Tuesday 7th April 2020

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Posts tagged ‘brazil’

Crisis response

April 3rd, 2020

A look at mining, exploration, infrastructure and supply chains under the pandemic

by Greg Klein

A look at mining, exploration, infrastructure and supply chains

 

Idled explorers: Can you help?

“Essential supplies and personnel are needed to create and operate temporary facilities for testing, triage, housing and isolation areas for vulnerable populations,” states the Association for Mineral Exploration. “As mineral explorers, we have access to the supplies needed and are in a unique position to help.”

AME calls on the industry to contribute excess capacity of the following:

  • Insulated structures (both hard and soft wall)

  • Camp gear such as furniture, lighting and kitchen appliances

  • Medical equipment

  • Camp support personnel such as caterers, housekeepers, janitors, etc.

  • Available medical staff including such qualifications as OFA3s, paramedics, RNs, etc.

  • Other supplies or skills

If you can help, please fill out this form and AME will be in touch. 

For further information contact Savannah Nadeau.

Preparing for a wider emergency

Given the danger of one crisis triggering others, essential infrastructure remains at risk. One plan to safeguard Ontario’s electricity service would require Toronto workers to bunk down in employer-supplied accommodation under lockdown conditions better known to isolated locations.

A look at mining, exploration, infrastructure and supply chains

Quarantines might require essential
services to provide job-site bed and board.
(Photo: Independent Electricity System Operator)

It hasn’t happened yet, but the province’s Independent Electricity System Operator stands ready for the possibility, according to a Canadian Press story published by the Globe and Mail. A not-for-profit agency established by the province, the IESO co-ordinates Ontario electricity supply to meet demand.

About 90% of its staff now work at home but another 48 employees must still come into work, CEO Peter Gregg said. Eight six-person teams now undergo 12-hour shifts in two Toronto-area control rooms.

“Should it become necessary, he said, bed, food and other on-site arrangements have been made to allow the operators to stay at their workplaces as a similar agency in New York has done,” CP reported.

Similar plans may well be underway not only for essential infrastructure but also for essential production, processing, manufacturing, communications, transportation and trade. One sign of the times to come could be locked-down camps in supermarket parking lots for our under-appreciated retail-sector heroes.

Meanwhile, retaining and protecting care-home staff already constitute a crisis within a crisis.

Australia guards against predatory foreign takeovers

With China prominently in mind, Australia has taken extra measures to protect companies and projects shattered by the COVID-19 economy. Canberra has temporarily granted its Foreign Investment Review Board extra powers to guard distressed companies and assets against acquisitions by opportunistic foreigners. Although previous foreign acquisitions came under review only when the price passed certain thresholds, now all such transactions get FIRB scrutiny.

The changes follow concerns raised by MPs on Australia’s intelligence and security committee. The Sydney Morning Herald quoted committee chairperson Andrew Hastie warning of “foreign state-owned enterprises working contrary to our national interest. More than ever, we need to protect ourselves from geo-strategic moves masquerading as legitimate business.”

Committee member Tim Wilson added, “We can’t allow foreign state-owned enterprises and their business fronts to use COVID-19’s economic carnage as a gateway to swoop distressed businesses and assets.”

Among protected assets are exploration and mining projects, utilities, infrastructure and an interest of 20% or more in a company or business.

Critical minerals become ever more critical

As Lynas Corp extended the suspension of its rare earths processing facility in line with Malaysian government pandemic orders, the company noted the importance of its products “in permanent magnets used in medical devices including ventilators, and in lanthanum products used in oil refineries for petroleum production.”

A look at mining, exploration, infrastructure and supply chains

The suspension of its Malaysian plant prompted
Lynas to emphasize REs’ criticality to virus treatment.
(Photo: Lynas Corp)

Originally set to expire on March 31, the government order currently stays in force until April 14. RE extraction continues at Lynas’ Mount Weld mine in Western Australia.

In late February Malaysia granted the company a three-year licence renewal for the processing facility, which had been threatened with closure due to controversy about its low-level radioactive tailings. Among conditions for the renewal are development of a permanent disposal facility for existing waste and putting a cracking and leaching plant in operation outside Malaysia by July 2023 to end the practice of transporting radioactive material to the country.

Committed to maintaining a non-Chinese supply chain, the company plans to locate the C&L plant in Kalgoorlie, Western Australia.

Sharing the disease, hoarding the treatment

A problem recognized in American defence procurement has hit health care—the need to build non-Chinese supply chains. Most of the world’s ventilators and about half the masks are manufactured in China, points out a recent column by Terry Glavin.

The West is learning, finally and the hard way, “that thriving liberal democracies cannot co-exist for long within a model of neo-liberal globalization that admits into its embrace such a tyrannical state-capitalist monstrosity as the People’s Republic of China.”

