Power Metals Corp (PWRMF)

[mgland]

And another nice article
https://www.bloomberg.com/press-releases/2020-03-27/america-s-military-is-dependent-on-a-metal-controlled-by-china


America's Military is Dependent on a Metal Controlled by China
March 27, 2020, 5:00 AM PDT
America's Military is Dependent on a Metal Controlled by China

PR Newswire

LONDON, March 27, 2020

FN Media Group Presents Oilprice.com Market Commentary

LONDON, March 27, 2020 /PRNewswire/ -- The coronavirus may be wreaking havoc
on the global economy, but when the dust settles, moving forward will be all
about access to critical metals, from the 5G war to every high-tech energy
transition in the pipeline. Critical metals are a big part of the difference
between global dominance and second place, at best. Mentioned in today's
commentary includes : Teck Resources Limited (NYSE: TECK), Turquoise Hill
Resources Ltd. (NYSE: TRQ), Pretium Resources Inc. (NYSE: PVG), Magna
International Inc. (NYSE: MGA), Agnico Eagle Mines Limited (NYSE: AEM).

As things stand, China is winning because it has supreme access, while the
United States has smaller mineral pockets. So, when a Canadian junior miner
emerges as the owner of three properties in Ontario that could provide the
only new supply of one of these critical metals, North America sees hope.

The metal is cesium, and the miner is Power Metals ( PWM , PWRMF )--a
little-known company with a big-name geologist that just put itself on the
critical metals map.

The 5G revolution, American military defense, healthcare and even time itself
are dependent on this one critical metal that China monopolizes and that the
U.S. is desperate to get more of. There are only three cesium mines in the
world, with China controlling the supplies entirely. That means that it's all
about new supply. Of five cesium occurrences in Canada'sOntario province,
Power Metals owns 100% of three of them (West Joe, Tot Lake and Marko).

America's Belated Desperation

China produces roughly 70% of the world's rare earth minerals. It also
supplied about 80% of America's rare earth imports in the three years ended
2018, according to the U.S. Geological Survey (USGS). While China was pushing
ahead at full speed, America was caught sleeping at the wheel. Indeed, at the
height of the trade war, China indicated it might restrict the export of some
rare earth minerals. Now, it's past time to wake up.

In May 2018 , the United States Department of the Interior included lithium,
cesium, and tantalum on its list of Critical Minerals. Now, Trump is bent on
fostering domestic production and forming partnerships with other countries
for new supply.

Drones are being developed to scour the land for potential critical mineral
occurrences, and in late April, the U.S. State Department aided the launch of
an online tool designed to help countries with critical mineral resource
potential to develop those assets for U.S. investors, Bloomberg reported.

It's an unprecedented effort to help remove the risk of investing in certain
venues and to "stake American's claim to many of the world's rare-earth
minerals". And the point is to find resources in countries where investors may
find the setup. The problem is that the bulk of new critical metals supply
will be in venues that are risky for investors.

"Either the world will not get the minerals it needs in order to fuel energy
transition technologies," or "that investment would only come from those who
are less concerned about governance issues, transparency, corruption,
environmental standards and best practices," Francis Fannon, the U.S.
assistant secretary of state for energy resources, told Bloomberg in an
interview.

But for cesium, there is hope that it's not a risky venue that needs a special
"toolkit": It's Canada--home of some of the world's best-in-class junior
miners who forge new exploration paths before they are scooped up by larger
companies.

Cesium: Beyond Critical

Cesium is described by the German Institute for Strategic Metals ( ISE ) as
"the most electropositive of all stable elements in the periodic table", and
the heaviest of the stable metals. Cesium is "extremely pyrophoric, ignites
spontaneously when in contact with air, and explodes violently in water or ice
at any temperature above -116 ° C". But the industry would describe it very
differently.

There won't be a 5G revolution without this metal. It's also critical to the
healthcare industry which uses cesium compounds in medical imaging, cancer
therapy, positron emission tomography (PET) … just to name a few. For
everything from catalyst promoters, glass amplifiers, photoelectric cell
components, crystals in scintillation counters and getters in vacuum tubes,
cesium is critical .

In terms of world dominance, the "cesium standard" is the key. This is the
standard by which the accurate commercially available atomic clocks measure
time, and it's vital for the data transmission infrastructure of mobile
networks, GPS and the internet.

That means it has serious defense applications as well, including in infrared
detectors, optics, night vision goggles and much, much more. A cesium laser
has even been invented for use in missile defense and other technological
applications. Cesium is so obscure that it's nearly impossible to track its
real market price. It's strategic in and of itself, but its rarity makes it
even more critical.

In the entire world, there are only three pegmatite mines that can produce
cesium: one is the Tanco mine in Manitoba, the second is the Bitika mine in
Zimbabwe, and the third is the Sinclair mine in Australia. China controls them
all, beyond its own borders. Tanco and Bitiki are no longer producing, but
Sinomine Resources Group holds all their cesium ore stockpiles.

There are 16 metals in total that are absolutely critical to high-tech
industries, military applications and telecommunications--and China controls
the supply of every single one because it controls 96% of production. That
includes cesium, for which China has a monopoly on stockpiles, mines aren't
really producing anymore, and the United States has none , leaving North
America's only hope in Canada.

The Promise of Ontario

Power Metals discovered the pegmatites at West Joe Dyke in August 2018,
intersecting high-grade cesium mineralization in six drill holes when it was
targeting lithium instead. But Dr. Julie Selway, a key geologist for the
Ontario Geological Survey during the tantalum boom of the early 2000s, and now
VP of exploration for Power Metals, says the three properties the company is
drilling are hoped to have similar finds as the strategically important
Sinclair mine in Australia.

