Alkane set for an incredible year
When looking at Alkane Resources Ltd. (ASX: ALK | OTCQX: ANLKY) (“Alkane”), we have often focused on the famous Dubbo Zirconia Project and its significance in the rare earth market; recent developments have not only seen the prices of zirconium derivative products begin to climb, but have also placed some serious focus onto Hafnium, a tech-metal present at the Dubbo site whose demand is currently outstripping supply, and is consequently inspiring massive investment from around the world.
Aside from Dubbo, Alkane’s recent exploration works have revealed incredible gold and copper mineralisation across the company’s Bodangora project; just as gold prices are experiencing a sustained rally into 2017. The results of the most recent drill program essentially amount to the discovery of an entirely new gold-copper zone, demonstrating the potential of the broader project to contain further significant quantities of paydirt, and nicely supplementing the near-term billion-dollar Dubbo project.
Bodangora is comprised of three separate licenses encompassing a multitude of interesting features, and further mineralisation has been shown at high grades throughout the area; 111m grading at 0.61g/t Au and 0.08% Cu has been identified over a strike length of up to 1,600m along the margins of the Kaiser Intrusive Complex at Kaiser, Duke and Boda, confirming what was suspected from previous results and waving a giant chequered flag over the project.
Hafnium On The Up
Commonly used in nuclear control rods, as well as many computing and energy technologies, Hafnium has received considerable attention as of late. New applications and renewed commercial interest has sent the price on a steady climb which is expected to continue for the foreseeable future.
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Over the last decade, Hafnium oxide has been applied to ferroelectric components in order to increase the efficiency of microchips and other essential technologies. Additionally, the wonder-metal can be used to create thermoelectric ceramic products that literally convert heat into electricity; big news considering the world is gunning for new energy solutions as if the oil were running out.
Moreover, there are very few western producers of Hafnium; the sudden surge in its popularity has resulted in the market situation we see today and planted Alkane in a seriously envious position from which they can approach this rather sparse marketplace.
With climbing prices across the board, it’s no surprise that Alkane have attracted a number of offtake agreements and a variety of corporate interests. The specifics of these deals are strictly secret until later in the year, but a myriad of major names are almost certainly eyeing-up the prospects right this second.
Gold, Hafnium and Zirconium prices are all expected to trend northward throughout 2017, with particularly large rises expected in the Zircon markets in the coming months; prices, a near-perfect market situation and a collection of offtake agreements will certainly boost Alkane’s ability to receive financing of any kind, so expect significant boosts to share prices at regular intervals. In the future, the high-achieving company will use our dollars to mine a million tonnes of ore from Dubbo every year. The mine will be at-surface and presents the opportunity for around eighty-years of continuous operation, the first twenty of which have already received approval, so don’t waste any time in getting in on a slice of the Alkane action.
Lara has been an analyst for over ten years, starting her career as an equity analyst at Foord Asset Management and more recently as the ... <Read more about Lara Smith>