The U.S., for example, relies heavily on China for antibiotics, painkillers, surgical gowns, equipment that measures blood oxygen levels and magnetic resonance imaging scanners. China effectively banned medical equipment exports as soon as Wuhan went on lockdown, Glavin adds.

“It probably didn’t help that Ottawa sent 16,000 tonnes of gear to China back in February. That was a lot of gear—1,101 masks, 50,118 face shields, 36,425 medical coveralls, 200,000 pairs of gloves and so on—but a drop in Beijing’s bucket. A New York Times investigation last month found that China had imported 56 million respirators and masks, just in the first week of the Wuhan shutdown.

“It is not known how much of that cargo came from the massive bulk-buying campaign organized and carried out across Canada by affiliates of the United Front Work Department, the overseas propaganda and influence-peddling arm of the Chinese Communist Party.”

A look at mining, exploration, infrastructure and supply chains

Desperate need for health care supplies
pits country against country. (Photo: 3M)

Nor does the non-Chinese world display altruism. In response to the crisis, the EU and more than 50 countries have either banned or restricted exports of medical equipment, Glavin states.

By April 3 global health care products supplier 3M revealed that Washington asked the company to stop exporting U.S.-manufactured N95 respirators to Canada and Latin America. 3M noted “significant humanitarian implications” but also the possibility of trade retaliation. “If that were to occur, the net number of respirators being made available to the United States would actually decrease.”

The company did win China’s permission to import 10 million of its own Chinese-manufactured N95s into the U.S.

Meanwhile the Canadian government comes under increasing criticism for discouraging the public from wearing masks.

Chinese supply chains also jeopardized by Chinese disease

As the world’s main exporter of manufactured goods, China’s the main importer of raw materials, especially metals. But, as the world’s main exporter of disease, China managed to threaten its own supplies.

Reuters columnist Andy Home outlined lockdown-imposed cutbacks of copper, zinc and lead from Chile and Peru, and chrome from South Africa; reductions in cobalt from the Democratic Republic of Congo, in tin from already depleting Myanmar, and in nickel from the Philippines, the latter a hoped-for replacement after Indonesia banned unprocessed exports.

The longer the lockdowns, “the greater the potential for supply chain disruption,” Home comments. “As the biggest buyer of metallic raw materials, this is a ticking time-bomb for China’s metals producers.”

Miners’ providence unevenly distributed

Probably no other foreign shutdowns have affected as many Canadian miners and explorers as that of Mexico. Considered non-essential, their work will be suspended until April 30, with extensions more than likely. Mexico’s announcement must have sounded familiar to Pan American Silver TSX:PAAS, which had already pressed the pause button to comply with national quarantines in Peru, Argentina and Bolivia. That currently limits the company’s mining to Timmins, where production has been reduced by about 10% to 20% to allow physical distancing.

A look at mining, exploration, infrastructure and supply chains

Mauritania exempted Kinross Gold’s Tasiast mine
from domestic travel restrictions. (Photo: Kinross Gold)

One company more favourably located, so far, is Kinross Gold TSX:K. As of April 1, operations continued at its seven mines in Nevada, Alaska, Brazil, Mauritania, Russia and Ghana, while work went on at its four non-producing projects in Alaska, Mauritania, Russia and Chile.

Expanded shutdowns ordered by Ontario on April 3 include many construction and industrial projects but exempt mining. Earlier that day New Gold TSX:NGD announced Rainy River’s restart after a two-week suspension to allow self-isolation among employees. Many of the mine’s workers live locally and made short trips into Minnesota before the border closed.

Quebec border restrictions have hindered the Ontario operations of Kirkland Lake Gold TSX:KL, cutting off a source of employees and contractors. As a result the company reduced production at its Macassa mine and suspended work at its Holt complex, comprising three gold mines and a mill. Kirkland reduced operations at its Detour Lake mine effective March 23, after a worker showed COVID-19 symptoms and self-isolated on March 14. He tested positive on March 26. Production continues at the company’s Fosterville mine in Australia.

Some explorers have been idled by government restrictions, others by market conditions. Still, some companies have money and jurisdictions in which to spend it. Liberty Gold TSX:LGD, for example, resumed drilling its Black Pine gold project in Idaho on March 31.

Some jurisdictions, like B.C. and New Brunswick, have extended work requirement deadlines to help companies keep exploration claims active.

“China needs to be held responsible”

A few Canadian journalists are saying what we might never hear from our politicians. Here, for example, is Toronto Sun columnist Lorrie Goldstein:

“China needs to be held responsible. The problem is, because of its political power— and you see it in the World Health Organization announcements, in Canadian announcements—they’ve been praising what China did. There would have been a virus anyway. China made it worse. More people are dying, more people are being infected, and its dictators need to be held to account.”

