A mining and exploration retrospect for February 23 to March 1, 2013
by Greg Klein
Next Page 1 | 2
Another spring fever for graphite?
As one of Chris Berry’s “energy minerals”, graphite had an energetic week with the biggest news coming from Energizer Resources TSX:EGZ. The company’s Molo graphite deposit in Madagascar reached another milestone Tuesday with its preliminary economic assessment.
But to start with Monday, Rock Tech Lithium TSXV:RCK released drill results from the Plumbago area of its Lochaber project in southern Quebec. The same day Nevado Resources TSXV:VDO did the same thing for its Fermont property in the province’s northeast.
Coinciding with Energizer’s Tuesday release, Pistol Bay Mining TSXV:PST announced an option on the Portland graphite property in southeastern Ontario. Also on Tuesday, Canada Strategic Metals TSXV:CJC released metallurgical tests from its La Loutre property back in southern Quebec.
More metallurgical news came the following day from Standard Graphite’s TSXV:SGH Mousseau East deposit, again in southern Quebec. Then on Thursday Mason Graphite TSXV:LLG weighed in with drill results from Lac Gueret in northeastern Quebec.
No graphite news on Friday, however. Presumably everyone was en route to PDAC 2013, where they’ll conspire to pump up a repeat of last spring’s graphite mania.
No wait, this is the hottest new commodity
“Rhodium, the scarcest precious metal used in making catalytic converters, is outperforming platinum and palladium for the first time in seven years as global car sales rise to a record,” stated a Thursday Bloomberg report.
“The metal, used with palladium and platinum in pollution-control devices, rose 16% this year, about three times the increase of the other two ingredients and 20 times more than the benchmark commodities index (MXWD). Output will trail demand for four more years after the first deficit since 2007 [took place] last year [and eroded] inventories, Standard Bank Plc’s SBG Securities … forecasts.”
It seems to be gaining safe haven status too. “Baird & Co., a UK precious metals dealer, sold about 10,700 one-ounce rhodium bars … more than 10 times the amount planned when production began in May 2012,” the news agency added. “The London-based company expanded with bars that weigh one-tenth an ounce to five ounces to meet increased demand.”
A Baird spokesperson told Bloomberg, “At the moment we can’t make them quick enough so we are stepping up production. The market is so thin that it just needs a car company to buy a year’s worth of production or a hedge fund to pull out a little bit of loose change. It doesn’t take a lot to create quite sharp price movements.”
De Beers blockade: Cops’ lack of resolve resolves nothing
At press time Friday, De Beers’ Victor diamond mine in northern Ontario had gone seven (7) days without an illegal native blockade. The most recent roadblock ended late February 22 when the five or six protestors simply left. Then, and only then, did police move in.
So far the company has lost nearly half of an approximately 45-day opportunity to haul a year’s worth of heavy supplies over a seasonal ice road. As a result, the mine might face a temporary shutdown, the Timmins Daily Press reported on Tuesday.
Next Page 1 | 2