Tuesday 23rd October 2018

Resource Clips


Posts tagged ‘quebec’

Depending on the enemy

October 10th, 2018

The U.S. calls for new supply strategies to meet economic and defence risks

by Greg Klein

The goal might be summed up by a new slogan: Make America Self-Reliant Again. Or, with a tad less concision: Let’s Stop Relying on an Economic Rival that’s a Potential Military Threat for the Stuff We Need to Compete with an Economic Rival that’s a Potential Military Threat.

A newly released study from the U.S. Secretary of Defense illustrates that absurd dilemma. The dependency runs the gamut from sourcing raw materials to refining them, manufacturing key components, developing R&D, training workers, even setting prices. As the report says, “The central challenge to U.S. prosperity and security is the reemergence of long-term, strategic competition by what the National Security Strategy classifies as revisionist powers. It is increasingly clear that China and Russia want to shape a world consistent with their authoritarian model—gaining veto authority over other nations’ economic, diplomatic, and security decisions.”

The U.S. calls for new supply chain strategies to meet economic and defence risks

But Russia merits little mention in the 146-page document. China comes up again and again as the pre-eminent economic and military threat with a long-term hegemonic strategy.

That strategy’s been very successful, leaving the U.S. sorely unprepared for the resulting risks. Ordered by President Donald Trump in July 2017, the report urges a government-wide program to address the entire range of supply chain challenges.

The 2010 Senkaku incident, dramatic as it was, can be seen as a mere microcosm of a much bigger threat.

“China’s domination of the rare earth element market illustrates the potentially dangerous interaction between Chinese economic aggression guided by its strategic industrial policies and vulnerabilities and gaps in America’s manufacturing and defense industrial base,” the report warns. “China has strategically flooded the global market with rare earths at subsidized prices, driven out competitors, and deterred new market entrants. When China needs to flex its soft power muscles by embargoing rare earths, it does not hesitate, as Japan learned in a 2010 maritime dispute.”

It was a lesson learned by other countries too. The report describes rare earths as “critical elements used across many of the major weapons systems the U.S. relies on for national security, including lasers, radar, sonar, night vision systems, missile guidance, jet engines, and even alloys for armored vehicles.”

Rare earths figure prominently in the U.S. list of 35 critical minerals drafted last February and confirmed in May. American dependency was further highlighted when the country dropped rare earths from a revised list of tariffs on Chinese imports announced in September.

China’s soft power hardball has targeted other American allies as well, waging “aggressive economic warfare” against South Korea after the country installed an American air defence system. Other examples of “economic coercion” include “a ban on Philippine bananas over territorial disputes in the South China Sea; the aforementioned restriction of rare earth exports to Japan following the Senkaku Islands dispute in 2010; persistent economic intimidation against Taiwan; and the recent ceding of a Sri Lankan port.”

China can play nice too. But at a price. The country invests heavily in developing countries, often building infrastructure “in exchange for an encumbrance on their natural resources and access to their markets.”

As for Chinese electronics exports, they “lack the level of scrutiny placed on U.S. manufacturers, driving lower yields and higher rates of failures in downstream production, and raising the risk of ‘Trojan’ chips and viruses infiltrating U.S. defense systems.”

Technological expertise becomes a strategic weapon too. “As part of its industrial policy aggression, China has forced many American companies to offshore their R&D in exchange for access to the Chinese market.”

With an advanced-stage rare earths project in northern Quebec as well as advanced-stage tantalum-niobium in southern British Columbia, Commerce Resources TSXV:CCE president Chris Grove keeps tabs on Canada’s neighbour. “People in Washington tell me the anxiety level on these issues has never been higher,” he notes.

