Canada TSX-V: (MNRL)
What happened in Afghanistan is so much more of a catastrophe than you realize.
The sights and sounds are disturbing enough and what the Afghan people are going through is actual hell.
It was gross mismanagement and incompetence on the American side of things, no matter which way you lean politically.
But there’s something even more sinister going on and more threatening to our national security. And it’s been a long-term trend that we better take care of. Immediately.
Thanks to the fall of Afghanistan, China’s stranglehold on rare earth minerals may become even more substantial than it already was. As if the Taliban acquiring advanced American weapons wasn’t bad enough.
Even before the fall of Afghanistan, China commanded the rare earth mining industry. Stats show that China provides more than 85% of the world’s rare earths while housing roughly two-thirds of the world’s total supply.(2)
Now with the Taliban in power, there’s talk of China aligning itself with the extremists in an attempt to exploit Afghanistan’s nearly $1-$3 trillion treasure trove of rare earth metals.(3) Hours after the Taliban took over Afghanistan, a Chinese foreign ministry spokeswoman said Beijing was ready for “friendly cooperation with Afghanistan.”(3)
Shamaila Khan, director of emerging market debt at AllianceBernstein, also said that the Taliban has emerged with resources that are a “very dangerous proposition for the world,” with minerals in Afghanistan that “can be exploited.”(3)
This already severe national security crisis has turned catastrophic. Our most hostile and powerful adversary essentially controls an entire market with minerals essential for the tech and defense industries. We need rare earths for smartphones, digital cameras, computer hard disks, fluorescent and LED lights, flat-screen TVs, computer monitors, and electronic displays.(4) Clean energy tech, EVs, batteries, and defense technologies all rely on rare earths, too.(4)
China is a powerful adversary that “can leverage, through overproduction and price manipulation, to bankrupt their competition.”(5) It also may already be hoarding rare earth minerals for its own domestic use, according to Forbes(6) Something has to change.
If nothing changes, rare earth demand could eventually reach “escape velocity” with annual demand growth exceeding over 6,000 tons a year, with supply unable to catch up.(7)
I imagine you don’t want to depend on China and the Taliban for that.
That’s why you should take a look at Monumental Minerals Canada TSX-V: (MNRL) immediately.
It’s simple. The U.S. is urgently spearheading initiatives to find alternative domestic sources for rare earths.(9) The fact that the Taliban could now somehow be involved makes it that much more critical.
Americans like rare earths. But do you know what they like even more than rare earths? North American-sourced rare earths. They do not want anything having to do with China. Unfortunately, though, according to Forbes, “rare earths are the oil of the 21st century” and “The United States may be losing the race for the future before most of its citizens hear the starting pistol.”(10)
Here is where Monumental Minerals Canada TSX-V: (MNRL) comes into the equation. It is a mineral exploration company focused on acquiring, exploring, and developing mineral resource properties in the battery and electric metals sector. Monumental Mineral’s flagship asset is the 100% owned Jemi Heavy Rare Earth Element (HREE) project location in Coahuila, Mexico, near the Texas, US border.(11) The company also has an option to acquire a 100% interest and title to the Weyman property located in the Kamloops and Nicola Mining Divisions and in the Thompson Nicola Regional District, British Columbia.(11)
Monumental Minerals may be the only ground-floor play at this point when it comes to North American-sourced rare earths. The only accurate comparable at this point is MP (Mountain Pass) Materials, the largest producer of rare earth materials in the Western Hemisphere.(12)
MP currently delivers approximately 15% of the global rare earth supply(12) and primarily focuses long-term on Neodymium-Praseodymium (NdPr). This rare earth mineral is crucial for powering electric vehicles, wind turbines, drones, robots, and many other advanced technologies.(12)
Not to mention, as America’s most significant answer to China’s rare earth stranglehold, MP’s stock since early November has nearly tripled.(13)
For now, MP is the largest-scale pure play on North American-sourced rare earths. But consider why Monumental Minerals could be a better ground floor play. Ask yourself, will MP be able to keep up this growth pace over the long run? Especially if demand for North American-sourced rare earths continues to grow, with disruptors like Monumental Minerals becoming all the more critical.
Monumental Minerals’s share structure, leadership team, 100% ownership in a drill-ready asset, and favorable economics from its heavy rare earths,(11) have this company looking like the next MP. And possibly more.
Jemi HREE project
The 3,560-hectare road-accessible JEMI Heavy Rare Earth Element (HREE) Project is located in northern Coahuila State, Mexico, approximately 40km south of the Texas border.
Discovery Silver, the company from which Monumental got this project, has a 1.5% NSR.(11) Monumental was able to swing this when Discovery Silver became Discovery Silver. Discovery acquired many silver assets in Cohela, Mexico, right around where this rare earth project is. Because they are a silver company, rare earth is not a priority.
The fact that rare earth assets were sitting on the backburner because Discovery is a silver company made Monumental Minerals’s CEO extremely excited.
