Group Ten Metals – Exploration Update at the Stillwater West Nickel-Palladium Project
Michael Rowley, President and CEO of Group Ten Metals (TSX.V: PGE – OTCQB: PGEZF) joins us for an exploration update and big picture overview of the Company’s flagship Stillwater West project in Montana. We start off by reviewing the big moves in most metal prices recently, with a particular focus on the 2 largest metals in the resources at Stillwater West, both nickel and palladium. Based on the Maiden Resource Estimate released last October, the resource breaks down to 42% nickel, 20% palladium, 12% copper, 10% cobalt, 5% platinum, 5% rhodium, and 4% gold.
Next we shifted over to exploration progress, where a second tranche of 4 drill hole assay results were announced on March 7th, taking it up to 6 total holes released thus far from last year’s program from the 14-hole resource expansion campaign. These results were mineral rich in a number of key battery metals and PGMs, and continue to advance Stillwater West towards expanded resource estimates in three of the five deposit areas – the Chrome Mountain area at Hybrid and DR, the CZ area, and the HGR target at the Iron Mountain area. More holes will be released in 2 or 3 more tranches from last year’s program, and Mike outlines the Company well-developed plan for the next phase of drilling to begin later in 2022.
If you have any follow up questions for Mike regarding Group Ten metals, then please email us at Fleck@kereport.com or Shad@kereport.com.
Oh yes, Group Ten Metals has been getting attention lately by the market, in case you haven’t noticed. I am a shareholder and so is another member of my family. DT
I already disclosed in the interview above I was a shareholder of Group Ten, and it’s my largest PGM and Nickel position. FPX is my largest Nickel only position, but technically Group Ten is a Nickel company first a foremost, despite all the other battery metals and precious metals.
I really like Group Ten Metals, like Rodney Dangerfield this market is not giving them any respect. I don’t want them to get taken out too soon because they have such a valuable asset. If Sibanye wasn’t sitting next door, I think there would be other suitors but with such an elephant on your doorstep it’s only a matter of time. There won’t be a dark horse bidding on this property unless of course that dark horse wants to take out Sibanye but that would require a very big major, not likely but you never know. Sibanye Stillwater are you paying attention? LOL!
What is interesting is their biggest deposit is nickel, #2 is palladium. Two of the most valuable metals for the new economy. Let’s not forget Rhodium, Copper, Cobalt, Platinum, and Gold, I just had to list them all or someone else I know would beat me to the punch. DT
+1 Well-stated DT.
I don’t want to see Group Ten get taken out yet either, whether it’s Sibanye or one of the other big boy producers, because they haven’t even finished releasing their drill holes from 2021 yet (only 6 out of 14 holes so far) and all of those are simply going to expand the resource even larger when that comes out in the latter part of 2022. Then there is all the drilling on tap for 2022, that will feed into the resource for 2023 and maybe a PEA next year some time.
After all that, and once the market can get their head around the economics on this project…. THEN once things rerate to reflect the rarity of this deposit companies can start looking at taking over the project. If this project got grabbed at this point, it would really truncate the value creation that is ongoing for the next 2 years. Then again, with Nickel and Palladium and Copper prices ripping, maybe there already are a few wolves circling the hen house. 🙂
I’d expect SBSW or another to grab PGE and if they don’t in the near future then they must know something we don’t know about this area.
Well, Sibanye has been busy buying Eramet’s Sandouville Nickel processing facilities in France, formed a strategic partnership with Johnson Matthey to work on hydrogen fuel cells with PGMs, and started a stake/partnership in Keliber, a leading European lithium company in Finland. They also indicated to Generation Mining that they were not going to take over 51% of that project because they had no interest in building a PGM/Copper mine from scratch in Canada, and were going to focus on a few more gold acquisitions first, so they have their hands full.
The beauty of their Sibanye’s Stillwater operations in Montana is that their processing centers are already built including a smelter, so Group Ten would be an easy bolt-on operation for them. If another big boy miner came in to lay claim to Group Ten next year, I’m sure that company could also form a JV or agreement to process their ore at Sibanye’s facilities, so that is another angle where a different suitor could come in.
It’s likely that companies will want to see the Group Ten 2021 drill program results first (of which only 6 of 14 holes have been reported thus far), and as Mike Rowley mentioned in the interview, there are also 133 historic holes, many of which can be re-assayed and included in an updated resource estimate to grow reserves even further. So if Group Ten does get their mineral resource updated by year end, that will likely be the first step in other companies due diligence for how the project is growing. Now the real driver for an acquisition will be the Preliminary Economic Assessment slated for 2023, where better economics can be wrapped around that expanded resource estimate. That is more likely the study the big boys will be watching to see if they want to pick up Group Ten. If Group Ten is picked off before that PEA then it will be premature and again, truncate a lot of the value creation still underway the next 2 years.