Here’s the world’s biggest military and they’re saying, ‘We need Chinese stuff to make it all work?’ That’s really for most Americans an absolutely untenable and unbelievable position of weakness.—Chris Grove,
president of Commerce Resources

“Apart from the trade imbalance between the U.S. and China, there’s the vulnerability of the U.S. military. Here’s the world’s biggest military and they’re saying, ‘We need Chinese stuff to make it all work?’ That’s really for most Americans an absolutely untenable and unbelievable position of weakness.”

Sources in Washington encouraged Grove to apply for a research grant from the U.S. Defense Logistics Agency. If successful, the application would bring up to $3 million to further metallurgical progress on his company’s Ashram rare earths project, advancing a potential source in a stable and allied country.

That would complement one of the report’s key recommendations, to “diversify away from complete dependency on sources of supply in politically unstable countries who may cut off U.S. access; diversification strategies may include re-engineering, expanded use of the National Defense Stockpile program, or qualification of new suppliers.”

Other recommendations include creating an industrial policy that supports national security, working with allies and partners on industrial development, expanding industrial investment, addressing manufacturing and industrial risk within the energy and nuclear sectors, encouraging home-grown scientific expertise and occupational skills, and exploring next generation technology for future threats.

In ordering the study, Trump stated the loss of key companies, over 60,000 American factories and almost five million manufacturing jobs since 2000 “threatens to undermine the capacity and capabilities of United States manufacturers to meet national defense requirements and raises concerns about the health of the manufacturing and defense industrial base.”

Cross-country events mark Investor Education Month

October 2nd, 2018

by Greg Klein | October 2, 2018

Following the ounce-of-prevention principle, securities commissions across Canada plan a number of initiatives to encourage smarter, safer investment strategies. A month of events begins with World Investor Week, in which Canadian regulators join the International Organization of Securities Commissions from October 1 to 7. Here’s an outline of this country’s events from province to province.

British Columbia
The B.C. Securities Commission will release new research on millennials this month, along with new tools to help people understand their investment returns. The BCSC also plans design updates to InvestRight.org to improve its efficacy.

Cross-country events mark Investor Education Month

Alberta
A digital education campaign called Spot the Odd will raise awareness of the Alberta Securities Commission’s free resources as well as encourage financial literacy and fraud awareness. A number of activities across the province will include Don’t Get Tricked, to be held in Calgary on October 17.  The ASC provides other resources on CheckFirst.ca.  

Saskatchewan
The province’s Financial and Consumer Affairs Authority has a cryptocurrency awareness campaign slated for Facebook, Twitter, the FCAA website and YouTube. In addition, businesses planning to use cryptocurrencies are invited to discuss their project with the FCAA to learn whether it falls under securities legislation.

Manitoba
The Manitoba Securities Commission will formally launch MoneySmartManitoba.ca to promote financial literacy and planning. The MSC will also take to the Twittersphere with news, tips and strategies for investors.

Ontario
The Ontario Securities Commission plans social media chats on Twitter and Facebook with the hashtag #IEM2018. The OSC also hosts GetSmarterAboutMoney.ca, plans a telephone townhall for October 10, presents public events around the province with OSC in the Community and further encourages awareness through an investor newsletter.

Participating in World Investor Week helps promote investor education and protection both locally and globally.—Tyler Fleming,
Ontario Securities Commission

Quebec
L’Autorité des marchés financiers will release results of its fourth Financial Awareness Index, measuring the public’s knowledge and use of financial products and services. The AMF will also present the third edition of its Talking Money in Class! contest for high school teachers and take part in the Quebec Seniors’ Fair.

New Brunswick
The Financial and Consumer Services Commission will present online info with special emphasis on initial coin offerings. For more tips on fraud, investors may visit fcnb.ca and follow the commission on Facebook and Twitter. The Fortune online trivia game allows investors to compete with others across the province to learn more and win prizes.

In addition to all that, the Canadian Securities Administrators umbrella group offers its own online tools and resources. The CSA invites the public to take advantage of Investor Education Month and World Investor Week by following @CSA_News on Twitter and @CSA.ACVM on Facebook.

