Tuesday 21st November 2017

Resource Clips


Posts tagged ‘lithium’

Darryl Jones of Voltaic Minerals discusses the Green Energy lithium brine project in Utah

September 15th, 2017

…Read more

Far Resources samples more high-grade lithium, prepares to drill Manitoba project

September 8th, 2017

This story has been updated and moved here.

92 Resources returns to the field at its NWT hardrock lithium project

September 6th, 2017

by Greg Klein | September 6, 2017

Hoping to kick up more evidence of lithium, boots will hit the ground shortly as 92 Resources TSXV:NTY heads back to its Hidden Lake project in the Northwest Territories. The company expects the two-week program to prepare the road-accessible project 40 kilometres from Yellowknife for Phase I drilling later this year.

92 Resources returns to the field at its NWT hardrock lithium project

Plans call for channel sampling on HL6 and HL8, two pegmatites discovered last year that yielded grab samples up to 1.86% Li2O. Prospecting between the HL6 and D12 pegmatites will try to determine whether these two features located about 1.4 kilometres apart could comprise a single body. Regional prospecting will search for additional pegmatites while further channel sampling on the HL1, HL3, HL4 and D12 pegmatites will support ongoing metallurgical tests.

Metallurgical results announced in July on a composite sample from Hidden Lake showed “amenability to simple and conventional spodumene mineral processing methods,” the company stated.

Funding for the field program comes partly from a $140,000 NWT Mining Incentive Program grant.

92 Resources also conducted a 10-day field program this summer on its Golden frac sand project in eastern British Columbia, adjacent to Heemskirk Canada’s Moberly project. A former source of silica sand for the glass industry, Moberly’s undergoing redevelopment as a frac sand production and processing operation.

Last month 92 Resources appointed former Yellowknife MLA David Ramsay to its board of advisers. As a territorial cabinet minister Ramsay’s responsibilities included Industry, Tourism and Investment (which included mining), Justice and Attorney General, Transportation, the NWT Business Development Corp and the Public Utilities Board.

Read Isabel Belger’s interview with 92 Resources CEO Adrian Lamoureux.

Update: Berkwood Resources continues to drill visible graphite in Quebec

August 31st, 2017

by Greg Klein | updated August 31, 2017

Assays have yet to arrive, but two holes reported last week and another five on August 31 have all produced near-surface core with visible graphite from Berkwood Resources’ (TSXV:BKR) Lac Gueret South project. The Phase I program calls for nine more shallow holes between about 60 and 120 metres in depth.

The company cautioned that visible indications don’t necessarily coincide with significant grades. But the results do justify continuing the program as planned, Berkwood stated.

Lac Gueret South borders the property hosting Mason Graphite’s (TSXV:LLG) high-grade graphite deposit. A 2014 airborne EM survey over Berkwood’s land found several zones of high conductivity.

Last week’s news from the property’s Site #1 reported 3.1 metres and 38.29 metres of visible graphite from BK1-01-17, along with 2.7 metres and 9.9 metres from BK1-02-17. The depths corresponded with electromagnetic conductors.

Berkwood Resources continues to drill visible graphite in Quebec

The first seven holes have brought observable
encouragement to Berkwood Resources’ Lac Gueret South.

Among new findings from Site #2, about 110 metres north, BK1-03-17 displayed the right stuff in seven intervals ranging between 1.46 metres and 28.2 metres in width.

Another Site #2 hole, BK1-04-17 showed graphite “continuously from 26.7 metres to 79.24 metres in variable amounts and styles,” Berkwood stated.

At Site #3, another 65 kilometres north, BK1-05-17 revealed graphite over four intervals with thicknesses between 3.2 metres and 14.12 metres. BK1-06-17 brought intervals of 13.22 metres and 1.14 metres.

About 87 metres east, BK1-07-17 on Site #4 showed 5.94 metres of graphite.

True widths weren’t provided.

The company holds two land parcels adjacent to the Mason property, Berkwood’s 100%-optioned, 5,714-hectare Lac Gueret South and the 100%-held, 2,052-hectare Lac Gueret East. The properties sit about three hours by road from the deep-sea port of Baie-Comeau.

