with lime to form a REE hydrate which is dried, packaged, and sent to market.

As noted, NaOH used is regenerated using lime and the hydrochloric acid is regenerated using sulphuric acid. Waste products from the hydrometallurgical plant consist mainly of gypsum, excess lime, calcium phosphate and carbonate and minor metal precipitates. The hydrometallurgical residue is combined with the flotation tailings for storage.

The hydrometallurgical plant design summarized above is based on extensive bench-scale hydrometallurgical testing by SGS Lakefield on bulk samples of flotation concentrate produced during pilot plant flotation operations on Wicheeda mineralized material. Hydrometallurgical testwork is continuing and will result in pilot plant demonstration of the selected process.

On-site Project Infrastructure

Water Management

The Wicheeda Project will consist of infrastructure on the east and west extents of Wichcika Creek, and upstream of Wicheeda Lake. Water management infrastructure are required to capture the surface water runoff and seepage from the open pit, waste rock storage facilities, mill feed stockpiles, and the tailings storage facility.

A single collection pond down stream of the pit and waste storage area will have sufficient storage capacity to manage a 1 in 100-year rainfall event. Water collected in the open pit will be directed to the pond, along with runoff from the processing plant pad. Inflows to the pond will be pumped to the processing plant or will be treated and discharged to Wichcika Creek.

The TSF will provide sufficient water storage capacity to handle the Inflow Design Flood based on its dam classification and safely manage more extreme events.  A minimal TSF decant pond will be maintained, with a dedicated water management pond downstream of the water storage area, as noted above which will maintain a minimum pond volume to meet monthly water demand at the processing plant. All excess water will be pumped to the dedicated water management facility and/or contact water ponds at the processing plant area for recirculation in the plant or to be treated and discharged. A series of seepage collection stations will also be located along the downstream toe of the TSF dam to pump seepage back into the TSF pond.

Waste rock and pit wall water quality are expected to have elevated levels of molybdenum, arsenic, uranium and radium. Water in the TSF is expected to be elevated for the same parameters as waste rock and pit wall areas, along with fluoride. A water treatment plant has been sized based on a monthly water balance with the 1 in 25-year annual runoff contributions to the waste rock areas, open pit, and TSF. The plant is expected to treat for molybdenum, arsenic, uranium, radium and fluoride and will be situated at the processing area. The plant is sized to treat up to 2300 gpm of water and will discharge excess water from the water management facilities to Wichcika Creek.

Long-term water quality predictions for the project area will be developed to determine the duration of water treatment requirements. Closure strategies will be implemented to reduce the long-term water treatment requirements, including flooding the open pit, as well as resloping and covering of waste rock dumps and the tailings area.

Tailings

The TSF is a key aspect of the operation. The following operating and mine life assumptions were used to determine the required tailings storage capacity:

  • Total mill feed to be mined – 26 million tonnes
  • An assumed annual mining rate – 1.8 Mtpa (= average of 5,000 tpd)
  • LOM is 16 years (minimum)
  • 100% of tailings and hydrometallurgical residue go to the TSF
  • Required TSF capacity = 20 million cubic meters (m3) (at an average assumed dry density of 1.4 t/m3)

SRK completed several site selection exercises. Each site selection exercise was based on slightly different criteria provided by the operation and included consideration of both dewatered (thickened, filtered) and conventional slurry tailings. Conventional slurry tailings disposal is the basis of the PEA.

The TSF location, layout depositional approaches and water management will be further developed to meet both provincial regulations as well as Canadian and Global standards of good practice as the project advances through the PEA to future studies.

General Site Infrastructure

An additional allowance for general site infrastructure such as buildings, site roads and other items of $26 million was added to the capital costing.

Offsite Project Infrastructure

Power

Power is assumed to be supplied via a new high-voltage line connecting to the BC Hydro 138 kV line (1L 365) running to the west of the project to the project site. Costing has been derived from benchmarks and no detail design has been undertaken

Access

The existing forestry road from Bear lake to the project site is assumed to be upgraded for logistics access. The road crosses Wichcika Creek. The construction of a bridge is required, and this has been costed at a conceptual level. The bridge is also required for the backhaul of rock from the mine for the construction of the TMF.

Water Supply

Water is relatively abundant in the project area with multiple streams, lakes and rivers within proximity. An allowance for a local source was made in the costing.

Costing assumptions for offsite project infrastructure is shown in Table 3. A 25% contingency is included in the estimates.

Table 3: Offsite infrastructure capex estimates

Environmental and Social

The project is located within Treaty 8 territory. A robust Engagement Management Plan will be developed and implemented in order to initiate the federal and provincial environmental assessment process the project will be required to complete.

