Group records RM32.12 million in PAT supported by strong gross profit margin growth
LEON FUAT BERHAD (Leon Fuat or the Group), a manufacturer and trader of steel products, specialising in rolled long and flat products, today announced that the Group registered a 1,110.1% growth in profit after tax (PAT) to RM32.12 million for the quarter ended 30 June 2021 (2Q 2021) compared with the RM2.65 million recorded for the quarter ended 30 June 2020 (2Q 2020).
Calvin Ooi Shang How, Executive Director of Leon Fuat
The strong gain in PAT was due to the 322.5% increase in gross profit (“GP”) to RM53.46 million in 2Q 2021 boosted by higher overall gross profit margin of 17.0 percentage points compared with the RM12.65 million in GP recorded for 2Q 2020.
The Group recorded 73.1% growth in revenue to RM184.78 million for the quarter under review compared with RM106.76 million recorded in 2Q 2020. On a segmental basis, revenue from trading of steel products increased 74.0% to RM73.88 million while revenue from processing of steel products increased by 72.7% to RM110.85 million. The share of revenue from the trading segment stood at approximately 40.0% for 2Q 2021 while the share of revenue from the processing segment stood at approximately 60.0%.
For the six months ended 30 June 2021 (“1H 2021”), PAT increased by 1,735.5% to RM68.23 million compared with the RM3.72 million recorded in the six months ended 30 June 2020 (“1H 2020”). For the period under review, PAT was supported by the 308.8% increase in GP to RM106.80 million compared with RM26.12 million recorded for GP in 1H 2020. The gain in GP for 1H 2021 was boosted by the 74.7% increase in revenue to RM396.26 million compared with the RM226.79 million recorded in revenue for 1H 2020 as well as better overall gross profit margin, which gained 15.5 percentage points to 27.0% in 1H 2021 compared to 11.5% in 1H 2020.
Calvin Ooi Shang How, Executive Director of Leon Fuat said, “We are pleased with the positive result, and we remain optimistic for the rest of the year although there are uncertainties affecting this outlook.”
The surge in steel prices globally since last year is supported by economic recovery and the gradual reopening of economies around the world. The expected rebound will unleash pent-up industrial demand which will hopefully maintain upward momentum for the steel sector.
“For Malaysia, we are seeing a gradual relaxation of containment measures alongside the rapid progress of the domestic vaccination programme would lead to rebound of the economy. We support the government measures to transition society back to normality soon and an emphasis on rejuvenating the economy.”
“We are committed to continue with the positive momentum, building on our strong fundamentals and the continued support from our investors.”
Liberty Star Minerals (Liberty Star or the Company) (OTCQB:LBSR) an Arizona-based mineral exploration company, is the sole holder of Arizona State Land Department Mineral Exploration Permits (MEPs) over its Red Rock Canyon Gold Prospect.
The Prospect lies within the Company’s larger Hay Mountain Project in southeast Arizona that may possess commercially important metals associated with porphyry copper-gold-molybdenum geologic structures. The Company is pleased to announce the execution of a $1,000,000 common stock purchase agreement (the Purchase Agreement) and a $1,000,000 warrant agreement (the Warrant Agreement, together the Agreements) with Triton Funds LP (Triton) of San Diego, California.
Under the Common Stock Purchase Agreement, the Company has a “put” right pursuant to which it may require Triton to purchase a total of up to $1,000,000 of its common stock. The Company may exercise its put at any time after the Registration Statement to be filed with the U.S. Securities and Exchange Commission is declared effective and prior to December 31, 2022. It may require Triton to purchase not less than $25,000 or more than $250,000 per month of its common stock at a purchase price equal to 75% of the lowest daily volume-weighted average price of the Company’s common stock during the 5 business days immediately prior to the date of closing of each separate purchase installment. Under the Common Stock Purchase Warrant, Triton has the right for a period of 5 years to elect to purchase up to an additional $1,000,000 of shares of the Company’s common stock at a purchase price per share based upon an assumed $20,000,000 market capitalization of the Company’s outstanding shares from time to time. The provisions of the Agreements will be on the SEC website, SEC.gov.
Liberty Star independent director Bernard J. Guarnera, a Qualified Professional/Person, authored the latest Red Rock Canyon technical report finding that, “significantly, each geochemical and drilling program revealed gold was present at grades that would now be considered as economic.” [Technical Report, Red Rock Canyon Gold Property p.1]
With funding, the Company will follow the recommendations of Mr. Guarnera’s technical report calling for a phased program of continued geophysical work, geochemical sampling and limited drilling. The drilling program will be conducted to confirm the results previously reported by other gold exploration companies noted in the technical report. “Should Phase 1 be successful, follow up work would primarily consist of further drilling with the intent to develop a Mineral Resource.” [Technical Report p.40]
Drilling mobilization will begin immediately upon completing prerequisite State of Arizona archeological and vegetation surveys, which Liberty Expects to be complete in October. A diamond core and reverse circulation drill rig will be active as soon as possible. The first round of drilling will begin as early as the next three months.
Board Director Boyd Gordon commented, “Execution of the Agreements with Triton is our first step toward development of Red Rock Canyon in which we will first seek to confirm the results previously reported by other gold exploration companies, and if we are able to confirm those results, to then take steps toward development of a Mineral Resource. If our work on development of Red Rock Canyon is successful, it would be expected to result in an increase in the value of the Company’s assets and help to put the Company in position to seek the financing necessary to begin additional exploration and development work on potential copper deposits at our Hay Mountain Project.”
