Friday 17th November 2017

Resource Clips


November, 2017

November 17th, 2017

Zirconium chemical market gains traction Industrial Minerals
Uranium production cuts “very positive” for the market Streetwise Reports
Could this be the end for Tesla? Equities.com
Economic pain distributed unevenly through society GoldSeek
Great deposits: The Comstock lode Geology for Investors
Five agents of change investors need to know about now Stockhouse
Gold seems to be entering a secular bull market, says Canaccord’s Yasmin Gordon SmallCapPower
LME zeros in on electric vehicles as London comes of age Benchmark Mineral Intelligence
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal

Visual Capitalist: The rise of Tesla, part 1 of 3

November 16th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | November 16, 2017

Priced at $17 per share just seven years ago, the Tesla IPO ended up being a total bargain for anyone lucky enough to get in.

However, this view comes with the benefit of plenty of hindsight—and even Elon Musk would tell you that it wasn’t always obvious that the company would be around in 2017. There were periods of time when layoffs were rampant, the company’s payroll was covered by credit cards and Tesla was on the brink of bankruptcy.

Tesla’s rise: The history (part 1 of 3)

Today’s massive infographic comes to us from Global Energy Metals TSXV:GEMC and it is the first part of our three-part Rise of Tesla series, which will soon be a definitive source for everything you ever wanted to know about the company.

Part 1 deals with the origin of the company, challenges faced by the first EVs, the company’s strategy and initial execution, and the Tesla Roadster’s development.

 

Infographic The rise of Tesla, part 1 of 3

 

Tesla was initially conceived in 2003 out of the vision of two Silicon Valley engineers, Martin Eberhard and Marc Tarpenning. The partners had just sold their eReader company for $187 million and were looking for their next big idea.

The infamous “death” of GM’s EV1 electric car that year ended up being a source of inspiration, and the two engineers started looking into ways to reduce the world’s reliance on Middle Eastern oil and to combat climate change.

The electric car pathway was not just better than the other choices that were out there—it was dramatically better.
—Martin Eberhard,
Tesla co-founder

The company was bootstrapped until Elon Musk led the $7.5-million Series A round in February 2004 and became the controlling investor. He joined the board of directors as its chairperson and took on operational roles as well.

At this time, JB Straubel—who famously rebuilt an electric golf cart when he was only 14 years old—also joined the company as CTO.

Initial strategy

Tesla’s initial strategy was to build a high-performance sports car first, for a few reasons:

  • It would shed the existing stigma around EVs

  • Sports cars have higher margins

  • Fewer cars would need to be produced

  • High-end buyers are less price-sensitive

Instead of building the Tesla Roadster from scratch, the company aimed to combine an existing chassis with an AC induction motor and battery. And so the company signed a contract with British sports car maker Lotus to use its Elise chassis as a base.

The Roadster debut

The Roadster made its debut at a star-studded launch party in Santa Monica. The 350-strong guest list of Hollywood celebrities and the press were wowed by the two-seater sports car with a $100,000 price tag.

This is not your father’s electric car.—The Washington Post

What the audience didn’t notice?

The Roadsters had many issues that needed to be fixed—these and others would delay Tesla well beyond the planned summer 2007 delivery date.

The dark years

Tesla’s original business plan was built on the idea that the auto industry had changed drastically. Automakers now focused on core competencies like financing, engine design, sales and marketing, and final assembly—getting the hundreds of individual car parts, like windshield wiper blades or door handles, was actually outsourced.

This was supposed to make it easy for Tesla to get its foot in the door—to focus on the EV aspect and let Lotus do the rest. Instead, the company experienced an “elegance creep” phenomenon that meant customizing individual parts.

Costs spiralled out of control, things got delayed and the car began to take a very different shape than the Elise. By the time it was said and done, the Tesla Roadster was nothing like its Lotus cousin, sharing only 7% parts by count.

The revolving door

During this process, there was a revolving door of CEOs.

  • 2007: Eberhard was forced to resign as CEO in August

  • 2007: Early Tesla investor Michael Marks took the reins temporarily

  • 2007: In November, Ze’ev Drori took over as CEO and president

  • 2008: After less than a year of Drori’s run, Musk stepped in to take over the role in October

At this point, Musk had already invested $55 million in the company and it was teetering towards bankruptcy.