Read: Regulators emphasize innovation and deterrence as financial sanctions fail.

Overwhelming majority puts Quebec in new hands, New Brunswick still deadlocked

October 1st, 2018

by Greg Klein | October 1, 2018

Overwhelming majority puts Quebec government in new hands

CAQ incoming premier Francois Legault argued against unacculturated immigrants,
made popular funding promises and vowed to cut taxes. (Photo: Coalition Avenir Québec)

 

Updated Quebec results (with 2014 figures in parentheses)

  • Coalition Avenir Québec: 74 seats, 37.4% of the popular vote (21 seats, 23%)
  • Quebec Liberal Party: 32 seats, 24.8% (68 seats, 41.5%)
  • Québec Solidaire: 10 seats, 16.1% (3 seats, 7.6%)
  • Parti Québécois: 9 seats, 17% (28 seats, 25.4%)
  • Others: 0 seats, 4.6% (5 seats, 2.4%)

 

A seven-year-old party jumped from third place to government status as the Coalition Avenir Québec won the October 1 provincial election. Leading in a majority of seats half an hour after polls closed, the CAQ pushed the incumbent Liberals to second place, leaving the former official opposition Parti Québécois struggling to stay above fourth spot. Easily winning his riding of L’Assomption was incoming premier Francois Legault, a CAQ co-founder who previously created Air Transat and served as a PQ government minister. His CAQ has attracted disaffected Liberals as well as Péquistes.

PQ leader Jean-Francois Lisee lost his seat to a Québec Solidaire challenger.

Overwhelming majority puts Quebec government in new hands

Mining issues held little prominence as debate focused heavily on immigration but sidelined independence. Spending promises flowed freely with health care, education and child care giveaways coinciding with CAQ promises to cut taxes.

But just one week before the campaign’s official start date, the Liberal government announced $185 million of provincial money for the privately held BlackRock Metals’ iron ore-vanadium-titanium open pit development in the northern riding of Ungava. The money consisted of $100 million in loans and an $85-million investment, part of a total package of $1.3 billion attracted to the project. The Liberals also promised $63 million to build energy infrastructure in the Chicoutimi riding that would host BlackRock’s secondary processing facility.

Ungava’s Liberal incumbent placed third while the CAQ narrowly beat the PQ in a very tight three-way contest. In Chicoutimi, the CAQ won a strong victory over the PQ incumbent.

Last May Premier Philippe Couillard joined Prime Minister Justin Trudeau to announce $60 million in federal funding for an Alcoa NYSE:AA/Rio Tinto NYSE:RIO aluminum smelter to be built in the overlapping federal riding of Chicoutimi-Le Fjord. Three days later Trudeau called a by-election, only to see a Conservative defeat his Liberal incumbent.

The Quebec government invests heavily in projects ranging from junior exploration to operating mines through the Ressources Québec subsidiary of Investissement Québec. In August Legault said he would cut bureaucracy at Investissement Québec.

Quebec’s March budget posted a $1.3-billion surplus, but the province receives equalization payments that came to $11.8 billion this year and will rise to $13.3 billion in 2019. Currently the entire amount comes from the western provinces. Legault opposed the Energy East pipeline proposal from Alberta to New Brunswick.

Pundits might wonder to what extent the CAQ’s success depended on its proposal to expel unacculturated immigrants. But any criticism of la province spéciale will have to be muted, even if the plan calls for unwanted foreigners to be packed off to Anglo Canada.

The PQ’s demotion hardly spells the end of separatism now that the party shares the independence vote with QS and possibly the CAQ, which has equivocated on the subject.

As for last week’s New Brunswick election, results remain in limbo. With 22 seats, the Conservatives edged out the incumbent Liberals by a single riding. Speculation focuses on either party making a deal with the People’s Alliance or the Greens, which won three seats each.