Last month the company announced acquisition of the Delbreuil property in Quebec’s Abitibi, where an historic, non-43-101 sample assayed 1,290 ppm lithium and 126 ppm tantalum. Historic drill results also showed zinc, nickel, copper, silver and cobalt.

In another energy mineral acquisition last June, Berkwood announced an agreement to take on the Cobalt Ford property, located about four hours’ driving time from Baie-Comeau. Historic, non-43-101 work suggests prospectivity for base metals as well as cobalt.

This week the company closed private placements totalling $985,180.

Berkwood Resources intersects visible graphite as Quebec drilling continues

August 22nd, 2017

This story has been updated and moved here.

Green energy in Utah

August 18th, 2017

Darryl Jones sees distinctive advantages to Voltaic Minerals’ lithium brine project

by Isabel Belger

Isabel Belger

Isabel Belger

Isabel: I would like to introduce the president and CEO of Voltaic Minerals [TSXV:VLT], Darryl Jones. Hello Darryl, it is a pleasure to talk to you again. How are you?

Darryl: I am good, thanks for asking and having me.

Isabel: To get started, could you tell us a bit about your background?

Darryl: I started in investor relations, working for a multitude of junior mining companies. From there I worked my way in with my father, who was a stockbroker. He was in the business for about 28 years. I worked with him for five or six years at Raymond James and moved from there to PI. I was a broker for 12 years. I then moved on to work with an ex-client where I joined the board of Strikepoint Gold [TSXV:SKP] and from there I made my way to Zimtu Capital [TSXV:ZC]. And here we are, almost two years later.

Isabel: Your company is lithium-focused, but not hard rock deposits and not like the classic salars in South America. Where is your project? And what makes it special?

Darryl: We are in Utah roughly 20 kilometres west of a town called Moab. It is a brine project but it is a non-conventional brine. The Green Energy brine project is hosted in what are called clastic units of the Paradox Basin. It is about 6,000 feet [1,830 metres] deep in an old layered bed-type formation. Effectively it is a buried salar, like the South American salars, except much deeper and under immense pressure and very saturated from what we understand. I guess the three things that make it very interesting are that it is super-saturated with a full spectrum of minerals, it is under immense pressure which is phenomenal because we believe it should just flow out of the ground, and being subjected to tremendous pressure leads to a higher temperature as well. Temperature, pressure and saturation are all key factors for a brine project of this nature.

Isabel: What are your highlights on the project so far?

Darryl Jones sees distinctive advantages to Voltaic Minerals’ lithium brine project

Darryl: It is a historic project, where most of the work was done through oil and gas exploration in the ’60s, ’70s, all the way up to current date. We have been compiling existing well logs, existing data and working with some private well owners and oil and gas groups to get a better understanding of the zone we are working in. We have seen multiple wells out of this formation show significant brine flow. We understand that this horizon has the capability to be a very large resource. From that we expect to test it through an existing well. We are working towards our 5,000-gallon sample which will give us a very strong indication of size, I guess you could say, of the potential resource.

Isabel: When will you know that?

Darryl: We are working with a well owner right now to try to get access as soon as possible. We have got two paths going. We have got the project that we really want to get into, then we are also working on developing a process that will help us unlock the super-saturated brine. The closer we get to strong data that gives us the ability to say unlock the brine will push us to that decision to execute to get into the system. We are hoping this year.

Isabel: What are the plans for the rest of the year?

Darryl: In the next couple of weeks, we will have an agreement in place to re-enter that well and alongside that in the next couple of weeks we are hoping to have some really strong process results to show that we can economically extract what we need from it.

Isabel: Do you have already an idea when you could be producing lithium?

