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Kaiser Watch June 14, 2024: BLM grants a long-awaited permit

Posted: Jun 14, 2024JK: Kaiser Watch June 14, 2024 with Jim Goddard and John Kaiser
Published: Jun 14, 2024KRO: Kaiser Watch June 14, 2024: BLM grants lomg-awaited permit
Kaiser Watch is a weekly audio show produced by KaiserResearch.com with Jim Goddard and John Kaiser discussing the junior resource sector. The show has three parts: the first is a general topic, the second discusses developments involving the KRO Favorites which as of January 1, 2022 are no longer exclusive to KRO members, and the third is a peek inside the members only KRO Bottom-Fish Workshop. KRO is transitioning into a Do-It-Yourself research platform that covers all Canadian and Australian resource listings and which also features a Bottom-Fish Workshop where John Kaiser highlights juniors with solvable "missing pieces". Companies that graduate from the Workshop may become part of the Annual Favorites collection whose profiles and related commentary are unrestricted for non-members. Visit the KRO Favorites Dashboard for quick access to all the unrestricted Favorites related content. KRO is not sponsored or compensated directly or indirectly by public companies. The business model is based solely on membership fees which have changed for 2024 as a transition to a $200 per month auto renewal program in 2025. During 2024 individuals can register for a KRO membership at a non-refundable price of $450 for a term that expires December 31, 2024. All active KRO members will be grandfathered to renew annually at $450 on Dec 31, 2024. Sign up here for this limited $450 offer. Kaiser Watch is available at Kaiser Research YouTube and as a Podcast downloadable from KaiserResearch.com. Each episode will be made available through the publication of a Kaiser Media Watch blog report which will provide links to specific questions and include supplementary graphics. All episodes will be archived at Kaiser Watch.

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Kaiser Watch June 14, 2024: BLM grants a long-awaited permit
Jim (0:00:00): Why is Patriot Battery Metals declining despite good results for the CV3 pegmatite?

Patriot Battery Metals Corp announced on June 10 a drilling update for its CV13 pegmatite where the Vega zone has emerged as a thick and rich target. The company predicts it will have an updated resource estimate in Q3 of 2024 for both CV5 and the new CV13 pegmatite. On May 30 PMET closed a $75 million financing of 5,159,959 flow-through shares at $14.54 per share. The charity nature of the financing meant that serious investors in Canada and the United States bought stock in the $7-$8 range. The scale of PMET's Corvette project is already world class and growing, and now that the project is funded through feasibility, why did the stock tank on Friday $0.57 to $6.08?

Lithium carbonate prices which were hovering in the $6.60-$6.70/lb range are breaking down and closed at $6.16 on Friday. Albemarle's stock price closed at $103.79, a level not seen since late 2020 when the lithium winter ended as Trump lost the election to Biden. The energy transition cycle that characterized the Biden term is being unwound. The United States has imposed 100% tariffs on Chinese EV imports and Europe has imposed a 38% tariff to product their domestic carmakers. Nearly half of China's new car sales are EVs and China has production overcapacity. Its cars may not have the range and charge time western consumers want, but they are much cheaper than comparable western offerings. The EV sector is being put on pause to allow Global West carmakers to catch up, which means a supply-demand imbalance will afflict lithium producers and developers with a lithium winter similar to 2018-2020 when Australian hardrock pegmatite supply mobilization overshot EV sector growth.

Compounding the situation is the growing sentiment that Trump will win in November and usher in the Heritage Foundations blueprint for an autocracy with theocratic overtones. For some reason that does not make a lot of sense right wing populism is in love with fossil fuels. Once Trump is in power Ukraine will be handed over to Putin's Russia. At the same time the ascendancy of European right-wingers will shift Europe into the orbit of Russian autocracy. Since Russia's power flows from natural gas and oil, the energy transition policies of Europe will be flushed down the toilet and EVs will be ostracized. Russia itself would like to break its umbilical link with China which eyes Russia's resources. In the United States the "drill-baby-drill" anthem will soar and the United States will be flooded with cheap oil and gas, making the case for expensive EVs difficult, especially if competing EV electricity demand will impede the AI machine's pursuit of the immortality cure desired by America's elites. Note that this is the complete opposite rationale for cheap oil predicted by the IEA, which thinks that EVs will displace ICE cars.

The supreme court will rule that climate change is an act of God and that if America stops separating state from church and establishes a Christian theocracy God will reverse the negative consequences of climate change. When God fails to intervene and Florida gets trashed by hurricanes and a rising sea level while Texas bakes so much airplanes can no longer land on the tarmac, the hunt to round up the sinners responsible for God's absence will escalate. With the help of hyper-surveillance such as already practiced in China Plato's "Republic" will finally become reality as a MagaLand where "freedom" is merely a cudgel to strip people of their freedom and subordinate them to the wisdom of the philosopher-kings. Given the "inevitability" that Trump will be the next president and Putin the Lord of Europe, what future is there for lithium other than what Chine needs for its domestic transportation sector? All this sounds really outlandish, but it is time for people who understand what freedom really means to wake up an beware the people in whose vocabulary "freedom" frequently crops up.

