EDITOR: | September 16th, 2013 | 8 Comments

InvestorIntel Shares Skyrocket for the Week: Quest (+28.70%), Arafura (+27.78%), Rare Element (+22.66%), Northern Minerals (+21.05), Texas Rare Earths (+20%) & Hastings (+17.65%)

| September 16, 2013 | 8 Comments
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2013-9-15-REEL-MonthRare Earths & Critical Minerals Week-in-Review (for the week ending September 13, 2013): The InvestorIntel Rare Earths & Critical Minerals members average was down an exiguous -0.26% overall, while the REE Leaders Index gained +3.8% for the week, up 14 points to close at 377 on Friday the 13th.

But do not let the overall members average fool you; as you’ll soon find out, there were some stellar performances from a number of our REE companies (Five InvestorIntel members’ share prices increased +20% or more for the week).

Coming in first place was Quest Rare Minerals Ltd. (TSXV: QRM | NYSE MKT: QRM). Quest shares jumped +28.70% on the American exchange, while gaining a very impressive +26.32% on the Canadian exchange last week. The market responded positively to the Company’s September 5th announcement that Quest had produced separate heavy and light rare earth concentrate from its Strange lake B-Zone deposit. The heavy rare earth, plus yttrium (HREE+Y) concentrate has a high purity level of approximately 84%, of which 75% is comprised of yttrium oxide. Quest has also successfully produced a separate light rare earth (LREE) concentrate and high-purity zirconia product using Strange Lake materials. I will be interviewing Quest President and CEO, Peter Cashin this morning as I am quite interested in an update.

Following very closely in second place is Arafura Resources Limited. (ASX: ARU), whose stock rose +27.78% for the week. On September 9th, the company announced that it had executed a Memorandum of Understanding (MoU) with Shenghe Resources Holding Co., a Chinese-based rare earths producer and an industry leader in rare earths production and technology development, to further advance Arafura’s Nolan’s Project. Shenghe is a Shanghai Stock Exchange listed public company and operates a rare earths processing plant in Leshan City and markets specialty rare earth products to international and Chinese-based customers.

On September 12th, Gavin Lockyer published a letter to Arafura shareholders, announcing his new position as Arafura’s new Managing Director. Lockyer, who replaces outgoing CEO and Managing Director, Chris Tonkin, was previously Arafura’s CFO and Company Secretary. The following day, Ferrowest Limited announced a company update on its Yalyirimbi Iron Project — a joint venture with Arafura Resources.

Rare Element Resources Ltd. (TSX: RES | NYSE MKT: REE) was up +22.66% and +21.23% on the American and Canadian exchanges respectively – on no new announcements. Rare Earth Resources is developing the company’s Bear Lodge REE Property in Wyoming, located in one of the world’s best mining jurisdictions.

Northern Minerals Limited (ASX: NTU) gained a strong +21.05% last week on a bevy of company announcements. On September 10th the company announced new drilling at Wolverine prospect (one of the four rare earth prospects with xenotime mineralization) at the Browns Range heavy rare earth project delivers further success.  With the commencement of a 4,000-metre drilling campaign at Wolverine in late August, Northern has already completed 832 metres to date. Northern’s Managing Director George Bauk said, “the latest results fuel further confidence in the future growth of the resource at Wolverine and Browns Range.”

The following day, Northern Minerals announced a project development update on its flagship REE Browns Range project. The company provided an update on its Brown Range heavy rare earth project, following the progression of a range of activities to support the ultimate development of the project. On September 12th Managing Director George Bauk released a webcast discussing the company being “on track” with Browns Range. With all the progress and milestones (and funding!) Northern Minerals has achieved to date, the company is on track for first production in 2016.

Be sure to watch our video interview with George Bauk from just a few short weeks ago, when George announced to InvestorIntel viewers that Northern Minerals was debt free with $58 million for the company’s heavy rare earth play.

Texas Rare Earth Resources Corp. (OTCQX: TRER) was up +20% on Chairman Anthony Marchese’s interview with yours truly. Marchese holds nothing back and really brings InvestorIntel viewers up to speed with all the latest developments at Texas Rare Earth Resources, including the company’s revised CAPEX from $2.1 billion to under $350 million (Anthony actually feels the final number will be under $300 million in the forthcoming revised Preliminary Economic Assessment), that TRER has the largest holmium deposit on the planet, the company’s low market cap, how the company’s resources (with a 100-plus-year mine life and a net present value of over $1 billion) is comprised of “critical” rare earths and the status of the company’s revised PEA.

Other topics discussed include: US REE sustainability and how Texas Rare Earth Resources’ land and the China clay deposits are the only REE deposits in the world to use heap leach extraction.

Hastings Rare Metals Limited (ASX: HAS) gained +17.65 % for the week on the September 10th news that Hastings signed a strategic alliance with a REE partner. Hastings has attracted a REE partner, which has significant experience in operating mines (specifically in mining and processing heavy rare earths) and investing in the mining industry. The strategic partner’s REE separation facility consistently achieves high purity and high recovery rates for key elements, including dysprosium and yttrium (purity of up to 99.999%). This could lead to staged funding of the Hastings Project in Western Australia towards commercial production and technical assistance.