In addition to the engineering work required to advance the design of the water and tailings management Defense Metals will also be developing and initiating the collection of a thorough environmental baseline database. The environmental database which will contain data on physical properties (hydrogeology, hydrology, geochemistry, climatic conditions) as well as all biological properties of the immediate and regional project areas (flora and fauna, terrestrial and aquatic species). Following the collection of the environmental baseline database an environmental assessment satisfying the Canadian Impact Assessment Act and British Columbia’s Environmental Assessment Act will be completed in order to advance the project through to production.

Capital Costs Summary

The initial project capital cost is estimated at $461 million, including a contingency allowance of 20% to 25% for major items. Initial operating cashflows from the project are re-invested in the construction of the hydrometallurgical plant.

Table 4: Total capital cost estimates

The duration of the detailed design and construction phase of the project has been estimated to be 36 months.

Operating Costs Summary

The operating cost estimates are shown in Table 5. For the hydrometallurgical plant costs, only mill feed associated with the plant operation is considered for calculation of unit costs.

Table 5: Total operating cost estimates

Financial Analysis and Sensitivity

The expected project cashflows were modelled using a simple discounted cash-flow model. A discount rate of 8% was used. The model uses real 2021 USD for all cashflows and costs and is configured for annual periods, and an exchange rate of 1.3 CAD/USD was used for reporting CAD values as used in this Press Release.

A simple tax model was constructed using a depletion model for depreciation estimates. No opening balance of tax credits or eligible prior expenditure was used. The estimates of tax payable are considered to likely be conservative (high) from the perspective of Defense Metals. Table 7 summarizes the estimated total LOM cashflows. The column at the right is the NPV (cost) of those cashflows.

Table 7: Key financial and project metrics

Figure 2 show simple single factor sensitivity to changes in the main parameters of commodity price, capital costs and operating costs.

Breakeven (zero) NPV corresponds to a reduction in price assumption of 22% compared to base case.

Figure 2: Sensitivity chart

About the Wicheeda REE Property

The 2,008 hectare Wicheeda REE Property, located approximately 80 km northeast of the city of Prince George, British Columbia, is readily accessible by all-weather gravel roads and is near infrastructure, including power transmission lines, the CN railway and major highways.

Geologically, the property is situated in the Foreland Belt and within the Rocky Mountain Trench, a major continental geologic feature. The Foreland Belt contains part of a large alkaline igneous province, stretching from the Canadian Cordillera to the southwestern United States, which includes several carbonatite and alkaline intrusive complexes hosting the Aley (niobium), Rock Canyon (REE), and Wicheeda (REE) deposits.

Qualified Persons

SRK Qualified Persons (QPs) are all independent as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects and have contributed to their corresponding sections of the PEA, and have reviewed and approved the scientific, technical, and economic information contained in this news release.

The SRK QPs include André Deiss, (geology and mineral resources), Andy Thomas (pit geotechnical), Anoush Ebrahimi (mining), Eric Olin (flotation concentration), Samantha Barnes (water management), Mark Liskowich (environmental-social -permitting), and Neil Winkelmann (infrastructure, marketing and economics). Associate consultant, John Goode, is the QP for hydrometallurgical processing.

The scientific and technical information contained in this news release as it relates to the Wicheeda REE Project has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, a director of Defense Metals and a “Qualified Person” as defined in NI 43-101. Mr. Raffle verified the data disclosed which includes a review of the analytical and test data underlying the information and opinions contained therein.

About SRK

SRK is an independent, global network of consulting practices in over 45 countries on six continents. Its experienced engineers and scientists work with clients in multi-disciplinary teams to deliver integrated, sustainable solutions across a range of sectors – mining, water, environment, infrastructure and energy.

About Defense Metals Corp.

Defense Metals Corp. is a mineral exploration company focused on the acquisition of mineral deposits containing metals and elements commonly used in the electric power market, defense industry, national security sector and in the production of green energy technologies, such as, rare earths magnets used in wind turbines and in permanent magnet motors for electric vehicles. Defense Metals has an option to acquire 100% of the Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

National Instrument 43-101 Technical Report

A technical report for the Wicheeda Project will be prepared in accordance with National Instrument 43-101 and will be filed on SEDAR at www.sedar.com and on the Company’s website within 45 days of this news release. Readers are encouraged to read the technical report in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release. The technical report is intended to be read as a whole, and sections should not be read or relied upon out of context.

For further information, please contact:

Todd Hanas, Bluesky Corporate Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Email: [email protected]

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Statement Regarding “Forward-Looking” Information

This news release contains “forward‐looking information or statements” within the meaning of applicable securities laws, which may include, without limitation, statements relating to the PEA and its potential and expected outcomes including the capital costs, operating costs, internal rate of return, annual production, and net present value of the Wicheeda Project, the ongoing optimization test work and the expected outcomes, plans for its Wicheeda Property, assays, drill results and expected timelines, results and outcomes, expanded resource and scale of expanded resource, potential production, the advancement and development of the Wicheeda Property, further metallurgical work, engagement with stakeholders, the technical, financial and business prospects of the Company, its project and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of rare earth elements, the anticipated costs and expenditures, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including the risks and uncertainties relating to the interpretation of exploration results, risks related to the inherent uncertainty of exploration and cost estimates, the potential for unexpected costs and expenses and those other risks filed under the Company’s profile on SEDAR at www.sedar.com. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather and climate conditions, failure to maintain or obtain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations),  risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), risks relating to inaccurate geological and engineering assumptions, decrease in the price of rare earth elements, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate, loss of key employees, consultants, or directors, increase in costs, delayed drilling results, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.