Brett Gross, Liberty Star’s CEO added, “We’ve taken the necessary steps to advance the Hay Mountain Project to the exploratory drilling stage. As director Barney Guarnera notes, the science and historical data take us to Red Rock Canyon where there is gold. The presence of visible jasperoid structures and other data point to gold perhaps near the surface, and at depth. We’ve done the research, put in the work, and now we have an advantageous funding vehicle. I look forward to working with Triton, whose representatives are bullish on the mining industry involved in future technological advances. Over the next few months, I look forward to sharing what we believe will be positive reports about expanded drilling programs, and, of course, metals discoveries.”
“Brett I. Gross” Brett I. Gross CEO/President Liberty Star Minerals
About Triton Funds LP Triton Funds is primarily focused on investments that will have a lasting positive impact on the millennial generation with a portfolio of both public and private companies.
About Liberty Star Liberty Star Uranium & Metals Corp. (LBSR:OTCQB), d/b/a Liberty Star Minerals, is an Arizona-based mineral exploration company engaged in the acquisition, exploration, and development of mineral properties in Arizona and the southwest USA. Currently the company controls properties which are located over what management considers some of North America’s richest mineralized regions for copper, gold, silver, molybdenum (moly), and associated metals. The Company’s premiere property is the Hay Mountain Project (exploration stage) for porphyry copper, gold, moly and other commercially important minerals. Specific targets have been selected to explore for near surface and deep-seated ore bodies, of which there are numerous analogs nearby. Contiguous with the primary Hay Mountain porphyry exploration target, and part of the overall Hay Mountain Project, is an increasingly attractive area of exploration stage gold mineralization denominated Red Rock Canyon. Red Rock Canyon exhibits what we believe are extensive, promising hydrothermal associated gold-bearing structures that are documented in historical public and Company records (see associated press and social media releases for more information). The Hay Mountain Project is in Cochise County (southeast) Arizona, USA.
Visit lbsr.us or more about Liberty Star Minerals & the Hay Mountain Project, including images, maps and technical reports.
Forward Looking Statements Certain information contained in public release may contain “forward-looking statements,” as defined in the U.S. Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. All statements contained herein that are not historical facts are forward-looking statements that involve risks, uncertainties and other factors which are unforeseeable and beyond the Company’s or management’s control, that could cause actual results, developments and business decisions to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements may include but not be limited to the business strategies for the Company, assumptions of management, pending or future transactions, future estimated mineral resources or grades, investments, asset valuations, anticipated permits and approvals and other information that may be based on forecasts of future exploration, operational or financial results or estimates of matters not yet determinable. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance using words or phrases like the following may be forward-looking statements: “estimate”, “intend”, “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” “may”, “might”, “could”, “would” or similar words or expressions. Important factors that could differ materially from the expectations of the Company and management include, among other things, risks related to unsuccessful exploration results, metals prices, fluctuations in currency prices, international markets, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as changes in the availability of funding for mineral exploration and development and general economic conditions.
Additional information about these factors, risks and uncertainties on which forward-looking statements are based is discussed in the Company’s Annual Report on Form 10-K for the year ended January 31, 2021, as updated from time to time in Company filings with the Securities and Exchange Commission. The Company is not responsible for updating the information contained in this public release beyond the presentation date or published date, or for changes made to this document by wire services or Internet services. Risk factors for the company are set out in the 10-K and other periodic filings made with the SEC on EDGAR (ref. Liberty Star Uranium & Metals, Corp.).
Regulation S-K 1300 Matters On October 31, 2018, the U.S. Securities and Exchange Commission adopted Subpart 1300 of Regulation S-K (‘Regulation SK-1300’) to modernize the property disclosure requirements for mining registrants, and related guidance, under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All registrants are required to comply with Regulation SK-1300 for fiscal years ending after January 1, 2021. Accordingly, the Company must comply with Regulation SK-1300 for its fiscal year ending January 31, 2021. Regulation SK-1300 uses the Committee for Mineral Reserves International Reporting Standards (‘CRIRSCO’) based classification scheme for mineral resources and mineral reserves, that includes definitions for inferred, indicated, and measured mineral resources. Liberty Star is an “Exploration Stage Issuer” as defined in Subpart 1300. It currently has no exploration results, mineral resources or mineral reserves to report, accordingly, no information, opinions or data included in the website or in any public releases includes any information or disclosures regarding exploration results, mineral resources or mineral reserves as defined in Regulation SK-1300. As a result, the Company is not required, at this time, to obtain or provide a Technical Report Summary as defined in Regulation SK-1300. U.S. Investors are cautioned not to rely upon or assume for any purpose that any part of the mineralized real property of the Company in these categories will ever be converted into inferred, indicated, and measured mineral resources or probable or proven mineral reserves within the meaning of Regulation S-K 1300.
UNLESS OTHERWISE EXPRESSLY STATED ON THE FACE OF ANY SUCH INFORMATION, NOTHING CONTAINED IN THIS PUBLIC RELEASE IS, NOR DOES IT PURPORT TO BE, A TECHNICAL REPORT SUMMARY PREPARED BY A QUALIFIED PERSON PURSUANT TO AND IN ACCORDANCE WITH THE REQUIREMENTS OF SUBPART 1300 OF SECURITIES EXCHANGE COMMISSION REGULATION S-K.
Scandium International Mining Corp. (TSX:SCY) (Scandium International or the Company) and Nevada Gold Mines (NGM), have signed a Letter of Intent (LOI) to initiate a joint technical and economic feasibility program at NGM’s Phoenix Mine, near Battle Mountain, Nevada.
The purpose of this joint development program is to confirm the economic and technical viability of a critical metals recovery (CMR) project at the mine site. The LOI defines a detailed US$2.7 million spend program which includes bench test work, pilot plant testing, and feasibility study design work.