Patriot Battery Metals Corp (PMET-T)

Fair Spec Value
Corvette Canada - Quebec 4-Infill & Metallurgy Li

Charts for Lithium Carbionate and Albemarle

Drill Plan for CV13 Pegmatite

Section for Vega Zone within CV13 Pegmatite

Corvette Map showing CV13 and CV5 Pegmatites
Jim (0:04:37): Has Brunswick figured out yet what it plans for this summer?

Brunswick Exploration Inc published on June 13 an update about its summer 2024 plans that should have accompanied the prior week's Mirage final results news release. It is too little and too late; the market was unimpressed and the stock continued to sink. Some of it is due to the funk afflicting the lithium sector, but a large part is due to Brunswick's weakly thought out messaging. We did find out that 6 holes were drilled into the Elrond target with marginal visual results not expected to assay ore grade intervals. That probably means Brunswick will drop the critical mineral rights it optioned from Midland Exploration Ltd. Although Brunswick briefly mentions it will have a drill program at Mirage on the MR6 dyke and acknowledges that hole #60 to the northeast on the Osisko inlier claim is worth following up, the main message for 2024 is that Brunswick will have boots on the ground prospecting pegmatite targets on its vast holdings in Quebec. It is as if we are back in 2022 when the story was that lithium demand was going to explode during the next decade and historically ignored Canadian pegmatites could become a major solution to the looming supply problem.

At Mirage Brunswick has now sent the "missing" holes for geochemical assays in the hope this will reveal lithium alteration haloes of nearby enriched pegmatites. The Mirage section of the web site now has links to pdfs with all the 2024 collar descriptions and hole intervals, but the assay table still spells "length" as "lenght" like none of those people with their snouts in the $300,000 monthly overhead trough could be bothered to proof read anything. Similarly, nobody has noticed that when you click on a 2024 news release, the sidebar tagged "recent news" only lists news releases from 2023 as if Brunswick is living in the past. And, of course, there is still no new drill plan with all the holes labeled as if each shareholder is supposed to take those two pdf tables and construct their own drill plan. Furthermore, there is no updated presentation available on the web site and no maps showing the location of the new projects they have acquired in Quebec and Greenland, just pages for the projects in Ontario, Atlantic Canada and Saskatchewan killed last year.

The only reason I still own Brunswick is that 2024 will see a very focused prospecting program at Mirage which will include till sampling to sort out the origin of the 3 km spodumene enriched boulder train that is not explained by any pegmatite so far drilled or outcrop sampled. The are also going to do serious prospecting at Anatacau where last year they found an LCT-type outcropping pegmatite. The Osisko options were very expensive and they need to kill any lithium potential as they appear to have done with the Plex claim group. The only reason I can come up with for the strange messaging is that something is going on behind the scenes that will result in a new lithium company. At a minimum the bloated overhead has to be slashed because it alone will use up all remaining hard dollars.

Brunswick Exploration Inc (BRW-V)

Fair Spec Value
Mirage Canada - Quebec 3-Discovery Delineation Li

Example of Brunswiick's lack of interest in its shareholders
Jim (0:07:53): Any new developments with Arizona Gold and its Philadelphia project in Arizona?

Arizona Gold & Silver Inc announced on June 5 that the BLM had issued a Record of Decision confirming its FONSI (finding of no significant impact) for the drill program the junior has proposed for its Philadelphia project in southern Arizona. The market reacted with modest enthusiasm because the Canadian junior resource eco-system has resumed its march to extinction by the end of the decade. The market does not care that gold is trading in the $2,300-$2,400 per oz range, it just responds with a new round of selling every time gold drops $20-$30. A secular gold bull market for resource juniors is still a fading dream. This means speculators who like the resource sector have to focus on exploration plays capable of making a major discovery that reprices the company substantially upwards. That means not just having a target supported by a good deposit model, but also permission to make or break this target. In Canada the obstacle to doing anything on a timely basis is the UNDRIP requirement to consult the many First Nations claiming territorial jurisdiction over an exploration target. In the United States it involves getting the BLM and USFS to set aside their enslavement to the NIMBY lobby which wants all metals to come from autocracies without considering that if the United States becomes an autocracy, NIMBY is history, and their Donate Now buttons will soon become part of the no-click Internet wasteland. Arizona Gold has approval for two drill pads from each of which it can fan 20 holes to test the Red Hill bulk tonnage hypothesis and the down dip potential of the Philadelphia vein.

Arizona Gold & Silver Inc (AZS-V)

Fair Spec Value
Philadelphia United States - Arizona 3-Discovery Delineation Au Ag

Piladelphia Drill Pad Locaitions and Planned Holes

Section of Red Hill Target Model at Philadellphia

CSMAT Section of Red Hill Target Area
Disclosure: JK owns shares of Brunswick; Arizona Gold, Brunswick, and Patriot Battery are Fair Spec Value brated Favorites

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