South Korean LG Energy Solution Inc. (LGES), a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems, recently announced three agreements in a span of 24 hours with Canadian miners to source materials required to make batteries for EVs. It appears the Inflation Reduction Act, which requires that 40% of battery components be sourced from factories in the U.S. or its free trade agreement partners, and that Chinese components and minerals be phased out beginning in 2024, has lit a fire under those who want to lead the charge to manufacture EV batteries for North American built vehicles. This could be a very positive trend for North American miners and material processors/recyclers.

One of the “winners” of the LGES battery supply deals was Electra Battery Materials Corporation (TSXV: ELBM | NASDAQ: ELBM). Electra is a processor of low-carbon, ethically-sourced battery materials that is currently commissioning North America’s only cobalt sulfate refinery. Electra is executing a multipronged strategy focused on onshoring the electric vehicle supply chain. Keys to its strategy are integrating black mass recycling and nickel sulfate production at Electra’s refinery located north of Toronto, advancing Iron Creek, its cobalt-copper exploration-stage project in the Idaho Cobalt Belt, and expanding cobalt sulfate processing into Bécancour, Quebec. We’ve made several references to the Bécancour area in previous InvestorIntel articles as it also becomes a rapidly emerging center for producing the advanced materials needed for lithium-ion batteries.

Electra’s binding term sheet with LGES is a three-year agreement to supply LGES with 7,000 tonnes of battery grade cobalt from 2023 to 2025. Electra will supply 1,000 tonnes of cobalt contained in a cobalt sulfate product in 2023 and a further 3,000 tonnes in each of 2024 and 2025 under an agreed pricing mechanism. Cobalt sulfate provided under the term of the contract with LGES will be sufficient to supply up to 1.5 million full electric vehicles. In addition to the supply agreement, Electra and LGES have agreed to cooperate and explore ways to advance opportunities across North America’s EV supply chain, including, but not limited to, securing of sustainable sources of raw materials. In my opinion, this marks validation of Electra’s cobalt sulfate refinery as this is an actual binding agreement, not just a LOI or MOU or some other wishy washy type of agreement that makes great press but essentially means very little, at least initially.

Building on the momentum of the commercial agreement with LGES, Electra provided a September 28 update on the commissioning of its cobalt refinery, confirming that it remains on track to meet project timelines, including the launch of a black mass recycling demonstration. The Company anticipates launching the battery recycling demonstration plant at the Ontario refinery site this fall. Revenue generated from black mass recycling activities will be accretive to results expected from the sale of cobalt sulfate that is anticipated beginning in spring 2023 when the refinery is commissioned. Possibly even more critical to their operations in today’s environment, Electra will use a hydrometallurgical process to treat black mass to recover contained lithium, nickel, cobalt, copper and graphite. This process has a low carbon footprint and produces stable non-acid generating tailings, thereby reducing environmental impacts while meeting or exceeding water discharge effluent criteria as stipulated by both federal and provincial regulations.

However, Electra isn’t simply a material processor/refiner/recycler, they also have the Iron Creek Project located within their Idaho property. Iron Creek is one of several cobalt-copper resources and prospects within the Idaho Cobalt Belt, a prospective mineralized system that contains the largest primary resources of cobalt in the United States, according to the U.S. Geological Survey. Last week the Company announced a new cobalt zone following the receipt of assay results from drilling at its Ruby prospect. The Ruby target is a new zone of cobalt mineralization located approximately 1.5 km southeast of Electra’s flagship Iron Creek deposit. This project has the potential to become an important source of cobalt in the U.S. and reduce North America’s reliance on foreign supply.

Electra finished Q2/22 with over C$40 million of cash, has completed 85 percent of all procurement and 90 percent of detailed engineering for its cobalt sulphate refinery, and has a binding cobalt offtake agreement with LG Energy Solution. That seems like a pretty good combination to successfully move forward in the race to be relevant in the battery materials business in North America. Is the C$135 million market cap a little rich at the moment? I guess it depends if they are successful at hitting their 5,000 tonnes per annum battery-grade cobalt goal in 2023. With spot prices over US$50,000/t, that suggests an annual revenue stream of US$275 million. I guess a lot depends on what kind of margins there are in cobalt refining.

Disclaimer: The editor of this post may or may not be a securities holder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review all public documents to conduct your own due diligence. To access the InvestorIntel.com Disclaimer, click here

In this Critical Minerals Institute interview, host Jack Lifton talks to Avalon Advanced Materials Inc.‘s (TSX: AVL | OTCQB: AVLNF) President, CEO and Director Don Bubar about establishing a North American lithium supply chain and Avalon’s new off-take agreement with a major international glass-ceramics manufacturer for petalite concentrates.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here to access InvestorChannel.com), Don talks about the competitive advantages of building Avalon’s lithium refinery in Thunder Bay, Ontario. In addition to having recently signed an MOU with LG Energy Solution to supply battery-grade lithium hydroxide starting in 2025, Don tells Jack: “The main reason for establishing it there was also to basically open the door to other producers of lithium mineral concentrates from the many, many lithium pegmatites that occur throughout Northwestern Ontario…” In addition to lithium, Don says that Avalon provides exposure to multiple other minerals like rare earths, tantalum, and cesium.

