Lithium-Boron Explorer Prepares for Phase II Drilling in Nevada

Source: Streetwise Reports 07/19/2024

Canter Resources Corp. (CRC:CSE; CNRCF:OTC; 601:FRA) announced it has hired Cascade Drilling LP for its Phase II drilling campaign at its Columbus Lithium-Boron Project near Tonopah, Nevada. One analyst says this is “exactly what we want to see” from the explorer.

Canter Resources Corp. (CRC:CSE; CNRCF:OTC; 601:FRA) announced it has hired Cascade Drilling LP for its Phase II drilling campaign at its Columbus Lithium-Boron Project near Tonopah, Nevada.

The campaign is expected to start Aug. 12 and will include about 10 holes, the company said.

“Our Phase II program has been designed to target a third aquifer zone below the limits of Phase I drilling, demonstrate lateral continuity between our Phase I grids, and test regional discovery targets to the north,” said Chief Executive Officer Joness Lang. “The Phase II program will include select multi-element geochemical analysis, provide samples suitable for preliminary direct extraction considerations, further validate and refine our exploration model and deeper lithium targets, while concurrently assessing the extent and mineral resource potential of the significant near-surface boron mineralization.”

Canter released the final brine results (clay results for nine holes remain pending) from its 15-hole Phase I shallow Geoprobe drill program at Columbus earlier this month with some of the highest grades the company has seen to date.

Those results included concentrations up to 3,140 mg/L (milligrams per liter) boron (B) and 76.4 mg/L lithium (Li). The program also found two shallow aquifer horizons (less than 30.5 meters) that were intersected at similar depths in most of the drill holes, the company said.

Jeff Clark, author of The Gold Advisor, wrote Tuesday as the news was released that “the stock was up this morning at the open, now down as I write. This is not the type of news that would normally excite the market, but Canter continues to aggressively move forward with exploration, exactly what we want to see.”

Stock ‘Deeply Undervalued’

Based in Vancouver, British Columbia, Canter Resources is a junior lithium, boron, and critical metals explorer with two properties, now focused on advancing Columbus, its flagship asset.

The second phase of drilling has several objectives, the company said, including targeting a possible third shallow aquifer zone between 100 and 150 feet, which was highlighted in past downhole geophysics highlights. Canter said the drilling will use a Geoprobe drill rig model and tooling with greater depth capabilities.

Canter also hopes to demonstrate lateral continuity with broadly spaced holes “along pre-existing east-west road networks with the aim of demonstrating potential continuity

within the (5-kilometer) gap between the previously completed north-south grids,” the company said in a release.

The drilling will also test the discovery potential to the north. “The Phase II program includes two proposed wildcat exploration holes located more than 4 km to the north near favorable structure, surface sampling, and geothermal input,” the company said.

“I suggest doing what I’m doing, holding on,” Taylor from The Gold Advisor wrote, saying the stock was “deeply undervalued vs. its potential.”

The company is also looking to enhance the precision of deeper lithium targeting and evaluate shallow boron mineral resource potential.

“Phase I delivered excellent boron concentrations in brines from shallow aquifers, and Phase II will aim to further delineate, correlate, and map the extent of near-surface boron mineralization,” the company said.

Canter is also seeking to establish preliminary direct extraction considerations for the project.

“The company is actively engaging with companies that specialize in direct lithium and boron extraction and plans to supply samples suitable for preliminary considerations,” the company noted.

Taylor from The Gold Advisor noted, “One goal is to assess the extent and mineral resource potential of the near-surface boron mineralization. … Phase I hit some excellent boron concentrations in brines from shallow aquifers, so management obviously (wants) to continue testing to determine if there’s an economic deposit of this increasingly important mineral. And, of course, they’re looking at deeper targets for economic lithium, too.”

“I suggest doing what I’m doing, holding on,” Taylor wrote, saying the stock was “deeply undervalued vs. its potential.”

“I remain overweight (on) the stock,” he wrote.

The Catalyst: Sparking an Energy Revolution

Both lithium and boron have important uses in the energy transition in batteries and storage systems or other clean-energy applications.

Boron/borates are used in applications in agriculture, metallurgy, nuclear energy, and advanced materials, Mordor Intelligence noted. The increasing use of fiberglass in various end-user industries is also boosting demand for the element. According to the U.S. Geological Survey, borates are also used in abrasives, cleaning products, insecticides, insulation, ceramics, and semiconductors.

“Growing demand for electronic products and increasing penetration of fiberglass in markets conventionally held by concrete and steel are expected to drive boron market growth,” Grand View Research noted. “Fiberglass penetration in turbine blades in wind power generation is also expected to positive influence on boron market development. An increase in construction spending, leading to fiberglass demand for a communal structure such as bridges and roads is expected to come up as a new opportunity for the global market. The scarcity of boron, very concentrated reserves, and multifaceted manufacturing process may be a challenge for participants in the global market.”

The Business Research Co. reports the global boron market has grown “exponentially in recent years” and forecasts it will reach US$7.99 billion this year, up from US$6.57 billion in 2023, reflecting a 21.7% CAGR. Rapid growth is expected to continue through 2028

The Business Research Co. reports the global boron market has grown “exponentially in recent years” and forecasts it will reach US$7.99 billion this year, up from US$6.57 billion in 2023, reflecting a 21.7% CAGR. Rapid growth is expected to continue through 2028, at which time the market is projected to reach US$12.68 billion.

According to an article by Innovation News Network in May, “lithium-ion batteries hold great potential for the future of sustainable energy.”

“As the world races toward decarbonization goals aimed at mitigating the impacts of climate change, batteries have taken a central role in the shift away from fossil fuel reliance,” the report said. “Lithium-ion batteries specifically have emerged as a key innovation in the clean energy transition since their inception over 30 years ago.”

In addition to its importance in the energy transition, the element also strengthens alloys and serves as a high-temperature lubricant.

China dominates the market. According to Fortune Business Insights, the was worth US$22.19 billion in 2023 and is projected to grow to US$134.02 billion by 2032 at a compound annual growth rate (CAGR) of 22.1%.

“The growing adoption of hybrid and electric vehicles, high-drain portable electronics, and energy storage systems have boosted the growth of the overall market,” Fortune Business Insights analysts wrote. “The increasing awareness of electric vehicles is attributable to the growing concerns about surrounding environmental pollution as EVs reduce carbon emissions . . . Li-ion batteries will likely play a major role in the highly electrified transport sector.” [OWNERSHIP_CHART-10988]

Ownership and Share Structure

According to the company, managers and insiders own about 9.6% of Canter Resources, and strategic investors (including the founding group and Michael Gentile & Advisors) own about 12%.

The investors with the largest stake are all insiders. They are CEO and Director Joness Lang with 3.39%, Director and Strategic Adviser Warwick Smith with 2.18%, Director and Technical Adviser Kenneth Cunningham with 1.95%, Chief Financial Officer Alnesh Mohan with 0.97%, and Director and Technical Adviser Eric Saderholm with 0.58%, and Gentile, who owns about 4% personally.

Four institutions or funds, including Euro Pacific Asset Management, collectively hold 3%. Retail investors own the remaining.

The Canadian explorer has 51.29 million outstanding shares, 46.45 million free float traded shares with a CA$7.44 million market cap.

Over the past 52 weeks, Canter has traded between CA$0.07 and CA$0.99 per share.

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Important Disclosures:

1. Canter Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Canter Resources Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: CRC:CSE; CNRCF:OTC; 601:FRA, )