The Green result triples its N.B. legislative standing, continuing the party’s progress in Canada. Last June the Ontario riding of Guelph elected that province’s first Green. Canada now has eight Greens elected provincially (three in N.B., three in B.C., and one each in Ontario and Prince Edward Island), along with one elected federally in B.C. In B.C.’s legislature, the party holds the balance of power under an agreement with the New Democratic Party minority government.

Saville Resources mobilizes for niobium-tantalum field work in northern Quebec

September 25th, 2018

by Greg Klein | September 25, 2018

Encouraging assays and heightening concern for critical minerals bring an exploration team back to Saville Resources’ (TSXV:SRE) Niobium claim group in Quebec’s Labrador Trough region. The program follows earlier drilling as well as more recent niobium-tantalum boulder samples that reached as high as 4.3% Nb2O5 and 700 ppm Ta2O5. With work carried out by Dahrouge Geological Consulting, the autumn agenda calls for prospecting and ground geophysics to identify future drill targets.

Saville Resources mobilizes for niobium-tantalum field work in northern Quebec

A view from a ridge on Saville Resources’ Niobium claim
group, now progressing towards an updated geological model.

The 1,223-hectare project sits on the Eldor property which also hosts Commerce Resources’ (TSXV:CCE) Ashram rare earths deposit, now moving towards pre-feasibility. Under an agreement with Commerce, Saville may earn 75% of the Niobium claim group. The company has two weeks planned for the current campaign.

A 43-101 technical report filed earlier this month “concludes there is a ‘strong potential for carbonatite-hosted niobium-tantalum deposit(s) of significance’,” noted president Mike Hodge. “Discoveries start with boots on the ground and we look forward to following this work up with an aggressive and targeted drill campaign to further unlock this potential.”

Among places slated for ground magnetics is the Southeast area, where mineralization is often associated with magnetite. Prospecting will focus on relatively untouched areas but also the vicinity of drill programs dating to 2008 and 2010. Hole EC10-033 returned 0.72% Nb2O5 and 145 ppm Ta2O5 over 21.35 metres, starting just below overburden at 4.22 metres’ depth. The same hole also delivered 0.82% Nb2O5 over 21.89 metres starting at 58.9 metres.

The shallow intersections “indicate that strong mineralization extends to surface in the immediate area,” the company stated. “In terms of ground follow-up, there is a sizable corridor to the south of EC10-033 that has not been traversed and is therefore a high-priority area for assessment.”

Results from the program will help update the Southeast area’s geological model, which currently dates to 2010 despite an improved understanding of the Eldor complex. A partial photo re-log of the core, a revised rock classification scheme, geophysical results and other data will delineate future drill targets.

Reporting from Quebec’s James Bay region last month, Saville announced a new zinc-silver-nickel zone at surface on the company’s Covette property. Sampling took place along an area hosting strong magnetic anomalies and several EM conductors, with one sample grading 1.2% zinc and 68.7 g/t silver, and three others ranging from 0.13% to 0.19% nickel.

Also last month Saville closed an $877,700 first tranche of a private placement offered in July up to $2 million.

Read more about Saville Resources.

How to flog glitter to the young and affluent: A De Beers special report

September 14th, 2018

by Greg Klein | September 14, 2018

Last year’s global market for diamond-encrusted jewelry rose 2.2% to a new high of $82 billion, largely due to the planet’s most populous age groups, says the world’s largest purveyor of the bling. But as “consumer power” shifts from elderly Boomers and middle-aged Generation X to Millennials and Gen Z, manufacturers and retailers must meet a new set of consumer expectations, De Beers’ Diamond Insight Report warns.

Americans again demonstrated the largest demand for diamond jewelry, splurging $43 billion, up 4.2% from the previous year’s $41 billion extravagance in a market that’s expected to show steady growth.

