In my opinion, nickel laterite deposits will continue to play a major role in the future of the global nickel market. Nickel laterite deposits are, in relative terms, abundant and located at shallow depths within the earth’s crust, making them an ideal low-cost nickel source for the stainless steel industry. I, however, believe that in the future the role of laterites will expand to help fulfill the burgeoning electric vehicle revolution.

There are 3 reasons why I think this:

• EV battery market demand for Class 1 nickel will outpace, over time, the current production capacity of nickel sulphide deposits
• Both the production and development of nickel sulphide deposits is on the decline. High exploration costs, a slow development process (i.e. permitting) translate into what can be a minimum of 10 years and an average of more than 20 years from discovery to the development into a mine.
• An increasing proficiency in laterite ore processing techniques – Hydro-metallurgy

Electric Vehicle Revolution

In my opinion, EVs represent the most disruptive force within the resource sector since China began consuming metals on a huge scale during the last resource bull market. The reason I feel EVs will have such a disruptive force is a mixture of both metal supply constraints and the major influx of demand.

As I stated in my introduction, the metal I find the most interesting in this EV revolution, given its fundamentals going forward, is nickel.

Source: Glencore 2018 BMO Presentation

As you may or may not know, nickel is a key ingredient in the 2 most popular battery chemistries – nickel, manganese and cobalt (NMC); and nickel, cobalt and aluminum (NCA).

Source: Nornickel – May 2018

As you can see from the graph above, the most popular battery chemistry for the last couple of years has been NCM. Up until last year, NCM batteries were composed of equal parts, denoted 1-1-1, meaning 1 part nickel to 1 part cobalt to 1 part manganese. With the spike in cobalt prices, however, manufacturers have started to change the composition to be more economic, yet still have the stability needed for safe operation.

Currently, the newest commercially used ratio is 5-2-3, increasing the batteries’ reliance on nickel.  As well, but still in the experimental stage, is the 8-1-1 ratio, which dramatically shifts the use of nickel higher, making it by far the major component of this future new generation of battery.

Along with the cost savings, the higher ratio of nickel provides the battery with a higher energy density, allowing a battery to maintain a charge longer and have a longer range.

EV Market Demand – Class 1 Nickel

The nickel used within the batteries is termed Class 1 nickel and is mostly but not exclusively derived from nickel sulphide deposits. Although the current EV market’s demand for nickel is low, the growth profile is incredibly large and is really where the EVs could cause a disruption in the nickel market – if not all of the battery metal markets.

NOTE – Battery related consumption is estimated to reach 85,000 tonnes by 2020, representing 4% of the 2017 nickel supply.

Source: U.S. Geological Survey and RBC Capital Markets

To put this into perspective, we need to take a quantitative look at supply and demand. First, let’s look at supply; the global refined nickel supply for 2017 was around 2.1 million tonnes (both sulphides and laterites).

Second, the global nickel consumption for 2017 was around 2.2 million tonnes, demonstrating that demand is currently exceeding refined supply. For the focus of this article, this is particularly important. As I stated earlier, the EV market, at its current consumption rate, has very little effect in the overall market, however, as you can see, consumption is still exceeding refined supply.

What is the effect of EV demand over the next decade? This is a great question and key to understanding the predicament with which the nickel market is faced, moving forward.  A great estimation of future nickel demand is provided by Glencore in their 2018 Global Metals, Mining & Steel Conference presentation:

• Assuming a 30% market capture of the world car market by 2030, EV nickel demand will reach 1.1 million tonnes per year.

1.1 million tonnes of Class 1 nickel consumption in today’s  market would encompass roughly 55% of the refined supply. Now assume that all 1.1 million tonnes can be serviced by the existing nickel sulphide refining capacity, which seems doable, but it isn’t!

There is going to be a proverbial “tug of war” between EV battery makers and speciality steel makers who consume Class 1 nickel for producing speciality grade steel products.

Source: Norlisk

Nickel Sulphide Deposits

What I find most interesting about nickel sulphides is that not only are their production figures predicted to curtail over the coming years, but the amount of projects awaiting development is low.  Why is this? In my mind, there are 3 reasons; first, a bear market in the nickel price which pre-dates 2016; second, the fact that exploring for these deep deposits is very costly; and finally, in comparison to nickel laterites, which are estimated to account for up to 70% of the crustal nickel deposits on the earth, there are far fewer sulphides to find.