The program is anticipated to require 15 months to complete. With program completion, the partners intend to take an investment decision on construction and operation of a plant facility to recover critical metals from mine solutions. The LOI also outlines key parameters of a partnership, including formation of a joint venture to hold the plant facility, and a 50:50 ownership in the recovery circuit asset.
The project is envisioned as an ion-exchange recovery system, capturing critical metals that are currently recirculating in heap leach copper solutions at Phoenix, specifically targeting nickel, cobalt, scandium, zinc and potentially other metals that prove to be economically recoverable.
This CMR project, and other similar projects in development, have the potential to produce material quantities of strategically important metals, tailored to today’s tech-driven products, and can do so from a distributed global copper production base. The environmental impact from this production process is minimal – no new mines are required. From a copper industry standpoint, this CMR process can effectively increase mine valuations, can effectively extend mine/reserve life at current production rates, and will result in cleaner tailings, potentially lower ongoing environmental management costs, and lower final reclamation expense.
The Phoenix Mine is a gold-copper producer owned and operated by Nevada Gold Mines. The mine produces a copper/gold concentrate, copper cathode and gold dore. Nevada Gold Mines assets in Nevada represent the single largest gold-producing complex in the world.
HIGHLIGHTS: – LOI signed between SCY and NGM, defining a development program for CMR. – Program designed to confirm technical feasibility and economic recovery of critical metals from heap leach solutions at Phoenix Mine. – LOI outlines a multi-step development program, totaling US$2.7M spend, and 15 months to complete, including an on-site pilot plant. – LOI further outlines 50:50 JV partnership, if parties agree to construct an onsite recovery circuit to produce a series of metal concentrates. The refinery circuit would be located off-site from the Phoenix Mine and 100% owned and operated by SCY – Metals targets include nickel, cobalt, scandium and zinc, possibly others.
George Putnam, CEO of Scandium International Mining Corp. commented: “Quality partners are an essential ingredient in shared projects. That noted, we are genuinely pleased to be working with NGM and the Phoenix Mine team, to demonstrate the technology and economic viability of a CMR project in the copper business. We look forward to achieving a profitable, reliable, repeatable success with this project, and one that focusses directly on the priority of North American sourcing of critical metals tailored for technology-driven applications in transportation and communications.”
Nevada Gold Mines, Executive Managing Director, Greg Walker commented: “We are excited to begin working with our partner, Scandium International Mining Corp., on finding ways to extract critically important minerals for the future of the United States, furthering the country’s ambitions to become a leader in the green economy. In addition, this partnership aligns with our vision to protect Nevada’s environment not only for today, but for future generations.”
About Scandium International Mining Corp. The Company is focused on developing its Nyngan Scandium Project, located in NSW, Australia, into the world’s first scandium-only producing mine. The Company filed a NI 43-101 technical report in May 2016, titled “Feasibility Study – Nyngan Scandium Project.” The project has received all key approvals, including a development consent and a mining lease, necessary to proceed with project construction.
The Company is also currently pursuing CMR opportunities with various copper industry groups, where SCY proposes to employ ion exchange technology to extract unrecovered critical metals from existing mine process streams. This program represents a fast-track concept to make battery-grade nickel and cobalt products, scandium master alloy product, and other critical metals, from North American sources. The Company is similarly pursuing high-purity alumina opportunities, both in conjunction with CMR where that is possible, and also independently as a stand-alone project.
For inquiries to Scandium International Mining Corp, please contact: Edward Dickinson (CFO) Tel: (775) 233-7328
About Nevada Gold Mines Nevada Gold Mines is operated by Barrick Gold Corporation (NYSE:GOLD) and is a joint venture between Barrick (61.5%) and Newmont (38.5%).
For inquiries to Nevada Gold Mines, please contact: Catherine Raw COO, North America Barrick Gold Corporation Tel: +1 416 307 5157 Email: craw@barrick.com
Kathy du Plessis Investor and Media Relations Barrick Gold Corporation Tel: +44 20 7557 7738 Email: Barrick@dpapr.com
Cautionary Statement on Forward-Looking Information Certain information contained or incorporated by reference in this press release, including any information as to the Company’s and Barrick Gold Corporation’s (“Barrick”) strategy, projects, plans or future financial or operating performance, constitutes “forward looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “pursue”, “anticipate”, “intend”, “partnership”, “opportunity”, “envision”, “potential”, “can”, “will”, “ambition”, “become”, “vision”, “expect”, “could”, “would” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: the Company and its business and the potential for the Company to develop a critical metals recovery project at NGM’s Phoenix mine pursuant to the LOI; the potential economic and environmental benefits of this project for NGM and its applications in transportation and communications; and the potential for the project at the Phoenix mine to demonstrate the technology and economic viability of CMR in the copper business.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors that, while considered reasonable by the Company and Barrick as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. These risks, uncertainties and other factors include, without limitation: risks related to uncertainty in the demand for nickel, cobalt, scandium, zinc and potentially other metals including scandium alloys and other products produced using the Company’s proprietary technologies such as HPA, the possibility that results of test work will not fulfill expectations, or not realize the perceived market utilization and potential; risks associated with projects in the early stages of evaluation and for which additional engineering and other analysis is required; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; and failure to comply with environmental and health and safety laws and regulations. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and Barrick. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40 F/Annual Information Form of the Company and Barrick on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect the Company’s and Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Retiring executive directors also re-elected to the board
Leon Fuat Berhad (Leon Fuat), a manufacturer and trader of steel products, specialising in rolled long and flat products, is pleased to announce today that all the resolutions of the Group’s 14th AGM and EGM for the financial year ended 31 December 2021 has been passed by shareholders at a virtual meeting.