Work suspended

March 26th, 2020

Some Canadian mining and exploration dispatches during the pandemic

by Greg Klein

Shut Down Canada has largely been achieved, but not by the forces that advocated it nor—until someone finds a way of blaming this on climate change—by the doomsday belief they were pushing. Residents of our strangely quiet cities and towns watch the horror unfold elsewhere while wondering how long and hard the pandemic will hit Canada. Meanwhile, workers and business owners might consider themselves lucky if the economy fares no worse than a very serious recession.

Some Canadian mining and exploration dispatches during the pandemic

A reminder that one crisis can trigger another unwittingly came from FortisAlberta on March 23. The company that provides 60% of the province’s electricity “is taking the necessary actions and precautions to protect the health and well-being of its employees and to provide electricity service to its customers.”

The obvious but demoralizing question arises: What happens if too many key people get sick? That danger could apply to any number of essential services. Economic collapse, social disorder, a breakdown of supply chains add to the nightmarish possibilities.

All of which might not happen. In the meantime we can thank the front line workers who keep our society functioning to the extent that it does. Those one- or two-buck-an-hour temporary pay raises hardly acknowledge society’s debt to retail staff who interact constantly with a potentially plague-ridden public. Care workers for the elderly constitute another group of low-paid heroes, several of whom have already made the ultimate sacrifice.

In the meantime here are some reports on Canadian mining’s response to the crisis.

Inconsistent closures suggest an ambivalent industry

Some Canadian mining and exploration dispatches during the pandemic

IAMGOLD sidelined its Westwood operation in Quebec but
continues work on its Coté project in Ontario. (Photo: IAMGOLD)

Mining hasn’t actually been banned in Ontario and Quebec, although shutdowns of non-essential services continue to April 8 and April 13 respectively. Extensions, of course, look likely. Quebec has ordered the industry, along with aluminum smelting, to “minimize their activities.” Ontario specifically exempted mineral exploration, development, mining and their support services from mandatory closures.

Interpreting Quebec’s decree as a ban, IAMGOLD TSX:IMG suspended its Westwood gold mine in that province but continued work at its 64.75%-held, advanced-stage Coté gold project in Ontario as an “essential service.” Production continues at the company’s Burkina Faso and Suriname operations.

But regardless of government bans or directives, voluntary suspensions take place. Restrictions on travel and social distancing have made projects non-viable, while the threat of localized outbreaks looms large—not just at the job sites and accommodations, but in the isolated communities that supply much of the labour.

In Canada, that often means native communities. “They have a bad history with disproportionate impacts from epidemics,” a Vale Canada spokesperson told the Financial Post. The company put its Voisey’s Bay mine in Labrador on care and maintenance, and planned reductions at its associated Long Harbour nickel-copper-cobalt processing plant in Newfoundland.

So far alone of the Northwest Territories’ three operations, Dominion Diamond Mines announced an indefinite suspension for Ekati on March 19. The Union of Northern Workers stated its intention to grieve the manner in which its members were laid off.

Some Canadian mining and exploration dispatches during the pandemic

Having laid off its native staff, Agnico Eagle continues its Nunavut
operations largely with workers from Quebec. (Photo: Agnico Eagle)

Agnico Eagle Mines TSX:AEM made the ramp-down decision a day after Quebec’s March 23 order, after discussions with government “to get additional clarity.” The suspensions applied to three Quebec mines but the company planned “reduced operations” at Meliadine and Meadowbank in Nunavut, largely under Quebecois workers.

Five days earlier Agnico Eagle began sending home Nunavummiut staff from its Nunavut mines and exploration projects to prevent virus transmission “from a southern worker to a Nunavut worker, with the risk of it moving into the communities,” explained CEO Sean Boyd. Production was expected to continue under the remaining staff.

The following day residents blocked a road from Rankin Inlet airport to Meliadine to protest the use of replacement workers from Mirabel and Val d’Or, Quebec. Although the territory has banned travel from other jurisdictions, critical workers may apply for an exemption. They’re also required to undergo two weeks of isolation in their own region prior to travel.

From boots on the ground to fingers on the keyboard

Exploration suspensions haven’t come at a bad time for some projects, which had completed or nearly completed winter programs. Where labs remain open, assays might provide some badly needed good news.

Much of the crucial work of analyzing results and planning future exploration can be done by desktop. One example of a company with a multinational work-at-home team is Turmalina Metals TSXV:TBX, which completed a seasonal field program at its San Francisco de Los Andes gold project shortly before Argentina imposed a nation-wide quarantine. “While Turmalina maintains a corporate office in Canada our technical and managerial team operate remotely from individual home offices located in Peru, Brazil, Argentina, Canada and Asia,” states a March 23 announcement. “The current compilation, analysis and modeling of recently collected data is being done on a physically decentralized basis from these individual home offices as the company prepares for drilling.”

