Co. Says Geoprobe Drilling Found 'Consistent' Lithium, Boron Concentrations
Canter Resources Corp. (CRC:CSE; CNRCF:OTC; 601:FRA) announces promising brine assay results from Phase II geoprobe drilling at its Columbus Lithium-Boron Project in Nevada. Read why one expert says the project has the potential to rival its neighbors.
Canter Resources Corp. (CRC:CSE; CNRCF:OTC; 601:FRA) announced promising brine assay results from Phase II geoprobe drilling at its Columbus Lithium-Boron Project near Tonopah, Nevada.
The company said the results show "consistent lithium and boron concentrations identified across an expanded widespread area," with initial multi-element analysis strengthening the project's "potential for significant lithium and boron brine development."
"We completed two phases of shallow drilling for a total of 20 drill holes . . . proving the basin's ability to generate mineralized brines from the surrounding source rocks and guiding our deeper discovery drilling," Chief Executive Officer Joness Lang told Streetwise Reports.
Canter said solid sediment assays expected mid-Q4 will contribute to an updated 3D model of the basin and lead the way for Phase III exploration plans.
According to the company, the phased shallow drilling program shows that the Columbus Basin can generate the same lithium-boron mix in brines as Ioneer's (CA$300 million market cap) nearby Rhyolite Ridge sediment deposit. Rhyolite Ridge shares volcanic source rocks with Columbus.
"Rhyolite Ridge is at feasibility stage, and we are building the foundation for a major discovery at Columbus, but these shallow results certainly support our vision for value creation," Lang said. "The lithium results at this depth are as expected and fit the widely adopted basin deposit model (Clayton Valley), while the boron results have exceeded expectations and point to the significant co-product multi-commodity potential at Columbus."
Lithium on its Way Up?
The lithium sector has been on a roller coaster this year. It peaked at a high of more than US$79,637 per ton in 2022, but expected sales of electric vehicles (EVs) did not materialize, and prices hit their lowest point in three years in 2024.
But in an article for Reuters, Andy Home wrote that the slowdown could easily be reversed.
"One critical facilitator will be the build-out of EV charging infrastructure, a sector which has attracted far less investment than battery manufacturing," he wrote. "Car buyers in Europe and the United States are choosing hybrids because of range anxiety, and they will continue to do so until they see more charging points. The second key factor is price."
Jeff Clark, in The Gold Advisor, pointed out the strategic importance of the company's drilling efforts. "There is a lot of activity ahead for this young company on a project that shows the potential to match what its neighbors have," he wrote.However, "the seeds of the next lithium upswing are already being sown in the current low-price environment," Home wrote.
Clearly, one major mining company is taking that bet. Rio Tinto has agreed to a US$6.7 billion takeover of Arcadium Lithium, offering US$5.85 per share in cash for the company a 90% premium to the stock's closing price at the end of last week, David Winning and Julie Steinberg wrote for Reuters on Wednesday.
"Rio Tinto expects demand for lithium to rise in the decade ahead because of the metal's importance to EVs and in large batteries that store electricity that can be released into the grid when consumption surges," the authors noted. "The U.S. has designated lithium as a critical mineral."
Boron is also essential to the energy transition. The Business Research Co. reports the global market has grown "exponentially in recent years" and forecasts it will reach US$7.99 billion this year, up from US$6.57 billion in 2023, reflecting a 21.7% CAGR. Rapid growth is expected to continue in the sector through 2028, at which time the market is projected to reach US$12.68 billion.
'Very Encouraging Signs'
In the new Phase II results, Canter said infill drill hole CB24-023G returned 871 milligrams per liter (mg/L) boron and the highest dissolved boron concentration from Canter's drilling to date, 820 mg/L. This provides further "evidence of significant boron concentrations with increasing grades at depth," the company said in a release.
The Phase II lithium results also continued to demonstrate the consistent, widespread anomalous lithium mineralization in brines. Shallow drilling to-date has returned several brine samples greater than 40 mg/L and a peak value of 76.4 mg/L in the upper 30 meters, Canter said.