Leon Fuat Executive Director, Mr. Calvin Ooi
Shareholders passed a resolution for Supreme Steelmakers Sdn Bhd, a wholly-owned subsidiary of the Group, to acquire a factory, warehouse and office on a parcel of freehold land in Kajang, Selangor for RM28.0 million from Leon Fuat Holdings Sdn Bhd, a privately-held company in which several directors and major shareholders have interests in.
Other resolutions passed included the re-elections of Mr. Ng Kok Teong and Mr. Ooi Shang How, who were both due for retirement, as executive directors of the Group’s board of directors. Shareholders also re-elected as well as retained Mr. Chan Kee Loin as an independent director while Dato Ng Ah Hock @ Ng Soon Por, Mr. Tan Did Heng and Mr. Tan Sack Sen were also retained as independent directors of the board.
Among the other resolutions up for voting, shareholders reappointed Baker Tilly Monteiro Heng PLT as the Group’s auditors and authorised the directors to fix the remuneration of the auditors.
Executive Director of Leon Fuat, Mr. Calvin Ooi said, “We are pleased that the 14th AGM and EGM went smoothly on the virtual platform. Shareholders were delighted with our performance for 2020 despite the challenges posed to the operating environment. We believe that the Group can sustain the business based on the satisfactory performance of the first quarter ended 31 March 2021.”
“However, we continue to be cautious given that COVID-19 infection rates remain high and cannot rule out a possible slowdown in activities from the industries that may lead to a drop in demand for steel products. We continue to take proactive measures such as negotiating forward contracts, prudent inventory management and cost-management to mitigate any negative impact while monitoring steel prices and related foreign currencies.”
– Profit After Tax Increased 3,297% in 1Q 2021 – Overall Revenue increased by 76.2% in 1Q 2021 – Improving overall profit margins – Positive outlook based on the global rise in steel prices and rising world demand
Leon Fuat Berhad (Leon Fuat), a manufacturer and trader of steel products, specializing in rolled long and flat products, today announced that the Group recorded a 3,297.0% rise in profit after tax (PAT) to RM36.11 million for the quarter ended 31 March 2021 (1Q 2021) compared to the RM1.06 million registered in the same quarter of the previous financial year.
Calvin Ooi Shang How, Executive Director of Leon Fuat
Improved Revenue and Profit Margins
The gross profit recorded a 296.0% increase to RM53.34 million for 1Q2021 compared to the RM13.47 million in gross profit for the corresponding quarter of the previous financial year due to the 9.4 percentage points rise in gross profit margin for the trading of steel products to 22.2% while gross profit margin for processing and/or manufacturing (collectively referred to as “processing”) of steel products increased by 16.4 percentage points to 26.8%.
Overall revenue increased by 76.2% to RM211.48 million in 1Q2021 compared to the RM120.04 million in the corresponding quarter of the previous financial year. On a segmental basis, revenue from trading of steel products increased by 87.5% to RM74.29 million for the quarter under review while revenue from the processing of steel products increased by 70.7% to RM137.11 million. The trading segment share of revenue contribution stood at 35.1% in the quarter under review while the processing segment’s share of revenue contribution stood at 64.8%.
Rising Steel Prices Worldwide Due To Global Demand
Calvin Ooi Shang How, Executive Director of Leon Fuat said: “We are pleased to be able to achieve such favorable result this quarter. Steel prices have been advancing worldwide since the second half of 2020 on the expectations of an improving global economic outlook. There is a global steel boom underscored by strong demand with prices rising to a multi-year high. Nevertheless, while steel prices show no sign of coming off anytime soon, we are cautious, both for the outlook on prices and the economy as the COVID-19 pandemic shows no sign of abating.”
“Given the uncertainties surrounding the pandemic, much will continue to depend on how well key economies around the world can recover and the effect this will have on steel demand and prices. Volatile commodity and crude oil prices will continue to have an impact on the ringgit, with these factors affecting the profitability of our steel products given that most of these products are sourced from overseas. We aim to strive for sustainable growth and will continue to monitor steel prices as well as related foreign currencies and will take proactive measures including negotiating forward contracts, prudent inventory management and cost-management to mitigate any negative impact.”
“We have and will continue to actively address all concerns relating to COVID-19 in regards to our employees and the business operations. This is on top of adhering to all MCO regulations and other standard operating procedures from the National Security Council. The Group has in place emergency response teams (“ERT”) in three of its subsidiaries and is considering a group-wide ERT.”
Leon Fuat recently completed a private placement exercise where funds raised will be invested into business expansion and purchase of new machineries to meet customer’s orders. As of today, Leon Fuat’s share price closed at RM1.06 with a market capitalization of RM361.46 million.
Liberty Star Minerals (Liberty Star or the Company) (OTCPINK:LBSR) is pleased to announce the public release of its latest technical report.
The Technical Report Red Rock Canyon Gold Property Cochise County, Arizona (RRC Technical Report The Report) was prepared by Broadlands Mineral Advisory Services Ltd., owned and operated by Liberty Star independent director Bernard J. Guarnera, P.ENG., QP, CMA. Mr. Guarnera authored The Report. His findings include that the Red Rock Canyon tract contains “gold at grades that are now considered economic.” (p.1) Further, the compilation of previous drilling results, by others as noted in The Report, (p.30) indicates that 12 of 17 intercepts reported gold at grades above what is considered current cut off grades, 0.022 oz. per ton (0.68 gpt). These historical intercepts range from five (5) to forty-five (45) feet in vertical extent and reveal multiple mineralized zones. Grades in the larger intercepts are reported up to 0.182 ounces per ton (5.66 gpt). Additionally, Liberty Star collected fifteen (15) more rock samples on a recent field visit near and at the locations of past drilling. We expect the new field assays to confirm similar grades in the corresponding outcrops. These assay results are forthcoming and will be and posted on the Liberty Star website.