Follow the money

No one’s saying so out loud, but travel restrictions just might divert money from conferences, trade shows and expense accounts to actual work. Then again, money can still be squandered on low-IQ promotional campaigns produced at the kitchen table.

Every metal and mineral has a silver lining

This isn’t a sector that overlooks opportunity. Two days after Vanstar Mining Resources TSXV:VSR reported that drilling “continues without stopping” at its 25%-held Nelligan project in Quebec, the company acknowledged that majority partner IAMGOLD had suspended work. But “it should be noted that current events can also bring certain opportunities for acquiring gold projects at a lower cost,” Vanstar pointed out. The junior was merely echoing comments made by others, including BHP Group NYSE:BHP earlier this month.

With the economic outlook as confused as a professional stock-picker’s thought processes, mining’s future remains profoundly uncertain. But diminished supply can certainly help chances of rebounding demand.

And suspensions might encourage advantageous awareness, as noted by Uranium Energy Corp NYSE:UEC president/CEO Amir Adnani. “The recent global events and supply disruptions further underscore the importance of domestic supply chains for vital resources,” stated the U.S. purveyor of U3O8.

How could we live without them?

Endeavours deemed essential by Ontario and Quebec include capital markets services and agencies like the TMX Group and securities commissions. The provinces also consider alcohol and cannabis retailers essential. As if the world wasn’t already facing worse consequences, Toronto medical officer Eileen de Villa said banning booze “would lead to pretty significant health consequences.”

She didn’t specifically mention geoscientists.

The experts speak

Some fatuous remarks at PDAC provided retrospectively grim humour, as well as an exhibition of prognosticator pomposity. Here’s Mickey Fulp’s take on COVID-19, as quoted by IKN:

  • “I think it’s overblown.”

  • “All these shows are flu incubators, anyway.”

  • “I think it (i.e. infections) are going to be less this year, because people are doing things like washing their hands.”

  • “This is a blip on the radar screen. Especially in the U.S. where I’m from, because our economy is absolutely roaring and virus fears are not going to do major damage to the U.S. market.”

  • “I think it absolutely is an overreaction and the quicker it’s realized, the better.”

  • “This is a variety of flu.”

Of course to sheltered North Americans, the first week of March might seem a long time ago. So here’s Doug Casey’s insight, as published by Kitco on March 24:

“The virus itself isn’t nearly as serious, I don’t know how serious it’s going to be, but not terribly in my opinion. What I’m really shocked at, Daniela, is the degree of hysteria on the part of the powers that be. They’ve actually just gone insane.”

Click here for objective data on the coronavirus pandemic.

Towards a critical resource

June 13th, 2019

Saville Resources exceeds historic high grades for niobium-tantalum in Quebec

by Greg Klein

The project’s first drill campaign in nine years poses a big question: Why was this the project’s first drill campaign in nine years?

Saville Resources/Commerce Resources report best-yet niobium hole from Quebec critical minerals project

Saville president Mike Hodge examines
core at the Niobium Claim Group.

Even in the face of highly encouraging historic niobium-tantalum results, this program’s first hole exceeded expectations. More near-surface high grades and wide widths followed, culminating in a fourth hole that surpassed them all. Now Saville Resources TSXV:SRE looks forward to more drilling to build an inferred resource on the Niobium Claim Group in northern Quebec’s Labrador Trough.

But why the nine-year hiatus? The answer can be illustrated by Commerce Resources’ (TSXV:CCE) Ashram rare earths deposit, two kilometres away. Moving that project towards pre-feasibility took precedence, even when the company found strong niobium-tantalum intercepts on another part of its Eldor property. To give these other critical minerals their due, Commerce and Saville signed an agreement last year allowing the latter company to earn 75% of the 1,223-hectare niobium claims.

Additional high-grade boulder samples renewed interest in a number of prospective areas but Saville’s initial drill program in spring 2019 targeted Mallard, the most advanced zone with 17 historic holes totalling 4,328 metres. The new program added five holes (one hole was lost) and 1,049 metres.

“We were confident that we could improve on the historic drill results and we did that,” notes Saville president Mike Hodge.

Near-surface highlights from the best hole showed 0.8% Nb2O5 over 31.5 metres, 0.79% over 37 metres, 0.67% over 19.95 metres and 0.5% over 33.5 metres. Eleven individual samples from that hole exceeded 1%, with one sample reaching as high as 1.68% over 1.5 metres. (True widths were unknown.) Tantalum and phosphate also brought strong numbers.