I’ve got so many chips on the table with Tesla. It just made sense for me to have both hands on the wheel.—Elon Musk

Some of Musk’s first moves:

  • He ended up cutting 25% of the workforce

  • He leaned on friends to help cover payroll, week to week

  • He raised a $40-million debt financing round to escape bankruptcy

  • He formed a strategic partnership with Daimler AG, which acquired a 10% stake of Tesla for $50 million

  • He took a $465-million loan from the U.S. Department of Energy. (He repaid it ahead of the deadline)

  • He recalled 75% of the Roadsters produced between March 2008 and April 2009

Despite revamping the entire production process—and the company itself—Tesla made it through its most trying time.

The Roadster’s run

The Roadster wasn’t perfect, but it helped Tesla learn what it meant to be a car company.

It is not just a car, but one of the strongest automotive statements on the road.—Car and Driver

A total of 2,450 units were produced and the specs were impressive for an EV. With a top speed of 125 mph and a zero-to-60 mph time of 3.7 seconds, the Roadster helped dispel many of the myths surrounding electric cars.

Meanwhile, the Roadster’s lithium-ion battery also was the first step forward in a battery revolution. The 992-pound (450-kilogram) battery for the Roadster contained 6,831 lithium-ion cells arranged into 11 “sheets” connected in series, and gave the car a range of 244 miles.

With the Roadster, Tesla would set up not only the future success of the company, but also the transformation of an entire industry.

This was part 1 of the Tesla series. Parts 2 and 3, on Tesla as well as the future vision, will be released in the near future.

Posted with permission of Visual Capitalist.

November 16th, 2017

Uranium production cuts “very positive” for the market Streetwise Reports
Could this be the end for Tesla? Equities.com
Texas frac sand boom puts truckers in high demand Industrial Minerals
Economic pain distributed unevenly through society GoldSeek
Great deposits: The Comstock lode Geology for Investors
Five agents of change investors need to know about now Stockhouse
Gold seems to be entering a secular bull market, says Canaccord’s Yasmin Gordon SmallCapPower
LME zeros in on electric vehicles as London comes of age Benchmark Mineral Intelligence
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal

Pistol Bay Mining wants to bring blockchain to resource companies

November 15th, 2017

by Greg Klein | November 15, 2017

Although still focused on its Confederation Lake zinc-copper portfolio in northwestern Ontario, Pistol Bay Mining TSXV:PST sees untapped potential in technology’s current upheaval. The company reports ongoing discussions to form a wholly owned subsidiary that would create blockchain applications for the mining sector, as well as oil and gas and possibly other industries. Some products could include “Ethereum smart contracts, security, claim management, resource management and the tokenization of resources,” Pistol Bay stated.

Pistol Bay Mining wants to bring blockchain to resource companies

“We believe a unique opportunity exists to lead the mineral development industry by building a resource-focused blockchain company to facilitate modern mining-related transactions,” explained president/CEO Charles Desjardins. “This represents an exciting opportunity for the shareholders of Pistol Bay and, as a founder of the original Investment.com portal, I have always recognized the need to be early in adapting to new technologies.”

Back to mineral exploration, last month Pistol Bay announced confidentiality agreements with two companies interested in partnering on Pistol Bay’s 17,000-hectare Confederation Lake properties. One company was described as a mid-tier producer, the other a junior explorer. The news followed completion of the first regional and modern geophysical program carried out over the VMS-rich greenstone belt.

Having already received an exploration permit for Confederation Lake’s Dixie claims, Pistol Bay now has applications pending for the Garnet, Fredart, Moth and Fly claim groups. “With zinc prices at a record high, there’s lots of demand for zinc and copper exploration projects,” said Desjardins. “Not many companies can offer a belt-wide property base with proven VMS mineralization and a new airborne EM survey with multiple untested targets.”

Read more about Pistol Bay Mining here and here.

Resource update underway for Rockcliff Metals’ Talbot copper property in Manitoba

November 15th, 2017

by Greg Klein | November 15, 2017

One of a number of active projects in Rockcliff Metals’ (TSXV:RCLF) Flin Flon-Snow Lake portfolio, the Talbot copper property has an updated resource estimate in the works. The initiative follows Phase II drilling and will accompany a DPEM geophysical survey on the West Talbot deep conductive plate, below and west of the deposit. In April the company announced finding VMS mineralization within the plate.