Don also talks about a recently announced multi-year agreement for Avalon to supply a non-Chinese international glass ceramic manufacturer with petalite concentrates. “High strength glass ceramic products of various types,” Don tells Jack, “that’s a market you don’t hear a whole lot about for lithium. It is growing now too through further innovation in other types of high strength glass products and ceramic products.”

To access the full Critical Minerals Institute interview, click here

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About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in sustainably-produced materials for clean technology. The Company now has four advanced stage projects, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, cesium and zirconium. Avalon is currently focusing on developing its Separation Rapids Lithium Project near Kenora, Ontario while continuing to advance other projects, including its 100%-owned Lilypad Cesium-Tantalum-Lithium Project located near Fort Hope, Ontario. Social responsibility and environmental stewardship are corporate cornerstones.

To learn more about Avalon Advanced Materials Inc., click here

Disclaimer: Avalon Advanced Materials Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In this InvestorIntel interview, host Tracy Weslosky talks to Imperial Mining Group Ltd.‘s (TSXV: IPG | OTCQB: IMPNF) President and CEO Peter Cashin about a recent announcement on the increases in scandium and rare earths recoveries on it Crater Lake Development Project in Quebec.

Peter says: “We are also doing additional work to convert some of the inferred resources into indicated (resources). And in doing that work — we’ve actually found areas of mineralization that are thicker than we had anticipated. So it’s probably going to add to the bottom line as well.” He goes on to provide an update on the progress Imperial Mining has made to move the Crater Lake project towards a Feasibility Study. Peter also talks about the use of scandium in lightweighting applications to make vehicles fuel efficient and extend battery range in electric vehicles.

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About Imperial Mining Group Ltd.

Imperial is a Canadian mineral exploration and development company focused on the advancement of its technology metals projects in Québec. Imperial is publicly listed on the TSX Venture Exchange as “IPG” and on the OTCQB Exchange as “IMPNF” and is led by an experienced team of mineral exploration and development professionals with a strong track record of mineral deposit discovery in numerous metal commodities.

To learn more about Imperial Mining Group Ltd., click here

Disclaimer: Imperial Mining Group Ltd. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Auxico Resources Canada Inc. (CSE: AUAG) is a new entrant into the rare earth supply chain story. This year they have made 4 shipments of monazite sands concentrate from the Democratic Republic of Congo (DRC) totaling 720 tonnes of concentrate for a combined value of US$3.8 million. Auxico keeps 15% of this amount or US$570k and the balance going to Central American Nickel (CAN). Pierre Gauthier, a Montreal businessman, is the Chairman of Central American Nickel and Executive Director of Auxico Resources. Auxico has signed a sales agency agreement with CAN and according to their website the offtake agreement is for 5 years for a minimum amount of 18,000 tonnes of concentrate, or about 300 tonnes per month (TPM), and has a target of 1,000 TPM. The recent sale was analyzed to have approximately 60% total rare earth oxides (TREO) which is good and a Neodymium (Nd) level of 14.95% and Praseodymium (Pr) of 3.4%, which is higher than Mt. Pass levels.

Looking at the prices of Neodymium and Praseodymium from July, the sales price received is around 30% of the contained value of Nd and Pr, which is in the typical range paid by the Chinese for concentrate. No destination is indicated but China would be the logical destination. The only other places would be Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) in the USA which can handle monazite or possibly Neo Performance Materials Inc. (TSX: NEO) plant in Estonia. In the future, the Saskatchewan Research Council could also be a client once their pilot plant is completed. Since the middle of the year prices for Nd and Pr have dropped around 40%, so revenues per tonne should drop accordingly to around $4,000 per tonne. Their goal is to reach 1,000 TPM by year end, which would generate total revenues of $4 million/month or $600K USD for Auxico as its monthly 15% share.

Two recent additions to Auxico are noteworthy. Frederick Kozak became President after having been President at Appia Rare Earths & Uranium Corp. (CSE: API | OTCQX: APAAF). He replaces Pierre Gauthier who had been Chairman and CEO. Also added to the board was Melissa Sanderson, a leader in ethically sustainable growth and previously served as a senior diplomat, including as Charge d’Affaires of the US Embassy in Kinshasa, DRC, so she brings on the ground experience to Auxico as it deals with ethically sourcing concentrate from North Kivu, DRC cooperatives. Melissa sits on the Board of the Critical Minerals Institute.

Auxico is also involved in projects in South America. Of note is the Massangana tin tailings project. In June of this year, Auxico announced an agreement with Cooperativa Estanifera de Mineradores da Amazônia Legal Ltda. (“CEMAL”) concerning the production of tin, niobium and rare earths from the Massangana tailings estimated to contain 30,000,000 tonnes in the State of Rondônia, Brazil. As some of you know I am a fan of tailings as a source of critical minerals as the heavy lifting has already been done to get the material out of the ground. This deposit has 30 million tonnes of tailings. A study done by the German Mineral Resources Agency and the Geological Survey of Brazil indicates that three types of products could be generated from the tin tailings: (A) a monazite concentrate; (B) a columbite Concentrate; and, (C) a cassiterite concentrate. According to their press release the following concentrates can be produced:

The TREO level in the tailings is better than some greenfield mines being promoted currently.

