Focusing on battery materials at #PDAC2021, Publisher starts with the rare earths experts from Search Minerals

It’s the week where the mining world usually descends in Toronto for PDAC 2021 (#PDAC2021) conference….last year I gained a business partner and 2 Board members , this year I am committed to reviewing every single battery material, critical material, technology metal and associated cleantech/greentech and EV company participating.

Often asked how I find companies, the answer is always the same – relationships. 20+ years now on Bay Street, am always seeking the story behind the deal, this one is about Newfoundland and Labrador. A deal that has not only made every local a potential shareholder, is championed by the government but is about the value of investing in people for the future good of the whole.

For #PDAC2021, I urge you to start with going to the Search Minerals Inc. (TSXV: SMY) virtual booth. Off to a good start in 2021, especially on the money side of their business. They closed an oversubscribed private placement in January ($534,000), received another $150,900 in warrant proceeds in early February and announced another non-brokered private placement in mid-February for maximum gross proceeds of $1.75 million. This is expected to close on or before March 15.

Recall that the company has a 100% interest in an approximate 70 kilometer long by 8 kilometer wide region in the Fox Harbor volcanic belt located in the Port Hope Simpson area of southeastern Labrador. Within this area is a belt 63 km long and 2 km wide which is road accessible, on tidewater, and located within 3 local communities. Search is focused on finding and developing Critical Rare Earths Elements (CREE), Zirconium (Zr) and Hafnium (Hf) resources.

Exploration commenced in 2009 and it quickly became apparent that the district was rich in rare earths. The Foxtrot deposit was discovered in 2010 followed by Deep Fox in 2014 and Fox Meadow in 2016. While all of these discoveries have significance, there are more than 20 additional exploration prospects identified in the immediate area, providing future exploration inventory. Search has completed a preliminary economic assessment report for Foxtrot and a resource estimate for Deep Fox. Search is also working on three exploration prospects along the belt which include: Fox Meadow, Silver Fox and Awesome Fox.

The company now has five major discoveries in this area with excellent road and power infrastructure with deep-water port access nearby that would support a low-cost development scenario. Foxtrot is the most advanced with a Preliminary Economic Assessment (PEA) on the prospect and an NI 43-101 report prepared in 2016. The deposit, which would be mined with both open pit and underground workings, contains the key rare earth elements neodymium, praseodymium, dysprosium and terbium, necessary for permanent magnets used in electric cars, wind turbines and many high-tech products.

In addition to being a mineral exploration company, management recognized the importance of leveraging the cost advantages provided by the physical location of Foxtrot as well as the subsequent discoveries. The company developed a patented proprietary Direct Extraction technology which has produced a 99% high purity mixed rare earth concentrate via two continuous pilot plants. Search has continued to optimize their patented Direct Extraction Process technology with the generous support from the Department of Tourism, Culture, Industry and Innovation, Government of Newfoundland and Labrador and from the Atlantic Canada Opportunity Agency (ACOA).

Greg Andrews, President and CEO of Search Minerals commented in their February 10, 2021 news release that “Search has received internal engineering studies which outlines the capital and operating costs for constructing a 1/200th scale demonstration plant in St. Lewis Labrador (10 tonnes per day). The demonstration plant would be essential for 1) training our future workforce for plant operations, 2) producing sufficient quantities of mixed rare earth concentrate for demonstration of commercial rare earth separation, and 3) large scale validation of our Direct Extraction processing flowsheet. We are putting together our business plan for the construction of the demonstration plant with our funding partners.”

While their technology has been proven, scaling up to a plant will require significant capital and the company now needs to securing funding and/or a partner to further refine the process in a demonstration plant. In addition, the company will require further funding to continue infill drilling to take the discoveries to feasibility study stages.

We note that the company has a Memorandum of Understanding with the Saskatchewan Research Council (SRC), signed in late October 2020, for technical collaboration. The company has also entered into a Technical Collaboration Framework Agreement with USA Rare Earth, LLC to explore further separation capabilities.

An interesting company with good assets,  Search has a nice, compact area of operations and have had good exploration success under the helm of some of the most respected rare earths experts such as Dr. David Dreisinger. They are in the right resource space at the right time (in my opinion*) – and with the critical piece of business in the market  (always) being leadership, Greg Andrews has been at the helm since 2014 and is evidence that indeed, investing in relationships in the community is a long term strategy for the wise.

