Canada Rare Earth takes on a vertical integration strategy for vertical success?
Canada Rare Earth Corp. (TSXV: LL), led by Tracy Moore, President/CEO/Director, and Rojer (Qiufeng) Li, Chairman/Director, has several rare earth properties, including three advanced projects in Ontario and Newfoundland/Labrador, described by the Company as ”exhibiting multi-element potential (REEs, niobium, beryllium, zirconium and iron ore) and are close to available infrastructure.”
Unlike a number of rare earth entries to the sector whose sole focus is finding a commercially-viable deposit and perhaps selling it to a producer, Canada Rare Earth is much more than just a “one-trick-poney”. The Company’s strategy, which did initially center on discovery and deposit development, has now evolved to focus on
developing a vertically-integrated supply chain which identifies rare earth sources that provide commercially viable long term supply and develops full-capacity rare earth separation/refining facilities in suitable locations to refine that supply stream with these efforts to connect international rare earth customers.
The umbrella to enhance the success of these efforts is created by building solid relationships with top-tier international companies who depend upon rare earths in the construction of their market-leading products.
In an update yesterday, Canada Rare Earth announced a mineral separation experiment, involving a series of flotation tests using drill core from the Lavergne-Springer REE Deposit, located 80 km east of Sudbury, Ontario. The goal was to test and evaluate the ability to accomplish an ore-to-REE concentration via the process of froth flotation.
Rather than seeking to complete the entire process from ore to sale-able concentrate, the test was instead designed to see if flotation would offer “a likely avenue for further development as a commercial process for the ore.” After stating percentages of recovery and grades, the XPS report concluded by stating “…there are substantial indications that the rare earth elements are both recoverable and upgradeable.”
Not only investors, but the general public, are coming to understand the critical role which the use of rare earth elements is destined to continue playing alongside the revolutionary changes taking place in science and industry. For example, just one Toyota Prius utilizes about 30 kg of REEs throughout its construction – in the motor, the metal hydride batteries, in its glass and auto-catalysts, as well as in its electronic circuitry.
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Doing your own due diligence: As someone who has researched, visited and written about a number of resource sector companies over the years, this writer has a mental check box reserved for rating just how “approachable” the management and operation teams are when one is seeking information.
In an unusual alignment, Mr. Moore serves as an Investor Relations contact for his own company. So when you write to him with a question or two about Canada Rare Earth Corp, it’s likely that rather than acquiring your information via the filter of others – you’ll be getting it straight from the horse’s mouth.
It makes you feel that, not only is Mr. Moore confident about articulating how and where his company is moving along…but that he actually expects you get in touch with him so he can tell you about it. How refreshing!
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