We have always had an aggressive timeline. We believe if we have access to this brine, we could then be six to nine months away from producing some small-scale samples, [provided] that we would have the process that can extract lithium from it.—Darryl Jones

Darryl: We have always had an aggressive timeline. We believe if we have access to this brine, we could then be six to nine months away from producing some small-scale samples, [provided] that we would have the process that can extract lithium from it. First, we want to get this initial set of results back in order to really direct the way we want to go with the sampling. In my opinion, we now have all the pieces in place to support our development timeline, once we get some initial feedback on the process and have access to the brine. That nine-months horizon is real.

Isabel: What makes it so difficult to access those wells?

Darryl: Most of the wellheads are either plugged and abandoned or they are owned and operating for oil and gas operations.

Isabel: Oh, so they are still producing oil and gas there?

Darryl: Yes, there is still a lot of oil production in Utah. Accessing a plugged and abandoned well is difficult on the environmental side. It is basically like drilling your own new well, which can be costly and you don’t know what you are going to get when you are re-entering an existing abandoned well. The other avenue would be re-entering a producing well, which is difficult because you might have to tell the oil and gas company to shut their production so that you can test for lithium. It is a matter of building relationships and being able to go down there to show what the potential value could be. I think we have done that. We have the right team and the right people in place so that we could have that within the next week.

Isabel: Talking about cost effectiveness—the price of lithium has been increasing over the past few years, right now about $9,000 per metric tonne. Do you have any idea presently for what price you will be able to produce lithium?

Darryl: From the start our goal was to work always towards a lowest production cost as possible. Most of the major lithium producers in South America are between $3,000 and $4,000 a ton, which is a great number. We are hoping to match those production costs. We enjoy some great efficiencies operating in Utah, which has very good infrastructure.

So that is where we would like to be, anywhere between $3,000 to $5,000 a ton. I think that will make us a very competitive player in the lithium space.

Isabel: What do you think is and will be the key to this new, ongoing demand for lithium for a junior exploration company like Voltaic Minerals?

Grade is usually one of the first things that people will look at. Something that is also important is the speed to market. The faster you can get to market, the more attention you are going to have. —Darryl Jones

Darryl: You want to have a project that has first and foremost the right grade. Grade is usually one of the first things that people will look at. Something that is also important is the speed to market. The faster you can get to market, the more attention you are going to have. In our opinion no one has broken anything open in North America. We believe the window is still open there for somebody to come up with a profitable solution. I think that is going to be the biggest thing. Anyone that comes to market quickly will have a lot of eyes on them and garner lots of attention.

Isabel: You are right and there is almost no lithium being produced in the U.S. right now.

Darryl: No there isn’t!

Isabel: You may have heard about the big Volkswagen diesel scandal. There is a huge discussion going on about the future of diesel technology, and that switching to electric cars is the solution for all our climate problems. But we tend to forget that many lithium projects would have an adverse impact to our planet as well.

In that respect, isn’t your project, with brine situated at a considerable depth and which comes to the surface under its own pressure, the best-case scenario?

Darryl: Yes, environmentally speaking it is great. We are searching for a straight brine zone, which would give us the opportunity to just effectively strip the lithium out, not change anything else associated with the water, not having any hydrocarbons and effectively put the water back into the ground. That would be the ultimate scenario. We feel we could be a very green company or have a green process which doesn’t hurt anything and greatly benefits this revolutionary battery market.

Isabel: How much of Voltaic Minerals does the management hold?

Darryl: About 15%.

Isabel: How much cash do you have right now?

Darryl: About $500,000.

Isabel: It was a pleasure to talk to you. Thank you for the insights.

Darryl: The same. Good talking to you Isabel. Thank you.

 

Darryl Jones sees distinctive advantages to Voltaic Minerals’ lithium brine project

Darryl Jones, president/CEO
of Voltaic Minerals

Bio

Mr. Jones was an investment adviser with PI Financial Corp Canada and Raymond James Ltd Canada and has 15-plus years of capital market experience and an established financial network. He was responsible for raising significant risk capital for growth companies in all sectors, with a particular focus on natural resources. He also serves as director of Strikepoint Gold Corp.

