Boron: A Little Known But Vital Mineral In case anyone missed this article posted Aug.22, 2019 on smallcapnetwork with over 200K members (not to be confused with smallcap.us).
Boron: A Little Known But Vital Mineral
Little known mineral boron is used in more than 500+ products that shape modern life and is mostly supplied by an oligopoly operating in just two regions; but small cap Erin Ventures (TSX-V: EV; OTCQB: ERVFF) intends to change that with a new low cost mining operation.
By Jim Robertson
Aug 22, 2019 6:42:04 AM PDT |
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Chances are, you have never heard of the mineral boron which is mostly supplied by an oligopoly operating in just two regions; but small cap Erin Ventures (TSX-V: EV; OTCQB: ERVFF) intends to change that with a new low cost mining operation. To begin with, boron has been used for centuries and is used in 500+ products that shape modern life with new applications being regularly developed.
The primary uses for boron or borates would be in the manufacture of fiberglass insulation, textile fiberglass, borosilicate glass (LCD screens, solar panels, smart phones etc), ceramic glazes and porcelain enamels (64% of borate consumption). Detergents, fire retardants, metallurgy, agriculture, insecticides, wood preservatives and many specialty products account for the majority of the reset of boron’s consumption. In many applications though, there is simply no substitute for borates. More importantly, boron is safe as it poses no risk to people, animals or the environment under normal handling and use.
In addition, its worth adding:
· The Boron market is valued at US$4.9 billion per year.
· Global consumption is currently matching production with growth in demand outpacing production growth.
· A lack of competition in supply with just two dominate players helps to keep prices stable and growing.
· Economic deposits of borates are extremely rare with just two regions currently supplying +80% of world production (Rio Tinto’s US Borax in California and Eti Mine in Turkey).
· The majority of other producers are from high-cost, low-grade deposits in South America.
· World production of boron reached 2.4 million tons in 2015 and is growing at a controlled pace.
China is the largest consumer of boron, where consumption has risen by 15% per year from 2000 to 2010 and is currently growing at their GDP growth rate of 7% (according to the US Geological Survey). The US market is the second largest boron market, growing at a rate in excess of GDP growth (driven by housing recovery). Nevertheless and over the next decade, the industry will need increased capacity that is equivalent to another 1.5 Boron-sized operations (Rio Tinto’s California mine) to meet demand.
Boron buyers and financial markets would welcome a break in the Rio Tinto/ETi oligopoly. However, there are no other deposits coming on-line globally (short and/or medium term) – except potentially for one.
Small cap Canada based Erin Ventures is an emerging international junior mining and exploration company involved in the acquisition, exploration and development of precious metal properties. Erin Venture's strategy is to uncover and capitalize on unique development opportunities within different regions internationally. The Company's objective is to increase its mineral reserves by developing current properties and through the acquisition of additional mining projects. Right now, the Company is focused on its boron assets in Serbia and gold assets in North America.
Erin Ventures’ 100% owned Piskanja deposit project is a high-grade boron deposit with a NI 43-101 compliant mineral resource of 5.6 million indicated tonnes (30.8% B2O3) in addition to 6.2 million inferred tonnes (28.8% B2O3). The project is located in a historical mining region with existing mining infrastructure (good allweather paved roads, cell/internet service, 3-phase power generation, ports, rail, fuel stations, machine shops and experienced but underutilized local miners). Other competitive advantages for the Company and/or the project include:
· Large deposit
· High quality with low arsenic
· Good proximity to markets
· Relationships with industry leaders
· Ability to add value by creating specialty products
· Planned production of 200,000 t/yr for market penetration of < 5%
· Potential for US$97,000,000/yr revenue (21 year mine life)
Again, boron buyers and financial markets would welcome a break in the Rio Tinto/ETi oligopoly and will (one way or the other) provide support for Erin Ventures’ Piskanja. Serbia has also formally entered the process for EU membership and the government is committed to stimulating and encouraging foreign investments within the mining industry.
Finally, Erin Ventures is the world’s only “pure boron play” - making it a unique investment opportunity for small cap investors and worth watching.
https://www.smallcapnetwork.com/Boron-A-Little-Known-But-Vital-Mineral/s/via/52883/article/view/p/mid/1/id/553/