"They are shipping their resource, which they say is higher than 10%
cesium-oxide, and ours have some that are between 12% and 14% of
cesium-oxide," Selway--one of the world's most renowned experts on
pegmatites--told Oilprice.com.

Power Metals has intersected cesium (Cs) mineralization in 6 drill holes on
West Joe Dyke, with "exceptionally high-grade" Li and Ta intervals. They also
found Cs mineralization in drill core in the first new dyke below Main Dyke,
as well as in the drill core in Northeast Dyke.

On February 20th , Power Metals announced its exploration plans and will
begin stripping and channel sampling on West Joe Dyke in Q2 of this year
already. That's when they'll expose, sample and assay the cesium
mineralization on surface outcrops and look to locate more cesium-bearing
pegmatite dykes nearby.

This is one big chance to one-up Beijing, which, according to the Wall Street
Journal , has tried to manipulate the market so critical metals such as Cesium
are cheaper in China than outside the country. What this did was prompt some
major manufacturers and tech industries to set up shop in China, where they
could get supplies at a lower cost.

If you weren't familiar with cesium before, you will be soon because it will
make a difference in the war for global technological dominance. And the front
line of defense could end up being Ontario, where a junior explorer may be
sitting on one of the only commercial-sized deposits that China doesn't
control.

Larger miners are diving into the strategic metals game, as well, with Teck
Resources (TECK) arguably taking the lead. Teck could be one of the
best-diversified miners out there, with a broad portfolio of Copper, Zinc,
Energy, Gold, Silver and Molybdenum assets. Its free cash flow and a lower
volatility outlook for base metals in combination with a potential trade war
breakthrough could send the stock higher in H2 of this year.

Teck's share price stabilized last year and many investment banks now see the
stock as undervalued. Low prices for Canadian crude and disappointing base
metals prices weighed on Q4 earnings.

Despite its struggles, however, Teck Resources recently received a favorable
investment rating from Fitch and Moody's, and will likely benefit from its
upgraded score. "Having investment grade ratings is very important to us and
confirms the strong financial position of the company," said Don Lindsay,
President and CEO. "We are very pleased to receive this second credit rating
upgrade."

Turquoise Hill Resources (TRQ) is another Canadian mineral exploration and
development company headquartered in Vancouver, British Columbia. Its focus is
on the Pacific Rim where it is in the process of developing several large
mines. The company mines a diversified set of metals/minerals including Coal,
Gold, Copper, Molybdenum, Silver, Rhenium, Uranium, Lead and Zinc. One of the
fortes of Turquoise hill is its good relationship with mining giant Rio Tinto.

When talking about Canadian miners, however, Pretium Resources (PVG) can't be
ignored. This impressive Canadian company is engaged in the acquisition,
exploration and development of precious metal resource properties in the
Americas. Pretium has an impressive portfolio and if you can catch the stock
while the price is right, there could be huge opportunity for upside.
Additionally, construction and engineering activities at its top location
continue to advance, and commercial production is targeted for this year.

Agnico Eagle Mines Ltd (AEM) Agnico Eagle Mines is an especially noteworthy
company for investors. Why? Between 1991-2010, the company paid out dividends
every year. With operations in Quebec, Mexico, and Finland, the company also
is taking place in exploration activities in Europe, Latin America, and the
United States.

While Agnico primarily focuses on gold, it made this list because it's a prime
example of sustainability and environmental consciousness, and that means
everything in a world rapidly shifting away from traditional mining.

The EV edge can't be ignored, either. Magna International (MGA) is a global
automotive supplier is gutsy and innovative--and definitely tuned to the
obvious future--clean transportation. A great catalyst is its development of a
combo electric/hydrogen vehicle--a fuel cell range-extended EV (FCREEV). It's
not going to produce them (for now, at least) but plans to use the model to
show off its engineering and design prowess and produce elements of the
electric drivetrain and contract manufacturing. It's insightful,
forward-thinking and smart value/low cost for shareholders.

By. Charles Kennedy

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING.
PLEASE READ CAREFULLY**

Forward-Looking Statements

This news release contains forward-looking information which is subject to a
variety of risks and uncertainties and other factors that could cause actual
events or results to differ from those projected in the forward-looking
statements. Forward looking statements in this release include that prices
for cesium will retain value in future as currently expected; that PWM can
fulfill all its obligations to maintain its properties; that PWM's property
can successfully mine commercial quantities of cesium; that the three
properties the company is drilling are hoped to have similar finds as the
strategically important Sinclair mine in Australia; that occurrences and
indications of a commercially sized deposit become reality; that high grades
found in samples are indicative of a high grade deposit; and that PWM will be
able to carry out its business plans. These forward-looking statements are
subject to a variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those projected in
the forward-looking information. Risks that could change or prevent these
statements from coming to fruition include that aspects or all of the
properties' development may not be successful, mining of the cesium may not be
cost effective, the price of cesium may not stay high and it may never be
profitable to mine cesium; PWM may not raise sufficient funds to carry out its
plans, changing costs for mining and processing; increased capital costs; the
timing and content of upcoming work programs; geological interpretations and
technological results based on current data that may change with more detailed
information or testing; potential process methods and mineral recoveries
assumptions based on limited test work with further test work may not be
viable; competitors may offer cheaper cesium; more production of Cesium could
reduce its price; alternatives could be found for cesium; the availability of
labour, equipment and markets for the products produced; and despite the
current expected viability of its projects, that the minerals cannot be
economically mined on its properties, or that the required permits to build
and operate the envisaged mines cannot be obtained. The forward-looking
information contained herein is given as of the date hereof and the Company
assumes no responsibility to update or revise such information to reflect new
events or circumstances, except as required by law.