A 50-metre step-out east of another of the campaign’s successful holes, 50 metres southeast of a second and 200 metres southeast of a third, EC19-174A was also proximal to impressive historic results.

Saville Resources exceeds historic high grades for niobium-tantalum in Quebec

In just a few of the recent highlights, however, EC19-173 featured 0.66% Nb2O5 over 14.5 metres. EC19-171 hit 0.7% over 38.28 metres, including 1.1% over 5.41 metres. EC19-172 reached 0.62% over 19 metres.

Among tantalum grades were 274 ppm Ta2O5 over 100.8 metres from EC19-172, and 267 ppm over 26 metres from EC19-171.

The step-outs extend Mallard’s strike 100 metres southeast and also suggest a possible northern extension towards the project’s Miranna and Spoke targets, as yet undrilled.

That’s despite very high-grade boulder samples from Miranna showing 2.75%, 4.24%, 4.3% and an exceptional 5.93% Nb2O5.

“These are still untested targets which we believe could have significantly higher grades than Mallard,” says Hodge. “But my first goal would be an inferred near-surface resource in the Mallard area.”

Contributing to that would be historic data, which includes intervals of 0.82% Nb2O5 over 21.9 metres, 0.9% over 4.8 metres and 1.09% over 5.8 metres.

In all, the Niobium Claim Group underwent 41 historic holes for 8,175 metres, with all field work since 2008 conducted by Dahrouge Geological Consulting. Saville has so far exceeded its first-year spending commitment of $750,000 out of a five-year, $5-million exploration agenda that would earn 75% of the project from Commerce.

But if Miranna’s 5.93% Nb2O5 sample looks outstanding, another boulder collected west of the project’s Northwest area soared up to 16.1%, also showing 7,540 ppm Ta2O5.

“That was the highest, but there were plenty in the 3% to 6% niobium range,” Hodge emphasizes.

Saville Resources exceeds historic high grades for niobium-tantalum in Quebec

With overlapping boulder trains on the property, “there are a few locations they could be coming from,” he adds. “But the likelihood of it coming from the Spoke or Miranna areas would be the highest probability.”

Other areas of interest include the Northwest zone, northwest of Miranna. Location of 11 historic holes totalling 2,257 metres, its results included 0.61% Nb2O5 over 12 metres.

South of Mallard, the Star Trench area has four historic holes for 664 metres, with results including 1.5% Nb2O5 and 1,810 ppm Ta2O5 over 0.52 metres, and 1.69% Nb2O5 and 2,220 ppm Ta2O5 over 0.31 metres.

Niobium and tantalum both rank on the U.S. list of 35 critical minerals. Heightened concern has brought concerted American efforts to develop reliable sources and create supply chains domestically and with allied countries. In early June the U.S. unveiled its Energy Resource Governance Initiative to work with allies as part of the president’s critical minerals strategy announced a few days earlier.

Imports provide America’s total supply of both niobium and tantalum. Niobium, used for alloys and super-alloys in jet engines, rockets and other manufactures, comes to the U.S. mostly from one company in Brazil. According to 2018 figures from the U.S. Geological Survey, Brazil mined 88.2% of global supply, while Canada extracted another 10.3%.

Tantalum finds widespread use in electronics as well as super-alloys for jet engine components. USGS numbers from last year attribute 39.5% of global supply to the Democratic Republic of Congo, 27.8% to Rwanda, 8.3% to Nigeria and 6.7% to China. Apart from security of supply, concerns about conflict minerals result from troubling conditions and murky supply routes in the DRC and Rwanda.

Meanwhile Hodge wants to get back to the field. “We made a great first step in expanding on what we had,” he says. “All of these holes ended in a mineralized zone. The reason we stopped them there was to start a near-surface inferred resource. There’s carbonatite with mineralization in niobium, tantalum and phosphate open in all directions, so the results definitely call for more drilling.”

See more highlights from the Niobium Claim Group’s spring 2019 program.

Visual Capitalist considers the hydrogen city: How hydrogen can help achieve zero emissions

May 14th, 2019

by Nicholas LePan | posted with permission of Visual Capitalist | May 14, 2019

In the modern context, cities create somewhat of a paradox.

While cities can improve the lives of people and entire nations, they also tend to be the main contributors of pollution and CO2 emissions.

How can we encourage this growth, while also making city energy use sustainable?

Resolving the paradox

This infographic comes to us from the Canadian Hydrogen and Fuel Cell Association and it outlines hydrogen technology as a sustainable fuel for keeping urban economic engines running effectively for the future.

The hydrogen city How hydrogen can help achieve zero emissions

 

The urban economic engine

Today, more than half of the world’s population lives in cities and, according to U.N. estimates, that number will grow to 6.7 billion by 2050—or about 68% of the global population.