While other Liberty Star technical reports have focused on the Company’s Hay Mountain Project porphyry copper potential, here Mr. Guarnera brings his expertise to bear on the recently acquired Red Rock Canyon (RRC) area and its gold potential. In addition to three recent field visits (2020, 2021) Mr. Guarnera investigated previous findings including geochemical studies, geophysical surveys, field notes and drill records. Given surface study results combined with previous drilling information, Mr. Guarnera concludes that new diamond core drilling aimed at expanding the areal extent of economic gold concentrations certainly has merit.
The Red Rock Canyon tract consists of 6,653 acres of Arizona MEPs and 320 acres of unpatented Federal Lode Mining Claims. The area has been segregated from the larger Hay Mountain Project block after the examination of jasperoid bodies that displayed significant gold values.
Mr. Guarnera has extensive experience with both porphyry copper and gold deposits and is considered a Qualified Professional/Person. The RRC Technical Report is written to conform to the format required by securities regulatory entities. Primary research sources are also available on the Geoscientific Reports webpage at LBSR.us.
“Brett I. Gross” Brett I. Gross CEO/President Liberty Star Minerals
Forward Looking Statements Certain information contained in public release may contain “forward-looking statements,” as defined in the U.S. Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. All statements contained herein that are not historical facts are forward-looking statements that involve risks, uncertainties and other factors which are unforeseeable and beyond the Company’s or management’s control, that could cause actual results, developments and business decisions to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements may include but not be limited to the business strategies for the Company, assumptions of management, pending or future transactions, future estimated mineral resources or grades, investments, asset valuations, anticipated permits and approvals and other information that may be based on forecasts of future exploration, operational or financial results or estimates of matters not yet determinable. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance using words or phrases like the following may be forward-looking statements: : “estimate”, “intend”, “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” “may”, “might”, “could”, “would” or similar words or expressions. Important factors that could differ materially from the expectations of the Company and management include, among other things, risks related to unsuccessful exploration results, metals prices, fluctuations in currency prices, international markets, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as changes in the availability of funding for mineral exploration and development and general economic conditions.
Additional information about these factors, risks and uncertainties on which forward-looking statements are based is discussed in the Company’s Annual Report on Form 10-K for the year ended January 31, 2021, as updated from time to time in Company filings with the Securities and Exchange Commission. The Company is not responsible for updating the information contained in this public release beyond the presentation date or published date, or for changes made to this document by wire services or Internet services. Risk factors for the company are set out in the 10-K and other periodic filings made with the SEC on EDGAR (ref. Liberty Star Uranium & Metals, Corp.).
Regulation S-K 1300 Matters On October 31, 2018, the U.S. Securities and Exchange Commission adopted Subpart 1300 of Regulation S-K (“Regulation SK-1300”) to modernize the property disclosure requirements for mining registrants, and related guidance, under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. All registrants are required to comply with Regulation SK-1300 for fiscal years ending after January 1, 2021. Accordingly, the Company must comply with Regulation SK-1300 for its fiscal year ending January 31, 2021. Regulation SK-1300 uses the Committee for Mineral Reserves International Reporting Standards (“CRIRSCO”) based classification scheme for mineral resources and mineral reserves, that includes definitions for inferred, indicated, and measured mineral resources. Liberty Star is an “Exploration Stage Issuer” as defined in Subpart 1300. It currently has no exploration results, mineral resources or mineral reserves to report, accordingly, no information, opinions or data included in the website or in any public releases includes any information or disclosures regarding exploration results, mineral resources or mineral reserves as defined in Regulation SK-1300. As a result, the Company is not required, at this time, to obtain or provide a Technical Report Summary as defined in Regulation SK-1300. U.S. Investors are cautioned not to rely upon or assume for any purpose that any part of the mineralized real property of the Company in these categories will ever be converted into inferred, indicated, and measured mineral resources or probable or proven mineral reserves within the meaning of Regulation S-K 1300.
UNLESS OTHERWISE EXPRESSLY STATED ON THE FACE OF ANY SUCH INFORMATION, NOTHING CONTAINED IN THIS PUBLIC RELEASE IS, NOR DOES IT PURPORT TO BE, A TECHNICAL REPORT SUMMARY PREPARED BY A QUALIFIED PERSON PURSUANT TO AND IN ACCORDANCE WITH THE REQUIREMENTS OF SUBPART 1300 OF SECURITIES EXCHANGE COMMISSION REGULATION S-K.
CONTACT: Liberty Star Minerals Tracy Myers, Investor Relations 520-425-1433 – info@lbsr.us
Group Ten Metals Inc. (TSX.V: PGE; US OTC: PGEZF; FSE: 5D32) is pleased to announce results from the 2020 drill campaign at the Chrome Mountain target area of the Company’s flagship Stillwater West Platinum Group Element (“PGE”)-Ni-Cu-Co + Au project in Montana, USA.
TABLE 1 – Highlight Drill Intercepts from the 2020 Drill Campaign at Chrome Mountain
Intervals from 120 to 530 meters of continuous nickel and copper sulphide mineralization, enriched in palladium, platinum, rhodium, gold, and cobalt, were intercepted in the five drill holes starting at or near surface, with each hole also encountering higher-grade intervals over widths of 50 to 150 meters in addition to more selective high-grade intervals. These results further demonstrate the potential for multiple, large-scale, bulk tonnage “Platreef-style” horizons of battery metals and PGEs within the lower Stillwater complex, based on known parallels with South Africa’s Bushveld complex.