How to flog glitter to the young and affluent: A De Beers special report

(Photo: Matt Crabb/Anglo American)

Looking at diamonds’ pre-jewelry market, rough sales to cutting and polishing facilities rose 2% to $16.6 billion. De Beers claimed 34% of the total, down from its 2016 portion of 37%. Alrosa’s share came to 25%, compared with 27% the previous year. This year’s H1 sales to cutting centres, however, have surpassed the same period in 2017.

Last year’s global production climbed 15% in value to $17.5 billion and 14% in volume to 164 million carats. De Beers took credit for the largest increase of 6.1 million carats, followed by Rio Tinto NYSE:RIO with 3.7 million and Alrosa with 2.3 million carats. The top three diamond mining countries remained Russia, Botswana and Canada.

Forecasts see this year’s global production slipping “due largely to Alrosa’s suspension of operations at the Mir mine and Rio Tinto’s guided fall in production at its operations. Looking further ahead, production is expected to continue falling as new projects and expansions fail to replace lost output from closing mines. By 2025, several large mines will reach the end of their life, while only a few new projects are in the pipeline.”

With the younger consumers’ desire for qualities that diamonds can perfectly embody—including love, connections, authenticity, uniqueness and positive social impact—the most exciting times for the diamond industry are still ahead of us if we can seize the opportunities.—Bruce Cleaver,
De Beers Group CEO

Much of the report focuses on Millennials and Gen Zedders, and why they matter more than those doddering old Boomers and clapped out Gen Exers. Not only are the newcomers more numerous than their predecessors (64% of the planet’s 7.39 billion potential customers) but they’ll soon have more money to splash around. Additionally “they represent more than two-thirds of total diamond jewellery demand value in the four largest diamond-consuming countries,” the U.S., China, India and Japan.

But don’t mistake these affluent upstarts for status-conscious materialists with more money than values, the report emphasizes. Those who would sell to them must recognize four key traits: “Love is meaningful to them in many ways; they are digital natives; they value authenticity, individuality and self-expression; they are engaged with society and social issues.” Indeed, crass marketing’s passé as enlightened purveyors appeal to young adults’ desire for “love, connections, authenticity, uniqueness and positive social impact.”

Still, differences persist between the two groups. Millennials multi-task across two screens and think in 3D. Gen Zedders do that stuff across five screens and in 4D. Now-focused, idealistic and expectant Millennials contrast with future-focused, pragmatic and persistent Gen Z. The divide continues, pitting Millennials’ Harry Potter/armchair activist lifestyle and their team orientation versus Gen Z’s Hunger Games/active volunteer approach credited with collective consciousness.

De Beers doesn’t divulge the methodology for its detailed but seemingly subjective analysis. Buried in the report, however, might be one of the most important traits for a marketing pitch to consider.

Millennials boast an attention span reaching all of 12 seconds, 50% higher than Gen Z’s eight-second feat of endurance.

Related: Could synthetics bring death to diamond mining? Or a kind of reincarnation?

Reaching arctic mines by sea

September 10th, 2018

Operating in northern Canada often means creating your own transportation routes

by Greg Klein

Amid all the controversy over spending $4.5 billion of taxpayers’ money to buy a pipeline project whose $9.3-billion expansion might never go through, Ottawa managed to come up with some good, if relatively minor, infrastructure news. Rehab work will begin immediately on an idled railway connecting with a port that together linked Churchill, Manitoba, with the rest of Canada by land and the world by sea. Should all go to plan the private-public partnership would be one of just a few recent success stories in northern infrastructure.

Operating in northern Canada often means building your own infrastructure

The arctic Quebec riches of Glencore’s Raglan mine
justify an especially roundabout route from mine to market.

Denver-based owner OmniTRAX shut down Churchill’s deep-water port in 2016, blaming the demise of grain shipping through that route. The following year the company said it couldn’t afford rail repairs after a flood washed out sections of the line. Now the railway, port and an associated tank farm come under new ownership in an “historic” deal involving the Missinippi Rail Limited Partnership and the Fairfax Financial Holdings & AGT Limited Partnership.