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Disclaimer: The writer is not a licensed Investment Advisor and is not extending investment advice. The writer owns shares in InvestorIntel Corp. and is the Publisher or InvestorIntel.com. InvestorIntel Corp. is paid for advertising by Search Minerals, however our advertising program is for ads and video production only. InvestorIntel Corp. does not accept payment for written content, does not write op-eds, and does not extend links to outside sources for payment.




MOU with the Saskatchewan Research Council signals another milestone for Search Minerals on their quest to produce rare earths in NA

A likely Biden victory in the USA is positive for all the rare earths miners. This is because one of Biden’s key policies is a massive $2 trillion green infrastructure and jobs plan over his first term in office that aims to have a US carbon pollution-free power sector by 2035. This would be a huge tailwind for the US renewable energy sector (solar and wind) as well as supportive to the US electric vehicle (EV) industry. Any North American rare earths suppliers who can potentially supply the USA and/or Canada with rare earths would be likely to benefit as North America embraces the green revolution.

One rare earth miner worth considering is Search Minerals Inc. (TSXV: SMY) (“Search”). Search is focused on finding and developing critical rare earth element mineral assets in Labrador, Canada.

In some very exciting recent news Search has signed a Memorandum of Understanding (MOU) with the Saskatchewan Research Council (SRC). The MOU outlines a collaboration with SRC as they build their Rare Earth Processing Facility in Saskatchewan, Canada.

Search Minerals President and CEO, Greg Andrews, commented: “We anticipate using the (SRC) conventional solvent extraction process to enable Search to validate the ability to produce the individual rare earth oxides necessary to enter the rare earth supply chain.

Recent announcements regarding building electric cars in Canada and other government led initiatives for clean and green technology provides the framework for industry access to a secure rare earth supply chain in Canada. We believe Search is well positioned to capitalize on these opportunities.”

Search controls properties in three areas of Labrador, Canada. These are:

  • The Port Hope Simpson (PHS) Critical Rare Earth Element District in SE Labrador
  • The Henley Harbour Area in Southern Labrador
  • The Red Wine Complex located in Central Labrador

Search Minerals has nearby infrastructure in place at St. Lewis, Labrador, Canada

Source

Within the Port Hope Simpson District Search’s main discoveries are the Foxtrot Resource, Deep Fox, Fox Meadow, Silver Fox, and Awesome Fox deposits which contain rare earths including dysprosium (Dy), neodymium (Nd), praseodymium (Pr), terbium (Tb), yttrium (Y), zirconium (Zr), and hafnium (Hf).

The district covers a 63 km long and 2 km wide belt. At Foxtrot the total Indicated Resource is 7.392 million tonnes with grades of neodymium oxide (1,732ppm), neodymium (1,485ppm), praseodymium (397ppm), and dysprosium (191ppm). The 14 year Life of Mine (LOM) Foxtrot Project offers an IRR of 16.7% on an after tax Net Present Value (NPV) 10% of $48M, with a CapEx of only $152M. The NPV quoted above is only for the Foxtrot Project, so once the other projects are combined into a bigger project the NPV should improve.

At Fox Meadow, 2020 channel assay results outlined two mineralized zones on the surface: The NW zone is up to 175m wide and the SE zone is up to 116m wide. Combined, the mineralization is at least 790m long and contains similar grades of the REE magnet materials (Nd, Pr, Tb and Dy) as Foxtrot and Deep Fox. This is a good result as it means Search is continuing to find more REE mineralization to potentially further grow their resource.

At Silver Fox, Search has recently successfully expanded the Silver Fox high grade zirconium-hafnium (REE) mineralized zone. In the news release Search commented: “This surface expression is significantly longer, but thinner, than the surface expressions of the nearby and related Foxtrot and Deep Fox Resources. The mineralization is similarly hosted by peralkaline volcanic rocks and contains lower grades of the REE magnet materials (Nd, Pr, Tb and Dy) but significantly higher grades of Zr and Hf.”

At Awesome Fox, the 2020 channel program (7 new channels) along with previous channels has outlined a REE mineralized zone ranging from about 4-43m thick and 850m long.

Source

Closing remarks

Earlier in 2020, rare earths expert Jack Lifton stated about Search Minerals: “I think it may well be Canada’s first commercial rare earth producer.” Given Search has completed a Resource estimate (Foxtrot, Deep Fox), a PEA (Foxtrot), has successfully produced 99% purity REO concentrate from their pilot plant and patented process, and now has a potential larger scale processing option with SRC; this all combines to suggest that Search Minerals is well on the way towards commercial production. Next steps would involve a BFS and potentially some trial production with SRC once their facility is built.