Work in 2020 included a five-hole, 1,822-meter (5,979 foot) drill campaign which focused on the Chrome Mountain target area, in follow-up to the previous campaigns which focused on the HGR and Camp target areas. The Company’s drilling to date has had the primary objectives of driving the conversion of drill-defined mineralized zones towards formal mineral resources while also expanding areas of known mineralization at priority target areas. 2020 Chrome Mountain drill results are now being incorporated into 3D block models to progress the generation of formal mineral resources in parallel to the work underway at the HGR and Camp target areas, with an expected release of maiden resources for all three target areas by mid-2021.
2020 Drill Highlights:
– CM2020-04 returned strong mineralization across its entire length with 455 meters of 1.13 g/t Total Platinum Equivalent (“TotPtEq”), or 0.25% Total Nickel Equivalent (“TotNiEq”), starting at surface with multiple well-mineralized intervals that include two horizons of previously unidentified nickel sulphide mineralization of 8.5 meters of 8.20 g/t TotPtEq (or 1.79% TotNiEq) within a broader intercept of 54 meters of 2.58 g/t TotPtEq (0.57% TotNiEq) and, separately, 60 meters of 2.22 g/t TotPtEq (0.48% TotNiEq).
– CM2020-05 returned strong nickel and PGE mineralization in multiple intercepts within 149 meters of 1.19 g/t TotPtEq (0.26% TotNiEq), including 11.6 meters of 2.80 g/t TotPtEq.
– CM2020-02 returned 126 meters of 1.33 g/t TotPtEq (0.29% TotNiEq) with multiple PGE-rich intervals including 24 meters of 2.76 g/t TotPtEq (0.60% TotNiEq), 6.1 meters of 4.50 g/t TotPtEq (0.98% TotNiEq), and 15 meters of 2.61 g/t TotPtEq (0.57% TotNiEq).
– CM2020-03 returned 122 meters of 1.27 g/t TotPtEq (0.28% TotNiEq) including 6.1 meters of 3.51 g/t TotPtEq (0.77% TotNiEq).
– CM2020-01 returned 533 meters of 0.76 g/t TotPtEq (0.17% TotNiEq) for a total of 405 gram-meter TotPtEq grade-thickness, starting at surface and including 130 meters of 0.96 g/t TotPtEq (0.21% TotNiEq).
– Preliminary metallurgical assessments returned strong nickel tenor in sulphides in drill holes from the 2020 campaign. Historic initial bench-scale metallurgical results completed by AMAX in the 1970s at the Camp target area demonstrate the potential for effective nickel and copper sulphide flotation and PGE metal recovery. Sample collection for more detailed metallurgical testing is on-going.
– Rhodium was reported in all five drill holes at potential co-product levels with grades that are comparable to mines in South Africa. There is very little mine supply of rhodium outside of South Africa and Russia, and persistent multi-year supply deficits have priced rhodium at more than 20x the value of platinum.
CEO Comment Michael Rowley, President and CEO, commented, “Our 2020 drill campaign exceeded our expectations, not only expanding drill-defined mineralization and driving the resource modeling effort at the priority Chrome Mountain target area, but also identifying multiple new well-mineralized horizons that feature wide intervals of battery metals, PGEs, and gold in previously untested areas. The high-grade nickel sulphide intercepts in hole CM2020-04 are particularly exciting as they represent very high nickel tenor horizons in a new discovery that is open for expansion. This was our first test of a fraction of the targets identified in our 77 line-kilometer 2020 IP geophysical survey, and the success of this program is a strong demonstration of its effectiveness in targeting new discoveries with both grade and scale. The results also speak to the extraordinary size and potential of the lower Stillwater complex, with impressive “Platreef-style” battery metal and PGE mineralization in each hole featuring intercepts that are hundreds of meters in width. The strategic importance of a U.S.-based large-scale battery metal asset like Stillwater West to contribute towards the growing needs of manufacturers like Tesla while also supplying PGEs to emerging fuel cell manufacturers in North America leverages the value of this critical resource. We look forward to further announcements including our plans for 2021, which we anticipate will include our largest exploration program to date, and the delivery of maiden resource estimates, currently targeted for summer 2021.”
TABLE 1 – Highlight Drill Intercepts from the 2020 Drill Campaign at Chrome Mountain https://tinyurl.com/pcpuvsee
Highlight intercepts with grade-thickness values over 25 gram-meter TotPtEq are presented above. Total Platinum Equivalent (TotPtEq g/t) and Total Nickel Equivalent (TotNiEq %) calculations reflect total gross metal content using metals prices as follows (all USD): $6.00/lb nickel (Ni), $3.00/lb copper (Cu), $20.00/lb cobalt (Co), $900/oz platinum (Pt), $1,650/oz palladium (Pd), $1,500/oz gold (Au), and $7,000/oz rhodium (Rh). Values have not been adjusted to reflect metallurgical recoveries. Total metal equivalent values include both base and precious metals. Total platinum equivalent grade-thickness was determined by multiplying the thickness (in meters) by the Total Platinum Equivalent grade (in grams/tonne) to provide gram-meter values (gram-meter) as shown. Total nickel equivalent grade-thickness was determined by multiplying the thickness (in meters) by the Total Nickel Equivalent grade (in percent) to provide percent-meter values as shown. Grade-thickness values have been determined across continuously mineralized intervals. Nickel equivalent values may be converted to copper equivalent values by multiplying the NiEq value by the price ratio of the two (ie times two per the above prices), such that 0.5% NiEq equates to 1.0% CuEq. Platinum equivalent has been used based on the historic values of platinum and palladium. Platinum equivalent values may be converted to palladium equivalent values by multiplying the PtEq value by the price ratio of the two (ie times 0.55 per the above prices), such that 1 g/t PtEq equates to 0.55 g/t PdEq. Intervals are reported as drilled widths and are believed to be representative of true widths.