Let’s take a look at how a nickel sulphide deposit is formed. Instead of me describing this, I found a fantastic image on the Balmoral Resources website, which takes us through the process. See below.

Source: Balmoral Resources

Below are 2 pie charts depicting the distribution of known laterite and sulphide nickel deposits world-wide. Currently, the majority of nickel sulphide exploration is occurring in proximity to the world’s existing giant deposits, such as Vosiey Bay in Labrador, Russia, Finland and Australia.

Source: Nickel Institute

Nickel Laterite Deposits

Nickel laterite deposits are found in the tropical regions of the world, places such as Indonesia, Western Australia, New Caledonia and the Philippines.  They are the result of the weathering of a nickel sulphide deposit and their composition is affected by a few key parameters, which include: the amount of weathering, drainage of groundwater and the tectonic setting.

Source: Murdoch University – Nickel Laterite Deposit Layers

There are 5 distinct layers or zones of a laterite deposit and they are as follows: ferricrust, red (upper) liminote, yellow (lower) limonite, transition or clay rich and saprolite/garnie. The key distinction between the layers is their composition, mainly the percentage of nickel and magnesium. Starting at the top and working our way down, you can see that the upper layers, the most weathered, have both the lowest percentages of nickel and magnesium. Conversely, the deeper layers contain the higher percentages of nickel and magnesium.

As you will see in Part 2 of this article, the composition of the laterite ore is key to how it is processed into its final product and, ultimately, how it will be consumed in its end use.

Sulphide Versus Laterite Deposits

Nickel sulphides and laterites are very different, not only in the basics such as composition, but on a higher level, such as the jurisdictions where they are found.  In my opinion, while the demand fundamentals of the nickel market are bullish, developments in 2 of the bigger jurisdictions for nickel mine production – Indonesia and the Philippines – could have a major effect on the supply side of the market, good or bad. Time will tell.

NOTE: There is a 3^rd but much less common nickel mineral called Awaruite. There is only one deposit that I know of, FPX Nickel’s Baptiste Deposit in the Decar District, which is located in British Columbia, Canada.

A summary of the key differences between the 2 types of deposits:

• Mining – Nickel sulphide deposits, which are typically found deep underground, are typically more expensive and difficult to mine in comparison to laterite deposits, which are found at surface and can be open pit mined.
• Grade – Comparatively, sulphides are typically a higher grade than laterites.
• Ore Processing – Comparatively, sulphides are easier and cheaper to process than laterites.
• Exploration – Sulphide deposits are more expensive to find in comparison to laterite deposits. Sulphides are found deep in the earth’s crust and, therefore, are much harder and costlier to find.

As you can see, there are advantages and disadvantages to each type of ore. Currently, the sulphide ore mainly feeds class 1 nickel users, and the laterite ores mainly feed the stainless steel industry (which, by the way, currently accounts for 2/3 of the global nickel demand).

Nickel Laterite Ore Processing

Nickel laterite ore processing depends on the zone from which the ore is mined. As outlined earlier, each zone within a laterite deposit is very different in its chemical composition and, therefore, restricts the processing technique that can be used to extract the nickel.

Pyro-metallurgy

Smelting

Arguably the most well known and widely used processing technique for extracting payable metals is smelting. The smelting of nickel laterite ore is no different, as the smelting process is the dominant technique and is typically used to make nickel pig iron (NPI) for the Chinese stainless steel market.

NPI is created by mixing, saprolite ores with coking coal and a mixture of fluxes. The process culminates in an electric arc or blast furnace, which renders the unwanted impurities into slag and allows the molten mixture to be cast into molds, forming nickel pig iron.

The main advantage of the smelting process is that it is a proven technology and can process saprolite ores (high magnesium), in relative terms, quickly. As well, it has high nickel recoveries. The smelting process, however, it requires a higher grade laterite ore, a large amount of energy to operate, and finally, doesn’t separate cobalt in the process.

Hydro-metallurgy

Hydro-metallurgical processing of nickel laterite ores can produce either a pure metal or an intermediate product such as mixed hydroxide precipate (MHP), mixed sulphide precipate, nickel carbonate or mixed nickel oxide.

The production of pure metals comes at a higher cost, as it requires additional facilities for purification, cobalt separation, and electro-winning – which can be expensive from an energy perspective. Alternatively, the production of intermediate products can be advantageous for all the opposite reasons that make pure metals less cost effective – less CAPEX and less energy intense.

