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Search Minerals Inc (TSXV:SMY)

Summary

Search Minerals is a TSX Venture Exchange listed mineral exploration company based in North Vancouver, Canada. The company is focused on the exploration and responsible development of a prolific Critical Rare Earth Element district in southeastern Labrador which is road accessible and on tidewater.

Market Overview

$0.07 (0.000%)
Vol 51,000.00
10 Days Avg Vol 24,333.33
3 Mo Avg Vol 33,295.43
52 Wk Lo/Hi $0.06 - $0.10
YTD Price Gain % 0%
12 Wks Moving Avg 0.074778
200 Days Moving Avg 0.074675
Market Cap 9,830,883

Company Background

Search Minerals is focused on the exploration and responsible development of a prolific Critical Rare Earth Element district in southeastern Labrador which is road accessible and on tidewater. The FOXTROT Deposit, on which a favourable Preliminary Economic Assessment was completed in April 2016, was the first of three important discoveries. Based on surface expression, the other two, Deep Fox and Fox Meadow, appear to be at least as large as FOXTROT. Surface channel sample assays at Deep Fox yielded grades 15% higher than channels at FOXTROT. Search has identified more than 20 other prospects in this highly accessible District and has developed a proprietary, scalable, hydrometallurgical process to optimize every opportunity to position as a competitive low-cost supplier of CREEs well into the future. The Company enjoys tremendous support from the Government of Canada and the Province of Newfoundland and Labrador, both of which have financially supported the development of our proprietary metallurgical process. In addition, Search personnel on the ground have built strong relationships with local communities and with the Nunatukavut Community Council who represent the local aboriginal people. All of these factors will help to ensure that our project can be brought into production at relatively low capital and operating costs and in a timely manner.

Highlights

  • District Opportunity - Search controls a 70 km X 8 km District with a stand-alone mineral resource, two other discoveries and 20 additional prospects.
  • Solid Returns - Discounted at 10 per cent per annum, the 14 year LOM FOXTROT Project offers an IRR of 16.7% on an After Tax NPV of $48m.
  • Low OPEX - Road accessible, on tidewater and a breakthrough hydrometallurgical process provides opportunity to be a low-cost producer.
  • Critical REEs - Economically significant percentages of dysprosium, neodymium, praseodymium, terbium and lanthanum.
  • Exploration Upside - Two new discoveries requiring drill programs and numerous other properties requiring further work.
  • Scalable Project – initial production of 1,000 tpd.
  • Mining Friendly Jurisdiction - Newfoundland and Labrador ranked #16 out of 104 jurisdictions reviewed by the Fraser Institute.

Share Structure

As of April, 2017
Shares Issued 146,222,190
Warrants 28,786,971
Options 9,665,000
Fully Diluted 184,674,161

Other Information

Projects:

Foxtrot Project – Flagship project

  • Located in a highly prospective light and heavy REE belt in southeast Labrador, 70 km long and 8 km wide.
  • Search has 100% interest in the FOXTROT Project, which is road accessible and at tidewater.
  • Exploration efforts have advanced “Deepwater Fox” and “Fox Meadow” as significant new CREE prospects very similar and in close proximity to the original discovery.
  • Robust Preliminary Economic Assessment report:
    • Low Initial Capital Cost $ 152M (including $ 33M contingency).
    • Scalable Processing Facility – initial production 1,000 tonnes per day.
    • After-Tax Payback Period – 4.4 years.
  • Mining friendly jurisdiction, good working relationships with governments, aboriginal representatives, and local communities.
  The Foxtrot project includes a breakthrough hydrometallurgical process (US patent pending):
  • $ 1.9M pilot plant project, where $ 1.25M is funded by local government.
  • Developed by a UBC professor Dr. David Dreisinger, who is well known in the industry.
  • The proprietary process is a direct leach on crushed material, thereby, eliminating grinding, flotation, gravity and magnetic separation, and as a result produces waste which is a dry stackable inert residue, thereby eliminating the need for wet tailing ponds.

Management Profiles

James Clucas

Director, Executive Chairman

Mr. Clucas was Chief Financial Officer of Inco's Canadian operations until 1984 and has been involved in the development of several mineral deposits, including the Snow Lake Mine (High River Gold Mines), Montana Tunnels (Pegasus Mining), the Fenix Project (HudBay Minerals Inc.). He was the founder of International Nickel Ventures Inc. which acquired and developed the Santa Fe/Ipora Nickel Laterite deposit in Brazil.

Greg Andrews

President, CEO & Director

Mr. Andrews received his is Bachelor of Commerce, Finance from the University of Calgary. He has over 20 years of experience in strategic planning, financial and administrative management consulting to public and private companies. He has held positions as General Manager of a Registered Portfolio Management company, General Manager of a Private Family Office and President of a wholesale distribution company. Mr. Andrews has also held various directorships in TSX Venture listed companies since 1993, including those involved in mining, oil and gas, technology and biotechnology.

Dr. Randy Miller, Ph.D, P.Geo

Vice President, Exploration

Dr. Miller holds a Ph.D. in Geology from the University of Toronto. He has extensive experience studying rare earth elements including field mapping and supervision of diamond drilling on the Strange Lake deposit in NW Labrador for the Iron Ore Company of Canada. Randy spent 12 years with the Newfoundland and Labrador Geological Survey as their Rare Earth Specialist. Dr. Miller’s publications include papers and reports on the Strange Lake deposit, on the mineralization and geology of the Nuiklavik volcanic rocks and on the Mann-type mineralization in the Letitia Lake area, Labrador. The model of rare earth element metallogeny developed from these studies is the basis of Search Mineral’s REE exploration program in Labrador.

Dr. David Dreisinger, Ph.D

Director & Vice President Metallurgy

Dr. Dreisinger holds the position of Industrial Research Chair, Hydrometallurgy at the University of British Columbia where he has been a Professor since 1988. He has over 250 publications to his credit and has been involved as a process consultant for metallurgical companies for many years. He has participated in 19 U.S. patents for work in areas such as pressure leaching, ion exchange removal of impurities from process solutions, use of thiosulfate as an alternative to cyanide in gold leaching, and leach-electrolysis treatment of copper matte. Dr. Dreisinger also co-invented the Mt. Gordon Copper Process for copper recovery from sulfide ores and the Sepon Copper Process for copper recovery from sulfidic-clayey ores.