It's interesting looking through presentations from other REE companies, particularly those in our geographical area, to see what their take on the state of play is, plus having an insight into their scoping study economics etc..
These slides are taken from the latest MEI presentation ($229m MC) - they are self-explanatory:
It looks like the tide is finally turning.
The ANN today that the governments from 14 Western countries are joining forces with a strategy for Critical Minerals (FT article), will also help things along considerably, if they get their act together:
We are in the same geographical area as MEI, so it stands to reason that geologically, we will have similar results as their drilling show. Indeed, we are in the same ballpark in terms of average TREO as they are. Their scoping study shows they have an average of 2572 TREO ppm across their tenements. Those align with what our recent results show. I think the market has missed that a lot of our cores showed results of over 3000 TREO ppm (and one was even as high as 6390).
"According to American Rare Earths, the economic cut-off grade for TREO is 1,000 parts per million (ppm). This cut-off grade is based on technical, mining, and economic designs, and is considered to meet the conditions for reporting a mineral resource with a reasonable chance of economic extraction."
The vast majority of the area we've drilled so far is way above this cut-off. We could have a substantial resource on our hands, in an area which is "low yielding agriculturally" = cheap, available and ripe for development.
Of course MET work is the key in all this, but it highlights the potential of our project, with the Market Cap disparity showing clearly the differences between being a very early explorer in the region, and a company at the scoping study stage. < $9m MC v $229MC. They are our neighbours, with 25 x our market cap. Think on that!
It's important to note that
MEI only started drilling at Minas Gerais less than a year ago. We are only just beginning our Brazilian journey.
I'm not sure if Eric is in close contact with MEI. I believe he's touched base with several companies in the area, but not 100% sure on who and for what reasons. It would make sense for us to develop relationships with them with a view of a potential JV (no point doubling up on processing plant costs etc..), or to create a favourable atmosphere should any T/O offers come to the table.
I see huge potential here, with a tiny MC, tight register, and SP skimming along the bottom. I believe the risk / reward here is excellent.
Good luck however you're playing this, LT investors and traders alike. I have a T20 holding and happy to watch it unfold. The upside could be tremendous.
(20min delay)