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Mining Company Expands Deposits Rich With Critical Minerals

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Stillwater Critical Minerals has provided information on its expansion of operations following strategic investment by Glencore. Read on to see how as demand for critical minerals increases, this company is pushing for growth.

Stillwater Critical Minerals Corp. (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE) has begun drilling at its flagship Stillwater West nickel platinum group element copper cobalt and gold project in the state of Montana, and has provided an update on its progress.

The highlights of the expansion are as follows:

  • Drilling is focused on the expansion of the National Instrument 43-101 compliant resources announced on January 25, 2023. This demonstrated that the project had 1.6 billion pounds of nickel, copper, and cobalt, and 3.8 million ounces of palladium, platinum, rhodium, and gold (4E)in a base case study totaling 255 million tons (Mt), with a high-grade component of 11.6 Mt of grading 1.05% recovered nickel equivalent (0.56% Ni, 0.33% Cu, 0.03% Co, 0.54 g/t Pd, 0.27 g/t Pt, 0.15 g/t Au, and 0.019 g/t Rh).
  • The company has placed priority on the expansion of high-grade mineralization at the DR-Hybrid deposit at Chrome Mountain, including drill hole CM2021-05, which returned 13.2m of grading 3.33% nickel equivalent (2.31% Ni, 1.51 g/t 4E, 0.35% Cu, and 0.115% Co), beginning at 37.6m. The high-grade mineralization is of a type not previously identified in the district, and appears to be related to 8.5m of similar high-grade, high-tenor nickel sulfide returned in hole CM2020-04, approximately 125m down dip to the west.
  • Drilling is also expected to expand on high-grade targets at the CZ and HGR deposits at Iron Mountain up to nine kilometers east of Chrome Mountain, as stepouts from the following intercepts:
    • Drill hole CZ2021-01, which returned 63.7m of grading with 0.86% NiEq (0.47% Ni, 0.42 g/t Pd, 0.27% Cu, and 0.04% Co as well as significant Pt and Au values), within 367.6m of continuous mineralization. This hole was a stepout from hole CZ2019-01, which returned 62m of grading 0.56% NiEq and also 3.54m of 2.67% NiEq (as 1.53% Ni, 0.49% Cu, 0.099% Co, and 3.45 g/t 4E) within 399m of continuous mineralization, starting at surface. The CZ deposit benefits from a historic resource and positive preliminary metallurgical work completed by Amax in the 1970s.
    • Drill hole IM2021-05 in the HGR deposit area returned 7.3m grading 0.70% NiEq (as 0.45% Ni, 0.51 g/t 4E, 0.17% Cu, and 0.026% Co), and 2.4m 2.04% NiEq (as 1.55% Ni, 0.85 g/t 4E, 0.17% Cu, and 0.087% Co), within 379.2m of continuous battery and precious metal mineralization starting at surface. This hole was a stepout from hole IM2019-03, which returned 26.8m of grading 0.85% NiEq (as 0.34% Ni, 0.15% Cu, 0.019% Co, and 1.24 g/t 4E) within 272.5m of continuous mineralization.
  • The 2023 campaign will be the first to apply updated geological models which incorporate similar geology from South Africa's Platreef district under the direction of Dr. Danie Grobler, who joined the team in May of 2022 as Vice President of Exploration.
  • The campaign is financed by the recent 9.99% strategic equity investment by Glencore and is expected to consist of approximately 5,000m of diamond core drilling.

According to Michael Rowley, the president, and CEO of Stillwater Critical Minerals, " Those intercepts included some of the widest and highest-grade intervals in their respective years and drove a robust and low-cost expansion of our previous mineral resource. We are focused on continuing that trend as we apply our new understanding of the geology of the Stillwater complex from the giant mines of South Africa. The broader fundamentals are stronger than ever for our sector, and the recent strategic investment by Glencore in Stillwater is an important validation of both the project and the underlying fundamentals of U.S. critical mineral supply. We look forward to further announcements from this iconic and expanding American mining district, which has been producing high-grade critical minerals for over 100 years."

A Favorable Market

According to Richard Mills of Ahead of the Herd, demand for clean energy technology is driving critical minerals upward.

Mills remarks, "For the U.S., the world’s leading economy, securing reliable supplies for these minerals is especially important to not only sustain its dominance but also shed its supply reliance on key rivals like China."

Like many other sectors,  international tensions are also driving up demand for scarce resources.

Looking Ahead

Stillwater Critical Minerals shares the Stillwater district with Sibanye-Stillwater's high-grade PGE mines and recently retained two top geologists from Ivanhoe's Platreef project to guide expansion.

It has one of the largest cobalt resources in the United States, and eight of its suite of metals have been listed as critical minerals by the U.S. federal government.

Streetwise Ownership Overview*

Stillwater Critical Minerals (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE)

*Share Structure as of 6/29/2023

Ownership and Share Structure

Gregory Shawn Johnson, Chair, owns 3.28% of the company with 5.83 million shares. Michael Victor Rowley, CEO, owns 2.81% with 5.00 million shares. Gregor John Hamilton, Director, owns 1.82% with 3.25 million shares. Gordon L. Toll, Director, owns 0.56% with 1.00 million shares, and Daniel F. Grobler, Vice-President Exploration, owns 0.04% with 0.06 million shares.

U.S. Global Investors, Inc. owns 1.12% with 2.00 million shares, and Plutos Vermogensverwaltung AG owns 0.09% with 0.16 million shares.

The company recently attracted global mining giant Glencore as a strategic investor.

Stillwater Critical has approximately CA$7.1 million, with no debt and no reported monthly burn rate.

There are 49 million warrants out in tranches ranging from CA$0.25 to CA$0.55 in price, with an average exercise price of CA$0.35.

There are 198 million shares outstanding, with 163 million free-float traded shares. The company has a market cap of CA$40 million. It trades in the 52-week period between CA$0.15 and CA$0.28.

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Important Disclosures:

  1. Stillwater Critical Minerals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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