Search Mineral’s current market cap is only C$10.5M suggesting there may be plenty of upside potential ahead, especially if they continue to successfully advance towards production.




Avalon Advanced Materials Separation Rapids Lithium Project progresses, EV investors look north for critical materials

It is not very often that an investor can buy a company with exposure to both lithium and key magnetic rare earths. One company that offers exposure to both is Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF) (‘Avalon’). Avalon has five critical materials projects across Canada, providing investors with exposure to lithium, rare earths (neodymium, dysprosium), cesium, tantalum, feldspars, tin and indium.

With the electric vehicle (EV) boom set to take off, companies such as Tesla are planning to grow EV production by 50%pa reaching 20 million new EVs pa by 2030. At Tesla Battery Day Tesla suggested an aggressive industry wide target of 10TWh of Li-ion batteries pa by 2030 to meet EV demand (assumes a switch to 100% EVs).

Tesla says that’s a 100 fold increase on 2019 levels. This suggests demand for EV metals (such as lithium and the magnetic rare earths) looks likely to surge this decade and create a super-cycle for the EV metal miners.

100% electric transportation requires 100x growth in EV battery production this decade

Source: Tesla Battery Day video

Avalon’s focus projects for lithium (Separation Rapids, Lilypad) and rare earths (Nechalacho)

Source

Avalon’s Separation Rapids Lithium Project is located 70 km by road north of Kenora, Ontario, Canada. It holds one of the largest “complex-type” lithium-cesium-tantalum pegmatite deposits in the world. A PEA was completed in 2018 resulting in a pre-tax NPV8% of $156m, post tax IRR of 22.7%, CapEx C$77.7m with a 20 year mine life. In a recent news Avalon has been doing metallurgical test work with the overall objectives of reducing costs, improving recoveries and optimizing lithium product quality. Avalon has previously developed a proprietary process flowsheet to produce a high purity lithium hydroxide product from petalite. The process limits waste by recycling of the sulphuric acid solvent. Avalon and partners are now optimizing the final stages of the process, which involves the use of electrolysis to produce lithium hydroxide. The results will enable finalizing equipment selection and design. A further 2,500 tonne bulk sample extraction program is set to commence next. With Ontario Premier Doug Ford recently announcing Ontario’s interest in establishing new battery materials supply chains in the province, Avalon is investigating collaborative opportunities to establish a lithium processing facility in Northwestern Ontario.

Avalon’s Lilypad Cesium Property, located 150 km northeast of Pickle Lake, Ontario, is an exploration stage project with cesium-lithium-tantalum mineralization. It has the potential to be a secondary lithium supply source for Avalon. Avalon has recently re-activated the Project due to increasing demand for cesium. Planned follow-up work will initially involve mineralogical and analytical testwork, which will be followed by metallurgical process testwork to identify the most efficient methods for concentrating the pollucite ore and recovering by-product tantalum and lithium.

Avalon’s flagship Nechalacho Rare Earth Elements Property is located at Thor Lake, Northwest Territories, Canada. Avalon’s main focus is the deeper HREE Basal Zone at the property. The Basal Zone retained by Avalon contains a rich polymetallic rare metals resource, with potential for economic recovery of several rare earth elements. A Feasibility Study was completed in 2013 on the Basal Zone resulting in a pre-tax NPV10% of $1.35 billion (post-tax NPV10% of $900m). The post-tax IRR was 19.6%. CapEx was $1.575b. Sales of the five critical REO (neodymium, europium, terbium, dysprosium and yttrium) account for over 82% of the separated REO revenues. Avalon has also retained a 3% NSR on the near surface T-Zone and Tardiff Zone at the Nechalacho Rare Earth Elements Property, bought by Cheetah Resources back in 2019. Avalon could also potentially collaborate with the newly planned SRC Rare Earths Processing Facility to be established in Saskatchewan with plans to be operational by late 2022.

EVs are coming in all shapes and sizes and they will require huge amounts of EV metals such as lithium and rare earths

Avalon Advanced Materials Inc. stock is up 87.5% over the past year and trades on a market cap of C$26m.




