Critical Minerals Co. Starts Fieldwork at Montana Flagship Project

Source: Streetwise Reports 07/22/2024

Stillwater Critical Minerals Corp. PGEZF announced it has started 2024 field activities at its flagship Stillwater West project in Montana, including a property-wide airborne electromagnetic geophysical survey.

Expert Geophysics Ltd. will conduct a combined time-domain electromagnetic (EM) survey using their TargetEM26 system along with a magneto-telluric survey using their MobileMTm system at the nickel-platinum group element-copper-cobalt plus gold (Ni-PGE-Cu-Co plus Au) project.

The survey will utilize the newest technological advancements in airborne EM, building on the success of a first-generation DIGHEM airborne EM survey flown over the project in 2000. It will cover about 1,069 line-kilometers and provide higher-resolution and improved depth of investigation from the DIGHEM airborne EM survey, as well as VLF coverage.

It has been designed in collaboration with Glencore International Plc GLNCY, which holds a 15.4% position in Stillwater and has provided ongoing technical support to the company, to fine-tune priority conductive drill targets across the 12-kilometer main resource area, as well as to assist with prioritization and ranking of additional untested conductive targets across the broader 61-square-kilometer property.

This large-scale geophysical survey is part of a larger program that is expected to include an updated mineral resource estimate that will support the commencement of various studies relating to potential production scenarios" Stillwater President and Chief Executive Officer Michael Rowley said. "These objectives will be important milestones in preparation for continued resource expansion drilling across the 12-kilometer deposit area, as well as in developing target areas."

Airborne Surveys to Give Important Info

Rowley said Stillwater is also pursuing a number of other studies and initiatives with strategic partners such as Cornell University and various U.S. government agencies.

The technical committee that includes Glencore is focusing on the expansion potential of the lower Stillwater Igneous Complex, the company said. The addition of Glencore's vice president of business development to Stillwater's board of directors in June confirmed this focus on expansion potential.

Detailed geological and structural interpretive work during the past two years added significantly to Stillwater's understanding of the large Platreef-style mineralized system discovered within the footwall contact zone of the project complex, Vice President Exploration Dr. Danie Grobler said.

"Our geological models now display strong geological control and continuity on mineralized zones" Grobler said. "The planned airborne surveys will provide important high-resolution data sets to refine targeting of high-grade nickel-copper-PGE sulphide-hosted mineralization within the multikilometer-scale geophysical anomalies that we see across the 32-kilometer-long mineralized system."

Parallels With Massive South Africa Complex

In June, the company reported the final drill results from resource expansion drilling at the project, including six holes totaling 2,310 meters that were focused on expanding resources at the west end of the current deposits, which span nine kilometers.

All six holes targeted and successfully intercepted magmatic nickel and copper sulfide mineralization with significant PGE mineralization, furthering known parallels with the Bushveld Igneous Complex, the largest layered igneous intrusion in the Earth's crust in South Africa.

"Our drill campaigns have successfully leveraged a substantial historic database to arrive at a total of approximately 40,000 meters of drilling in 236 holes to date" said Rowley at the time. "That wealth of data, combined with Glencore's backing and in-house expertise from similar geology in South Africa's Bushveld Igneous Complex, has positioned us exceptionally well with the largest nickel resource in an active American mining district at a time when the U.S. is looking to onshore supply chains of nine of the commodities we have inventoried."

Stillwater noted that drilling also successfully intercepted N-series mineralization in structures that are not known in the Bushveld Igneous Complex but have now been modeled in a series of eight north-south trending structures at Stillwater West.

The company said those results demonstrated significant potential to expand the 2023 Mineral Resource Estimate (MRE) for the project. All deposits and mineralization remain open for expansion in planned follow-up drilling.

The Catalyst: Powering the Green Energy Transition

According to a report by CarbonCredits.com, a rapid expansion in Indonesia's nickel industry has led to oversupply, causing price declines from highs in 2022 and 2023. However, it noted the long-term outlook for the metal remained positive and that "market analysts also share the same sentiment."

The nickel market is expected to grow by a compound annual growth rate (CAGR) of more than 4.8% from 2024 to 2029, according to Mordor Intelligence. The market was valued at more than 2.1 million tons in 2021, analysts said.

The driving force over the medium term will be the demand for nickel in stainless steel alloys, Mordor noted, as well as for automobile batteries and energy storage systems in wind turbines or solar panels needed for the energy transition.

An article from Stockhead on May 13 noted how Sprott's Steve Schoffstall spoke highly about nickel potential.

"In our view, nickel miners are poised to offer investment attractive opportunities to investors" Schoffstall said. "Although nickel prices declined in 2023 on the back of softer Chinese EV sales and a flood of supply from Indonesia, the metal has been rebounding thus far in 2024 and benefiting the prospects of mining companies."

Schoffstall added, "The rise in nickel prices seems to be a combination of investor sentiment, potential supply constraints, and the underlying long-term demand for nickel in the clean energy transition."

Geopolitics are also important to consider, especially given Chinese dominance in nickel markets via the mines and processing operations in Indonesia, Rowley told Streetwise Reports, adding that BHP's recent decision to suspend production at their giant Nickel West operations in Western Australia is evidence that China's strategy to squeeze out western miners is working.

"For this reason, Stillwater highlights the importance of having the largest nickel resource in an active U.S. mining district" he said.

According to Straits Research, Platinum Group Metals (PGM) are utilized in various products, including oxygen sensors, fuel cells, auto catalysts, jewelry, electronic parts, and medical equipment, among other things.

The global market for PGE was US$15.7 million in 2021 and is projected to reach US$21.8 million by 2030, growing at a compound annual growth rate (CAGR) of 4.44% from 2022 to 2030, researchers said.

Copper and cobalt are also needed for the energy transition for use in wires and batteries and other important products.

Ownership and Share Structure

Management and insiders own approximately 20% of Stillwater, according to the company.

Executive Chairman and Director Gregory Shawn Johnson owns 2.86%, President and CEO Michael Victor Rowley owns 2.56%, Independent Director Gregor John Hamilton owns 1.65%, Independent Director Gordon L. Toll owns 0.44%, and Vice President of Exploration Daniel F. Grobler owns 0.23%, according to Reuters.

Institutions own approximately 25% of the company, high net-worth investors own about 37%, and Glencore Canada Corp. owns 15.4%. About 18% of the company's shares are in retail, Stillwater said.

There are about 227 million shares outstanding with 174.5 million free float traded shares, while the company has a market cap of CA$36.33 million and trades in a 52-week range of CA$0.13 and CA$0.22.

Important Disclosures:

1. Stillwater Critical Minerals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Stillwater Critical Minerals Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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