Author: Resource World

Energy & Critical Metals

Ford Is the Ideal Long-Term Electric Vehicle Investment

Some folks might be tempted to view Ford (NYSE:F) as an old-fashioned automaker. At the same time, today’s investors may see F stock as a relatively…

Some folks might be tempted to view Ford (NYSE:F) as an old-fashioned automaker. At the same time, today’s investors may see F stock as a relatively safe, “steady Eddie” asset to hold for many years.

Ford (F) logo badge on grill of carSource: JuliusKielaitis / Shutterstock.com

Yet, this characterization isn’t entirely fair or accurate. Ford has been around for a century, sure, but the company remains on the cutting edge of new vehicle technology.

Sure, there are start-up companies seeking to dominate the electric vehicle (EV) market today. If you listen to Ford’s critics, you might be led to believe that the company is an old-fashioned relic of the days when Detroit ruled the automotive landscape. But don’t count Detroit out, and don’t make the mistake of dismissing Ford as an EV market contender. Ford still has plenty of clout in the traditional automotive industry that could help them to easily transition into the EV space.

F Stock at a Glance

The journey that F stock took from around $4 in March of 2020, to around $20 in late 2021, has been nothing short of amazing. It just goes to show that buying during times of peak panic can be a highly profitable strategy. Of course, this strategy is easier to implement when you’re dealing with large, well-established and well-financed companies like Ford.

This year, F stock stair-stepped its way up to $11, then $14, and finally $19. The stock’s 52-week high at the end of November was $20.79. After such an impressive run-up, some folks might assume that Ford shares are too expensive to buy. Does this line of argument really hold up, though?

Instead of relying on assumptions, let’s check the data. As it turns out, Ford’s trailing 12-month price-to-earnings ratio is 27.41. That’s not what you’d expect to see with an expensive stock.

Moreover, Ford pays a forward annual dividend yield of 2.09%, which is the icing on the cake for the company’s long-term investors.

It’s Not All Electric

Before we delve into the fast-paced world of EV’s, it’s important to bear in mind that lots of people drive traditional vehicles. And, many of those vehicles were made by Ford. For instance, through October, Ford sold around 80,000 of its Ranger model trucks in 2021. That’s not too shabby, considering there’s been a global semiconductor shortage this year.

Furthermore, Ford recently unveiled its 2022 Ranger midsize pickup truck. Jim Farley, Ford’s Chief Executive Officer (CEO) tweeted: “Sold in more than 180 countries around the world, it’s truly a global vehicle,” in reference to the new Ranger version.

In total, Ford’s U.S. auto sales for November were 158,793 units, representing a 5.9% year-over-year increase.

EV sales will be part of that total, no doubt. Nevertheless, Ford’s ability to deliver internal-combustion vehicles shouldn’t be ignored. After all, America’s migration to EV’s won’t happen overnight and the non-electrified Ranger will still appeal to many drivers.

Prepare for a Big Launch

All of that being said, Ford clearly recognizes that EV’s must be a key component of the automaker’s business model. Thus, it could be a seismic event when Ford starts to ship out its electric F-150 pickup truck to the public in 2022.

Some truck enthusiasts might even consider this launch to be a pivotal event in automotive history, akin to Ford’s introduction of the Model T in 1908.

The F-150 is an iconic truck model. If any vehicle can entice reluctant drivers into the EV revolution, it’s that one. Put it this way: the F-150 has been the best-selling vehicle in the U.S. for over 40 years. Electrifying this truck could, indeed, electrify the American EV market in general.

The Takeaway on F Stock

You might not have expected Ford to jump head-first into the vehicle-electrification movement. Yet, today’s automakers must be willing to adapt to consumers’ demands.

Ford remains a highly investable company because it’s not just adapting — it’s ahead of the curve.

Therefore, feel free to hold your F stock shares for solid dividends, good value and a stake in the future of automotive technology.

Ford currently has a grade of “A” in my Portfolio Grader.

On the date of publication, Louis Navellier had a long position in F.  Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today

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The Red-Hot Bull Market Investors Are Ignoring

We are right now in the early stages of a red-hot bull market for one often-overlooked natural resource.
It’s an essential commodity – one that is…

We are right now in the early stages of a red-hot bull market for one often-overlooked natural resource.

It’s an essential commodity – one that is currently worth about 100 times more than natural gas.

Soaring demand for this commodity – at a time when we’re facing a critical shortage – has created an explosive growth opportunity for those investors who know where to look.