As noted in Auxico’s June press release a feasibility study is to be done to process 3 million tonnes per year which would give a project life of 10 years. The objective of this project is to produce 135,000 tonnes of monazite concentrate per year, 19,500 tonnes of cassiterite concentrate (tin), and 45,000 tonnes of columbite concentrate (50% niobium + 5% tantalum). If the monazite concentrate is 37% as noted above, this would produce 50,000 TPY of TREO, which is significant as this would be around 25% of the current world production, which I estimate at 175-200,000 TPY. The tin output would be around 10,000 TPY in a market which in 2019 was estimated at 310,000 tonnes, so it will not have a large impact in the market. The columbite would generate over 22,000 tonnes in a market which last year Statistica estimated at 75,000 tonnes. The largest Niobium producer is CBMM which is also based in Brazil.

Auxico uses a separation and recovery technology called Ultrasound Assisted Extraction (UAEx), which has been proven successful at recovering rare earths as well as other critical minerals.

Overall, Auxico has a lot to watch on multiple fronts.

Disclaimer: The editor of this post may or may not be a securities holder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review all public documents to conduct your own due diligence. To access the InvestorIntel.com Disclaimer, click here

It’s been a while since I’ve had a close look at the copper chart and, in my opinion, it doesn’t look too bad right now. Like almost everything, we’ve seen a significant price decline since April of this year, and despite a brief rally in late May, the commodity has since been taken to the woodshed and didn’t stop hemorrhaging until mid-July. Since then, it looks like copper may have put in a bottom at roughly US$3.20/lb and held that level again in late September. It is currently attempting to climb back above the 50 day moving average which would be a positive signal, but before I get too excited about copper I’d like to see it punch back above US$3.70/lb. From there it looks like it has limited overhead resistance until the US$4.10/lb threshold after which it could go for a run back to the US$4.70/lb range. But cresting US$4.10/lb probably needs a lot of positive economic news over the next few months. Regardless, it looks like we’ve got a decent support level at US$3.20/lb suggesting there could be more upside than downside from current levels.

Source: StockCharts.com

This begs the question of where to look if you want exposure to copper. The company with the most recent exciting news is probably Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF). The latest news regarding the Company’s most advanced asset, the 100% owned MPD copper-gold porphyry project in the prolific Quesnel Trough in south-central British Columbia, Canada, appears to be very encouraging. The 147 square kilometer MPD project has all the hallmarks of a large, multi-centered porphyry system. Kodiak has made the Gate Zone discovery of high-grade mineralization within a wide mineralized envelope, and MPD hosts several other targets with similar discovery potential.

Last week Kodiak announced the latest results for five drill holes from their fully funded 25,000 meter 2022 drill program, and there were some pretty interesting numbers.

Highlights include:

• MPD-22-006 intersected 117 meters of 0.69% Cu, 0.46 g/t Au, and 2.22 g/t Ag (1.03% CuEq) within 735.4 meters of 0.24% Cu, 0.14 g/t Au and 0.71 g/t Ag (0.34% CuEq).
• MPD-22-008 intersected 59.9 meters of 0.33% Cu, 0.25 g/t Au, and 1.77 g/t Ag (0.52% CuEq) within 585 meters of 0.18% Cu, 0.09 g/t Au and 0.71 g/t Ag (0.25% CuEq).
• MPD-22-005 extended the Gate Zone mineralization to depth and intersected 190.2 meters of 0.19% Cu, 0.12 g/t Au, and 1.07 g/t Ag (0.29% CuEq) within 715.2 meters of 0.13% Cu, 0.07 g/t Au and 0.65 g/t Ag (0.19% CuEq).

All of this relates to the Gate Zone. Porphyry mineralization at Gate has been traced down to 900 m depth, across a width of 350 m (east-west) and over 1 km in length (north-south). In addition, the Company reported holes MPD-22-013 and MPD-22-017 which intersected a new mineralized trend northeast of, and adjacent to Gate called the Prime Zone. The new Prime Zone trend has been drilled down to 550 m depth, across 200 m width (east-west) and over 400 m length (north-south).

Source: Kodiak Copper Sept 29, 2022 Press Release

With over 700 m of mineralization, can you say bulk tonnage? Plus, I was looking at this and thinking to myself that I’ve seen some junior gold explorers with numbers that aren’t as good as just the gold components in these drill results. But perhaps that’s not what a company called Kodiak Copper wants me to fixate on. Instead, we’ll look at what catalysts lie ahead for the company over the next weeks and months.

Drilling for 2022 is on schedule and Kodiak has completed 33 holes totaling 21,300 meters as of September 26. Drilling has transitioned to testing high priority targets in the Dillard area and the program will continue evaluating additional copper-gold drill targets across the MPD property throughout the fall. A new 3D Induced Polarization (3D IP) geophysical survey is currently underway which will be completed this month, covering nine square kilometers and extending southward from the Gate Zone to the Man and Dillard target areas. The latter is important because the extension of the Gate Zone and delineation of the new Prime Zone confirm that recent 3D IP surveys are an effective tool for targeting host geology and discovering prospective porphyritic mineralization on the MPD Project.

