Excellent CCE report!We just had an excellent report from a German stock letter about CCE (10-9-07; https://www.rohstoffe-go.de/fileadmin/user_upload/rohstoff_brief/rohstoffbrief_41.pdf). Since it is in German, I tried to pick the most important aspects and translated them in a rush. Hence, please excuse any inappropriate English!
Best C.
RG Rohstoff Brief - Summary
1. The infrastructural conditions couldn’t be any better!
a. Logging-Roads
b. Airport accessible the whole year
2. Alexej Rukholv, one of the leading carbonatite experts worldwide
a. Described the resources along the valley as “books in a shelf”
b. This years drilling aimed at determining the how the carbonatites expand along the flank of the valley
c. Only 500 carbonatites worldwide, only 20 profitable
d. CCE’s carbonatite is unique worldwide due to its constantly elevated Ta grades
e. Niob is expected in carbonatite
f. However Blue-River is a poly-metal Res. With: Ta, Ni, PO4, and potentially Magnetite
g. In contrast to SOG (Pegmatite) recovery rates are much higher and better accessibility (SOG by now has to go underground)
3. Scoping study this year – most important, since it will provide the basis for estimating how much cheaper CCE could offer Ta compared to SOG being the dominant supplier worldwide at present.
4. Environmental aspect (Gartner Lee)
a. No Show-Stopper discovered so far
i. The area is not untouched due to the wood industry
ii. No rare plants or animals
iii. Hence, a no “concerns project”
5. Important aspects from Bill Serjak (HC Starck)
a. Expects a massive increase in Ta-demand
b. Usual increase 5-7% per year
c. Increase due to the continuing demand of high-end electronics (e.g. cell phones, notebooks etc…)
d. However, Ta could be replaced by other materials, e.g. ceramics, if prices increase beyond an economical limit. This aspect puts CCE in a unique position, since it could ensure stable costs and supply! Hence, CCE could become the most important supplier world wide!
e. Next to Ta, Ni will contribute equally to the potential profits of CCE based on present costs (65 USD per kg) expected to be stable at around 50USD/kg. Ni could moreover increase, since it is “rediscovered for high tech applications” and will for instance replace Vanadium in many applications.
6. Near term landmarks
a. No additional financing required until production (~ 40 Mio. CAD cash)
b. Metallurgical test of SGS Lakefield until the end of this year
c. Scoping study until the end of this year
d. Res. Estimate based on this years drill program