This opportunity is in helium.

Yes…helium is now about 100 times more valuable than natural gas.

A resource that has for decades been thought of only as part of a child’s birthday balloon is actually one of the world’s most critical – and irreplaceable – commodities.

And right now we’re on the verge of a critical shortage.

Making matters worse is that, thanks to a combination of factors, there have been virtually no companies exploring for new sources of helium until very recently.

This opportunity is so potentially lucrative that an expert collaboration of natural resource veterans has come together to develop projects with extraordinary potential.

The company is Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF), a little-known Canadian company that now appears primed for rapid growth.

This Team Led Development on One of North America’s Largest Oil & Gas Discoveries…and Now They’re Seeking to Do It Again – With Helium

There’s a dire need for new, North American helium supplies to be brought online as quickly as possible.

For decades, the U.S. was the world’s largest producer of helium, accounting for as much as 40% of the worlds’ supply.

The world’s single largest source of helium for the past 70 years has been the U.S. Federal Helium Reserve (FHR) in Amarillo, Texas.

But within the past few years, the FHR stockpile has been depleted, and the helium market has opened up to the private sector for the very first time in modern history.

And with helium seeing such a tremendous surge in demand – thanks to its use in semiconductors as well as a host of other critical industries – a significant supply gap is emerging for this essential resource.

This is precisely the opportunity that helped bring together an All-Star collection of natural resource industry veterans with Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF).

It’s a team that was (while formerly at Encana) involved in the early stages of the discovery of the Montney Formation, one of the premier natural gas formations in North America.

Without question, the Avanti Energy team is the most experienced – and most decorated – in the helium space, with direct experience in developing multi-billion dollar projects from their time at Encana.

And that’s what this team is working to do again at Avanti Energy…with drilling set to commence on an initial three wells in what could ultimately prove to be a significant helium project in Montana.

Avanti CEO Chris Bakker has over two decades of experience in oil and gas, most recently working as a commercial negotiator with Encana (now Ovintiv) for major facilities and pipelines in the Montney gas play.

His expertise includes all facets of Natural Gas Exploration like land acquisition, exploration, drilling, well production and facility integration and construction.

Vice President of Subsurface Genga Nadaraju has over two decades of experience in the oil & gas industry…Director of Geoscience Dr. Jim Wood has over 30 years of experience as a geologist specializing in reservoir characterization…VP of Engineering Ali Esmail has spent the past 13 years specializing in reservoir engineering …and Senior Geophysicist Richard Balon has over 30 years of experience in the Western Canadian Sedimentary Basin.

This is an experienced team with an impressive track record of success in the oil and gas industry.

And now they appear poised to do it again.

Avanti Energy Could Be Sitting On As Much As $1 Billion Worth of Helium – or More – in the Greater Knappen Area

This very same successful team is now using the same methodology at Avanti Energy to explore for what it hopes will prove to be some of the richest helium deposits in the world.

The company’s strategy to date has been to pull in on only the very best properties in western Canada and the United States.

This search for “the best of the best” led Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) to the Greater Knappen area of Alberta and Northern Montana.

The company has a 100% ownership stake in approximately 69,000 acres of helium prospective land in this mineral-rich region.

Just recently, the company announced that it had completed its geological interpretation of this property, discovering an estimated undiscovered and unrisked resource potential of:

* Low case: 1.4 bcf of Helium

* Mid case: 4.4 bcf of Helium

* High case: 8.9 bcf of Helium

Based on these estimates, it’s possible that Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) could be sitting on as much as $1 billion worth of helium.

And they’re already moving forward with an aggressive schedule to bring production online as early as Q3 of 2022.

In fact, the first well in Montana is expected to be spud in early December with well results ready sometime early in the New Year.

And on November 9, the company announced that it has contracted with T&S Drilling for its initial three well drilling program at its Greater Knappen land holdings in Northern Montana.

The initial drilling program is scheduled to spud in early December and will target three separate pay zones, two in the Beaverhill Lake formation and one in the Basal Sandstone formation. The drilling targets exhibit structural highs with relief of 70m to >200m. Previously drilled wells surrounding Avanti’s lands have high helium shows in multiple Devonian and Cambrian targets with helium percentages of up to 2% and nitrogen percentages of up to 96%.

Analysts at Beacon Securities report that, “Our expectation of 3 exploratory wells in Q4/21 and initial helium production in Q3/22 remains unchanged…we continue to have high expectations for the Greater Knappen area. The initial drilling program in Montana and Alberta will just be the start of a multi-year exploration and development program for AVN. We maintain our $3.80 target price and our Spec Buy rating.”

This potential helium production – as early as Q3 2022 – is happening for Avanti Energy in the midst of soaring demand thanks to helium’s many impactful uses.

Why Helium is Seeing Such a “Rocket Launch” of Demand

As a noble gas helium is not combustible and has properties that make it irreplaceable for a number of important industrial applications.