Anyone who has read my articles in the past knows I’m always on the lookout for drill results. A previous corporate update stated that Kodiak had completed 29 holes totaling 19,150 meters as of September 9. This indicates that there are plenty of drill results still to come. Additionally, at the end of June Kodiak still had almost C$14 million in cash to continue unlocking the secrets of the MPD Property. With a market cap of C$30.5 million it would seem there is plenty of leverage to copper prices at Kodiak.

In this InvestorIntel interview, host Tracy Weslosky talks to Avalon Advanced Materials Inc.‘s (TSX: AVL | OTCQB: AVLNF) President, CEO and Director Don Bubar about the growing world demand for lithium for high strength glass ceramics, and its recent announcement that it has secured a firm commitment to purchase petalite concentrates produced at the company’s Separation Rapids Lithium Project in Ontario, Canada.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here to access InvestorChannel.com), Don tells Tracy that most people are aware of the growing importance of lithium in EV battery technology, but “one of the main uses from the past has always been in high strength glass ceramic products… It’s actually the mineral that Corning used to invent CorningWare cookware, which was one of the first examples of high strength glass ceramic product.” He goes on to say that there is increasing demand and innovative uses for other types of high strength glass ceramic products that require the high purity lithium aluminum silicate mineral petalite produced by Avalon. Don also discusses the new multi-year off-take agreement recently announced by Avalon for the delivery of petalite to a major non-Chinese international glass ceramic manufacturer.

Don also talks about Avalon being one of the three companies to sign a non-binding memorandum of understanding with LG Energy Solution to supply them with a battery-grade lithium hydroxide starting in 2025. The MOU was signed during the visit of South Korea’s President, Yoon Suk Yeol, to Canada in September. Under the terms of the MOU, Avalon would commit for an initial period of five years to provide LGES with at least 50% of its planned initial lithium hydroxide production. Don adds: “We’ve been getting the message out on our vision for creating the lithium battery materials refinery in Thunder Bay, and that would be an ideal location to serve the needs of companies that are now going to set up manufacturing facilities in Southern Ontario.”

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About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in sustainably-produced materials for clean technology. The Company now has four advanced stage projects, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, cesium and zirconium. Avalon is currently focusing on developing its Separation Rapids Lithium Project near Kenora, Ontario while continuing to advance other projects, including its 100%-owned Lilypad Cesium-Tantalum-Lithium Project located near Fort Hope, Ontario. Social responsibility and environmental stewardship are corporate cornerstones.

To learn more about Avalon Advanced Materials Inc., click here

Disclaimer: Avalon Advanced Materials Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

In this InvestorIntel interview, host Peter Clausi talks to Kodiak Copper Corp.‘s (TSXV: KDK | OTCQB: KDKCF) President, CEO, and Director Claudia Tornquist about the company’s recent drill results and fully-funded multi-year drill program at its MPD copper-gold porphyry project in southern British Columbia.

“Until now most of our drilling was at the Gate Zone where we made the initial discovery,” Claudia says, “but MPD from all we can tell, what our data tells us, is a multi-centric porphyry center just like Copper Mountain next door.” Talking about Kodiak’s recently released drill hole results, Claudia discusses the new high-grade copper-gold-silver intercepts reported at the Gate Zone which filled in a 170 metre gap at its south end, and how drill-testing anomalies identified a nearby 400 metre long, parallel mineralized trend. She tells Peter about “the headline hole intercept with a long hole mineralized over 734 metres and 0.34 copper equivalent,” and “very importantly this long hole had also a long high-grade section in the middle of 117 metres of more than 1% copper equivalent.”

With about 21,000 of 25,000 metres of drilling now completed, Claudia tells Peter that “we won’t have to go back to the market for additional cash anytime soon. We have $10 million in the treasury” to fund this and next year’s drill program, she says, adding, “it’s a very important point in these markets.”

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About Kodiak Copper Corp.

Kodiak is focused on its 100% owned copper porphyry projects in Canada and the USA. The Company’s most advanced asset is the MPD copper-gold porphyry project in the prolific Quesnel Trough in south-central British Columbia, Canada. MPD has all the hallmarks of a large, multi-centered porphyry system. Kodiak has made the Gate Zone discovery of high-grade mineralization within a wide mineralized envelope, and MPD hosts several other targets with similar discovery potential. Kodiak also holds the Mohave copper-molybdenum-silver porphyry project in Arizona, USA, near the world-class Bagdad mine. Kodiak’s porphyry projects have both been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.

Kodiak’s founder and Chairman is Chris Taylor who is well-known for his gold discovery success with Great Bear Resources. Kodiak is also part of Discovery Group led by John Robins, one of the most successful mining entrepreneurs in Canada.

To learn more about Kodiak Copper Corp., click here

Disclaimer: Kodiak Copper Corp. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].