Jack Lifton with David Woodall on Alkane’s rare earths demerger and ASM’s ‘game changer’ technology for strategic minerals

“We had an AGM with Alkane where shareholders voted 99.95% in approval to de-merge. The rationale is very simple. The market likes to have pure plays. So, Alkane which went into rare earths and then into gold, will be purely a gold focused company and ASM will be purely a strategic minerals company.” States David Woodall, Managing Director of Australian Strategic Materials Limited (ASX: ASM), in an interview with the InvestorIntel’s Jack Lifton.

David went on to say that ASM will be producing key strategic minerals like neodymium, dysprosium, zirconium, hafnium and praseodymium at its Dubbo Project. He also said that ASM’s strategy is to become a vertically integrated strategic materials company.

David also provided an update on ASM’s joint venture with Korean R&D partner ZironTech which he said will be a “game changer for the rare earths and strategic minerals industry”. ASM and ZironTech recently produced titanium metal alloy using 45% less energy. David continued, “The trade tensions and the COVID-19 impact on the supply chains has made people look at the modification of the global supply chain. I think ASM is well located to be able to go into that supply chain and work cooperatively with various companies.”

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Rare earths company jumps 38.46% yesterday as the world searches for a NA supply

As good news continues to flow for the rare earths sector, today I look at one of the recent best performers, whose stock was up 38.46% yesterday as they led the pack of rare earth companies higher. Impressively, the stock is up 80% so far in 2020.

Avalon Advanced Materials leads the pack as the rare earths miners make a comeback

Source: InvestorChannel’s Rare Earths Watchlist Update – July 27, 2020

What has caused the surge in prices for western rare earth miners?

The recent price surge appears to be due to a combination of factors, all positive for rare earths:

These are in addition to several other Acts currently before the US Senate, such as:

Added to all of this the US Department of Defense recently said that it will seek $1.7 billion to purchase rare earths in the 2021 National Defense Authorization Act. You can read more on the three Acts here.

With this extremely favorable backdrop, today I take a look at yesterday’s star performer Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF).

Avalon is focused on critical minerals and cleantech materials including rare earths, lithium, tantalum, cesium, cobalt, nickel, tin, and others with near term production potential. Avalon has a very large project pipeline of promising, mostly development stage projects including:

  • Their flagship Nechalacho Rare Earth Elements Property (Thor Lake, Northwest Territories, Canada) with a 3% NSR on on the near surface T-Zone and Tardiff Zone bought by Cheetah Resources, and the 100% owned HREE Basal Zone. The Basal Zone retained by Avalon contains a rich polymetallic rare metals resource, with potential for economic recovery of several rare earth elements. A Feasibility Study was completed in 2013 on the Basal Zone resulting in a pre-tax NPV10% of $1.35 billion (post-tax NPV10% of $900m). The post-tax IRR was 19.6%. CapEx was $1.575b. Sales of the five critical REO (neodymium, europium, terbium, dysprosium and yttrium) account for over 82% of the separated REO revenues.
  • Their Separation Rapids Lithium Project (70 km by road north of Kenora, Ontario) holds one of the largest “complex-type” lithium-cesium-tantalum pegmatite deposits in the world. A PEA was completed in 2018 resulting in a pre-tax NPV8% of $156m, post tax IRR of 22.7%, CapEx C$77.7m with a 20 year mine life. You can read a company update here. Currently Avalon is working on optimizing the process flowsheet and producing new petalite product samples for glass-ceramic manufacturers.
  • Their Lilypad Cesium Property (150 km northeast of Pickle Lake, Ontario) is an exploration stage project with cesium-lithium-tantalum mineralization.
  • Their Warren Township Feldspar Project (100 km west of Timmins, Ontario) hosts a significant resource of high purity anorthosite, consisting of up to 98% high calcium plagioclase feldspar. The PFS was completed in 2003.
  • Their East Kemptville Tin Project (45 km northeast of Yarmouth, Nova Scotia) with a PEA completed in 2018.

Avalon Advanced Materials’ project pipeline are all located in North America

Source: Company investor presentation

Since Avalon did not release any new news in July, I can only conclude that yesterday’s 38.46% stock price surge was related to the very positive rare earths market news from the U.S. government and European Commission reported on July 24 as I discussed above. The fact that Avalon surged more than the rest is likely due to their lower market cap resulting in greater leverage to the positive rare earths news. Certainly having a low market cap and a very significant local Canadian rare earths project with a pre-tax NPV10% of $1.35 billion would go a long way in explaining the potential ahead. Most companies would trade on ~20% of the post-tax FS value. In this case that would mean ~20% of $900 million or ~$180 million. Even allowing for the large CapEx, using 10% of the $900 million would suggest a market cap of $90 million. The Feasibilty Study costs alone were ~$60 million. Also this does not include any value for the other projects. Avalon is trading on a market cap of just C$31 million.