Upcoming Events
Company Webinar – Group Ten Metals is hosting a webinar on Thursday March 4th at 8am PST (11am EST) to discuss results from the 2020 drill campaign and emerging plans for 2021. For more information including registration, please see https://us02web.zoom.us/webinar/register/WN_XK3YDj9SS8ipTeqwnf-REQ.
PDAC 2021 – The Company will be presenting at the Prospectors & Developers Association of Canada International Convention on March 10, 2021 in a technical session focused on the global supply of battery and platinum group metals. More information is available at https://tinyurl.com/yv8pjfwj.
Discussion
Group Ten is targeting world-class deposits of PGEs, battery metals, and gold in the famously metal-rich and productive Stillwater mining district, where the Company is focused on the lower Stillwater complex based on known parallels with South Africa’s Platreef district. The mines of the Platreef, on the north limb of the Bushveld complex, are among the largest and most profitable in the world. Led by the development of Anglo American’s Mogalakwena mines in the 1990s, the district has grown to include Ivanhoe’s Platreef mine and Platinum Group Metals’ Waterberg project, and now hosts over 400 million ounces of PGEs and gold, and tens of billions of pounds of nickel and copper. The massive deposits of the Platreef are attractive because their scale and grade allow the application of mechanized bulk mining methods with resulting economies of scale and low operating costs. These deposits contain significant quantities of both battery grade nickel and platinum group metals in a combination that is globally very rare, and very attractive at current commodity prices.
Group Ten’s location adjacent to and stratigraphically below Sibanye-Stillwater’s J-M Reef deposit – the highest-grade PGE deposit in the world, and the largest outside of Africa and Russia – directly parallels the setting of mines on the Platreef, which are similarly located below the productive Merensky and UG2 Reefs in the layered stratigraphy of the Bushveld complex. As shown in Figure 1, the Company’s 61-square-kilometer land position, 100% owned by Group Ten, includes eight multi-kilometer-scale “Platreef-style” target areas in the lower Stillwater complex, and six target areas with more conventional “Reef-type” targets.
Resource modeling of Platreef-style mineralization is now in progress at the Chrome Mountain, Camp, and HGR target areas, driven by results from Group Ten’s 2020 and 2019 drill campaigns and more than 31,000 meters of total drill data across the project. As shown in Figure 1, drill data in these areas delineates thick intervals of continuous mineralization, starting at or near surface in most areas, and running from 1 to 1.5 kilometers in strike length at each of the target areas, and occurs within broader geophysical and geochemical (metal-in-soil) anomalies. Mineralization is open to expansion at all three targets with geophysical anomalies from ground-based IP and airborne EM indicating significant extension potential along trend and to depth. The Company is also advancing two other target areas with drill-defined mineralization, the Pine and Crescent target areas. The Pine target includes drill-defined high-grade gold and PGEs within a largely untested conductive high that reaches two kilometers to the west and is coincident with high-level metal-in-soil anomalies.
Group Ten’s 2020 drill campaign focused on the Discovery, Dunite Ridge, and Bald Hills targets in the Chrome Mountain area, in follow-up to the previous campaign which focused on the HGR and Camp target areas. Table 1 presents a summary of continuous mineralized intervals from 2020 drill results including their corresponding grade thickness values which are some of the highest intercepted to date in the Stillwater Complex. Grade-thickness values are used for comparing the strength of mineralization across different mineralized widths. A grade-thickness value of 25 gram-meter (equivalent to 1 g/t Pt over 25 meters, or 25 g/t Pt over 1 meter) or more is considered economically significant, with the adjacent J-M Reef mines averaging approximately 34 gram-meter Pd and Pt1,2. Values over 100 gram-meter are exceptional, highlighting the strength of the mineralized system.
Results expanded known mineralization at the advanced Discovery target area and identified multiple new mineralized horizons to the south and southeast of Discovery that are open for expansion in subsequent campaigns.
Hole CM2020-01 expanded Hybrid Unit mineralization in the developing resource model at the Discovery target while also targeting also deeper geophysical anomalies identified in the 2020 IP survey. Mineralization at the Hybrid Unit is now defined by eleven drill holes at the Discovery target that delineate a mineralized zone of a type not identified previously in the Stillwater Complex, but known at the Platreef (see December 17, 2018 and February 21, 2019 news releases). Mineralized over its entire 533-meter length, CM2020-01 returned an impressive 404.6 gram-meter TotPtEq total grade-thickness. High-grade platinum values are demonstrated over shorter intervals, with wide intervals such as 9.8 meters at 0.51 g/t Pt demonstrating size. The Pt:Pd ratio is platinum-rich in hole CM2020-01, which is unusual for the normally palladium-rich Stillwater complex. CM2020-01 also returned high-grade gold with 2.44 meters at 2.49 g/t Au starting at 6.1 meters.
Holes CM2020-02 and 03 targeted high-grade PGE mineralization seen in surface samples and supported by other work, while also targeting deeper geophysical anomalies identified in the 2020 IP survey. Both holes returned higher-grade mineralization across more than 120 meters starting near surface, while also returning PGE-rich intervals within previously unidentified nickel and copper sulphide horizons. Robust battery metal grades were also noted in shorter intervals in CM2020-02, including 4.1 meters of 0.81% NiEq (as 0.58% Ni, 0.17% Cu, and 0.042% Co), plus PGEs totaling 1.12 g/t PtEq, starting at 60.8 meters. Multiple intervals demonstrated attractive nickel tenor with >3.4% Ni in sulphides reported in preliminary work.