Democratic Senator Joe Machin from West Virginia is, let’s face it, controversial. His stances on key issues frequently run counter to the majority of his party, and he has blocked key Democratic goals, most notably to abolish the filibuster, which would have enhanced the Democrats ability to pass legislation through the Senate. This hasn’t endeared him to most Democratic voters nor to the Party leadership – but he doesn’t seem to care. Joe knows how the game is played.

Most recently, for instance, he dickered hard on a deal to advance a key personal objective. President Biden and the Democrats desperately needed to pass the Inflation Reduction Act which, name notwithstanding, actually has a lot to do with supporting research around rare earths processing, among other things. In exchange for voting “aye” and effectively passing the legislation, Joe negotiated a back-door deal exchanging his vote for support for a Bill he has drafted going much further much faster than the Democrats are comfortable with going for the extractive industries writ large.

Known as the ‘Energy Independence And Security Act of 2022,” the EISA Bill attempts to make some common sense changes to the existing regulatory regime around permitting new mines in the US. Currently, it takes an average of 10 years to complete the permitting process and that’s IF there is no significant social opposition or environmental complications. It can take longer and of course permits can be refused as well. More frequently, however, government agencies prefer stalling an application until prevailing contrary winds dissipate or the company withdraws the request. It’s important to note, however, that COVID has certainly contributed to the lag time on US permitting. Many agencies, including Environmental Protection, Forestry and Fish and Game, all key players in the regulatory framework, had previously suffered serious staffing reductions, either due to budget cuts or employee burnout – and then there was the shutdown. So even with the best of intentions, it’s hard to catch up.

EISA attempts to shorten that permitting wait time to two years. It does this mainly by instructing the plethora of Federal agencies to work together and simultaneously (versus the current sequential process) and on one submission (versus currently requiring companies to present unique requests to individual Agencies). It also sets a series of response deadlines for Agencies to revert to companies with questions or requests for additional information – and most of those deadlines are 180 days. It also gives Governors the power to further streamline the process by identifying a project as essential, while encouraging Federal Agencies to more closely cooperate with their State counterparts.

Sounds pretty pragmatic and common sensical, right? Maybe not so much.

At the very end of the Bill, Manchin has language in which Congress essentially mandates approval of the Mountain Valley Pipeline within 30 days of passage of the legislation. This timebomb risks derailing the entire Bill – but it also likely is the reason for the Bill itself. Manchin has been a long-time supporter of the pipeline and some of his biggest and most reliable contributors are financial backers of the project. But this pipeline is immensely unpopular with a variety of NGOs who had already mobilized against it and therefore a tidal wave of opposition hit the Democrats, derailing Manchin’s strategy to attach his Bill to the Continuing Resolution to fund US government operations.

A steady drumbeat of misinformation has begun, playing on Americans’ collective dislike of mining in general and new mines in particular. Although the Bill specifically mentions retaining prevailing environmental standards and regulations, NGOs are alleging the Bill will “gut” hard-won environmental legislation. Especially in the runup to what promises to be hotly contested mid-term elections, and with control of the Senate hanging in the balance (and possibly the Hill as well, if things go badly for the Dems), it’s unlikely that the Bill even will be put forth for a hearing until after November 8.

The real question, however, isn’t whether Joe Manchin will find a way to get this job done – I think he will, he’s too able a trench warrior to fail.

The real question is whether Americans are capable of understanding that without new mining of rare earths and critical minerals (including copper) in the US, it will be virtually impossible to realize either the Green Economic transformation or national security imperatives. Everyone wants to bash China but no one wants to admit that modern mining isn’t your granddad’s mine. Americans (collectively) don’t want to admit that, thanks to new technologies, strong environmental legislation and intense social media scrutiny, US mines are among the cleanest and safest in the world.

NIMBY huh? Well, Hurricane Ian is yet another reminder that if humans don’t change their ways and truly transform our economies, we might have a lot more to worry about than whether a new rare earth, lithium or copper mine is getting permitted in America.

Confirming strain in the market from all said financial media sources – we are all watching the markets, along with you – seeking wisdom and refuge where there is indeed, none… and reveling in the wisdom from contrarians suggesting that this is when the real excitement begins.

Critical minerals interest led by nickel and tin, followed by copper and gold, dominate my last week’s flood of emails. Just take a look at the top 10 Trending columns from our site, and review the last 10 days of news flow listed below. And we will be taking a break from the Week in Review, as we countdown to a new website over the next 2 weeks…

So, what has history taught us? No matter what occurs, entertainment is the sector that thrives during downturns and volatility, I see Kim Kardashian is now making headlines for an Instagram post relating to a crypto post this morning surrounding a $1.26M fine, the NY Times reports (source):

The Securities and Exchange Commission announced a $1.26 million settlement Monday morning with the celebrity for not disclosing she had been paid $250,000 to promote a crypto token sold by EthereumMax… Ms. Kardashian had promoted the crypto product as a good investment on her Instagram page in June 2021.

A fan of Kim’s for her leadership in drawing media attention to recidivism and her PR for Armenia, I urge you to take 5 minutes to introduce yourself to this corridor to the ME (click here).