GT still in the alternating pattern in my account but at least it has broken over .30. Someday the boot on the neck will be removed.
Hi Ex again, the wolves are circling around the economists that don’t fear inflation, The Federal Reserve is pretending to express fear of inflation, but I think they don’t think it’s going to create hard times. I guess that is the only stance that they can take for now, they don’t have any options. That is why I like investments in metals because they are used in the real economy, and the only way to protect yourself especially now is to be invested in commodities. DT
Agreed on both points DT. If the FED had acknowledged inflation was going to blast past their 2% “target” and nearly quadruple from there to today’s CPI reading of 7.9%, then there would have been a stampede out of the bond market, and that would have really messed up their tapering program of reducing their 12 years of “emergency” accommodative buying of bonds, TIPS, and corporate bonds. Their whole goal was to lull the markets into a false sense of it just being a fleeting notion and hence the “transitory” narrative. The sad part is how many people fell for that narrative. Even now, if Jerome Powell came out and was completely honest and stated that even a series of 4-8 0.25% rate hikes isn’t going to tame inflation that is near 8%, there would be a severe market reaction, so they just press on with the illusion that they have “tools” to deal with inflation. Clearly they don’t, and when the rest of the market wakes up to that, things are going to escalate quickly.
Yes, the commodities have shown clearly since the pandemic crash in March of 2020, that they are the new currencies of the future people want to build. The commodities were insanely undervalued to the general equities markets, bonds, real estate, collectibles, and really all other asset classes, so it’s not a surprise they’ve run so high over the last 2 years, and the recent geopolitical tensions have just further spiked the punchbowl.
I do agree with the point that Matthew made yesterday, that despite the commodities having room to run medium to longer-term, maybe after a corrective digestion period, that the Monetary Metals will be the ones to shine next and likely outperform most of the commodities and other asset classes. It turns out hard money is going to be the next valuable currency.
Ever Upward!
Hi Ex, the only way The Federal Reserve can tame inflation is to crash the housing market by raising rates, and they will do anything to avoid that. People who are home owners won’t believe what I just said and the rest of the public doesn’t get it. CRASH! DT
A housing crash could slow the inflation rate but wouldn’t reverse the inflation already in the system. Even widespread foreclosures would do nothing to reverse the inflation already in the system since new mortgages don’t come from deposits/savings but from money created out of thin air. Defaults do nothing to erase that new money.
Before the Republican party became a servant of the collectivists, you could expect quotes like the following from its politicians:
“I have never seen more Senators express discontent with their jobs… I think the major cause is that, deep down in our hearts, we have been accomplices in doing something terrible and unforgivable to our wonderful country. Deep down in our heart, we know that we have given our children a legacy of bankruptcy. We have defrauded our country to get ourselves elected.”
— John Danforth (R-Mo)
“Some people think the Federal Reserve Banks are the United States government’s institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers.”
— Congressional Record 12595-12603
— Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1932
“The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers.”
— Congressman Louis T. McFadden (Rep. PA)
“The Federal Reserve bank buys government bonds without one penny…”
—Congressman Wright Patman, Congressional Record, Sept 30, 1941
“This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson] signs this bill, the invisible government of the monetary power will be legalized….. the worst legislative crime of the ages is perpetrated by this banking and currency bill.”
— Charles A. Lindbergh, Sr. 1913
“The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people’s money.”
— Charles A. Lindbergh Sr., 1923
Ron Paul was America’s only modern presidential candidate to address the greatest source of America’s troubles yet Trump called him a clown. And of course he did, he is subservient to the same international bankers referred to by the few decent politicians of a century ago.
A couple other good ones:
“While boasting of our noble deeds were careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery.” — Horace Greeley
“The modern Banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” — Major L .L. B. Angas [Lawrence Lee Bazley White/Angas] (1893-1973) Australian-born British statesman, economist
“…I am convinced that the agreement [Bretton Woods] will enthrone a world dictatorship of private finance more complete and terrible than a Hitlerite dream. It offers no solution of world problems, but quite blatantly sets up controls which will reduce the smaller nations to vassal states and make every government the mouthpiece and tool of International Finance.
It will undermine and destroy the democratic institutions of this country – in fact as effectively as ever the Fascist forces could have done – pervert and paganise our Christian ideals; and will undoubtedly present a new menace, endangering world peace. World collaboration of private financial interests can only mean mass unemployment, slavery, misery, degradation and financial destruction. Therefore, as freedom loving Australians we should reject this infamous proposal.”
— Labor Minister of Australia, Eddie Ward
during the inception of the World Bank and Bretton Woods, he gave this warning.
The Fed loves inflation as it reduces the debt plus all the derivative fraud risk the banks continue to acquire. The Fed cares about the member banks who it works for and not the people that will owe the money they transfer to their banks.
