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Equity Analyst Danny Deadlock has 30 years of experience speculating on Canadian penny stocks and targets capital gain opportunities and diversification in metals and minerals exploration, energy, and technology.
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In 2014 we are following the progress of GeoMegA Resources Inc. (TSX: V.GMA, Stock Forum) (59 cents) as they work to prove up commercial viability of new technology for the separation of rare earths (a process currently dominated by China). In addition to the technology, the company owns a large rare earth project in Quebec in which we are most interested in the "Magnetic Elements" contained within this rock.
Because this is a giant (and complex) industry, my report this weekend is the 3rd in the Series.
The report is too large (13 pages) to display here so pleaseCLICK HERE for the full version.
Below are a few excerpts:
>> That is also why GeoMegA's new separation technology is extremely important to the industry. If they can successfully separate the REE’s on a commercial (mining) scale, they not only eliminate a huge amount of environmental concern, but (in theory) should bring the capital and operating costs of processing REE’s way down. It would become the industries “Magic Bullet”.
>> The intention of this report is to put the GeoMegA Rare Earth project into some type of perspective in relation to the current market cap of $30 million.
>> You will see a reference below to the giant Diavik Diamond Mine owned by Rio Tinto and Dominion Diamond (previously Harry Winston and Aber). I am NOT saying this is the next Dia Met, Aber, or Diamond Fields who watched their stocks run from pennies to over $30.
>> Diavik was sitting on an estimated $14 Billion in diamonds. YET GeoMegA is sitting on rock that (in a perfect mining and sales scenario) could produce over $80 Billion in Rare Earths! And the company is currently valued at $30 Million?
>> While many investors focus on gold and other commodities, they are missing the bigger resource picture associated with a world driven by technology.
>> I believe China will use this WTO ruling combined with their own war on pollution to either impose a significant environmental surcharge on REE exports or justify REE restrictions / quotas based on the fact they need them for their own country and mine supply is now being restricted.
April 17th from Industry Leading Metal-Pages.com...
Industry sources are warning that prices of light rare earths, particularly cerium and lanthanum, could actually start rising in Europe as Chinese producers hit export quotas.
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