Closing remarks

The good thing about western rare earths companies is they actually do better if US-China relations get worse. This is because of the implied threat that China may one day cut off or severely restrict their rare earths supply to the US as they did before to Japan.

Rare earths stand to be one of the biggest winners of the new economy this decade as the world continues to decarbonize and moves towards using powerful magnets for electric motors used in electric vehicles and wind turbines.

Investors wanting broad exposure to multiple rare earths and critical materials should consider Avalon Advanced Materials. Avalon gives investors exposure to four advanced stage projects and one exploration stage project – with exposure to lithium, tin, cobalt, indium, beryllium, niobium, cesium, zirconium and tantalum, as well as the rare earth elements, neodymium, europium, terbium, dysprosium and yttrium.




Neo Performance Materials manufactures high performance materials including very valuable rare earth magnetic powders

High performance materials, especially those involving rare earths magnet powders, are about to experience a huge demand as several massive macro trends develop this decade. Two of the biggest trends will be electric vehicles (EVs) and renewable energy (notably solar and wind). An important component for the best electric motors is powerful rare earth magnets.

Did you know?

  • By 2030, global demand for the two main rare earth metals (neodymium and dysprosium) used in wind turbines and electric vehicles is forecast to grow by 2.1x (that’s over 100% growth).
  • In a 100% EV world the demand for rare earths is forecast to grow by 655%.

Whilst China dominates rare earths processing and end products, there is one ‘Western’ company that is globally diversified and not fully dependent upon China.

Neo Performance Materials Inc. (TSX: NEO) manufactures the building blocks of everyday products and emerging technologies, including very valuable rare earth magnetic powders. The Company is headquartered in Canada but has operations in China, U.S., Germany, U.K., Canada, Thailand, South Korea, Singapore, and Estonia. Neo has over 1,800 staff. Neo is positioned to benefit from key macro trends including vehicle electrification, industrial automation, consumer electronics, energy efficient lighting, air and water pollution control, and greater use of superalloys.

Macro trends that drive demand for Neo’s advanced industrial materials

Source: Company investor presentation

Neo’s materials deliver a range of powerful properties to the products in which they are used, including magnetic, catalytic, luminescent, electrochemical, thermal stability, and superconductive.

Neo’s three main operational segments (with revenue % in brackets) are:

  • Magnequench (42%) – Production of magnetic powders used in bonded and hot deformed fully dense magnets.
  • Chemicals and Oxides (35%) – Distributes a broad range of light and heavy rare earth functional materials.
  • Rare Metals (23%) – Sources, produces, reclaims, refines and markets high value metals and their compounds, such as tantalum, niobium, hafnium, rhenium, gallium and indium.

Neo has a balanced and well-diversified customer base that includes large industrial, consumer electronics and chemical processing companies. A significant portion of revenue contribution is from customers who have been with Neo for 10+ years. As western companies look to diversify their supply chains away from China Neo stands to be a potential winner.

Neo Performance Materials has a diversified and long standing customer base

Source: Company investor presentation

Neo is a profitable, dividend-paying company with a strong balance sheet and robust cash-flow generation. As you can see in the chart below revenue was impacted negatively in 2019 and so far in 2020 due to the global slowdown from the trade war and COVID-19 pandemic. Naturally the stock price was also impacted; however this is the opportunity for investors.

The current market cap is C$326 million. 2021 and 2022 revenues and margins are forecast to improve on 2020. 2021 forecast PE looks attractive at 14.0 and 2022 is 12.8. Analyst’s consensus is an ‘outperform’ with a price target of C$10.42, representing ~20% upside. Risks revolve around the length of the current global slowdown, demand for Neo’s specialty products, and Chinese competition.

Neo Performance Materials revenue breakdown

Source: Company investor presentation

Closing remarks

Neo Performance Materials offers investors a safe jurisdiction and exposure to some of the biggest macro trends ahead this decade.

The EV boom is set to take off this decade and so is renewable energy which includes wind turbines and numerous energy efficient products, as well as superalloy and other high performance materials. Added to this there will be a surge in demand for auto catalysts to reduce air pollution. Neo supplies the specialty materials for all these areas.

Investors can consider buying Neo during the current market lull knowing that once the global demand for Neo’s materials picks up, the Company will also pick up. Neo Performance Materials is somewhat under the investment radar, but this could well change soon once word gets out and revenues start to turn higher again.