+1 Good point Lakedweller2.
Ex, I do not think that what Lakedweller mentioned is a good point. This subject is about the high cost of living. Although The Fed stands to gain from their balance sheet, the family income decreases as prices rise. Everything is going up – food, rent, clothing, taxes, and energy. The family income is dwindling as prices rise. The man without a dollar is fifty cents better off than he once was. Most people are on fixed salaries and they are going to suffer, maybe their job won’t be there because other people can’t afford their services. The profiteering landlord becomes an object of popular hate because he can’t run his business without increased rent. I understand why The Fed likes inflation but you can’t cure it by robbing the public, the end result is not pretty. You can only fool the people for so long and then The Fed will have to crash the housing market. It is silly to pretend otherwise. DT
DT:
That is the point. The Fed has been working for inflation for years to cover the debt of Congress and fraudulent activities of the bank. They know the impact on the “people” and don’t care because that is not the Agenda they set up in 1913 and have work towards since
Why all the deregulation if it wasn’t to transfer wealth. Lip Service is how they survive, but it is only lip service. They can raise token rates but they will still have negative rates.
They have been free wheeling everything across the globe counting on a reset. It worked at Bretton Woods so they are counting on it again.
Sovereign countries don’t matter … sovereign bankers do.
Lakedweller, you are preaching to the choir, only this time it won’t work. They have taken the economy too far out and the human cost will be too great, much greater than The Great Depression of the 30’s. They will have to raise rates beyond negative rates. They didn’t understand the impact on the people until it was too late. They thought MMT worked but it doesn’t and they will be held accountable. What you don’t understand is that The American Empire is collapsing because of their failed policies and they didn’t see that. What they have created is a fake failed state, they didn’t design that but they thought they could pull anything off. You should read Edward Gibbons book on “The Rise And Fall Of The Roman Empire”.
The economic system has proved itself to be too difficult for mere mortals like Greenspan, Bernanke, Yellen, and now Powell to bridle and control. DT
I hope you are right DT, but I have seen years of timid regulators and politicians looking the other way.
I get the feeling there is a fourth branch of government that is calling the shots.
The only option is Central Banking as they have already stolen the treasury and future treasury and no one can do anything to get it back. It appears our government has one option to regain sovereignty and that is a reset and end Central Banking and watch them walk away into the sunset with the US Treasury.
Now if they want to put someone in jail … I am all for it. But, you have to start with some Grand Juries. They apparently don’t have the predisposition.
Again, I hope they do something to help the people … but, they blew up that bridge a long time ago.
In rereading our posts, I think we agree on where we are with a failed economy…
Our difference may be the degree of intent in Central Bankers getting us to this point. I think they have committed intentional criminal acts.
Good discussion between LD, DT and Ex, it is the reaction to inflation and not inflation itself that will be the end problem by self serving bankers. First survive then proliferate.
BTW, I own PGE and agree that it is a sleeper.
DT – I thought it was good point Lakedweller2 made about the Fed only caring for their member banks, which is true, and the inflation allows their debt to be more manageable which is also true for them. Central bankers historically have little compassion for the average citizens lives being wrecked by higher inflation, which is a sinister tax on everything through fiscal mismanagement and a ballooning of new money creation and debt on their balance sheet. We’ve been saying since the Great Financial Crisis that the FED would try and “inflate their way out of this mess” and that is exactly what they’ve done.
I’m not a fan of inflation in the slightest and thinks it harms everyday people, but I can see with the Fed is a fan of inflation, and they openly stated they were trying to get inflation up, because what terrifies them is a deflationary implosion.
Great update. Thanks KER!! You beat me to it DT!!
Thanks Charles. Yes (PGE) Group Ten is a fascinating exploration and development story to follow, with the right mix of strategic metals that the world needs now to meet many of their future growth initiatives. Nickel, Palladium, Copper, Cobalt, Platinum, Rhodium, and Gold…. What’s not to like? 🙂
The Truth About Inflation, Oil Prices & Russia — Mike Maloney:
https://www.youtube.com/watch?v=AABDx_s6UX0
I really like Group Ten Metals, like Rodney Dangerfield this market is not giving them any respect. I don’t want them to get taken out too soon because they have such a valuable asset. If Sibanye wasn’t sitting next door, I think there would be other suitors but with such an elephant on your doorstep it’s only a matter of time. There won’t be a dark horse bidding on this property unless of course that dark horse wants to take out Sibanye but that would require a very big major, not likely but you never know. Sibanye Stillwater Ltd. are you paying attention? LOL!
What is interesting is their biggest deposit is nickel, #2 is palladium. Two of the most valuable metals for the new economy. Let’s not forget Rhodium, Copper, Cobalt, Platinum, and Gold, I just had to list them all or someone else I know would beat me to the punch. DT