Data from Albemarle's Silver Peak lithium brine operation in Clayton Valley show lithium concentrations increase with depth, and Canter's lithium concentrations in the upper 100 feet (~30 meters) are "very comparable, with higher peak values than historically observed in Clayton Valley from the upper 100 meters" Lang said.
The company believes there should be "higher-grade lithium in the reservoirs and structural traps in this basin as we drill deeper," he noted. "That would fit the basin deposit model methodology used throughout the western U.S.A.," he added.
These are "all really encouraging signs from very cost-effective shallow drilling that's all intended to help vector us towards the best places to take our discovery shots when drilling deeper in subsequent campaigns," Lang said. "So, we're really encouraged with what we've seen."
Elements Vital to Energy Transition
Lithium is a critical metal vital in the energy transition for its use in batteries for EVs and other applications. It also is used in electronics, medicine and other industries.
According to a report by Grand View Research, market size for the metal was estimated at US$31.75 billion last year and is projected to grow at a compound annual growth rate (CAGR) of 17.7% from this year through 2030.
"The automotive application segment is expected to witness substantial growth, driven by stringent regulations imposed by government bodies on ICE automakers to reduce carbon dioxide emissions from vehicles," researchers at Grand View said. "This has shifted the interest of automakers toward producing EVs, which is anticipated to benefit the demand for lithium and related products."
EVs and battery storage primarily will fuel future growth of the lithium market, Marin Katusa of Katusa Research wrote recently. He pointed out that all major electric vehicle batteries require lithium, about 1.55 pounds per kilowatt hour of battery capacity, on average.
"I think the data speaks for itself that there's more growth and opportunity on the horizon," Katusa wrote.
Boron/borates are used in applications in agriculture, metallurgy, nuclear energy, and advanced materials, Mordor Intelligence noted. The increasing use of fiberglass in various end-user industries is also boosting demand for the element.
According to the U.S. Geological Survey, borates are also used in abrasives, cleaning products, insecticides, insulation, ceramics, and semiconductors.
"Growing demand for electronic products and increasing penetration of fiberglass in markets conventionally held by concrete and steel are expected to drive boron market growth," Grand View Research noted. "Fiberglass penetration in turbine blades in wind power generation is also expected to have positive influence on boron market development. An increase in construction spending, leading to fiberglass demand for a communal structure such as bridges and roads is expected to come up as a new opportunity for the global market. The scarcity of boron, very concentrated reserves, and multifaceted manufacturing process may be a challenge for participants in the global market."
'A Great Basin of Lithium and Boron'
Chen Lin wrote in his newsletter What Is Chen Buying? What Is Chen Selling? that Canter "is looking good [and the Columbus project] hosts a great basin of lithium and boron though the market is not looking at it."
Streetwise Ownership Overview*
Canter Resources Corp. (CRC:CSE; CNRCF:OTC; 601:FRA)
*Share Structureas of 6/5/2024Source: Thomson ReutersJeff Clark, in The Gold Advisor, pointed out the strategic importance of the company's drilling efforts.
"There is a lot of activity ahead for this young company on a project that shows the potential to match what its neighbors have," he wrote.
Ownership and Share Structure
According to the company, managers and insiders own about 9.6% of Canter Resources, and strategic investors (including the founding group and Michael Gentile & Advisors) own about 12%.
The investors with the largest stake are all insiders. They are CEO and Director Joness Lang with 3.38%, Director and Strategic Adviser Warwick Smith with 2.14%, Director and Technical Adviser Kenneth Cunningham with 1.95%, Chief Financial Officer Alnesh Mohan with 0.97%, and Director and Technical Adviser Eric Saderholm with 0.58%, and Gentile, who owns about 4% personally.
Four institutions or funds, including Euro Pacific Asset Management, collectively hold 3%. Retail investors own the remaining.
The Canadian explorer has 51.29 million outstanding shares, 46.41 million free float traded shares with a CA$4.11 million market cap.
Over the past 52 weeks, Canter has traded between CA$0.07 and CA$0.99 per share.
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As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Canter Resources Corp. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.