Helium is the second most abundant element in the universe but it is extremely rare on earth.

With the global helium shortage we are now facing, it’s estimated that the supply will not keep up with demand for the next 20 years.

And that is happening as industry demand is projected to increase at a compound annual growth rate of 11% each year through 2037.

While helium is most commonly thought of as being used for the inflation of balloons, the truth is helium is used in a number of critical parts of daily life.

* Medical Industry – Helium is used to operate MRI machines and as part of respiratory treatments.

* Cryogenics – Helium is the only element that can come close to reaching absolute zero.

* Internet Connectivity – Fiber optic cables must be manufactured in a pure helium environment.

* Electronics – Many electronics and semiconductors – including mobile phones – require helium to be used at various stages of the production process.

* Computers – Helium-filled hard drives offer 50% higher storage capacity with 23% lower operating power.

* Car Air Bags – Helium is the gas of choice for effecting the near instantaneous deployment of air bags in cars.

Helium is used by companies like Amazon, Google and Netflix to help cool their data centers. And both the U.S. and Canadian governments have recently added helium to their critical minerals lists.

Not to mention… an estimated $12 million worth of helium is needed for a single space rocket launch.

In fact, the single largest buyer of helium is NASA, consuming almost 75 million cubic feet annually to cool liquid hydrogen and oxygen for rocket fuel.

And with the highly publicized rocket launches from Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin…that consumption of helium for space launches is only likely to increase in the months ahead.

That’s why Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) right now appears to be such an attractive potential investment.

– The company is led by a team of oil and gas executives with a history of success in the exploration space, including the discovery of the Montney Formation, one of the premier natural gas formations in North America.

Avanti Energy’s shares are currently trading for less than $1.50 per share – meaning there is tremendous upside potential.

– Beacon Securities has established a price target of $3.80 for the stock – more than a 100% increase from its current level and maintains its Spec Buy rating on the company.

– In addition, Avanti Energy (TSX:AVN.V; OTCMKTS:ARGYF) Chris Bakker is so confident in the company’s potential that he spent nearly $500,000 buying stock at levels nearly double where the stock is now, with purchases at $2.91 per share on May 5, 2021 and at $2.45 per share in June. And with the recent drilling announcement, Bakker started buying again…

– The company has identified a significant potential helium resource on its Greater Knappen property and is moving quickly to commence drilling. With a target spud date in early December for the first well, the company is on target to begin initial production upon successful testing sometime in Q3 of 2022.

Other companies that could benefit from a different kind of shortage…

While the tech industry runs on helium…it is also dependent on another kind of resource. One that both a shortage of materials, and production shutdowns during COVID-19 has made increasingly scarce. Semiconductors.

One of the world’s leading semiconductor manufacturers, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) has a storied history and helped shape many technologies we rely on today. Founded by Morris Chang in 1987 as part-time contract chipmaker for IBM and Motorola–the company that would eventually become known simply as “TSM ” or Taiwan Semiconductor Manufacturing Company was only 200 strong when it started out back then! It wasn’t until quality control became its top priority day 1 though; this focus makes all difference because even with more employees than any other foundry group at over 14k people now (with plenty still coming soon) they’re able to maintain those high standards which led them into becoming one of Apple Inc.’s primary suppliers alongside Nvidia Corp., Qualcomm, and more.

The global semiconductor industry is a highly competitive one and only five companies in the world own chip-making facilities, making Taiwan Semiconductor a standout in the industry.. Indeed, many leading top semiconductor companies are “fabless,” meaning they only design the chips but rely on other companies, known as foundries, to actually make the chips. The shift to outsourcing has been having a big effect on structural changes and related capacity because companies that cut orders in the early days of the pandemic have been forced to go to the back of the line.

Taiwan Semiconductor is a key player to watch in both the helium shortage and the semiconductor shortage. As the world’s largest chipmaker, it needs helium to survive. And with a semiconductor supply squeeze looming, it could stand to benefit big when Big Tech comes knocking.

Intel Corporation (NASDAQ:INTC) is a multinational technology company headquartered in California. It has been around since the late 1950’s, when it was founded by Robert Noyce and Gordon Moore who first coined their portmanteau name- Integrated Electronics or Ie. Intel supplies processors for computer systems such as desktops laptop servers tablets mobile phones (including smartphones) and more; they also make motherboard chipsets that connect these devices together so you can use your processor effectively while having access to fast memory too!

At its core, Intel is a chipmaker. And a big one at that. It’s also a leader in the global semiconductor game thanks to its investments in 65nm process, an advanced node used in volume CMOS semiconductor fabrication. Intel has manufactured semiconductors in Ireland since 1990, and has invested around $6 billion there in this time, but is beginning to branch out with new investments in the United States, as well.