The future of the hydro-metallurgical processing is most likely in high pressure acid leaching (HPAL), which has its own pros and cons, but has been gaining popularity in the last few years.

High Pressure Acid Leaching (HPAL)

The HPAL process’ re-emergence on the world stage as a technique for processing laterite ore is gradually gaining popularity as companies have begun to realize the need for laterites to be processed into Class 1 nickel units. Unfortunately, while the HPAL process is gaining more attention, it’s only really effective at processing the low magnesium limonite ore, as high magnesium levels have a neutralizing affect on the sulfuric acid which plays a key role in the extraction of the payable metals in the process.

The HPAL processing begins with the crushing of the ore, which is then mixed with water and preheated before being placed into an autoclave. The autoclave then elevates the temperature (up to 255 degrees Celsius) and pressure (725 psi) of the slurry and sulfuric acid and, over the next 60 minutes, the mixture reacts, extracting the nickel and cobalt from the slurry.

Once the autoclave portion of the HPAL process is completed, the slurry must be brought back down to atmospheric pressure and, thus, requires at least a couple of pressure letdown stages, which reduces the overall pressure of the slurry. Once at atmospheric pressure, it can be washed and the nickel / cobalt separated from the liquid.

Overall, the main advantages of the HPAL process are its ability to process low grade nickel laterite ores and its high and separate recoveries of nickel and cobalt. These advantages, however, are contrasted by a few negatives, which are its inability to process high magnesium or saprolitic ores, high construction and maintenance costs due to the highly corrosive sulfuric acid and, finally, the proper disposal of the magnesium sulphate effluent (waste).

NOTE: There are a few other types of nickel laterite processing techniques that are used throughout the world, such as, Caron Processing, Pressure Acid Leaching (PAL), atmospheric leaching, and bioleaching.

Global Nickel Refinement

The following flow chart produced by UBS Research is a great depiction of how the current nickel supply is consumed. It’s my contention that the 10% of nickel laterite consumption, which is currently diverted to create nickel chemicals and metal, will increase over time and fulfill the Class 1 nickel demand, which I believe will outpace sulphide ore production.

Source: UBS Research

Concluding Remarks

The EV revolution is here and, to me, it’s not a matter of ‘if’ but at what rate will the global population adopt EVs into their lives. As a result, all of the battery metal markets will be affected, each in its own way. The metal that I believe will play the largest role in this revolution is nickel.

This future onslaught of demand will be fulfilled by nickel laterites, which, today, have a minimal role in the Class 1 nickel market. In my opinion, the drop in nickel sulphide production, exploration and development over the coming years will force battery makers to consume nickel produced from the HPAL processing of laterite ores.

This, in turn, will have to be met with a rise in nickel prices to allow for these low grade laterite ores to be cost effectively processed for their use within the battery market.

Ultimately, I believe the future is very bright for nickel, but don’t get too caught up in the narrative; as I’ve shown, there are other ways the market can change to accommodate this major influx of demand.

Don’t want to miss a new investment idea, interview or financial product review? Become a Junior Stock Review VIP now – it’s FREE!

Until next time,

Brian Leni  P.Eng

Founder – Junior Stock Review

Disclaimer: The following is not an investment recommendation, it is an investment idea. I am not a certified investment professional, nor do I know you and your individual investment needs. Please perform your own due diligence to decide whether this is a company and sector that is best suited for your personal investment criteria.

In June, I had the pleasure of visiting the Yukon, Canada’s most westerly Territory and the land of the midnight sun. The point of my visit was to partake in the 2018 Yukon Property Tour, which, this year, brought together 3 large groups of investors, analysts and media to see a few of the Yukon’s most promising projects and to participate in a full-day investment conference.

The tour took me to 6 different projects in 4 days, giving me a great perspective of the Yukon’s mineral potential and the people who are exploring and developing within it. In all, I came away very impressed and believe that it’s just a matter of when for most of the projects in terms of their development into Canada’s next mines.

Here’s a look at the Yukon by the numbers and a few specific things that I, personally, look at when gauging the opportunity for investment within a jurisdiction.

Enjoy!

Yukon – By the Numbers

Population – 38,630 (December 2017) –23% of the Yukon’s population is Aboriginal.

Capital City– Whitehorse (has an International Airport) – Population 29,962 or 78% of the Yukon’s total population.

