FN Media Group Presents Microsmallcap.com Market Commentary
New York, NY – May 21, 2019 – Key drivers for the steel-strengthening metal vanadium continue to point towards increased demand for the foreseeable future. A new research report evaluating recent trends and growth opportunities projects the global vanadium market size to exceed 100kilotons by the end of 2025, growing at a CAGR of 5%. In anticipation of the metal’s continued rising demand, several projects are underway from vanadium companies including Delrey Metals Corp (OTC:DLRYF) (CSE:DLRY), Largo Resources (OTC:LGORF) (TSX:LGO), Victory Metals (OTC:VKMTF) (TSX.V:VMX), Bushveld Minerals Limited (OTC:BSHVF), and Prophecy Development (OTC:PRPCF) (TSX:PCY).
According to another recently published report from Acumen Research and Consulting, the overall vanadium market size is expected to be worth approximately US$ 56 billion by 2026—giving plenty of time for the development of new projects such as the notably large Four Corners project in Newfoundland dubbed to be “one of the largest easily accessible vanadium projects in North America.”
The 5,157-hectare property is being developed by Delrey Metals Corp (OTCPK:DLRYF) (CSE:DLRY), who, through exhaustive research for private vanadium assets with the right ingredients for production potential, came across this advanced stage exploration project. Perhaps, more importantly, positive studies and reports from over 4000 meters of drilling and over $2.3mm spent, show the potential for 16km of vanadium – iron – titanium mineralization on the property.
Four Corners is one of the multiple up-and-coming projects from around the world, including other North American projects, such as the two Nevada projects: Gibellini Vanadium Project developed by Largo Resources, and the Iron Point Vanadium Project from Victory Metals.
Across the ocean in South Africa, Bushveld Minerals has been accumulating several vanadium production assets in the country, including Vanchem Vanadium Products, and South African Japan Vanadium (a ferrovanadium production business).
Meanwhile, in Bahia State, Brazil, Largo Resources is coming off a record-breaking 2018 at its Maracás Menchen Mine. Having successfully ramped up its vanadium operations since 2014, Largo reported revenues of CAD$521.4 million—a 211% increase, year over year.
Much of the growth in vanadium’s demand is attributed to higher demand in the steel industry, particularly in new stringent Chinese rebar standards. However, there has also been a major increase in the development of vanadium redox flow batteries (VRB’s) for large scale storage of wind and solar generated energy.
Adroit Market Research points to astounding growth in the VRB market. A recent forecast by the analytics company pegged VRB market growth at 59.7% CAGR to eventually hit US $1.11 billion by 2025.
Potential New Vanadium to Come from North America
In 2012, ahead of the most recent vanadium price surge, global firm SRK Consulting initiated work on Delrey Metals Corp’s (DLRYF-DLRY) Four Corners project located in western Newfoundland.
SRK’s initial metallurgical results yielded an impressive >90% Vanadium Pentoxide and >80% Titanium Dioxide recovery. The potential of the project is enhanced when combined with historic work that the private property vendors estimated could potentially contain up to 2.37 billion tonnes of vanadium-bearing titaniferous magnetite from one of the five zones. It is important to note this work is preliminary and needs to be expanded on and confirmed to bring it into 43-101 guidelines and used for reference only, but it gives Delrey a solid footing to begin work from. Further historic work on the property shows a mineralized strike length of 16km with two highways and power lines intersecting the property, and a nearby commercial town and deepwater port allowing for easy exploration and development.
Historic select surface sampling across the mineralized zone assayed >40% Iron, 5% Titanium, and 0.30% Vanadium Pentoxide with individual assays returning as high as 56.92% Iron, 15.13% Titanium, and 0.39% Vanadium Pentoxide.
Delrey just announced the signing of a definitive agreement for the option to earn 80% of the Four Corners Project and still has a market cap of around $6mm CDN. Considering the ample work on the Four Corners project and it’s potential, and the historic showings and recent confirmation of this on their BC vanadium – iron – titanium projects, the story should be well received by investors as news is released.
“This latest acquisition provides further exposure for Delrey and its shareholders within the battery metals sector, which is driving the global change in energy storage,” said Delrey’s President and CEO, Morgan Good in the latest press release. “We’re excited to be in a strong position with the Four Corners Project acquisition in a favorable jurisdiction like Newfoundland and Labrador, as the potential size and scale of this asset are remarkable.”
Further International Vanadium Developments
Much of the recent excitement in the vanadium has come from Largo Resources (OTCQX:LGORF) (TSX:LGO). The heightened production from the Maracás Menchen Mine in Brazil has been quite impressive, as the company has focused its efforts completely on the production of vanadium flake, high-purity vanadium flake, and high-purity vanadium powder. The company’s CAD$521.4 million was a record breaker, putting forth an impressive 211% year over year increase.
Looking to become a large-scale battery storage contender, Bushveld Minerals (OTC:BSHVF) recently doubled down to significantly increase its vanadium production. Following the completion of a series of South African deals, the low-cost integrated miner added the Vametco vanadium mine and processing plant which is currently in phase 2, to complement its own energy storage subsidiary that’s part of its strategy to develop deeply its deeply integrated vanadium business.
Back in April, Victory Metals (OTCPK:VKMTF) (TSX.V:VMX) demonstrated >90% vanadium recovery at its Iron Point Project in Nevada, using a hydrometallurgical leach process. Utilizing test work conducted by McClelland Laboratories demonstrated recoveries up to 94.3% vanadium recovery within 8-hour leach times.
Following a meeting with regulators in late April, Prophecy Development (OTCQX:PRPCF) (TSX:PCY) estimates Q1 2020 as the target date for publication of the Notice of Intent (“NOI”) to prepare an Environment Impact Statement (“EIS”) in the Federal Register for its Gibellini Vanadium Project in Nevada. Based on this timeline, Prophecy plans to start mine construction in 2021, and begin vanadium production by Q4 2022.
Disclaimer: Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Delrey Metals Corp
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
FN Media Group, LLC