Advanced Micro Devices (NASDAQ:AMD) is an innovator in the world of computing and graphics. The company was founded over forty years ago with a single mission: to advance technology as fast it could be invented. Since then, they’ve become one of the most relied upon brands for processing power – both at home on your own PC or game console; but also when you need high performance computer systems that can process data quickly enough maybe even live video streaming where every millisecond counts!

Advanced Media Devices isn’t just building home computers, either. AMD also is building CPUs to be used in massive data centers, the kind supporting the likes of Microsoft’s Azure cloud-based workstations and desktops and much more. And its GPUs are providing the speed, security, and scalability to keep these data centers performing at the level needed to push modern tech into the future.

Nvidia (NASDAQ:NVDA), AMD’s biggest competitor, is a company that develops graphics processing units, or GPUs. Nvidia was founded in 1993 and has been making waves in the gaming industry ever since with their innovative products. They are continually releasing new technologies to stay ahead of the competition and have an excellent reputation for quality. The company also manufactures processors that power many other devices such as automobiles, robots, and smartphones. These processors are often used for artificial intelligence systems like driverless cars or voice commands on mobile phones so we can expect Nvidia’s technology to keep getting more advanced over time!

Nvidia’s dedication to innovation is clear in all areas of tech, from computer graphics and artificial intelligence research that are core to robots or future cities.

It’s also pushing new technologies into the world with its enterprise server GPUs—even setting records! Thanks for being there when we needed you most, Nvidia–and don’t worry: your hardware will not go unsupported now that it has been so instrumental before this point too.

With more and more demand coming for semiconductors and new chip technology hitting the market, companies like Nvidia, AMD, Taiwan, Samsung and Intel are going to be some of the biggest benefactors. They’re already well-known in the industry, and this could just be their time to really shine. But a looming helium shortage could present a number of complications for the booming tech giants.

IBM Corporation (NYSE:IBM) or International Business Machines Corporations an American multinational technology company with headquarters in Armonk New York. They specialize in developing and providing computer related products worldwide like the automated teller machine (ATM), magnetic stripe card which we use today for credit cards among other things such as floppy disks drives; hard disk drives that store data magnetically on aluminum foil within a circular shape called platters rotating at over 3 inches per second so it can be read by head movements inside our computers.

IBM is often considered one of the most innovative companies in its field, with a long list of inventions to date. In fact they were responsible for many technologies that are now taken-for granted and seen around us every day like ATMs or floppy disks! And while this history certainly makes them an excellent candidate when it comes time to explore new trends such as blockchain technology; their rapid growth means they aren’t ignoring any potential opportunities – which could very well turn out right where you least expect them first.

IBM’s blockchain platform, built on the open-source Hyperledger Fabric platform from the Linux Foundation is helping companies with a wide variety of blockchain solutions including tools for the finance sector, supply chain transparency, and letters of guarantee. IBM’s blockchain platform even helps interested parties develop their own blockchain solutions through educational tools and personalized assistance.

Lithium Americas Corp. (TSX:LAC) is one of America’s most critical and promising pure-play lithium companies. With two world-class lithium projects in Argentina and Nevada, Lithium Americas is well-positioned to ride the wave of growing lithium demand in the years to come. It’s already raised nearly a billion dollars in equity and debt, showing that investors have a ton of interest in the company’s ambitious plans.

Lithium America is not looking over the growing pressure from investors for responsible and sustainable mining, either. In fact, one of its primary goals is to create a positive impact on society and the environment through its projects. This includes cleaner mining tech, strong workplace safety practices, a range of opportunities for employees, and strong relationships with local governments to ensure that not only are its employees being taken care of but local communities, as well.

Celestica (TSX:CLS) is a key company in the resource boom due to is role as one of the top manufacturers of electronics in North America. Celestica’s wide range of products includes but is not limited to communications solutions, enterprise and cloud services, aerospace and defense products, renewable energy, and even healthcare tech.

Due to its exposure to the renewable energy market, Celestica’s future is tied hand-in-hand with the green energy boom that’s sweeping the world at the moment. It helps build smart and efficient products that integrate the latest in power generation, conversion and management technology to deliver smarter, more efficient grid and off-grid applications for the world’s leading energy equipment manufacturers and producers.

Turquoise Hill Resources Ltd. (TSX:TRQ) is a key player in Canada’s resource and mineral industry. It is a major producer of coal and zinc, two resources with distinctly different futures. While headlines are already touting the end of coal, zinc is a mineral that will play a key role in the future of energy for years and years to come.

In addition to its zinc operations, Turquoise Hill is also a significant producer of Uranium. Uranium is a key material in the production of nuclear energy, which many analysts are suggesting could be a major component in the global transition to cleaner energy. While the mineral has not seen significant price action in recent years, there are a number of new projects set to come online across the globe in the medium term, which could be a boon to Turquoise Hill, especially as alternative energies gain traction in the marketplace.

