Four junior explorers discuss their pursuit of diverse commodities
by Greg Klein
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Panel moderator Chris Berry, president of House Mountain Partners and co-editor of the Disruptive Discoveries Journal, opened the discussion by asking about each company’s competitive advantage.
Commerce president Chris Grove noted that Ashram is one of a “very, very small” number of comparable projects that survived the rare earths bubble. Meanwhile rare earths demand for electric vehicles and magnets “has actually increased since the highs in 2010, 2011 and arguably will increase.”
He suggests investors consider a rare earths deposit for its distribution of magnet materials. “In that regard our project is not only hosted by the three minerals that are processed every day basically all around the world but it also has a great distribution of those magnet materials.”
Tough equity markets have failed to keep these four companies down. So Berry asked about their sustainability plans for the next 12 to 24 months.
Last year’s $11.1 million in financings testifies to Commerce’s stability, Grove replied. The money supported a 31-hole drill program and Phase I mini-pilot plant tests, with the second phase set to begin within weeks. “Sustainability in this industry goes back to the actual rocks,” he said. When a company finds the metals it’s looking for and understands the market for those metals, “then arguably you have both sides covered.”
What about optionality, Berry asked. What do these companies have as a hedge?
Tantalum, responded Grove. Commerce’s Blue River project in B.C. is potentially “the largest production scenario in the world for tantalum right now” and “would be a completely conflict-free producer.” In March Commerce filed an updated 43-101 technical report for Blue River, which achieved a preliminary economic assessment in 2011.
As for Ashram, the rare earths project also offers fluorite. “We would already have the potential of being the lowest-cost producer outside of China, then there’s this addition of the fluorite byproduct,” Grove said.
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