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General Market Commentary
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General Base Metals
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General Energy
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General Market Commentary
Canada’s top-10 base metal juniors
The Northern Miner has listed the top-10 base metal and uranium juniors — with no production, and which are not a royalty company — headquartered in Canada, arranged by market capitalization as of early July.
1. IVANHOE MINES
Market cap: $2 billion
Portals for twin declines at Ivanhoe Mines and Zijin Mining’s Kakula copper project in the Democratic Republic of the Congo. Credit: Ivanhoe Mines.
Robert Friedland’s Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) sits atop the top-10 list for the second year in a row, but down $1.8 billion in market cap from a year ago.
The company is developing three world-class projects in sub-Saharan Africa: the Kamoa-Kakula copper project in the Democratic Republic of the Congo; the Platreef project in South Africa for platinum group metals and nickel; and the Kipushi zinc project, also in the DRC.
China’s CITIC Metal is investing $723 million in Ivanhoe in a private placement at $3.68 per share. Yufeng “Miles” Sun, president of CITIC Metal Group Ltd., will join Ivanhoe’s board at closing and become co-chairman of Ivanhoe Mines at that time in a role to be shared with Friedland.
Not counting the Kamoa resource, Kakula’s newly calculated indicated resource at a 3% cut-off grade has increased by 58 million tonnes and now totals an astonishing 174 million tonnes grading 5.62% copper. At a 1% copper cut-off, Kakula’s indicated resource has risen 58% to 585 million tonnes, at 2.92% copper.
2. ARIZONA MINING
Market cap: $1.9 billion
Development at Arizona Mining’s Taylor zinc-lead-silver project, 80 km southeast of Tucson, Arizona. Credit: Arizona Mining.
Arizona Mining (TSX: AZ; US-OTC: WLDVF) added a billion dollars to its market capitalization from a year ago, thanks to ongoing success in developing its Hermosa zinc-lead-silver deposit, 81 km southeast of Tucson, Ariz., and an all-cash friendly offer for the company from Australia-listed miner South32.
The major is buying the 83% of Arizona Mining it doesn’t already own for $6.20 per share, representing a fully funded US$1.3 billion ($1.8 billion), or a 50% premium.
The junior explorer has been carrying out drill programs targeting Hermosa’s Taylor sulphide and Taylor Deeps zones — both carbonate-replacement style deposits — and a cross-cutting vein system called the Trench. The work had been intended to lead to a resource update and feasibility study later this year.
3. NEXGEN ENERGY
Market cap: $879 million
The exploration camp at NexGen Energy’s Rook I uranium project along the southwestern edge of Saskatchewan’s Athabasca basin. Credit: NexGen Energy.
Vancouver-based NexGen Energy (TSX: NXE; NYSE-AM: NXE) is the biggest winner so far coming out of the new wave of uranium exploration in the southwestern portion of the Athabasca basin of Saskatchewan.
NexGen’s southwestern properties host the high-grade Arrow deposit, the South Arrow discovery, the Harpoon discovery, the Bow discovery and the Cannon area — all located on the company’s 100%-owned Rook I property. The Arrow deposit has an indicated resource of 179.5 million lb. U3O8 contained within 1.18 million tonnes grading 6.88% U3O8.
4. POLYMET MINING
Market cap: $394 million
While headquartered in Toronto, Polymet Mining’s(TSX: POM; NYSE-AM: PLM) sole focus is developing and bringing into production its NorthMet copper-nickel-precious metals project in northeastern Minnesota’s Mesabi Iron Range, where it also has its Erie Plant — a large processing facility 10 km from the orebody that can be repurposed to handle NorthMet ore.
In late June, PolyMet completed key land exchanges the U.S. Forest Service after the transfer was approved in legislation passed by the U.S. Senate.
Mining titan Glencore owns 30% of PolyMet’s shares.
5. FISSION URANIUM
Market cap: $340 million
Drillers at Fission Uranium’s Patterson Lake South uranium project in Saskatchewan. Credit: Fission Uranium.
Another Athabasca basin trailblazer, Kelowna, B.C.-based Fission Uranium (TSX: FCU; US-OTC: FCUUF), is advancing its PLS uranium project, which hosts the near-surface, high-grade Triple R deposit. Major high-grade zones have been found each year since discovery in 2012, and recent exploration drilling has uncovered more mineralization west of the trend.