CM2020-04 was completed mid-way between Discovery and Dunite Ridge to test an undrilled portion of a large and continuous IP anomaly identified in the 2020 IP survey, as corroborated by coincident anomalies in earlier work. The hole is an offset of historic hole 355-49, drilled by AMAX in 1973, which was a 227-meter vertical hole that returned increasing nickel and copper results downhole with limited assay data. CM2020-04 returned impressive precious and base metal mineralization across its entire length, starting at surface and including two very compelling intervals of nickel-rich sulphides with important potential co-product grades of palladium, platinum, gold, rhodium, copper, and cobalt. High-grade gold, palladium, nickel, and cobalt were also reported over shorter intervals in CM2020-04.
With an impressive 515.4 gram-meter TotPtEq grade-thickness, CM2020-04 ranks as one of the best mineralized intercepts ever drilled in the Stillwater district, second to 517.7 gram-meter TotPtEq in hole IM2019-03, which was drilled over 7km to the west at the HGR target at Iron Mountain in Group Ten’s 2019 drill campaign.
CM2020-05, completed in the Bald Hills target area, targeted mineralization that was identified in the 2020 IP survey and corroborated with coincident anomalies in earlier work. The hole returned strong nickel and PGE mineralization in multiple intercepts that include the identification of a new PGE-rich horizon with rhodium values of 0.083 g/t over 11.6 meters that are comparable to mine grades in South Africa’s Platreef district and equivalent to >1.6 g/t Pt at current spot prices. This interval also returned a near-balanced Pt:Pd ratio with 0.41 g/t Pt and 0.54 g/t Pd, which is a departure from the normally palladium-rich values seen at Stillwater. High-grade battery metals were also noted in CM2020-05, and several intervals returned good nickel tenor of the sulphides, with values over 3% Ni in preliminary analysis.
About Stillwater West and East
The Stillwater West and East PGE-Ni-Cu-Co + Au projects position Group Ten as the second-largest landholder in the Stillwater Complex, adjoining and adjacent to Sibanye-Stillwater’s Stillwater, East Boulder, and Blitz PGE mines in south-central Montana, USA1. The Stillwater Complex is recognized as one of the top regions in the world for PGE-Ni-Cu-Co mineralization, alongside the Bushveld Complex and Great Dyke in southern Africa, which are similar layered intrusions. The J-M Reef, and other PGE-enriched sulphide horizons in the Stillwater Complex, share many similarities with the highly prolific Merensky and UG2 Reefs in the Bushveld Complex. At the same time, the lower part of the Stillwater Complex also shows the potential for much larger scale disseminated and high-sulphide PGE-Ni-Cu-Co deposits, similar to the Platreef in the Bushveld Complex3. Group Ten’s Stillwater projects cover the lower part of the Stillwater Complex along with the Picket Pin PGE Reef-type deposit in the upper portion and includes extensive historic data, including soil and rock geochemistry, geophysical surveys, geologic mapping, and historic drilling.
About Group Ten Metals Inc.
Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt, and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu-Co + Au project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA. Group Ten also holds the high-grade Black Lake-Drayton Gold project adjacent to Treasury Metals’ development-stage Goliath Gold Complex in northwest Ontario, and the Kluane PGE-Ni-Cu-Co project on trend with Nickel Creek Platinum’s Wellgreen deposit in Canada’s Yukon Territory.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfield assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver and gold, platinum and palladium, and copper. Member companies include Metallic Minerals in the Yukon’s high-grade Keno Hill silver district and La Plata silver-gold-copper district of Colorado, Group Ten Metals in the Stillwater PGM-nickel-copper district of Montana, and Granite Creek Copper in the Yukon’s Minto copper district. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorers/developers and major producers. With this expertise, the companies are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven, but under-explored, mining districts. The Metallic Group is headquartered in Vancouver, BC, Canada, and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.
Note 1: References to adjoining properties are for illustrative purposes only and are not necessarily indicative of the exploration potential, extent, or nature of mineralization or potential future results of the Company’s projects. Note 2: Based on Sibanye-Stillwater’s 2018 Mineral Resources and Mineral Reserves Report. Note 3: Magmatic Ore Deposits in Layered Intrusions – Descriptive Model for Reef-Type PGE and Contact-Type Cu-Ni-PGE Deposits, Michael Zientek, USGS Open-File Report 2012-1010.
FOR FURTHER INFORMATION, PLEASE CONTACT: Michael Rowley, President, CEO & Director Email: info@grouptenmetals.com Phone: (604) 357 4790 Web: http://grouptenmetals.com Toll Free: (888) 432 0075
Quality Control and Quality Assurance
2020 drill core samples were analyzed by ACT Labs in Vancouver, B.C. Sample preparation: crush (< 7 kg) up to 80% passing 2 mm, riffle split (250 g) and pulverize (mild steel) to 95% passing 105 um included cleaner sand. Gold, platinum, and palladium were analyzed by fire assay (1C-OES) with ICP finish. Rhodium was analyzed by fire assay (1C Rhodium). Selected major and trace elements were analyzed by peroxide fusion with 8-Peroxide ICP-OES finish to insure complete dissolution of resistate minerals. Mr. Mike Ostenson, P.Geo., is the qualified person for the purposes of National Instrument 43-101, and he has reviewed and approved the technical disclosure contained in this news release.
Forward-Looking Statements
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing of the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, titlefuture driling actiivities and the locations of such drilling, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