The EV sector sizzles, will rare earths be next? Spotlight on Appia Energy…

The electric vehicle (EV) sector has been one of the hottest sectors the past 3 months as investors chase everything ‘electric’. For example, Tesla (NASDAQ: TSLA) is up over 7 fold the past 14 months and is now the world’s most valuable car company. The past 3 months NIO is up 3 fold and Nikola is up 5 fold. The battery manufacturers have also surged.

So what’s next? Following the EV thematic one would say the EV metal miners should be next, and that includes the rare earths miners, as rare earths are a key component in the most powerful magnets used in EV motors. Last year Roskill reported that “Tesla extends EV range using ‘permanent magnets’ motors in Models S, X, and 3. This resulted in a 10% increase in the overall drivetrain efficiency of Tesla’s EVs, and hence an improvement in range. Roskill then expressed the following view:

“Permanent magnets that offer the best performance and optimisation potential in electric motors are rare earth neodymium-iron-boron (NdFeB) magnets. Over 90% of EV models currently use NdFeB-based permanent magnet motors as part of the EV drivetrain.”

Additionally, the US Senate will soon consider various Acts, including the ORE Act, that aim to secure US supply of critical elements such as rare earths. This has the potential to be another catalyst for the rare earths sector in the near future.

One of the most promising rare earths junior miners is Appia Energy Corp. (CSE: API | OTCQB: APAAF). Appia is currently exploring and developing uranium and rare earth deposits at its Alces Lake Property, in the Athabasca Basin area of northern Saskatchewan, Canada. They also have a promising uranium-rare earths project in Ontario, Canada.

Appia 100% own the Alces Lake property spread over 14,334 hectares. The Alces Lake property has monazite ore that is enriched in valuable critical rare earth elements, particularly Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb). These 4 elements account for between 23-25% of the TREO, or ~85% of the potential value at Alces Lake. Alces Lake hosts the 2nd highest average REE grade in the world.

At a 4 wt% Total Rare Earth Oxides (TREO) cutoff, Alces Lake average grade is exceptionally high at 16.65 wt% TREO. By comparison rare earths producer Lynas Corporation’s Mt Weld mine has an average grade ~10 wt% TREO, and is perhaps the most successful non-Chinese rare earth mine in the world today.

Appia Energy’s Alces Lake property has exceptionally high grade critical rare earths in Northern Saskatchewan, Canada

Source: Appia Energy company presentation

The high grade TREO at the Alces Lake Project hosted in monazite is an ideal potential western located source of the most valuable key rare earths needed in future industries such as EV motors and catalysts etc.

Rare earths key uses include powerful magnets (21% of demand and growing) used in EVs, electronics, and wind turbines etc

The Alces Lake Project’s rare earths are near surface and hence suitable for an open pit mine. Permitting should be smooth being in northern Saskatchewan Canada and the CapEx and OpEx should be reasonably low given the good grades and near surface resource. There is also an existing pilot plant and extraction facility in Saskatchewan the Project can use to start up a small scale production of rare earth oxides.

Appia Energy’s Alces Lake ticks all the right boxes

Appia Energy President and CEO, Tom Drivas, stated exclusively to InvestorIntel:

“Appia is currently exploring its Alces Lake project located in Saskatchewan Canada. Alces Lake has a number of surface zones with up to 85% monazite and can become one of the highest grade critical rare earth producer  in the world. Appia could supply the critical rare earth needed to the developing industry in the US and Canada.”

Appia recently announced that they have begun further exploration at the Alces Lake property. It is expected that between late July and early August Appia will commence -2,000 to 3,000 m of a drilling program to potentially expand the resource.

Closing remarks

Appia Energy trades on a market cap of just C$14 million, which is very low given their super high grades, valuable critical rare earths, and good location. The only possible explanation can be the relatively early stage of the project.

Rare earths expert Jack Lifton recently stated Appia Energy’s Alces Lake “is probably the best choice for development into a producing rare earth magnet materials’ mine in North America.”

Finally, Appia also offer investors exposure to several other projects in Canada that are highly prospective for both rare earths and uranium. Early investors in junior miners such as Appia have the potential for tremendous returns, especially if the Alces Lake project achieves funding and production. The recent surge in EV related companies, the US Senate considering rare earths Acts, and Appia’s potential for excellent near term news flow should all serve as strong catalysts for the stock in the year ahead.