If you aren’t familiar with Discover Silver, it’s a TSX-listed company, with a market cap of more than a half a billion dollars as of August 23, 2021.(14) Legendary Canadian mineral and resource investor Eric Sprott is also the company’s largest shareholder, with nearly 25% of shares outstanding.(15)
The JEMI Project lies within the Eastern Mexican Alkaline Province, a northwest-trending belt of Laramide-age plutons that intrude Cretaceous-age sediments that contain HREE.
The best part of this project, though, is it’s drill-ready. As in, if you feel like drilling tomorrow, knock yourself out. Have fun. Just ask Discovery Silver.(17)
More On Mineralization
HREE mineralized alkaline dykes have been discovered along the intrusive margins, ranging up to 5 meters in width.(11)
In addition to alkalic dyke associated HREE (plus Y, Nb, Zr, Ta) mineralization comprising bands of eudialyte in alkalic dykes, and as veins, dykelets, and disseminations, mineralization at JEMI includes numerous historical silver-base metal skarn prospects.(11)
Two primary HREE (plus Y, Nb, Zr, Ta) occurrences have been discovered to date within the JEMI Property at the Veladora North and JEMI Dyke area 5 km to the south. Exploration is currently at an early stage, with less than 5% of the Project having been evaluated for REE with most of the historical exploration.(11)
The current distribution of HREE occurrences suggests an association with alkaline intrusive dykes and contact metamorphic zones within syenite and host carbonate rocks along the margins of the intrusive complex. This could represent an approximately 15 km REE underexplored prospective strike length within the JEMI Property.(11)
The JEMI Project is similar geologically and in terms of its HREE (plus Y, Nb, Zr, Ta) enrichment to several well-known resource and development stage North American examples, including Bokan Alaska; Kipawa, Quebec; Strange Lake, Quebec; and Nechalacho (Thor), Northwest Territories.(11)
The world-class Lovozero deposit (Lovosersky Mine) that occurs with the world’s largest layered peralkaline intrusive complex, Kola Peninsula, Russia, is the only currently producing example.(11)
Rare earth mineralization within the JEMI Property exhibits characteristics of peralkaline intrusion-related HREE deposits. This represents essential and potentially economic hosts for highly sought HREE.(11)
The Real Significance Here? The Abundance of Heavy Rare Earths
The significance of this rare earth project is its heavy rare earth minerals. These heavy rare earths, or SEG+, are a combination of Samarium, Europium, Gadolinium, Terbium, and Dysprosium which Monumental produces in concentrate form.(11)
Samarium: Used to dope calcium chloride crystals for use in optical lasers. It is also used in infrared absorbing glass and as a neutron absorber in nuclear reactors. Samarium oxide finds specialized use in glass and ceramics.(18)
Europium: Excellent at absorbing neutrons, making it valuable in control rods for nuclear reactors. Europium-doped plastic has been used as a laser material. It is also used in making thin superconducting alloys.(19)
Gadolinium: Gadolinium has valuable properties in alloys. As little as 1% gadolinium can improve iron and chromium alloys’ workability and their resistance to high temperatures and oxidation. It is also used in alloys for making magnets, electronic components, and data storage disks.(20)
Its compounds are particularly beneficial in MRIs, particularly in diagnosing cancerous tumors. Gadolinium medium is also used in about 1 in 3 of MRI scans to improve the clarity of the images or pictures of your body’s internal structures.(21)
Gadolinium is also excellent at absorbing neutrons and so is used in the core of nuclear reactors.(20)
Terbium: This rare earth is used to dope calcium fluoride, calcium tungstate, and strontium molybdate, all used in solid-state devices. It is also used in low-energy lightbulbs and mercury lamps. It has been used to improve the safety of medical x-rays by allowing the same quality image to be produced with a much shorter exposure time.(22)
TV screens, and other electronic devices, also use terbium.(22)
Dysprosium: Dysprosium is used in control rods for nuclear reactors because of its relatively high neutron-absorption cross-section. Its compounds have been used for making laser materials and phosphor activators and in metal halide lamps.(23)
These types of rare earths do not have a spot price and are essentially valued based on what people are willing to pay.(24)
If heavy rare earth prices continue to rise on continuous demand and lack of supply, watch out. That is what could truly make this a blue-sky project.
Not to mention, on top of this all, the company has a tightly held share structure with significant management ownership.(11)
Meet Monumental Minerals Canada TSX-V: (MNRL) Strong Leadership Team
Director and Founder
Mr. Sali has been in the capital markets since 2009. He managed private family assets through Baccarat Investments Inc., a private investment company providing consulting, M&A, and management services to private and public companies. Mr. Sali was a founding shareholder and corporate developer for Advantage Lithium Corp. Advantage Lithium was acquired by producing lithium company Orocobre for $66 million in 2020. Mr. Sali is a director, founder, and former CEO of Defense Metals Corp., a rare earth company currently doing a PEA on its Wicheeda deposit in British Columbia and is the second highest-grade Rare-Earth deposit in North America. He is now the CEO, founder, and director of New Placer Dome Gold Corp., a Nevada-focused gold exploration company with a resource base of 535,000 ounces. Not to mention, it’s made three new discoveries during its 2020 drill campaign.