Fun facts

My hobbies: Snowboarding, playing hockey, golf, spending time with my two-year-old daughter
My favourite tradeshow: Mines and Money shows, PDAC
My favourite commodity: Lithium and gold
With this person I would like to have dinner: Timothy Ferriss
If I could have a superpower, it would be: Reading people’s minds
My role model: My father

Read more about Voltaic Minerals.

92 Resources president/CEO Adrian Lamoureux discusses early metallurgical results for his company’s Northwest Territories hardrock lithium project

August 16th, 2017

…Read more

Gary Musil of Belmont Resources comments on lithium exploration in the U.S.

August 11th, 2017

…Read more

Robert Friedland’s favourites

July 28th, 2017

Unprecedented demand calls for unparalleled grades, the industry legend says

by Greg Klein

For all that’s being said about lithium and cobalt, Robert Friedland argues that the energy revolution also depends on copper and platinum group elements. Of course he has a stake in them himself, with Kamoa-Kakula and Platreef among his current enthusiasms. Still, whether motivated by self-interest or not, the mining titan whom Rick Rule calls “serially successful” presented a compelling case for his favourite metals at the Sprott Natural Resource Symposium in Vancouver on July 25.

We’re living in “an era of unprecedented change,” said Ivanhoe Mines’ TSX:IVN founding chairperson. China’s the main cause. That country’s “breeding mega-cities prodigiously.” But one result is “incredibly toxic air… with a whole suite of health effects” from heart attacks to stroke, asthma to Alzheimer’s.

Unprecedented demand calls for unparalleled grades, the industry legend says

A crew operates jumbo rigs to bring
Ivanhoe’s Platreef mine into PGM production.

China’s not alone. Friedland pegs current global population growth at 83 million a year, with a projected 8.5 billion people populating the planet by 2030. Five billion will inhabit urban areas. Forecasts for 2050 show 6.3 billion city-dwellers. But China, notorious for its poisoned atmosphere, “is on an air pollution jihad.” It’s an all-out effort to turn back the “airpocalypse” and, with a command economy, a goal that shall be achieved.

The main target will be the internal combustion engine, responsible for about 60% of urban air pollution, Friedland said. China now manufactures 19 million cars annually, he adds. The country plans to increase output to 60 million, a goal obviously contrary to the war on pollution unless it emphasizes electric vehicles.

Like others, Friedland sees massive disruption as the economics of EVs overtake those of internal combustion engines, a scenario he expects by 2022 or 2023.

Demand for lithium-ion batteries (comprising 4% lithium, 80% nickel sulphate and 15% cobalt) has sent cobalt prices soaring. But bigger EVs will likely rely on hydrogen fuel cells, he pointed out. They’re already used in electric SUVs, pickup trucks, double-decker buses in London, trains in Germany and China, and, expected imminently, autonomous air taxis in Dubai.

Hydrogen fuel cells need PGMs. If only one-tenth of China’s planned EV output used the technology, demand would call for the world’s entire platinum supply, Friedland said.

“I would rather own platinum than gold,” he declared. Additionally, “there’s no platinum central reserve bank to puke out platinum.”

Ivanhoe just happens to have PGMs, about 42 million ounces indicated and 52.8 million ounces inferred, at its 64%-held Platreef project in South Africa.

Unprecedented demand calls for unparalleled grades, the industry legend says

Underground development progresses at the Kansoko mine,
part of the Kamoa copper deposit and adjacent to Kakula.

Electricity for the grid also ranks high among China’s airpocalyptic priorities. A study produced for the United Nations Environment Programme credits the country with a 17% increase in renewable electricity investment last year, most of it going to wind and solar. Almost $103 billion, China’s renewables investment comes to 36% of the world total.

Just as EVs remain more copper-dependent than internal combustion, wind and solar call for much more of the conductive commodity than do other types of electricity generation. Friedland sees additional disruptive demand in easily cleaned copper surfaces now increasingly used in hospitals, care homes, cruise ships and other places where infectious diseases might lurk.