Shares in Minco Plc (AIM: MIO) gained +10.71 last week on no news. Minco is a very impressive company and a consistently strong performer and we started following Minco when they acquired Buchans Minerals Corporation in July. Currently Minco has numerous projects around the world, including: England, Ireland Mexico and Canada (New Brunswick and Newfoundland).

Highlights:

Holding its own last week on the Canadian exchange, Tasman Metals Ltd. (TSXV: TSM | NYSE MKT: TAS) most recent news was on August 28th when they announced: Tasman Metals filed a preliminary prospectus in Canada and the US for an initial offering of up to $25 million (during the 25-month period that the prospectus remains active). The net proceeds from the sales of securities will be utilized for the further exploration and development of Tasman’s 100% owned Norra Karr project.

When Ian Chalmers speaks, we all enjoy listening as an industry leader. Be sure not to miss my exclusive interview (part II) with Alkane Resources Ltd. (ASX: ALK | OTCQX: ANLKY) Managing Director, Ian Chalmers. Ian, who is unquestionably one of the brightest minds in the REE business, provided InvestorIntel viewers with an update on his multi-commodity play and discussed just what is going on with the rare earth market currently, as well as zirconium, tantalum, what countries are increasing their stakes in niobium, and Ian’s picks for the most in-demand light and heavy rare earths for 2014.

InvestorIntel’s REE expert Robin Bromby covered the sector like no other last week, especially when it comes to REEs and Russia, China and Australia. Like many, Robin sees signs that the sector is bouncing back.

Dan McGroarty wrote a very popular article on why Russia’s far-eastern REE gambit will succeed. InvestorIntel can look forward to more commentary from Dan as he has agreed to become a regular commentator on InvestorIntel.

Here are your numbers for the week:
2013-9-15-REE-Week-in-Review

 


Tracy Weslosky

Editor:

Tracy Weslosky is the CEO of InvestorIntel Corp., a company formed to provide investor relations in 2001 that today now provides online media marketing, social ... <Read more about Tracy Weslosky>


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Comments

  • For the Long Run

    Can you ask Peter Cashin, about General Electric as there is a buzz going around that G E is interested in J V / Partnership.

    September 16, 2013 - 10:56 AM

    • Tracy Weslosky

      Fascinating – received this after my interview, but I will hand it off to TY who is doing a follow-up piece later this week…thanks for your comments.

      September 16, 2013 - 2:52 PM

      • Tim Ainsworth

        Now that is an interesting rumour, been a little surprising that none of the US big consumers like GE/GM have followed the Japanese (Toyota/Shin Etsu/JOMEC) & Euro’s (Rhodia/Siemens?) model of forming JV’s to secure supply.

        GE would be a massive consumer across so many of its divisions but presumably with so much manufacture in China it was comfortable with its sources. Perhaps this in now changing with the revitalisation of GE’s old industrial park in the US, cheap US energy and less hospitable conditions in China.
        Should something eventuate here with GE, or any other biggie like GM, it would certainly refocus attention back on RE. With China desperately trying to put the RARE back in RE, endorsement from GE might just get the market’s attention.

        Can’t help but wonder if Lynas’s new COO Jean (Claude) STEINMETZ, with 15 years experience at GE, might be a catalyst. Regardless, it would be a very positive development for the industry as a whole, and one that could lift it out of the doldrums.

        September 17, 2013 - 1:18 AM

    • Gareth Hatch

      There is no B3 bomber.

      September 17, 2013 - 10:36 AM

      • For the Long Run

        In February 2013 I spoke with Peter Cashin, in our conversation he mentioned possible end users such as G E in regards to the fact that the incandescent light bulb, which will cease to be made 2015 or thereabouts. In favour of modern technology.

        Sep 5, 2013
        Quest Produces Seperate Heavy And Light Rare Earth Concentrates From Strange Lake B-Zone Deposit

        http://questrareminerals.com/news_.php?url=http%3A%2F%2Fcnrp.marketwire.com%2Fclient%2Fquest_uranium%2Frelease_xml.jsp%3FactionFor%3D1809112

        From the above News release by Quest on the 5th Sept
        It states,

        Quest is also in discussions with potential industrial partners for evaluations of the product results obtained to date. The chemistry received from the HREE+Y concentrate is seen as aligning well with the ideal metal distribution required by one of the third parties with which Quest is currently in discussions regarding a potential partnership.

        I realize that 1 + 1 does not make 3 but I guess there is something a float.

        September 17, 2013 - 12:24 PM

      • Tim Ainsworth

        Party pooper, lol.

        September 18, 2013 - 5:57 AM

  • Veritas Bob

    “… how Texas Rare Earth Resources’ land and the China clay deposits are the only REE deposits in the world to use heap leach extraction.”

    What about the Tantalus Rare Earths deposit in Madagascar? I suppose you can say they haven’t actually done it yet, but has Texas Rare Earths?

    September 16, 2013 - 11:41 AM

    • Tracy Weslosky

      Thank you Veritas Bob. I like the team at TANTALUS, but we have been out of touch for awhile…will call them when I get back from London and ask them for an update. Let’s give TRER some credit due here though — they have been proving one benchmark at a time that they are real players in this REE race…thanks for your comments as always.

      September 16, 2013 - 2:54 PM

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