“The consortium brings together First Nations and community ownership and support, along with significant private sector leadership and global investment capacity, and further, short line rail operation and shipping experience,” Ottawa enthused. As stakeholders heaped praise on the federal government, the source for much of the money seemed clear. But not even the purchase price, let alone details on who pays how much, have been disclosed.

Still the revitalization program, which could re-open the railway this coming winter, heightens the potential of resource projects in northern Manitoba and Nunavut’s Kivalliq region. As such, the apparent P3 success contrasts with a northern infrastructure setback to the northwest.

In April Transport Canada rejected a request to fund the bulk of a $527-million proposal to build another deep-water port at Grays Bay, Nunavut, along with a 227-kilometre year-round road leading to the territory’s former Jericho diamond mine. The Northwest Territories offered to build its own all-weather link, where a winter road now connects Jericho with three operating diamond mines in the NWT’s portion of the Lac de Gras region.

However the federal refusal prompted Nunavut to pull its support for Grays Bay. Undeterred, the Kitikmeot Inuit Association joined the NWT and Nunavut Chamber of Mines at last month’s Energy and Mines Ministers’ Conference in Iqaluit to argue the case for Grays Bay and other infrastructure projects. Chamber executive director Tom Hoefer said that with the exception of the NWT’s 97-kilometre Tlicho all-season road, the two territories have gone more than 40 years without government support for major projects. The last came in 1975, when Ottawa partnered with industry to build the world’s first ice‐breaking cargo ship, serving the former Nanisivik and Polaris mines in present-day Nunavut, he said.

With no power grids to our remote mines, [companies] must provide their own diesel-generated power, or wind in the case of Diavik. Being off the highway system, they must build their own roads—whether seasonal ice roads or all-weather roads. The ice road melts every year and must be rebuilt annually for $25 million…. Some of our mines must build their own seaports and all provide their own airports.—Tom Hoefer, executive director
of the NWT and Nunavut
Chamber of Mines

Hoefer compared the Slave geological province, home to deposits of precious and base metals along with rare earths and Lac de Gras diamonds, to the Abitibi. Kivalliq, he added, also offers considerable potential in addition to the regional operations of Agnico Eagle Mines TSX:AEM.

But while mining plays an overwhelming role in the northern economy, he stressed, it’s been up to northern miners to build their own infrastructure.

Baffinland’s Mary River iron ore mine co-owners ArcelorMittal and Nunavut Iron Ore want to replace their hauling road with a 110-kilometre railway to the company’s port at Milne Inlet, where ore gets stockpiled prior to summer shipping to Europe. Now undergoing environmental review, the railway would be part of a proposal to increase extraction from four million tonnes to 6.2 million tonnes annually and finally make the mine profitable. An environmental review already recommended rejection of the increased tonnage proposal, but the final decision rests with Ottawa. (Update: On September 30, 2018, Ottawa approved the increased tonnage application for a one-year trial period.)

The rail line, if approved in its separate application, could be in operation by 2020 or 2021.

That would make it Canada’s only railway north of 60, except for a CN spur line reaching Hay River, NWT, from Alberta and a tourist excursion to Carcross, Yukon, from the Alaska Panhandle town of Skagway. (Also connected by highway to the Yukon, Skagway provides year-round deep-water port facilities for the territory, including Capstone Mining’s (TSX:CS) Minto copper mine.)

Projected for production next year, Amaruq comprises a satellite deposit for Agnico’s Meadowbank gold mine in Nunavut. The company has built a 50-kilometre all-weather road linking Amaruq with Meadowbank’s processing facility and the company’s 110-kilometre all-weather road—by far the territory’s longest road—to Baker Lake. Interestingly that’s Nunavut’s only inland community but the hamlet has seasonal boat access to Chesterfield Inlet on northwestern Hudson Bay. From there, still restricted to the ice-free months, ships can reach Churchill or the St. Lawrence Seaway.

