CANADIAN STOCKS EXCHANGES
E. A. SCHILLER
THE MARKET BEHAVES LIKE IT DAMN WELL LIKES TOO
It is now autumn, the kids are in school and for us old folks our children and/or grand children are in college or hopefully gainfully employed. NFL football is in full swing and Brady’s problems have been solved and back-up QB Garopolo is on the bench ready to perform when needed. And how about those Blue Jays? Torontonians are now devoted Jay fans and cannot remember what a maple leaf represents other than one on a maple syrup bottle. Maybe with a new coach the Maple Leafs will be a better team than in previous years.
Summer 2015 brought no significant new metal exploration discoveries and with winter around the corner and limited exploration activities so what does an investor look at who likes to speculate on the high risk junior mineral exploration market. My crystal ball is kind of cloudy to opaque and no amount of polishing removes the market uncertainties. But I believe the one saviour on the horizon is going to be uranium as no matter what China does or does not do uranium is a commodity that we all need, like it or not, if we are going to keep the lights on in our homes, streets and businesses as no number of solar panels, wind mills or lithium batteries will satisfy our electrical needs in the short to medium terms. The tree huggers continue to extol the removal of oil, gas and coal fired generators and gas driven vehicles with a valid argument but the timing of this action is unpredictable. Tesla continues to promote its battery driven cars and has announced joint ventures with lithium explorers and developers in Nevada and Mexico. From land vehicles driven by lithium batteries we now have an electric airplane powered by lithium batteries. An Airbus fuel free, emissions-free E-Fan electric airplane crossed the English Channel this July that could be in commercial production by 2017. Should one be looking at lithium companies, I guess yes; I will report on this commodity in future issues.
Getting back to uranium it is worth mentioning that Japan returned to nuclear energy generation with Unit 1 of their Sendai power plant returned to commercial operation in September. Electricity is now being delivered to the Japanese grid. Loading of fuel rods has commenced to Sendai Unit 2 with electricity schedule to come on stream in November. This is all good news to uranium producers like Saskatchewan’s Cameco and fellow explorers in the Athabascan Basin. According to a World Nuclear Association symposium held in London in September “nuclear electricity output is set to increase at a faster rate over the next five years than we have seen for more than two decades”. Global nuclear generation capacity should expand from today’s 379 gigawatts-electric to 404 GWe by 2020 and 552 GWe by 2035. Nuclear energy currently provides about 11% of the world’s electricity and forms the essential element in any credible strategy to combat carbon emissions while also contributing to energy security supply.
For starters I am happy to report that Alexium International Group Ltd. (ASK-AJX –Australian stock exchange; QX;AXXIY-OTC ) has performed well during the summer despite all the negative back lash of all North American markets. For those of you who have paid attention to my words on AJX the stock has had some rewarding gains this summer moving from 70 centish to over a dollar (Aussie). It then backed off a bit in early September to 90 cents and in late September moved up to $1.10 ish. (one Aussie dollar equals 71 cents US). For those of you with poor memories Alexium produce surface modifications and attachment of nano-particles or multiple chemical functional groups to surfaces or substrates to provide functions as fire retardancey, water proofing, and anti-microbial treatments. Sound complicated? The US military love it and so do any manufacturer of anything that could burn if subjected to a fire or incendiary event.
For gold punters I came across an interesting junior gold explorer with a project at Cherry Creek, Nevada. Viscount Mining Corp (VML-TSX-V) has purchased a 100% interest in a property comprising 400 patented and unpatented claims as well as mill rights if and when production takes place. The project is located 30 miles north of Ely in White Pine County, Nevada and south of the operating Long Canyon gold mine of Newmont Mining. The claim block includes 20 past silver/gold/tungsten producers including the Ticup, New Century/Exchequer and Star mines all of which have potential for finding new resources/reserves based on the economics of current metal prices and the lack of any previous systematic modern exploration techniques. Viscount has a joint venture with Japanese Sumitumo Mining whereby they agree to spend $10 million over 8 years and provide a feasibility study to acquire a 75% interest in the property. In 2015 soil and rock geochemical surveys were completed to be followed up by geophysical surveys and have identified a number of new targets that will be drilled in late 2015 and early 2016. In addition the company holds claims at the Silver Cliff prospect near Pueblo, Colorado. Silver Cliffs is situated in the once famous Cripple Creek silver/gold district. Viscount stock trades around 38 cents up from 18 cents this summer.