Resource update underway for Rockcliff Metals’ Talbot copper property in Manitoba

While analyzing this year’s drilling data for a resource update,
Rockcliff will conduct geophysics to help identify 2018 targets.

Rockcliff holds a 51% option on Talbot from Hudbay Minerals TSX:HBM.

Last spring’s drill campaign “identified additional areas of high-grade enrichment in the hanging wall and along strike of the present resource,” said president/CEO Ken Lapierre. “The additional DPEM geophysical survey will help us vector in on the exact up-dip location of the West Talbot deep conductive plate. The Talbot copper deposit was originally identified as a smaller geophysical conductive plate so any new larger plates identified in this area are viewed as high-priority targets.”

Dating to January 2016, Talbot’s current resource shows an inferred category for three zones:

Main zone

  • 1.44 million tonnes averaging 3.4% copper, 2.6 g/t gold, 2.4% zinc and 61 g/t silver for 107 million pounds copper, 118,600 ounces gold, 76.4 million pounds zinc and 2.83 million ounces silver

Footwall zone

  • 443,900 tonnes averaging 2.2% copper, 2 g/t gold, 2.4% zinc and 55.6 g/t silver for 22 million pounds copper, 28.5 ounces gold, 23.2 million pounds zinc and 793,800 ounces silver

North lens

  • 283,400 tonnes averaging 0.7% copper, 2 g/t gold, 1.3% zinc and 20.6 g/t silver for 4.6 million pounds copper, 18,300 ounces gold, 7.9 million pounds zinc and 187,600 ounces silver

Total

  • 2.17 million tonnes averaging 2.8% copper, 2.4 g/t gold, 2.2% zinc and 54.6 g/t silver for 133.6 million pounds copper, 165,400 ounces gold, 107.4 million pounds zinc and 3.81 million ounces silver

Rockcliff expects work to be completed by year-end, with results to be released once analyzed. Talbot has more drilling planned for 2018.

Active on several Snow Lake assets, the company began another drill campaign last week at the Bur zinc-polymetallic property. See a roundup of recent Rockcliff news here.

Read more about Rockcliff Metals here and here.

November 15th, 2017

Uranium production cuts “very positive” for the market Streetwise Reports
Could this be the end for Tesla? Equities.com
Texas frac sand boom puts truckers in high demand Industrial Minerals
Economic pain distributed unevenly through society GoldSeek
Great deposits: The Comstock lode Geology for Investors
Five agents of change investors need to know about now Stockhouse
Gold seems to be entering a secular bull market, says Canaccord’s Yasmin Gordon SmallCapPower
LME zeros in on electric vehicles as London comes of age Benchmark Mineral Intelligence
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal

USGS reports new domestic uranium potential and new uranium “species”

November 14th, 2017

by Greg Klein | November 14, 2017

Russia might own a sizeable portion of known American uranium deposits but the U.S. Geological Survey says there’s considerably more potential to be found. On November 14 the agency announced parts of Texas, New Mexico and Oklahoma might host an estimated “mean of 40 million pounds of in-place uranium oxide,” almost enough to fuel American nuclear plants for a year.

Of course the government agency discusses “potential” outside the framework of NI 43-101 regulations.

USGS reports new domestic uranium potential and new uranium species

First to recognize the new mineral finchite, USGS scientist
Bradley Van Gosen examines rock layers in Texas.
(Photo: Susan Hall/USGS, public domain)

As the world’s largest consumer of uranium for energy, the U.S. relies on nukes for about 19% of the country’s electricity, the report stated. Only 11% of last year’s uranium purchases came from domestic sources, the USGS added.

Located in the Southern High Plains, the newly found near-surface uranium occurs in the rock formation calcrete, a source known in other countries but now reported for the first time as a uranium-bearing material in the U.S.

Another surprise was finchite, “a new uranium mineral species,” the announcement enthused. First reported last month as “a brand new type of uranium mineral not previously recognized,” its name honours the late Warren Finch, a USGS uranium boffin. The agency describes finchite as “a unique combination of strontium, uranium, vanadium and water.”

Among major calcrete-style deposits listed by the World Nuclear Association are Yeelirrie in Western Australia, along with Trekkopje and Langer Heinrich in Namibia. Yeelirrie is a potential open pit held by a Cameco Corp TSX:CCO subsidiary and averaging 0.16% U3O8. Trekkopje, a potential open pit majority-held by AREVA Resources, averages 0.01%. Langer Heinrich, an open pit mine operated on behalf of Paladin Energy, the majority owner now under administrative control, averages 0.052%.