Teck Resources (TSX:TECK.A) could be one of the best-diversified miners out there, with a broad portfolio of Copper, Zinc, Energy, Gold, Silver and Molybdenum assets. It’s even involved in the oil scene! With its free cash flow and a lower volatility outlook for base metals in combination with a growing push for copper and zinc to create batteries, Teck could emerge as one of the year’s most exciting miners.

Though Teck has not quite returned to its January highs, it has seen a promising rebound since April lows. In addition to its positive trajectory, the company has seen a fair amount of insider buying, which tells shareholders that the management team is serious about continuing to add shareholder value. In addition to insider buying, Teck has been added to a number of hedge fund portfolios as well, suggesting that not only do insiders believe in the company, but also the smart money that’s really driving the markets.

Maxar Technologies (TSX:MAXR) is one of the leading space companies on the planet, founded nearly 20 years ago. Maxar has a variety of services, including satellite development, space robotics, and earth observations. One of their most well-known products is the Canadarm2 robotic arm for the International Space Station (ISS). The ISS has been operational since 1998 with more than 100 missions to date. Maxar Technologies has had a history of partnering with NASA to maintain the ISS’s systems as well as providing them with new technologies such as the Canadarm2 robotic arm. is a moon-bound tech stock to keep an eye on. While space firm specializes in satellite and communication technologies, it is also a manufacturer of infrastructure required for in-orbit satellite services, Earth observation and more.

More importantly, however, Maxar’s subsidiary, SSL, a designer and manufacturer of satellites used by government and commercial enterprises, has pioneered research in electric propulsion systems, lithium-ion power systems and the use of advanced composites on commercial satellites. These innovations are key because they allow satellites to spend more time in orbit, reducing costs and increasing efficiency.

** IMPORTANT NOTICE AND DISCLAIMER — PLEASE READ CAREFULLY! **

PAID ADVERTISEMENT. This article is a paid advertisement. OpeningTrades.com and its owners, managers, employees, and assigns (collectively “the Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Avanti Energy Inc. (“Avanti” or “AVN”) to conduct investor awareness advertising and marketing. Avanti paid the Publisher to produce and disseminate five similar articles and additional banner ads at a rate of Twenty Eight thousand US dollars per article. This compensation should be viewed as a major conflict with our ability to be unbiased.

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This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on interviews with company management, and does not (to the Publisher’s knowledge, as confirmed by Avanti) contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.

SHARE OWNERSHIP. The Publisher owns shares and / or options of the featured company and therefore has an additional incentive to see the featured company’s stock perform well. The Publisher does not undertake any obligation to notify the market when it decides to buy or sell shares of the issuer in the market. The Publisher will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

FORWARD LOOKING STATEMENTS. This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that prices for helium will significantly increase due to global demand and use in a wide array of industries (including key technology sectors) and that helium will retain its value in the future due to the demand increases and overall shortage of supply; that the Avanti team will be able to develop and implement helium exploration models, including their own proprietary models, that may result in successful exploration and development efforts; that historical geological information and estimations will prove to be accurate or at least very indicative of helium; that high helium content targets exist in the Alberta and both Montana projects; and that Avanti will be able to carry out its business plans, including timing for drilling and exploration. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that demand for helium is not as great as expected; that alternative commodities or compounds are used in applications which currently use helium, thus reducing the need for helium in the future; the degree of success of the coming drilling campaign; the accuracy of the initial estimates of helium on the land; the commercial viability of any obtainable helium, the ability to get any helium obtained to market; the accuracy of the production timeline estimates; that the Avanti team may be unable to develop any helium exploration models, including proprietary models, which allow successful exploration efforts on any of the Company’s current or future projects; that Avanti may not be able to finance its intended drilling programs to explore for helium or may otherwise not raise sufficient funds to carry out its business plans; that geological interpretations and technological results based on current data may change with more detailed information, analysis or testing; and that despite promise, there may be no commercially viable helium or other resources on any of Avanti’s properties. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

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Energy & Critical Metals

Baselode Reports High-Grade Uranium Within 15.5 Metre Mineralized Zone at ACKIO Discovery

Baselode Reports High-Grade Uranium Within 15.5 Metre Mineralized Zone at ACKIO Discovery
Canada NewsWire
TORONTO, Dec. 6, 2021

TORONTO, Dec. 6, 2021 /CNW/ – Baselode Energy Corp. (TSXV: FIND) (OTCQB: BSENF) (“Baselode” or the “Company”) is pleased…

Baselode Reports High-Grade Uranium Within 15.5 Metre Mineralized Zone at ACKIO Discovery

Canada NewsWire

TORONTO, Dec. 6, 2021 /CNW/ – Baselode Energy Corp. (TSXV: FIND) (OTCQB: BSENF) (“Baselode” or the “Company“) is pleased to report Uranium assay results from the first diamond drill hole, AK21-01, of the recent ACKIO Uranium discovery (“ACKIO“) on the Hook project (“Hook“), Athabasca Basin area, northern Saskatchewan.

