Power Metals Corp V.PWM

Tanco Mine History!

[trader53]

The Cesium deposit at Tanco was discovered 100 meters below Bernic Lake and was mined from underground using a technique called room and pillar where you mine a big cavern underground, but you leave large pillars which support the ceiling. The deposit was mined out followed by issues of collapsing ceilings. These large remaining pillars are thought to be rich in cesium. Sinomines push to mine these cesium pillars came as a result of a worldwide scarcity of cesium. The plan proposed was to get approval to drain the Lake and mine these pillars from the bottom of Bernic Lake. Both Provincial and Federal Governments expressed little interest in draining Bernic Lake and three years later Sinomine has not even presented a plan involving the draining of the lake which tells me they got the message that this plan had no chance of being approved. What does this have to do with PWM? Nothing directly but one can draw some inferences from Sinomines actions. 1) There is little doubt the demand for cesium worldwide is very strong and growing. With its scarcity one must expect the price to increase as why else would a major mining company go to all this trouble and expense to mine these pillars. 2) Sinomines interest in Case Lake was always about the cesium and finding a reliable source as the stockpile of pollucite from the Sinclair Mine is near depleted. 3) PWM's drilling at West Joe has only been testing the pollucite to depths of 50 meters so one must ask what could they find at depths of between 100 and 200 meters? 4) To validate point one Chris Evans admitted they are getting interest from multiple parties. When Rodney asked if they are western world inquiries, Chris replied let's just say it's not China who are definitely interested. It's becoming very clear that a rich cesium discovery would by itself be a company maker. If indeed the suggestion of a 2.2-kilometer cesium corridor does exist, the share price will quickly re-rate and reflect the true value of Case Lake. Until then the share price and the true value will remain irrational.

[VeritasVern]

Trader, i/we appreciate your insights and comments. Clearly this company's potential is fantastic. If so why does the share price, currently at $0.315languish in the bottom 1/3 of the 52 week range?

[trader53]

There are times in the market where the share price does not reflect the true value. Sometimes like with PWM the bear lithium market does not recognize the value and the same can be said for a bullish market where the share price far exceeds the true value. A company recently drilled a property for the first time and hit 59 meters of 1.5% lithium and the stock price actually went down. In another

[Seizeium]

My view is that markets generally trade on uncertainty. I expect the MRE, when it arrives, will be a de-risking event, in one direction .... or the other

[trader53]

I agree with you with just one caveat and that would be cesium. The discovery of additional Cesium in the 15% to 20% range on those 200 meter stepouts along what appears to be a 2.2 kilometer corridor would imo cause an immediate re-rating of the SP. 

[remucker]

how can one convert 15 -20% cesium  to ounces per ton . it would be easier to relate to a value at ounces per ton .

[trader53]

One Cubic Meter Ore = 540 pounds x 20% cesium grade =108 pounds which is = to 1728 0unces of cesium. The unknown factor at this moment would be the recovery rate so if we use a very modest recovery rate of 65% the mined ounces would be 1123. 1123 ounces x $3500 Canadian = $3,931,200.00. This does not take into account the high grade lithium and tantalum in the same rock. Based on generalized

[remucker]

if we multiply those numbers  by 4 that would give us  approximately a metric tonne and the ounces  in that tonne would be approximately 4400  and in the neighbourhood of 16 miilion canadian dollars per tonne  of ore at 20% cesium . that is incredible