Simultaneously, it is projected that developing economies such as India, Nigeria, Indonesia, Brazil, China, Malaysia, Kenya, Egypt, Turkey and South Africa will drive global growth.

Development leads to urbanization, which leads to increased economic activity:

The difficulty in this will be achieving a balance between growth and sustainability.

Currently, cities consume over two-thirds of the world’s energy and account for more than 70% of global CO2 emissions to produce 80% of global GDP.

Furthermore, it’s projected by the McKinsey Global Institute that the economic output of the 600 largest cities and urban regions globally could grow $30 trillion by the year 2050, comprising two-thirds of all economic growth.

With this growth will come increased demand for energy and CO2 emissions.

The hydrogen-fueled city

Hydrogen, along with fuel cell technology, may provide a flexible energy solution that could replace the many ways fossil fuels are used today for heat, power and transportation.

When used, hydrogen and fuel cell technology creates water vapour and oxygen, instead of harmful smog in congested urban areas.

According to the Hydrogen Council, by 2050 hydrogen could generate annually:

  • 1,500 TWh of electricity

  • 10% of the heat and power required by households

  • Power for a fleet of 400 million cars

The infrastructure requirements for hydrogen make it easy to distribute at scale. Meanwhile, for heat and power, low concentrations of hydrogen can be blended into natural gas networks with ease.

Hydrogen can play a role in improving the resilience of renewable energy sources such as wind and solar, by being an energy carrier. By taking surplus electricity to generate hydrogen through electrolysis, energy can be stored for later use.

In short, hydrogen has the potential to provide the clean energy needed to keep cities running and growing while working towards zero emissions.

See Part 1 of this series: Evolution of hydrogen, from the Big Bang to fuel cells.

Posted with permission of Visual Capitalist.

Jair Bolsonaro, now president of Brazil, criticizes the sale of niobium resources to China

November 27th, 2018

…Read more

Brazilian front-runner makes niobium nationalism an election issue

October 25th, 2018

by Greg Klein | October 25, 2018

Whether he’s just another politician on the wrong side of the culture wars or a dangerous demagogue as portrayed by those claiming the correct side, Jair Bolsonaro’s considered the top contender in Brazil’s October 28 presidential vote. One of his less controversial policies involves resource nationalism, specifically regarding niobium.

Brazilian front-runner makes niobium nationalism an election issue

Brandishing a chunk of the stuff in a 2016 YouTube presentation,
Jair Bolsonaro calls on Brazil to enhance a vertically integrated
niobium supply chain to support economic independence.

Bolsonaro calls for Brazil, by far the world’s top producer of the critical metal, to enhance a vertically integrated supply chain for maximum economic gain, according to Reuters. He also opposes a Chinese company mining his country’s reserves, the news agency adds.

Last year Brazil provided 89% of world niobium supply, with Canada ranking second at less than 10%, U.S. Geological Survey data shows. Used in steels and superalloys, niobium’s a vital element to jet engine components, rocket sub-assemblies, and heat-resisting and combustion equipment, the USGS adds. Niobium comprises one of 35 critical elements in an American list drafted last February and confirmed in May.

Most Brazilian supply comes from the Araxa mine complex owned by Companhia Brasileira de Metalurgia e Mineração. But CBMM’s near-monopoly diminished in 2016, when China Molybdenum Co Ltd got Brazil’s Boa Vista niobium complex in a US$1.5-billion purchase from Anglo American. That made China Molybdenum the world’s second-biggest niobium producer, thanks to Brazilian resources and much to Bolsonaro’s ire.

In Reuters’ account of a TV interview last August, he said, “It’s something only we have, we should invest in technology and research to use this mineral. Instead we sell and deliver the mine to them.”

The Chinese are not buying in Brazil. They are buying Brazil.—Jair Bolsonaro

As the Middle Kingdom acquires energy infrastructure as well as resources across Brazil, the South China Morning Post quotes a common Bolsonaro refrain: “The Chinese are not buying in Brazil. They are buying Brazil.”

Chinese diplomats have twice met with Bolsonaro’s aides, hoping to smooth relations with the likely leader, the SCMP states. Requests to meet the candidate himself have so far been spurned.

An open letter signed by Noam Chomsky, Naomi Klein and several others says Bolsonaro “threatens the world, not just Brazil’s fledgling democracy.”

But the country might face other threats as well. Government data released in August shows 63,880 murders last year, a 3% increase over 2016 and a rate of 175 murders per day.