On Kim’s behalf, anyone that touched crypto and held it during that rock and roll trading concert has a story; however, we continue to remind our audience to do their due diligence, no matter who the source is, citing a stock or share price via social media. And is it really a breakthrough to understand that believing a recommendation from social media from someone who has been quite transparent that their income comes through endorsements on social media may not be reliable?

Speaking of this, I always note when a story that looks like a financial media post is missing the name of a writer and source, because that can be a flag. I receive alerts all the time with “Did you see this?” They send me news ideas and I must explain that if the story does not have an acknowledged writer and it’s written about a public company – and the site also does not have a source or contact referenced, never mind is missing a team – then it probably has suspicious motives. For an example from September 20th, read Business news: B.C. companies fined over social media posts | CTV News.

Morning Chatter from Kevin Thomsen this AM, which I read daily. He writes:

Welcome to the fourth quarter. It’s been a rough year for stocks, and it doesn’t look like markets’ luck will turn around dramatically, if at all, during the final three months. All three major averages on Friday closed out a losing quarter and a losing month, with the Dow closing below 29,000 for the first time since November 2020. They have all suffered three consecutive losing quarters, as well. Can it get any more grim, at least for stocks? The economy is still running hot despite the Federal Reserve’s best efforts to cool it off with an aggressive rate-hike plan. (CNBC).

CANADA, PRE-OPEN:

Canadian futures are up, supported by oil prices that jumped over $3 as OPEC+ considers reducing output by more than 1 million barrels per day. European shares slid, led by technology and financial stocks, as investors fretted about the economic health of the continent. Japan’s Nikkei rose sharply, supported by a rally in chip-related stocks. The sterling was up after Britain reversed a plan to cut the highest rate of income tax, while the yen weakened against the U.S. dollar. Gold prices were in positive territory.

USA, PRE-OPEN:

The Nasdaq futures were dragged lower by Tesla shares after it failed to meet quarterly delivery targets, although the other two main indexes were headed for a positive start to the quarter.

Enjoy your day, we have the following 2 companies hosting the pre-market InvestorTalk.com that you can secure access to by going to www.InvestorTalk.com to register —

• 9:00-9:20 AM EST, Wednesday, October 5, 2022   — InvestorTalk.com with Spencer Huh from Neo Battery Materials Ltd. (TSXV: NBM | OTCQB: NBMFF)
• 9:00-9:20 AM EST, Thursday, October 6, 2022 — InvestorTalk.com with John Putters from Visionstate Corp. (TSXV: VIS)

The Top 10 Trending Columns on InvestorIntel.com for the last 30-days:

1. Maritz Smith of Alphamin Resources talks about its updated tin resource at its Mpama North Mine
2. American Rare Earths triples the Halleck Creek exploration target in Wyoming
3. Christopher Ecclestone of Molten Metals talks about breaking China’s grip on antimony production
4. Peter Clausi of Silver Bullet Mines talks about their “just do it” philosophy
5. John Cash of Ur-Energy talks about renewed support for uranium producers and nuclear energy
6. All hands on deck – Top 10 rules for great PowerPoint presentations
7. Pat Ryan of Ucore Rare Metals on the importance of securing a domestic rare earths supply chain
8. Chris Gibbs and Marty Weems of American Rare Earths talk about tripling its Halleck Creek Target
9. When it comes to ESG, it’s Rule Brittania
10. Hubert Lau of TrustBIX talks about their new food supply chain solutions and building revenue

InvestorIntel Interviews to WATCH:

• September 30, 2022 – Pat Ryan of Ucore Rare Metals on the importance of securing a domestic rare earths supply chain
• September 29, 2022 – Frederick Kozak of Auxico Resources talks about the economic war for critical minerals
• September 26, 2022 – Peter Clausi of Silver Bullet Mines on discovering palladium and gold at its Buckeye Silver Mine
• September 23, 2022 – WCPD’s Peter Nicholson Explains the Win-Win of the Critical Minerals Charitable Flow Through Model
• September 22, 2022 – Steve Saviuk of Valeo Pharma talks about acquiring new therapeutic drugs and record Q3 revenue
• September 22, 2022 – Greg Fenton of Zentek on its new mask manufacturing agreement and US interest in its HVAC filters
• September 21, 2022 – Troy Boisjoli of Murchison Minerals talks about drill results and expanding the Barre de Fer zone
• September 20, 2022 – Jack Lifton talks to Ian London about Canada’s challenge to China’s rare earths dominance
• September 19, 2022 – Joel Freudman talks about TRU Precious Metals’ key location and coming gold and copper drill results

InvestorIntel Columns to REVIEW:

