Search Minerals: making ‘huge’ rare earth strides in 2016
Search Minerals Inc. (TSXV: SMY), and its wholly-owned subsidiary, Alterra Resources Inc. (“Alterra“) are on track to advance developments at their Foxtrot project which includes commissioning a pilot plant and sourcing strategic and offtake partners.
To this end the company has made huge strides in 2016 that includes:
- Commissioning SGS Minerals to build and operate a pilot plant, funded by the Atlantic Canada Opportunity Agency.
- Updating and publishing the preliminary economic assessment to reflect the updated capital costs required for the construction and operation of a rare earth mineralisation treatment facility at Labrador.
- Received the desktop study with recommendations for the environmental assessment application
- Completed the 2016 Field Exploration Programme which was necessary to maintain key licenses and advance the Fox Meadow prospect.
- Continued to build positive relationships with the local community council.
With respect to the prospects for the Foxtrot REE Project, there are some positive attributes that the project offers. As the project is small, the company only plans to produce around 1,000 tonnes of ore per day and therefore the geology and technical consideration are manageable. Moreover, some of the mining will be done as an open pit, which delays the need to spend large capital.
Labrador is a mining friendly jurisdiction and the region is supportive of junior miners. Furthermore, to this end, Search Minerals has made positive progress with respect to developing relations with the NunatuKavut Community.
In addition there appears to be some optionality as the Fox Harbour Volcanic Belt, to which the Company has twenty licenses and 732 claims, could potentially host other similar deposits.
And finally, the projects management team has ownership and therefore their incentives are aligned with that of investors. In total, management has 22.7% equity ownership and 25.9% of the warrants, giving a total ownership of 26.5%.
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