Most of the low-grade uranium deposits in the western U.S. are amenable to relatively low-cost in-situ recovery. But with shallow depth and soft host rock, the newly found calcrete-hosted uranium offers open pit potential, “assuming uranium prices and other factors are favourable,” the USGS noted.

Any positive price assumption will have to wait. Last week Cameco announced the impending suspension of its high-grade McArthur River mine and Key Lake mill in Saskatchewan’s Athabasca Basin. The company said that long-term contracts had shielded it from uranium’s post-Fukushima plunge of over 70%, but those contracts are now expiring. Cameco had previously suspended its Rabbit Lake mine and reduced production at its American operations.

Controversy over American dependence on imported uranium flared up again last month with renewed questions about the sale of Uranium One to Russia’s state-owned Rosatom. The formerly TSX-listed Uranium One holds American resources that could potentially produce a maximum of 1,400 tonnes of uranium annually, according to the WNA. But last year the company’s sole U.S. operation, the Willow Creek ISR mine, produced just 23 tonnes of the country’s total output of 1,126 tonnes.

Cambridge House International president Jay Martin looks forward to the San Francisco Silver and Gold Summit on November 20 and 21

November 14th, 2017

…Read more

November 14th, 2017

Could this be the end for Tesla? Equities.com
Texas frac sand boom puts truckers in high demand Industrial Minerals
Economic pain distributed unevenly through society GoldSeek
Great deposits: The Comstock lode Geology for Investors
Nothing crypto about this skepticism Streetwise Reports
Five agents of change investors need to know about now Stockhouse
Gold seems to be entering a secular bull market, says Canaccord’s Yasmin Gordon SmallCapPower
LME zeros in on electric vehicles as London comes of age Benchmark Mineral Intelligence
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal

Castle Silver Resources drills 1.55% cobalt over 0.65 metres with nickel, gold and silver in Ontario

November 13th, 2017

by Greg Klein | November 13, 2017

Last summer’s drilling at Ontario’s former Castle mine “intersected mineralization in each and every hole,” Castle Silver Resources TSXV:CSR reported November 13. The one assay released so far hit 1.55% cobalt, 0.65% nickel, 0.61 g/t gold and 8.8 g/t silver over 0.65 metres starting near surface at 3.85 metres in downhole depth. The company estimates true width between 65% and 85%.

Drilling finished in late August when an originally planned 1,500-metre program completed 22 holes totalling 2,405 metres.

Castle Silver Resources drills 1.55% cobalt over 0.65 metres with nickel, gold and silver in Ontario

Castle Silver expanded its summer campaign
from 1,500 metres to 2,405 metres.

“Once again we’ve demonstrated how historical operators overlooked the potential for cobalt, gold and base metals at the Castle mine as they focused exclusively on the extraction of high-grade silver,” said president/CEO Frank Basa.

“We will carry out trenching to follow up on an array of new near-surface targets generated by this drilling in the immediate vicinity of the Castle mine. But our priority now is to complete final preparations to carry out critical trenching and drilling of untested structures on the first level of the mine.”

With intermittent production between 1917 and 1989, the former mine has 11 levels totalling about 18 kilometres of underground workings. “This does not include an unknown extent of drilled vein structures which were never mined, typically due to silver grades below a certain high-grade threshold, for which CSR has records,” the company added.

Using XRF analysis, an independent firm has found potential for high-grade cobalt mineralization within unmined structures along first-level adit drifts and walls. In July Castle Silver released results from an 82-kilogram bulk sample of vein material that showed 1.48% cobalt as well as 5.7 g/t gold and 46.3 g/t silver. As a result, the company re-evaluated five previous chip samples for gold, with results averaging 3.7 g/t. The samples originally assayed 1.06% cobalt, 5.3% nickel and 17.5 g/t silver.

Earlier this month Castle Silver and Granada Gold Mine TSXV:GGM announced a provisional milling agreement for a plant that would be located on Castle Silver’s property in Gowganda, Ontario. About a 204-kilometre drive from Gowganda, Granada’s project reached pre-feas in 2014 and a resource update in June.

Castle Silver closed the final tranche of a private placement totalling $1.2 million in June.