Also primed for 2019 gold production is Agnico’s Meliadine, 290 kilometres southeast of Meadowbank. The company’s 25-kilometre all-weather road connects with summer shipping facilities at Rankin Inlet, 90 klicks south of Chesterfield Inlet.

With its Doris gold operation only five kilometres from the Northwest Passage port of Roberts Bay, TMAC Resources TSX:TMR hopes to mine two more deposits on the same Hope Bay greenstone belt by 2020 and 2022 respectively.

But the most circuitous route from northern mine to market begins in arctic Quebec using trucks, ship, rail and more rail, then another ship. Glencore hauls nickel-copper concentrate about 100 kilometres by road from Raglan to Deception Bay, roughly 2,000 crow-flying kilometres from Quebec City. That’s the next destination, but by water. From there the stuff’s offloaded onto rail for transport to a Sudbury smelter, then back by rail to Quebec City again. Ships then make the trans-Atlantic crossing to Norway.

This is Part 1 of a series about northern infrastructure.

Related reading:

Commerce Resources president Chris Grove comments as the Quebec rare earths project makes additional metallurgical progress

August 29th, 2018

…Read more

Commerce Resources’ rare earths metallurgy moves forward amid heightened supply concerns

August 20th, 2018

by Greg Klein | August 20, 2018

In an update on tests conducted by l’Université Laval, Commerce Resources TSXV:CCE reports another stage of progress with completion of crushing, grinding and large-scale flotation. About 1.5 tonnes of material were processed from the company’s Ashram deposit in northern Quebec, now moving towards pre-feasibility. With results meeting expectations, the project advances to a pilot-level hydrometallurgical component.

Commerce Resources’ rare earths metallurgy moves forward amid heightened concern for RE supply

Last month Commerce announced an important milestone in producing Ashram’s first concentrate of mixed rare earth oxides, showing the deposit’s amenability to different flowsheet approaches.

Laval’s next stage will use flotation concentrate to produce a purified solution containing rare earth elements, which will then be separated into light, medium and heavy rare earths. At the same time, the solution composition will be used to assess a solvent extraction separation pilot circuit using a software model simulator developed by the university. Results will allow further assessment of the economics of separating Ashram’s REEs into individual rare earth oxides.

Funding for the project comes through a $365,000 grant from Quebec’s ministère de l’Économie, de la Science et de l’Innovation.

As work continues, geopolitical developments bring increasing concern about rare earths supply. Trade hostilities between the U.S. and China have led to speculation about how the latter country, by far the world’s biggest rare earths producer, will use its resources as a weapon.

This year the U.S. included rare earths in a list of 35 minerals deemed essential to the country’s economy and defence, as part of a strategy to encourage production of critical minerals at home and among allied countries.

The list also includes tantalum and niobium, which Commerce has delineated at its advanced-stage Blue River project in east-central British Columbia. Back in Quebec, a few kilometres from Ashram, the company also holds an early-stage high-grade niobium project that’s conditionally subject to a 75% earn-in by Saville Resources TSXV:SRE.

Read more about Commerce Resources.

Saville Resources discovers new zinc-silver-nickel zone at surface in Quebec

August 8th, 2018

by Greg Klein | August 8, 2018

A property with limited exploration but encouraging geophysics shows further promise following a recent field program. Of eight surface samples collected by Saville Resources TSXV:SRE on its 3,370-hectare Covette project in Quebec’s James Bay region, one returned 1.2% zinc and 68.7 g/t silver, while three others assayed between 0.13% and 0.19% nickel.

Saville Resources discovers new zinc-silver-nickel zone at surface in Quebec

Saville Resources now plans trenching and channel
sampling to follow Covette’s grab sample assays.

Sampling took place along a visible strike of about 200 metres directly above an area of high conductivity found by a 2016 VTEM program that spotted several EM conductors coinciding with strong magnetic anomalies.