CEO and Director
Mr. Macdonald is a successful entrepreneur and businessman in the private business sector for over 20 years. His primary business endeavors include dealer operator for franchise automotive dealerships, including wholesale delivery of all automotive brands and products. Mr. Macdonald is also a partner of Haley Developments, which owns large land packages across Canada that are currently in the development stage. Mr. Macdonald has been a successful public markets investor for over a decade and is a former director of Defense Metals Corp., and has advised multiple public companies on business strategy across many sectors.
Director & QP
Mr. Raffle, B.Sc., P.Geo. serves as the Qualified Person for the Company. Mr. Raffle is also a director of First Legacy Mining Corp. and a Partner and Principal Geologist with Edmonton-based geologic consulting firm APEX Geoscience Ltd. Mr. Raffle has over 18 years of North American-focused base and precious metals exploration experience.
CFO & Corp. Secretary
Ryan Cheung, CPA, CA, provides accounting, management, securities regulatory compliance services to private and public-listed companies. Mr. Cheung also serves as an officer and/or director of several public-listed companies. Mr. Cheung holds a Bachelor of Commerce degree from the University of Victoria. He is a member of the Chartered Professional Accountants of British Columbia.
Why Could Monumental Minerals Catapult on North American Rare Earth Demand?
Canada TSX-V: (MNRL)
Source 1: https://www.prnewswire.com/news-releases/importance-of-rare-earth-elements-rees-soars-as-demand-increases-301248259.html
Source 2: https://www.scmp.com/news/china/diplomacy/article/3130990/chinas-dominance-rare-earths-supply-growing-concern-west
Source 3: https://www.cnbc.com/2021/08/17/taliban-in-afghanistan-china-may-exploit-rare-earth-metals-analyst-says.html?utm_content=Intl&utm_medium=Social&utm_source=Facebook&fbclid=IwAR2xdDqiEW36Evqld9Vy0otsi4zJ-R7yfofg4xap0nNJOdf_oX3ej_Mka5s#Echobox=1629217110
Source 4: https://www.americangeosciences.org/critical-issues/faq/how-do-we-use-rare-earth-elements
Source 5: https://www.realcleardefense.com/articles/2020/11/17/rare-earth_elements_a_national_security_crisis_649952.html
Source 6: https://www.forbes.com/sites/kenrapoza/2021/01/17/chinas-rare-earths-slump-a-sign-of-domestic-hoarding-for-ev-batteries-and-more/?sh=4b11ffda79a8
Source 7: https://chargedevs.com/newswire/report-predicts-shortages-of-rare-earth-materials-in-coming-decades/#:~:text=Annual%20NdPr%20oxide%20shortages%20of,2030%2C%20an%20amount%20equal%20to
Source 8: https://www.scientificamerican.com/article/dont-panic-about-rare-earth-elements/
Source 9: https://asia.nikkei.com/Business/Markets/Commodities/China-tightens-rare-earth-regulations-policing-entire-supply-chain
Source 10: https://www.forbes.com/sites/arielcohen/2021/06/02/chinas-journey-to-the-center-of-the-earth/?sh=2335b209131f
Source 11: Client Provided Investor Deck
Source 12: https://investors.mpmaterials.com/overview/default.aspx#:~:text=MP%20Materials%20helps%20fuel%20the,operations%20in%20Mountain%20Pass%2C%20California.
Source 13: https://stockcharts.com/h-sc/ui?s=MP&p=D&yr=1&mn=0&dy=0&id=p73029602804&a=1008151692&listNum=3
Source 14: https://finance.yahoo.com/quote/DSV.V/
Source 15: https://simplywall.st/stocks/ca/materials/tsxv-dsv/discovery-silver-shares/news/do-insiders-own-lots-of-shares-in-discovery-silver-corp-cved
Source 16: https://www.sprott.com/our-firm/investment-philosophy#
Source 17: https://www.globenewswire.com/news-release/2018/02/05/1332733/0/en/Discovery-Metals-Provides-Company-Update-and-Announces-C-5-2M-Exploration-Program-for-2018.html
Source 18: https://www.rsc.org/periodic-table/element/62/samarium
Source 19: https://www.rsc.org/periodic-table/element/63/europium
Source 20: https://www.rsc.org/periodic-table/element/64/gadolinium
Source 21: https://www.insideradiology.com.au/gadolinium-contrast-medium/
Source 22: https://www.rsc.org/periodic-table/element/65/terbium
Source 23: https://www.britannica.com/science/dysprosium
Source 24: https://investingnews.com/daily/resource-investing/critical-metals-investing/rare-earth-investing/rare-earth-metals-prices/
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