• September 29, 2022 – Silver Bullet Mines discovers palladium and gold in its silver production at its Buckeye Mine
• September 28, 2022 – eResearch Report on Search Minerals offers investors a ‘staggering’ volume of information on the rare earths market
• September 27, 2022 – A triple play deal for battery materials between Canada and Korea proves critical minerals incentives work
• September 26, 2022 – Hemostemix adds depth and strength to its scientific bench on the road to commercialization
• September 26, 2022 – Power Nickel is building a nickel sulphide resource in Canada ready to potentially supply a new EV metals supply chain
• September 23, 2022 – Patriot Battery Metals is marking its territory as a lithium explorer for Quebec’s Battery Valley
• September 22, 2022 – Nickel 28 Capital focuses on cash-flow positive nickel PNG mine and royalty portfolio that includes Mitsubishi JV
• September 21, 2022 – Power Australia: A flawed but welcome new law to fight climate change Down Under
• September 20, 2022 – InvestorIntel Week-in-Review for the Week of September 12-20, 2022
• September 20, 2022 – Newfoundland is the place to be for Leocor Gold’s Shawn Ryan
• September 19, 2022 – Molten Metals sees opportunity in bringing antimony projects back into production

ii8 System News Releases for the Week in Review for September 19-30, 2022:

• September 30, 2022 – dynaCERT’s Program with Alectra Utilities Corporation Achieves Coveted Sustainability Award
• September 30, 2022 – Vital Metals Annual Report
• September 29, 2022 – Nickel 28 Files Fiscal Q2 Financial Statements
• September 29, 2022 – Metallurgical Test Work Successfully Completed at La Paz
• September 29, 2022 – Neo Performance Materials Inc. Provides Update on Shareholder Rights Plan
• September 29, 2022 – Romios Gold Completes IP-MT Survey on Trek South Target and Reports on 2022 Exploration Programs in The Golden Triangle, BC
• September 29, 2022 – Kodiak Drills 1.03% CuEq Over 117 m, Within 0.34% CuEq Over 735.4 m at Gate Zone, and Discovers New Trend at Prime Zone
• September 28, 2022 – Lomiko announces the third round of analytical results from the infill and extension exploration drill program at La Loutre Graphite property, drilling wide high-grade intersections at 11.02% Cg over 120m at the northern end of EV Zone
• September 28, 2022 – TrustBIX Inc. Launches National Biomass Traceability Pilot Project with the Biomass Quality Network of Canada
• September 28, 2022 – Volcanic Gold provides update on developments in Guatemala
• September 27, 2022 – Hemostemix Announces the Appointment of Dr. Ernst von Schwarz, MD, PhD, FESC, FACC, FSCAI to Its Scientific Advisory Board
• September 27, 2022 – Zentek’s ZenGUARD(TM) Patent Application Allowed by the Canadian Patent Office
• September 27, 2022 – Avalon Enters into Off-take Agreement for Petalite Concentrates from Major International Glass-Ceramics Manufacturer
• September 27, 2022 – Nano One and Euro Manganese Validate Manganese Metal in M2CAM Process
• September 26, 2022 – Silver Bullet Mines Corp. Discovery of Palladium and Gold
• September 26, 2022 – Exercise of Warrants & Extension of Warrants
• September 23, 2022 – Vital Metals Appoints Damon Colbert As CFO
• September 23, 2022 – Vital Unveils Rare Earth Processing Plant in Saskatoon
• September 22, 2022 – Avalon and LG Energy Solution Sign Memorandum of Understanding to Accelerate Ontario’s Lithium Battery Materials Supply Chain
• September 22, 2022 – Voyageur Pharmaceuticals Ltd. Submits Notice of Work to Extract 2,000 Tonnes of Barium Sulfate from Frances Creek Project
• September 22, 2022 – TRU Opens Up New Copper-Gold-Silver Discovery at Golden Rose
• September 22, 2022 – Power Nickel Follows Up Release of NI 43-101 Compliant Mineral Resource Estimate on the Nisk Nickel Project With Commencement of Second Round of Drilling
• September 21, 2022 – Visionstate Portfolio Company Exceed Solar Launches Strategy to Address Food Security
• September 21, 2022 – Appia Announces Grant of Stock Options
• September 21, 2022 – Molten Metals Corp. Awarded the Bear Creek (Medvedi Potok) Tin Mine in Slovakia
• September 21, 2022 – Troilus Joins United Nations Global Compact Initiative
• September 21, 2022 – Auxico Exports 432 Tonnes of Rare Earth Concentrates from the DRC
• September 21, 2022 – Elcora and Gold Lion finalize agreement to begin exploitation of a Manganese Mining License in Morocco
• September 20, 2022 – West Red Lake Gold Mines Announces New Director Appointments
• September 20, 2022 – Neo Performance Materials Inc. Adopts Shareholder Rights Plan
• September 20, 2022 – Hemostemix Announces the Appointment of Dr. Terry Hébert, PhD, to Its Scientific Advisory Board
• September 20, 2022 – Lomiko Announces Second Round of Analytical Results From the Infill and Extension Exploration Drill Program at La Loutre Graphite Property, Drilling 11.64% Cg Over 42.0m at Southern End of EV Zone
• September 20, 2022 – Zentek To Present at Sidoti Small-Cap Virtual Conference
• September 20, 2022 – Rackla Metals increases land holdings in the Tombstone Gold Belt, NWT with an option on the Astro Property
• September 20, 2022 – dynaCERT Invited to Present at the International Investment Forum (IIF)
• September 19, 2022 – Visionstate Corp. portfolio company Freedom Cannabis completes acquisition
• September 19, 2022 – Geophysical Survey at Appia’s Athabasca Basin Uranium Property Outlines EM Lineaments Exceeding 10 km In Strike Length
• September 19, 2022 – Zentek Provides Update on Icephobic Coating Technology
• September 19, 2022 – TrustBIX Inc. to Host Live Corporate Webinar on September 21, 2022 at 11:30am ET

Again, a new InvestorIntel.com website is coming in 2 weeks!