He sees a modest copper supply deficit now, with a crisis possibly starting as soon as 2019. The world needs a new generation of copper mines, he said, repeating his unkind comparison of today’s low-grade, depleting mines to “little old ladies waiting to die.” The world’s largest producer, the BHP Billiton NYSE:BHP/Rio Tinto NYSE:RIO Escondida mine in Chile, is down to a 0.52% grade.

Copper recently hit a two-year high of about $6,400 a tonne. But, citing Bernstein data, Friedland said new mines would require a $12,000 price.

Not Kamoa-Kakula, though. He proudly noted that, with an indicated resource grading 6.09%, it hosts “the richest conceivable copper deposit on this planet.”

I’ve never been as bullish in my 35 years on a project.—Robert Friedland

A JV with Ivanhoe and Zjin Mining Group each holding 39.6% and the DRC 20%, Kamoa-Kakula inspires “a plethora of superlatives.” The veteran of Voisey’s Bay and Oyu Tolgoi added, “I’ve never been as bullish in my 35 years on a project.”

The zillionaire likes zinc too, which his company also has in the DRC at the 68%-held Kipushi project. With a measured and indicated grade of 34.89%, the Big Zinc zone more than doubles the world’s next-highest-grade zinc project, according to Ivanhoe. There’s copper too, with three other zones averaging an M&I grade of 4.01%.

“Everything good in the Congo starts with a ‘K’,” he said enthusiastically.

But recklessly, in light of the DRC’s controversial Kabila family. In June Ivanhoe was hit by reports that the company has done deals with businesses held by the president’s brother, Zoe Kabila, although no allegations were made of wrongdoing.

The family has run the country, one of Africa’s poorest, since 1997. Current president Joseph Kabila has been ruling unconstitutionally since November, a cause of sometimes violent protest that threatens to further destabilize the DRC.

As the New York Times reported earlier this month:

An implosion of the Democratic Republic of Congo, a country almost the size of western Europe, could spill into and involve some of the nine countries it borders. In the late 1990s, neighbouring countries were sucked into what became known as the Great War of Africa, which resulted in several million deaths.

Friedland’s nearly hour-long address made no mention of jurisdictional risk. But the audience of hundreds, presumably most of them retail investors, responded warmly to the serial success story. He’s the one who, after Ivanhoe languished at five-year lows in early 2016, propelled the stock more than 300% over the last 12 months.

Far Resources’ Manitoba lithium project reveals additional spodumene-bearing pegmatite

July 27th, 2017

by Greg Klein | July 27, 2017

Far Resources CSE:FAT has identified spodumene-bearing pegmatite dykes at its Zoro project in Manitoba to a greater extent than previously understood, enhancing the property’s lithium potential. The company confirmed the presence of a dyke swarm following a field visit to the Snow Lake region property, which was originally known to host seven spodumene-bearing dykes. Far Resources announced the discovery of additional dykes earlier this month.

Far Resources’ Manitoba lithium project reveals additional spodumene-bearing pegmatite

A drill program would be necessary to determine their full dimensions, the company stated. Eighteen chip samples have been sent for assays.

Prospecting found dyke 7 exposed over 220 metres before it trends beneath a swamp. Dyke 7 has two smaller pegmatite dykes associated with it, both mineralized with spodumene and possible tantalite. One has a strike of about 80 metres and width up to 13 metres. The other shows about 75 metres in strike and two to three metres in width. Twenty-one pits and trenches have been documented from dyke 7, the company reported.

Dyke 6 outcrop was identified for about 100 metres in strike and widths of 0.5 to two metres. “It has not been exposed by trenches or pits and remains untested although spodumene is present in the dyke,” Far Resources added.

Dyke 5 extends for a 250-metre strike with widths from two to 12 metres at surface. Nineteen pits or trenches have revealed spodumene and possible tantalite.

“With the success of this field program we are looking forward to completing further work to assess dykes 2, 3 and 4 for additional mineralized pegmatites,” said president/CEO Keith Anderson. “This field work will lay the ground work for further drilling in the winter of 2017.”

In late June the company closed its acquisition of the Winston gold project in New Mexico. Last week Far Resources announced it would propose to shareholders that a new company be created to manage the project.