Global miner Rio Tinto announced that there were increasing risks of a supply shortfall in strategic metals. The majors are dealing with the rise of resource nationalism and rising permitting difficulties for new mines. Countries such as China, Indonesia, Namibia and Argentina among others have already expressed that they want a bigger slice of the pie adding export taxes and forex requirements.
Recently one of our recent rare earth/uranium recommendations Pele Mountain announced an Updated PEA for its 100% owned Eco Ridge Mine Rare Earths and Uranium Project. The numbers are very compelling especially considering its dual advantage of potentially producing rare earths and uranium at a time where we may witness a supply shortfall in these metals. Already there are uranium mines operating at much lower grades than Eco Ridge's.
With the growing rise of resource nationalism and the supply shortfall in critical rare earths and uranium, Pele's Eco Ridge seems to be a logical choice for majors desperate for new, economic, long life supplies of uranium and critical rare earths. The Ontario Province may see Elliot Lake as a strategic supplier of critical metals and uranium required for cheap and clean energy.
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