Underlying the region is a greenstone belt “comprised of various mafic to ultramafic rock units considered prospective for base and precious metals (nickel-copper-cobalt-platinum group elements-gold-silver), as well as pegmatite-hosted rare metals (lithium-tantalum),” Saville reported. “Komatiites have also been described in the region with such rock types known to host significant nickel-copper massive sulphide deposits at other localities globally, adding further to the prospective nature of the region.”

A sampling program in 2017 brought 0.18% nickel, 0.09% copper and 87 ppm cobalt. One historic, non-43-101 grab sample returned 4.7% molybdenum, 0.73% bismuth, 0.09% lead and 6 g/t silver. Another historic sample showed 1.2 g/t silver and 0.18% copper.

Further plans include follow-up trenching and channel sampling. Saville filed a 43-101 technical report on the property and closed its 100% acquisition in June.

Covette sits about 190 kilometres east of the town of Radisson and 10 kilometres north of the all-weather Trans-Taiga road and the adjacent hydro-electricity transmission line.

In another northern Quebec project, Saville has a 43-101 technical report underway for the Miranna claims situated on the Eldor property that hosts Commerce Resources’ (TSXV:CCE) advanced-stage Ashram rare earths deposit. Saville would acquire a 75% earn-in subject to exchange approval. In April the companies released niobium-tantalum boulder sample grades as high as 4.3% Nb2O5 and 700 ppm Ta2O5.

Last month Saville offered two private placements totalling up to $2 million.

Read more about Saville Resources.

Commerce Resources reaches key milestone with mixed rare earths concentrate from Quebec

July 24th, 2018

by Greg Klein | July 24, 2018

Ongoing metallurgical work at l’Université Laval has so far accomplished a number of goals while helping Commerce Resources’ (TSXV:CCE) Ashram deposit move towards pre-feasibility. Researchers found success in their primary task of validating new software for REE separation but met other goals as well.

Commerce Resources reaches key milestone with mixed rare earths concentrate from Quebec

“The rapid progress of this collaboration now includes the first-ever mixed rare earth oxide concentrate produced from Ashram deposit material,” said Commerce president Chris Grove. “This is a key milestone for the advancement of the project. This test work has demonstrated again the versatility of the Ashram deposit to be processed by a number of different flowsheet approaches.”

Laval’s team achieved bench scale production of mixed light rare earths oxide and mixed LRE/samarium, gadolinium and europium/heavy rare earths oxide.

Previous work produced over 45% rare earths oxide, among the highest-grade concentrates for RE development projects and comparing favourably with operating mines, Commerce reported. “This is a direct result of the simple rare earth and gangue mineralogy of the Ashram deposit…. This versatility in processing approaches lends itself to more cost-effective methods to be incorporated into the final flowsheet to achieve the same products and quality desired.”

Laval achieved recovery rates of 60% to 65% for several light rare earths, while modifications are anticipated to bring further improvement.

The work also validated the university’s software, as results closely matched the simulator’s predictions. Using another 1.5 tonnes of Ashram material, the lab team will conduct tests at the larger pilot scale level, comparing its results with those of the simulator and further assessing the economics of REE separation into individual rare earth oxides.

The software is intended to reduce processing delays and costs, as well as predict results for processing changes. The software might also determine process optimization that considers current REE prices.

The studies get financial support through a $365,000 grant from Quebec’s ministère de l’Économie, de la Science et de l’Innovation.

Last month Commerce reported positive results from advanced tailings optimization tests conducted by a branch of l’Université du Québec. Additional provincial funding supports that research. The company also received government support from a $1-million investment by Ressources Québec last year.

The Commerce portfolio also includes the advanced-stage Blue River tantalum-niobium project in British Columbia and, a few kilometres from Ashram, an early-stage high-grade niobium project that’s conditionally subject to a 75% earn-in by Saville Resources TSXV:SRE.

Read more about Commerce Resources.