Disclaimer: The editor of this post may or may not be a securities holder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review all public documents to conduct your own due diligence. To access the InvestorIntel.com Disclaimer, click here

The past two years has seen lithium prices rise about ten times from US$7,000/t to US$70,000/t both for lithium hydroxide and carbonate. Meanwhile, the lithium spodumene price has enjoyed a similar 10 fold increase from US$500/t to US$5,000/t. This has been caused by EV sales booming, resulting in a huge demand wave for lithium that literally swamped the small lithium industry.

The lithium carbonate price has risen as EV demand has taken off – Currently at CNY 510,500/t (~US$70,000/t)

Source: Trading Economics

What’s next for the lithium sector?

Conventional commodity booms typically follow a rather fast boom and bust cycle as the cure for deficits is high prices, thereby encouraging new supply. However, every once in a while we get a commodity supercycle. That’s where the demand wave is so big that it takes as long as a decade for supply to eventually catch up or for demand to subside. New mines can take 5-10 years to come online, yet a new EV and battery factory can be built in 1-2 years.

In the case of lithium, many EV metals experts agree we have only just entered a lithium supercycle. To better understand the size of the demand wave investors need to get a feel for how much lithium will be needed to feed the electric vehicle boom.

A typical 50kWh battery electric car (roughly the global average size in 2022) requires about 45kgs of lithium carbonate equivalent. In 2022 global plugin electric car sales look set to grow by at least 50%+ year over year. Given 2021 global plugin electric car sales were 6.75 million, 2022 will likely end up at about 10.125 million, or 3.375 million additional new electric cars. This means lithium demand, only from plugin electric cars, will increase by roughly 152,000 tonnes (“t”) of lithium carbonate equivalent (“LCE”) in 2022 ((45/1000) x 3,375,000)). If we add in other sources of lithium the global lithium market will roughly increase by about 185,000t LCE in 2022, or about a 34% increase on 2021 levels of approximately 540,000t LCE.

Looking at lithium supply a typical new mine or mine expansion could possibly bring on 20,000t LCE in a year. This means the market needs about 9 new mines or expansion of existing mines, just to catch up with demand. This will be needed – and will grow larger – each year.

The scary part is that in a good year electric car demand can grow at 100%pa, as we saw with a 108% increase in 2021, which sent the lithium market into deficit. These days the demand is there but the supply is not, hence the global EV waiting list is now in the order of 3 million vehicles.

A lithium deficit can only mean lithium prices stay ‘stronger for longer’ this decade

Provided electric car sales growth remains at 30-50%+pa, all of this suggests we are likely to see constant lithium deficits this decade. Strong stationary energy storage sales are also pulling on lithium demand.

A lithium deficit can only mean lithium prices stay ‘stronger for longer’, meaning about US$50,000/t plus for lithium carbonate and lithium hydroxide and above US$5,000/t for spodumene.

Yet despite this, some analysts are forecasting lithium prices to fall over the next 5 years. This completely contradicts forecasts of continual lithium deficits this decade. In a deficit, prices do not fall.

A contradiction: Many analysts currently forecast lithium prices to fall as lithium deficits continue this decade

Source: Morningstar

What can go wrong with this forecast?

EV demand looks strong but in 2022 sales have been relying heavily on China, which has been responsible for 50-60% of global sales. This means any sales collapse in China will be heavily felt. European EV sales growth has weakened in 2022 due to events in Europe weakening their economy. USA EV sales have been growing quite well from a lower base, but the U.S economy is now slowing as interest rates are rapidly rising.

One plus for lithium demand is in the USA in 2023-24 we can expect to see new demand coming on from electric pickup trucks, which typically have a battery almost twice the size of an electric sedan, thereby requiring almost twice as much lithium.

Closing remarks

2022 has seen the West wake up to the need to source critical minerals and establish their own supply chain, or risk being left behind, as China grabs global electric car market share. The Inflation Reduction Act and the EU Critical Raw Materials Act are designed to address this problem and bring supply chains back home or at least with free trade agreement countries.

Again this is further evidence to suggest that the rest of this decade will see a fight to source critical minerals, none more important than lithium.

We may need to get used to lithium chemical prices at, or north of, US$50,000/t for the foreseeable future. This stronger for longer lithium pricing narrative should also flow through to the lithium miners many of which are currently priced at extremely low 2023 and 2024 earnings multiples, based on lithium prices falling back to US$20,000/t. If analysts become a little braver and use US$40-50,000/t in their models expect some very significant price target increases over the next year or two. Stay tuned.

Disclaimer: The editor of this post may or may not be a securities holder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review all public documents to conduct your own due diligence. To access the InvestorIntel.com Disclaimer, click here