Mineral exploration company Stillwater Critical Minerals (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE) has filed a 43-101 technical report with details on an updated resource estimate regarding its flagship Stillwater West project in Montana, U.S.A.
The report, which is titled "Mineral Resource Estimate Update for the Stillwater West Ni-PGE-Cu-Co-Au Project, Montana, U.S.A," was completed by SGS Geological Services (SGS). It can be found on Sedar, under Stillwater Critical’s company profile, as well as on the company website.
Stillwater Critical Minerals is a mineral exploration company predominantly focused on operations at Stillwater West in the Stillwater mining district in Montana. It’s a member of the Metallic Group of Companies, a collaborative effort between "leading precious and base metals exploration companies."
Report Highlights
An estimate released in January 2023 revealed the presence of five Platreef-style nickel and copper sulfide deposits at Stillwater West that comprise 1.6 billion pounds of nickel, copper, and cobalt, as well as 3.8 million ounces of palladium, rhodium, and gold. There’s also the possibility of expansion in the area.
Couloir Capital rated Stillwater a Buy and gave the company a 124.84% for projected upside at the beginning of the year.
The company also recently appointed two Bushveld and Platreef geologists to the Stillwater West team. It runs the high-grade Black Lake-Drayton Gold project in northwest Ontario, which is located next to Treasury Metals’ development-stage Goliath Gold Complex, as well as the Kluane PGE-Ni-Cu-Co critical minerals project in Yukon Territory, Canada.
Based on the company's continued resource expansion, Couloir Capital rated Stillwater a Buy and gave the company a 124.84% for projected upside at the beginning of the year.
Multiple Upcoming Catalysts
The company is also looking forward to a number of upcoming catalysts, including several results from Q1, such as assay results and updates on carbon sequestration and processing research.
Also coming soon is an updated 43-101 mineral resource estimate based on 2021 expansion drilling and more information on potential deals on 100% owned, district scale, brownfields, and non-core assets.
Regarding the carbon sequestration updates, Stillwater Critical Minerals has recently partnered with Cornell University to research hydrometallurgy and carbon capture jointly. The goal shared between the company, and the university is to identify techniques that will increase the extraction of critical minerals at Stillwater West in ways that use less carbon.
Why Mineral Exploration?
As the world moves toward a more sustainable future and relies more on electricity, the demand for the materials required continues to increase on a massive scale.
According to the United States Geological Survey, Platinum Group Elements (PGE) — which includes ruthenium, rhodium, palladium, osmium, iridium, and platinum — are used in the manufacturing of computer hard drives, as well as in circuits and other electronic devices.
They can also be used in the production of fiberglass and flat-panel displays. PGEs are also essential in the creation of catalytic converters, which help to reduce carbon monoxide and nitrous oxide emissions from vehicles.
Becky Berube of the United Catalyst Corporation said, "industrial demand for platinum has remained robust" and that the "decrease in supply and an increase in demand should produce higher prices."
While it’s still largely used in the production of jewelry, gold also has a vital role to play in the creation of electrical items, predominantly in micro-circuitry. In 2020, the production value of gold in the United States was around US$11 billion.
Last year, China was ranked top in terms of gold mining production, with the U.S. sitting in fifth position behind the Russian Federation, Australia, and Canada.
Stillwater Critical Minerals has the largest cobalt resource in the United States. It also benefits from having eight of its suite of metals be deemed 'critical materials' by the U.S. federal government.
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Stillwater Critical Minerals (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE)
Becky Berube of the United Catalyst Corporation said, "industrial demand for platinum has remained robust" and that the "decrease in supply and an increase in demand should produce higher prices."
Share & Ownership Structure
Headquartered in Vancouver, Stillwater Critical Minerals has around 177 million shares outstanding, with 33 million (around 22%) owned by management and insiders.
Executive Chairman Gregory Johnson owns 3.29% of the shares, currently valued at CA$1.2 million, while President and CEO Michael Rowley owns 2.8%, valued at CA$995,000.
According to Reuters, 1.22% is held by institutions. U.S. Global Investors Inc. is the top shareholder among institutions, with 1.13% and 2 million shares. 8.52% is with strategic investors. The rest is in retail.
Stillwater reports CA$2.5 million in the bank. As for drilling cost, the company states this will vary greatly with the scale of the program. 2023 costs are expected to be significantly lower per foot as Stillwater anticipates it will be the largest program to date. Current drill costs are zero, but the drilling season will likely start in June or July.
The company has an implied market cap of CA$35.478 million and trades at a 52-week range of between CA$0.1500 and CA$0.4700.
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Disclosures:
1) Lauren Rickard wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. They or members of their household own securities of the following companies mentioned in the article: None. They or members of their household are paid by the following companies mentioned in this article: None. Their company has a financial relationship with the following companies referred to in this article: None.
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