Below is an excerpt from Gold Report's interview with Richard Karn on specialty metals that are under threat. The final paragraph of the excerpt is interesting.
A related specialty metal we are particularly taken with is scandium—a fascinating metal that stands to significantly improve the performance and economics of both the aviation and fuel cell industries. It is literally a case of significant demand awaiting reliable supply to give birth to a new metal market. As is the case with REEs, with which scandium is usually grouped, economic deposits are very rare and processing is difficult.
We actually were onsite in Greenvale in northern Queensland with the geologist who found the bonanza grades when Metallica Minerals Ltd. (ASX:MLM) made its announcement about the scope of the scandium deposits on its Lucknow and Kokomo tenements. To the best of our knowledge, there are currently only three deposits in the world that are deemed economic - three are in Australia, and MLM controls two. The third is a joint venture (JV) at Nyngan, New South Wales that EMC Metals Corp. (TSX:EMC) is farming into; so, we issued a Buy on both companies. One way or the other, we wanted a piece of those deposits because the metal is too important not to have economic deposits get developed.
By way of disclosure, not only do we own shares in both companies, but also, subsequent to the release of that report, I have personally become involved with a private equity group that is in discussions with MLM to form a JV company to put part of the Lucknow tenement into production.
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