Canoe Mining Forges Strong Partnerships and Gains New Location
Canoe Mining announces it has purchased the Hanlon property in Ontario, a highly prospective mining project
Focused on mining exploration and acquisitions in six different location in Canada, Canoe Mining Ventures Corp is excited to announce that on May 12, 2014, it has signed an agreement with Glencore Canada Corporation, Rainy Mountain Royalty Corp., and Mega Uranium Limited to purchase one hundred percent interest in the Hamlin-Deaty Creek Property, a gold belt located in Shebandowan Belt 110 Kilometers west of Thunder Bay, Ontario.
Duane Parnham, a director of Canoe Mining, stated: "The Hamlin property compliments our current holdings and furthers our strategic objective to consolidate the Shebandowan copper gold belt into a single major mining camp. There are currently unprecedentedly low acquisition costs for metal deposits in Canada and this, together with a trend for major mining companies to divest their exploration and development projects, has enabled Canoe Mining to capitalize on current market factors and acquire a highly prospective project from Glencore. We envision that Canoe will benefit from being well positioned with an excellent copper gold mining project in the future when markets will potentially recognize a significant increase in this property's valuation and reward Canoe for its efforts to enhance this asset." Prior to the agreement, the property was originally owned by Rainy Mountain and in 2003 a partnership was formed with Mega Uranium and they continued to develop the land, successfully completing 58 diamond drill holes by 2006 containing copper, gold, silver and molybdenum mineralization. It was in 2007 when Glencore earned its 51% interest by spending a total of 3 million dollars on the operation in Hamlin, leaving Mega Uranium and Rainy Mountain both owning 24.5% interest. The trio continued to develop the area and complete 23 additional drill holes, extending the deposit down to 200 meters below ground level.
Included in the terms of the agreement for canoe Mining to be included on this clearly profitable mining location, Canoe Mining is paying $50,000 to Glencore and is issuing one million common shares of Canoe Mining to Rainy Mountain and Mega Uranium. Under this agreement, the project will now be supervised by Canoe Mining’s Exploration manager, R.S. Middleton. What makes Middleton an excellent leader for this task is that he led the team that made the original discovery of the Hamlin deposit therefore he is very familiar with the area and will be a great contribution. Middleton states, "I am deeply familiar with the Hamlin property and deposit and know first-hand the potential of this Property. Our objective is to build a 60-100 million tonne copper-gold-silver deposit similar to the producing Mount Polley Mine in BC (Imperial Metals), or the Troilus Mine near Chibougamau (Inmet now First Quantum)." Middleton’s experience in this area supports the decision for Canoe Mining to forge this partnership and the company looks forward to the public acclaim this new acquisition will bring forth.
British Lithium Pressured Due To Calls for Electric Cars
The British demand for lithium is set to reach 75,000 tonnes by 2035 as the government works towards their ban on the sale of high-polluting diesel and petrol vehicles within the UK. This comes as automakers worldwide continue to insist on the benefits electric vehicles will have on slowing the rate of climate change.
It is estimated that the UK will require 50,000-60,000 MT of lithium carbonate a year by 2035 for battery production to satisfy government needs. This is assuming production remains at 1.2 million vehicles per year, and the amount of lithium required does not increase.
British Lithium, which hopes to begin constructing a quarry to produce 20,000 MT of lithium carbonate a year in a $400 million investment, are not without competitors, both within the UK and abroad.
Competition For Lithium Rises In Europe
After only five years after its initial launch, Cornish Lithium is setting its sights on becoming a UK powerhouse in mining lithium, aiming to begin commercial production in under four years. Jeremy Wrathall, a former investment banker and current managing director of Cornish Lithium, had the future in mind when founding the company.
“In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand, and I started to think about lithium,” he said in an interview with AFP. “A friend of mine mentioned lithium being identified in Cornwall, and I just wondered if that was a sort of unrecognised thing in the UK.”
Lithium was first discovered in Cornwall around 1864 and has not been mined again since 1914 when it was produced as an ingredient in fireworks. Now, however, Cornish Lithium is reportedly in the testing stage to see if the metal can be produced commercially to meet the growing demand required for the electric car sector.
Despite Cornwall’s close historic ties to mining lithium, Wrathall insists that the project is purely commercial.
Cornish Mining Revival For Lithium Production
“It’s not a mission that drives me to the point of being emotional or romantic,” he says. “It’s vitally important that we do get this technology otherwise Europe has got no lithium supply.”
The European Commission has also stated their goal to end the sale of new petrol and diesel cars by 2035 to aid the environment. That being said, the majority of lithium extraction currently relies on power provided by environmentally damaging fossil fuels─a slight contradiction.
Alex Keynes, from the Brussels-based lobby group Transport & Environment, is adamant that mining for lithium should be done sustainably.
“Our view is that medium-to-long term, the majority of materials including lithium should come from efficient and clean recycling.
“Europe from a strategic point of view should be looking at securing its own supply of lithium.”
Despite growing competition from abroad, British Lithium Chairman, Roderick Smith, continues to place importance on the mining of lithium within the UK.
“Imagine what the UK economy would look like if we lost our automotive industry,” Smith says. “The stakes are high for the UK.”
Smith expects the UK to compete with other European countries to secure a lithium battery plant in the near future.