Emerita Resources expands portfolio with Brazilian lithium acquisition

September 12th, 2018

by Greg Klein | September 12, 2018

A company focused on base metals in two continents has broadened its approach by moving into a lithium-producing neighbourhood. By exercising its 100% option, Emerita Resources TSXV:EMO picks up the Falcon Litio MG project, half a kilometre from the Companhia Brasileira de Litio lithium deposit currently being mined. Initial field work on Falcon has found pegmatite dykes similar to mineralized dykes on CBL’s property.

Emerita Resources expands portfolio with Brazilian lithium acquisition

Located in eastern Brazil’s Minas Gerais state, the region is hardly new to Emerita. The state also hosts the company’s 75%-held Salobro zinc project, where drilling wrapped up in July with an initial release of high-grade assays. Vale NYSE:VALE had previously attributed the property with an historic, non-43-101 estimate of 8.3 million tonnes averaging 7.12% zinc-equivalent for 1.3 million zinc-equivalent pounds, using a 3.5% zinc-lead cutoff. Emerita has a 43-101 resource due imminently.

But location was just part of the reason Emerita considered Falcon to be “an exceptional opportunity to add value at a low cost,” said CEO David Gower. “There has been interest expressed by third parties in potentially getting involved in the Litio project.”

Emerita gets Falcon on issuing a third tranche of 500,000 shares. The vendor retains a 2% NSR. Should the project achieve a resource showing at least 20 million tonnes averaging 1.3% Li2O, with at least half in the indicated or measured categories, Emerita pays the vendor $5 million cash or issues an equal amount in shares.

Besides the two Brazilian projects, the company holds three properties in Spain: Plaza Norte, a 50/50 joint venture on a zinc-lead past-producer; Aznalcollar, with an historic, non-43-101 zinc-lead-copper estimate; and Paymogo, with two historic, non-43-101 zinc-lead estimates.

In July Emerita offered a private placement of up to $3 million.

Emerita Resources finishes drilling, plans Brazil zinc resource estimate in two weeks

July 26th, 2018

by Greg Klein | July 26, 2018

With its initial drill program wrapped up on time and on budget, Emerita Resources TSXV:EMO expects to release a resource estimate for its Salobro zinc project in eastern Brazil within two weeks. The campaign totalled 22 holes for 3,676 metres. Thirteen holes were intended to expand the historic resource and four others twinned historic holes, while five large-diameter holes collected material for metallurgical tests.

Some standout assays from the batch released July 26 include:

Emerita Resources finishes drilling, plans Brazil zinc resource estimate in two weeks

Emerita Resources’ drill program expanded Salobro’s
mineralization without exceeding the previous depth.

Hole 012

  • 11.19% zinc and 1.26% lead over 2.8 metres, starting at 111.65 metres in downhole depth

Hole 013

  • 11.62% zinc and 0.4% lead over 1.71 metres, starting at 102.97 metres

Hole 016

  • 3.65% zinc and 0.2% lead over 8.46 metres, starting at 119 metres

  • 7.71% zinc and 0.99% lead over 3.43 metres, starting at 141.1 metres

The company interprets widths to be close to true widths.

The overall program succeeded in expanding mineralization up dip and along strike, with the historic deposit remaining open at depth, Emerita stated. The results also improve continuity, while geophysical analysis shows potential mineralization plunging to the west.

An historic, non-43-101 estimate compiled by Vale NYSE:VALE calculated 8.3 million tonnes averaging 7.12% zinc-equivalent at a cutoff of 3.5% zinc-lead.

Adding mineralization that does not require increasing depth should have a positive impact on the PEA results.—David Gower,
chairperson and incoming CEO
of Emerita Resources

“We have increased the limits of the near-surface mineralization, which was a key objective of the program,” pointed out chairperson David Gower. “The NI 43-101 mineral resource estimate that is being prepared will be the basis for the planned preliminary economic assessment and adding mineralization that does not require increasing depth should have a positive impact on the PEA results.”

Effective August 1, Gower and current CEO Michael Timmins swap positions, with Gower becoming CEO and Timmins chairing the board.

Also emphasizing the shallow mineralization, project manager Carlos Cravo added: “The relogging of the historical drilling combined with the new data has resulted in an improved understanding of the deposit morphology that will improve drill targeting and should benefit any future mine plan should the deposit be put into production.”

Emerita holds a 75% share of the 1,210-hectare property, with the remainder held by IMS Engenharia Mineral Ltda. Regional infrastructure includes paved roads, rail, power and water.

In northern Spain’s Reocin mining district, Emerita takes part in a 50/50 joint venture on the Plaza Norte zinc-lead project. The JV has drill permitting underway to update historic work.

Emerita also announced a private placement offered up to $3 million, with proceeds intended for Salobro. The company closed an oversubscribed private placement of $4.24 million last December.

Read more about Emerita Resources.

