Geologic Model Demonstrates 9.5-Kilometers of Continuous Mineralization in Montana

Source: Streetwise Reports 10/17/2024

Stillwater Critical Minerals Corp. (PGE:TSX.V; PGEZF:OTCQB; J0G:FSE) announced the successful completion of a property-wide geophysical airborne survey and a first-ever 3D geologic model for the lower Stillwater Igneous Complex at its Stillwater West project in Montana, U.S.A. Read what this model has revealed.

Stillwater Critical Minerals Corp. (PGE:TSX.V; PGEZF:OTCQB; J0G:FSE) announced the successful completion of a property-wide geophysical airborne survey and a first-ever 3D geologic model for the lower Stillwater Igneous Complex at its Stillwater West project in Montana, USA. This model, based on extensive drilling and mapping, reveals continuous mineralization along a 9.5-kilometer section of the complex.

The survey included about 1,170 line kilometers, offering detailed insights into conductive targets that will guide the next phases of drill campaigns. Michael Rowley, President and CEO, expressed confidence in the model’s impact on potential mining scenarios in the news release, calling it “a major milestone” that reflects the team’s “substantial database” and further collaboration with Glencore plc for technical insights.

Highlights From The News Release:

• Property-wide geophysical surveys completed in September 2024 informed the first-ever detailed 3D geologic model of the lower Stillwater Igneous Complex;
• The model demonstrates continuity of mineralization across the 9.5-kilometer length of lower Stillwater Igneous Complex, which hosts the Company’s current resources in five deposits at Stillwater West project;
• Historically, continuity of mineralization across the entire surface expression of the magmatic layers of the Stillwater Igneous Complex has been demonstrated primarily by Sibanye-Stillwater’s J-M Reef deposit, a high-grade PGE-bearing nickel-copper sulfide deposit that spans more than 40km and supports the highest-grade palladium-platinum mines in the world, and;
• Stillwater’s current resources of 1.6 billion pounds of nickel, copper, and cobalt, and 3.8 million ounces of palladium, platinum, rhodium, and gold are hosted in five deposits that remain open for expansion along trend and at depth across 9.5 kilometers at the center of the 61-square-kilometer Stillwater West project, which is adjacent to Sibanye-Stillwater along approximately 32km of strike within the Stillwater Igneous Complex.*

The company also reiterated its focus on pursuing U.S. government funding, noting recent applications to announced opportunities available through the Department of Energy and the Department of Defense. The release cites existing funding from the DoE via two grants via collaborations with Cornell University and Lawrence Berkeley National Laboratory.

Rowley noted that work to date and collaborations have “positioned us exceptionally well with robust inventories of nickel, copper, cobalt, platinum group elements, and chromium in an active American mining district at a time when the U.S. is aggressively looking to diminish the current heavy import reliance of nine of the commodities we have inventoried.“

Digging Into Cobalt and Nickel

Investing News Network, on September 17, emphasized cobalt’s value for its essential role in lithium-ion battery cathodes amid rising demand for electric vehicles, noting, “Cobalt’s essential role in lithium-ion battery cathodes has made it increasingly valuable as the demand for electric vehicles continues to rise.” Additionally, most cobalt is produced as a by-product of copper and nickel mining, which enhances its appeal across multiple sectors. As demand for electrification grew, Benchmark Minerals forecasted a shift in cobalt production, expecting it to come increasingly from nickel-primary mines, projecting a rise to 41 percent by 2030. This trend highlights the strategic importance of companies like Stillwater, which focus on producing cobalt and nickel as primary and secondary outputs, ensuring their relevance in future resource demand.

In August, The Guardian detailed the strategic importance of North American cobalt production in diversifying and securing critical mineral supply chains, with the U.S. Pentagon investing US$20 million to establish North America’s first cobalt sulfate refinery. This investment “underscores cobalt’s growing strategic importance in diversifying and securing critical mineral supply chains,” providing a foundation for a resilient cobalt supply chain to meet North American defense and commercial needs. Furthermore, Electra Battery Materials’ new Ontario refinery, supported by both the U.S. and Canadian governments, aims to reduce China’s market share in cobalt processing while fortifying the industrial base within allied nations.

The Guardian emphasized that this new facility will “create a resilient supply of battery-grade cobalt sulfate for North American industries,” underscoring the heightened demand for cobalt amid global geopolitical shifts.

Alongside cobalt, copper has demonstrated similar resilience as prices rallied to US$10,000 per tonne (US$4.53/lb) on September 30, a move attributed to decreasing Shanghai copper stocks and China’s largest economic stimulus effort since the pandemic. According to Ahead of the Herd on October 5, “copper’s necessary usage in the energy sector keeps demand strong,” highlighting its critical role in the transition to renewable energy. As BHP and other industry leaders project, copper consumption will continue to rise due to electric vehicle production and renewable technologies. Despite existing challenges, such as limited new mining projects and persistent supply disruptions, copper’s trajectory reflects strong price momentum and sustained relevance in a decarbonizing world.

Nickel, crucial for both stainless steel and batteries, has shown price resilience, reaching over US$18,200/MT on the London Metal Exchange this October, as reported by SteelNews on October 3. The sector has been buoyed by China’s recent economic stimulus and Indonesia’s focus on sustainable nickel production practices. According to SteelNews, “The Indonesian government’s focus on sustainable practices in nickel mining reflects growing support for environmentally responsible production, aligning with rising global demand.” The resilience and rising price momentum of nickel in the market underscore its ongoing demand and strategic importance in clean energy applications.

Stillwater’s Catalysts

The company’s investor presentation highlights multiple catalysts, including the comprehensive 3D model and the potential to expand nickel, copper, cobalt, and platinum group elements in an active U.S. mining district with substantial potential remains significant, with plans for additional drill campaigns targeting large conductive zones. [OWNERSHIP_CHART-9539]

This project is enhanced by Stillwater’s technical committee, which integrates input from Glencore plc, emphasizing the importance of local resources in reducing reliance on imported critical minerals.

Ownership and Share Structure

Management and insiders own approximately 20% of Stillwater, according to the company.

Executive Chairman and Director Gregory Shawn Johnson owns 2.86%, President and CEO Michael Victor Rowley owns 2.56%, Independent Director Gregor John Hamilton owns 1.65%, Independent Director Gordon L. Toll owns 0.44%, and Vice President of Exploration Daniel F. Grobler owns 0.23%, according to Reuters.

Institutions own approximately 25% of the company, high net-worth investors own about 37%, and Glencore Canada Corp. owns 15.4%. About 18% of the company’s shares are in retail, Stillwater said.

There are about 227 million shares outstanding with 174.5 million free float traded shares, while the company has a market cap of CA$36.33 million and trades in a 52-week range of CA0.1000 – CA0.2200.

_{* (Mineral Resource Estimate Update For The Stillwater West Ni- PGE-Cu-Co-Au Project, Montana, USA, March 11, 2023, was prepared by Allan Armitage, Ph.D., P.Geo., of SGS Geological Services, an independent Qualified Person, in accordance with the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101″) with an effective date of January 20, 2023.)}

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Important Disclosures:

1. Stillwater Critical Minerals is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: PGE:TSX.V; PGEZF:OTCQB; J0G:FSE, )

Source: https://www.streetwisereports.com/article/2024/10/16/geologic-model-demonstrates-9-5-kilometers-of-continuous-mineralization-in-montana.html