Highlights include:

  • High-grade* Uranium confirmed; 1.29 wt% U3O8 over 0.5 m at 138.8 m and 0.66 wt% U3O8 over 0.5 m at 142.3 m
  • Primary mineralized zone measuring 15.5 m of 0.13 wt% U3O8 starting at 134.3 m
  • Multiple uranium intersections occurring over 200 m of drill hole length.

“We are very excited with the confirmation of high-grade Uranium at ACKIO. The ACKIO discovery is beginning to take shape; with high-grade Uranium intersected near-surface, multiple and widespread zones of mineralization, and an alteration halo that exceeds over 230 m which is suggestive of a massive structurally-controlled fluid system.  We are still in the early days of exploring and learning more about ACKIO but these assay results from AK21-01 have provided us with invaluable information to help us plan our next steps accordingly,” said James Sykes, CEO, President and Director of Baselode. 

The Company will follow this news release with a video presentation for the public in the coming days that will provide encouraging comparisons with other notable Athabasca basement-hosted, high-grade Uranium deposits, such as 1) NexGen Energy‘s (TSX:NXE) Arrow deposit, and 2) Denison Mines (TSX:DML) Gryphon deposit.  The video presentation will also highlight the significance of elevated Cobalt, Copper, and Nickel intersected within the drill hole, as well as the extent and meaning of anomalous Boron, Lithium and Vanadium within the massive alteration halo.

Assay results from the remaining drill holes (AK21-02A to AK21-04) completed on ACKIO in the summer program will be released after they’ve all been received, quality checked, and approved by the Company’s technical team.

Planned Winter Drill Program on ACKIO
Baselode is planning for a 10,000 metre diamond drill program on the ACKIO discovery to begin in mid- to late-January.  Drill holes will be planned to intersect mineralization along strike and dip, which remains open in all directions, and to test for unconformity-style of mineralization.  The drill program will be operated with helicopter support to lessen any ground-induced environmental impacts within the project area. 

ACKIO is located 30 km southeast of well-established infrastructure including an all-season road and powerline that runs between Cameco Corp.’s (TSX: CCO) and Orano’s McArthur River mine and Key Lake Uranium mill joint ventures.  ACKIO is located 70 km northeast of the Key Lake mill. 

NOTES:

 *    Baselode considers “high-grade” to be uranium mineralization with a concentration greater than 0.5 wt% U3O8

1.    All reported depths and intervals are drill hole depths and intervals, unless otherwise noted, and do not represent true thicknesses, which have yet to be determined.

 

About Baselode Energy Corp.
Baselode currently controls 100% of approximately 227,000 hectares for exploration in the Athabasca Basin area, northern Saskatchewan, Canada. The land package is free of any option agreements or underlying royalties.

Baselode’s Athabasca 2.0 exploration thesis is focused on discovering near-surface, basement-hosted, high-grade uranium orebodies outside of the Athabasca Basin. The exploration thesis is further complemented by the Company’s preferred use of innovative and well-understood geophysical methods to map deep structural controls to identify shallow targets for diamond drilling.

QP Statement
The technical information contained in this news release has been reviewed and approved by Cameron MacKay, P.Geo., Projects Manager for Baselode Energy Corp., who is considered to be a  Qualified Person as defined in “National Instrument 43-101, Standards of Disclosure for Mineral Projects.”

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Baselode Energy Corp. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Baselode Energy Corp. Additional information identifying risks and uncertainties is contained in the Company’s filings with Canadian securities regulators, which filings are available under Baselode Energy Corp. profile at www.sedar.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

TABLE 1: HOOK PROJECT – SUMMER 2021 DRILL HOLE U3O8 ASSAY RESULTS

 

DDH*

Target
Area

Az*

Dip

EOH*
(m)

Easting

Northing

Elevation

 

AK21-01

ACKIO

270

-60

471.0

526,245

6,372,955

467

 
     

From
(m)

To (m)

Interval (m)

Vertical
Depth (m)

U3O8 (wt%)

 
     

126.80

128.80

2.00

108.50

0.05

 
     

130.30

130.80

0.50

111.50

0.06

 
     

134.30

149.80

15.50

115.00

0.13

 
   

includes

138.80

139.30

0.50

118.90

1.29

 
   

and

142.30

142.80

0.50

121.90

0.66

 
     

284.60

285.80

1.20

244.40

0.06

 
     

366.70

367.70

1.00

315.50

0.05

 
     

368.80

369.20

0.40

317.30

0.06

 

Cut-off grade = 0.045 wt% U3O8

Maximum consecutive internal dilution = 2.0 m down hole

True widths have yet to be determined

*”DDH” refers to “diamond drill hole”, “Az” refers to “drill hole azimuth” and “EOH” refers to “End of Hole”

“Easting”, “Northing” are both measured in metres, NAD83 Datum, UTM Zone 13N

“Elevation” is presented as “metres above sea level”

“Vertical Depth” is presented as “metres below surface”

 

SOURCE Baselode Energy Corp.

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