Emerita Resources steps out to cut 5.7% zinc over 8 metres in Brazil

June 7th, 2018

by Greg Klein | June 7, 2018

Three more holes from eastern Brazil’s Salobro zinc project have Emerita Resources TSXV:EMO encouraged about potential expansion to an historic, non-43-101 Vale NYSE:VALE estimate. The results follow the first two holes, released June 1, of a program that’s expected to sink 23 holes totalling about 3,500 metres. Seventeen holes have been finished so far.

Emerita Resources cuts 5.7% zinc over 8 metres in Brazil

DDH-007 stepped out 100 metres from an historic, non-43-101 interval of 6.09% zinc and 0.73% lead over 10.43 metres. The new intercept hit:

  • 5.7% zinc and 0.84% lead, for 6.54% zinc and lead, over 8 metres, starting at 239.5 metres in downhole depth
  • (including 8.82% zinc and 1.48% lead, for 10.3% zinc and lead, over 4 metres)

Two near-surface holes tested potential for a starter pit in an area where an historic, non-43-101 trench assay showed 1.35% zinc over 22 metres. The new assays show:

DDH-005

  • 4.59% zinc and 0.08% lead, for 4.67% zinc and lead, over 1.5 metres, starting at 65.82 metres

DDH-006A

  • 1.52% zinc and 0.01% lead, for 1.53% zinc and lead, over 3 metres, starting at 26 metres

True widths weren’t provided.

Scheduled for Q3 is a resource to update Vale’s now historic, non-43-101 estimate of 8.3 million tonnes averaging 7.12% zinc-equivalent, using a 3.5% zinc-lead cutoff. The campaign will also collect 400 kilograms of material for metallurgical tests.

Last week Emerita released the current program’s first two assays, showing 4.05% zinc and 1.24% lead over 9.62 metres, along with 5.15% zinc and 0.51% lead over 3.32 metres. The company also reported that new assays from Vale core showed consistency with historic results, easing the way to a 43-101 resource.

Emerita has a 75% stake in the 1,210-hectare property, with the remainder held by IMS Engenharia Mineral Ltda. The region’s infrastructure includes paved roads, rail, power and water.

Emerita also shares in a 50/50 joint venture on the Plaza Norte zinc-lead project in northern Spain’s Reocin mining district, where the company has drill permitting underway to update historic work.

In December the company closed an oversubscribed private placement of $4.24 million.

Read more about Emerita Resources.

Drilling, re-sampling move Emerita Resources towards Q3 Brazilian zinc resource

June 1st, 2018

by Greg Klein | June 1, 2018

While a rig remains busy, new assays from old core show consistency with historic results, bringing Emerita Resources TSXV:EMO closer to a 43-101 resource on its Salobro zinc project in eastern Brazil.

Drilling, re-sampling move Emerita Resources towards Q3 Brazilian zinc resource

Emerita Resources has assays pending from
another 15 holes so far on its current drill campaign.

The company sent 1,184 duplicate core samples from historic Vale NYSE:VALE drilling to the lab, where 55 samples with intervals grading over 1% zinc were considered for statistical purposes.

Compared with Vale’s data, the new assays demonstrate that “the previous historic results are consistent, unbiased and meet the QA/QC requirements to support a mineral resource estimate to NI 43-101 standards,” Emerita stated.

The results provide “a powerful advantage for the project that saves the company considerable time, money and effort,” commented chairperson David Gower. “The project has an abundance of high-quality historic drilling data that allows us to expedite the program as we develop the Salobro project further.”

At a 3.5% zinc-lead cutoff, Vale’s historic, non-43-101 estimate showed 8.3 million tonnes averaging 7.12% zinc-equivalent. Hoping to expand those numbers in a 43-101 resource planned for Q3, Emerita has so far completed 17 holes totalling 2,740 metres of an anticipated 23-hole, 3,500-metre program. Last week the company released results from the campaign’s first two holes:

DDH-001

  • 4.05% zinc and 1.24% lead for 5.29% zinc plus lead over 9.62 metres, starting at 257.9 metres in downhole depth
  • (including 9.74% zinc and 3.66% lead for 13.4% zinc plus lead over 2.72 metres)

DDH-002

  • 5.15% zinc and 0.51% lead for 5.66% zinc plus lead over 3.32 metres, starting at 108.38 metres

True widths weren’t provided. The program will also extract 400 kilograms of material for metallurgical tests.

Emerita closed its 75% acquisition of the 1,210-hectare property last March, retaining the right to pick up the other 25%. Regional infrastructure features paved roads, rail, power and water.

In northern Spain’s Reocín mining district the company has drill permitting underway for Plaza Norte, a zinc-lead 50/50 joint venture that also features considerable historic work and regional infrastructure.

Emerita closed an oversubscribed $4.24-million private placement in December.

Read more about Emerita Resources.