The push to-wards widespread adoption of electric vehicles (EV)
is putting a strain on supplies of many critical commodities. For
example, lithium is essential to manufacture the batteries for
these vehicles. Several years ago, this in- creased demand led to a
boom for junior lithium exploration companies. As EV production
continues ramping up higher, a similar effect is underway for
cobalt. Even nick-el is trending sharply higher as a component in
these batteries
New technology is advancing development of more efficient
batteries incorporating manganese. All battery metals are now
surging in price due to the expectation of greater demand and
tighter supply. Manganese is only the latest metal to join that
trend. Rising demand for manganese in cathodes for lithium-ion
batteries has placed more urgent emphasis on developing new mine
supply for the metal.
As the EV market continues expanding, some estimates suggest
year-over-year manganese consumption will grow at a compound rate
of 23 per cent per annum just from increased battery manufacturing
demand. Where is all of this new supply going to come
from?
A U.S. presidential executive order was signed in February to
prioritize certain strategic elements, including manganese. This
may generate further support to fast-track development of advanced
deposits in the United States and Canada. There is no current mine
production for manganese within North America. However, the
province of New Brunswick was once considered a hub for manganese
deposits and mining.
It is fortunate that the management team of Manganese X Energy
Corp. (MN-TSX/VEN, $0.60; MNXXF-OTC, US$0.46) recognized this
historical importance several years ago, while
manganese was still largely off the radar for exploration. The
company was able to acquire the Houlton-Woodstock
manganese property for a bargain purchase price by
contemporary standards. Now dubbed the Battery Hill project, this
package of 55 claims comprising an area of 1228 hectares holds the
potential for a manganese mine development near the town of
Woodstock, N.B.
The highlight of this project is an enriched manganese deposit
encountered in five major zones within the property area. Of these,
the Moody Hill zone demonstrates the most attractive economic
potential for an open-pit mine. This advanced exploration
prospect is situated near surface, with higher-grade showings of
manganese sulphate originally identified through work programs
completed by a previous operator. The prospects for additional
discovery zones at untested areas of the property is also
appealing. Manganese X launched a drilling program late last year
to confirm and expand the deposit at the Moody Hill target area. A
program of 28 drill holes with a total of more than
4,500 metres of drilling was completed in
November. Favourable results were recently reported.
Several high-grade zones were encountered with average grades above
11 per cent MnO, or manganese (II) oxide, across wide
intervals of drill core.
Combined with previous drilling work, 53 drill
holes totalling 9,600 metres have been
completed. Manganese X has defined a large deposit area at Moody
Hill. This data is now being incorporated into a compliant resource
report for the project.
The company has also been actively evaluating the metallurgical
characteristics of the deposit. Manganese is encountered in more
than 50 different minerals and some of these may present
metallurgical challenges to efficient recovery under conventional
processing technology. However, mineralization from Battery Hill is
hosted in carbonate form, which is attractive since it can be
processed using conventional sulphuric acid leaching.
Sample material was submitted for evaluation through Kemet- co
Research, a consulting firm specializing in metallurgy and mineral
processing technology. A flow sheet has been designed for a circuit
tuned to mineralization from Battery Hill that indicates 85 per
cent of the manganese content may be recovered. The combination of
attractive grades and favourable metallurgy is a key
consideration toward achieving positive economic results in a
producing mine scenario. Data will be incorporated into a
preliminary economic assessment (PEA) following the completion of
the resource report.
Ultimately, the potential to commence mining at a domestic
manganese deposit is the catalyst that could lead to a much higher
market value for Manganese X Energy. However, another business unit
has been created outside of the resource sector that may also
create shareholder value. The wholly-owned subsidiary,
Disruptive Battery Corp. (DBC), was established to advance a
patented technology for air purification and delivery systems.
Common HVAC ventilation systems used in large buildings are
known threats for distribution of pathogens. A process has been
developed to mitigate and neutralize airborne and surface pathogens
carried in these HVAC systems.
Pure Biotics Air is now under development as a joint venture to
commercialize the technology. The process disperses a mist of
particles through air-circulation ducts to destroy viruses and
bacterial microbes on contact surfaces. The organic process is
effective protection against pathogens but is harmless to people
and animals.
A research program has been launched at the prestigious Virginia
State University laboratory facility where results may be confirmed
through high-powered electron microscopes to validate the
technology. If this testing regime is successful, it will open the
opportunity to work with hospitals and large commercial buildings
to incorporate safer air circulation.
As the core mineral resource strategy is focused on advancement
of the manganese project, the company has chosen to divest another
attractive property that they held, with leverage to graphite. The
Lac Aux Bouleaux graphite property is located
in Quebec, immediately adjacent to a formerly producing
graphite mine. The property will be spun out to shareholders
through the creation of a newly-listed junior
explorer, Graphano Energy Ltd.
A shareholder meeting is scheduled in April to approve the
process. Similar transactions have unlocked investment value for
other companies that have completed a spin-out of non- core
assets.
Manganese X is the most advanced company moving towards the
establishment of a manganese mine within North America. The ideal
geographical location of Battery Hill near the U.S. border, along
with access to support and infrastructure, provides an attractive
setting for development in this formerly active mining
district.
Favourable metallurgical characteristics also contribute
to- wards positive economics for a
potential mine development. As the company presents its
NI 43- 101 resource estimate and then commences a PEA for the
project, the timing for these events is ideal. Battery Hill may
emerge as a viable mine development prospect.
Meanwhile, the integrated approach is pursuing commercial
opportunities through the DBC subsidiary. The Pure Biotics
joint-venture strategy could advance as another
well-timed investment as public concern over airborne
pathogens is still very much a factor. Testing is expected to
commence shortly. With about $3 million in working capital on hand,
Manganese X is fully funded to advance its strategy.
This approach to building shareholder value has already
generated results. Manganese X has been one of the hottest junior
mining stories over the last few quarters. The stock has more than
doubled since the start of this year. The pace of activity will
support a bullish trading outlook as work continues.
Mike Kachanovsky is a freelance writer who specializes
in technology and junior mining stocks.
Investor's Digest of Canada can be found at www.adviceforinvestors.com
© Copyright 2021 by MPL Communications Inc., Reproduced by
permission of Investor's Digest of Canada, 133 Richmond St. W.,
Toronto, ON M5H 3M8
MANGANESE X ENERGY CORP.
Martin Kepman
CEO and Director
Email: martin@kepman.com
Tel: 1-514-802-1814
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