Demographics – 0 to 19 years of age: 8,217, 20 to 64 years of age: 25,627, 65+: 4,784 – This is a great distribution of demographics for a developing Territory.

Unemployment – 2.7% (May 2018) – This is a great statistic; essentially, those who are able and want a job can find employment. The issue may be, and this is a great issue to have, finding enough workers in what I see as a bright future for growth, especially in the mining industry.

Largest Cities by population, outside of Whitehorse – Dawson City: 2,200, Watson Lake: 1,441, Haines Junction: 911, Carmacks: 549

Real GDP – $2,345.3 million (2016)

GDP by Industry (in terms of NAICS – 2016) – Public administration: 23.1%, Real estate and rental and leasing: 14.2%, Mining, quarrying and oil and gas extraction: 12.8%, Health care and social assistance: 8.4%, Construction: 7.7%

• With higher precious and base metals prices in the future, a lot of prospective projects have a very good chance of re-starting production (i.e. Alexco Resources), or developing their deposit into a mine, (i.e. Western Copper and Gold). Given the relatively small size of the Yukon economy, major projects such as Western Copper and Gold’s Casino Project will have a tremendous effect on the overall Yukon economy.
• The Government of the Yukon and the Federal Government make up a major portion of the Yukon economy, as you can clearly see from the GDP break down. For the success of the Territory, this has to change in the future.

Fraser Institute Ranking for Mining Investment Attractiveness 2018 – 13^th in the world

• The Yukon is a premier jurisdiction for mining and attained a score of 79.67, or 13th in the world, for mining investment attractiveness, according to the Fraser Institute’s 2018 rankings. The Fraser Institute uses a number of criteria for evaluating a jurisdiction, such as political stability, mining law, taxation and, arguably the most important, mineral potential.

NOTE: All statistics taken from the Government of the Yukon Statistics

 Aboriginal Land Claims and Self-Government

11 of the Yukon’s 14 First Nations have comprehensive land claim (Final Agreements) and Self-Government Agreements. It was in 1993 that the template, the Umbrella Final Agreement (UFA), was signed and used toward the negotiation of individual land claim agreements.

Source: The Government of the Yukon

With the settling of their land claims, each First Nation has the power to control and direct their own affairs. Most importantly for the subject of this article, they have direct control over the exploration and development of the mineral projects on their property.

The following First Nations have settled their land claims and are now self-governing:

• Champagne and Aishihik First Nations (1993)
• First Nation of Na-Cho Nyäk Dun (1993)
• Teslin Tlingit Council (1993)
• Vuntut Gwitchin First Nation(1993)
• Little Salmon/Carmacks First Nation (1997)
• Selkirk First Nation (1997)
• Tr’ondëk Hwëch’in(1998)
• Ta’an Kwäch’än Council (2002)
• Kluane First Nation (2003)
• Kwanlin Dün First Nation (2005)
• Carcross/Tagish First Nation (2006)

For most investors, First Nations involvement in mining projects is typically met with skepticism; given the history of some of the dealings around the world, this isn’t unfounded. However, each situation should be examined for its individual merits, as well as the history of the specific First Nations where the prospective investment may occur.

The Yukon’s First Nations are no different and, given the immediate history with mine development, such as Victoria Gold Corp.’s development of the Eagle Gold Project within the traditional territory of the Na-Cho Nyäk Dun First Nation, it would appear to me that mutual benefit from mining is the driving force behind the cooperation agreement.

Another great example of a mutually beneficial cooperation is the synergy that has been found between the Kluane First Nation and Nickel Creek Platinum. The Kluane First Nation provides many of the key non-technical services to the Nickel Shaw Project camp, such as a great cafeteria service, which I had the pleasure of trying!

Looking up at the Nickel Shaw Project Deposit

I think the bottom line is companies that begin their relationship early in the project’s life, work to maintain that relationship, and can prove that they are as concerned about the environment and the people who inhabit that environment will, ultimately, be successful in moving toward the end goal of developing an operating mine. When researching a company, these can be key things to look for and to ask about when interviewing management. Of course, nothing matches doing a site visit and seeing it first-hand.

Yukon’s Political Landscape

Currently, the Government of the Yukon is controlled by the Yukon Liberal Party, which is led by Premier Sandy Silver.  Generally speaking, the Liberal Party’s business philosophy is typically thought to be somewhat in the middle of the left-leaning New Democratic Party (NDP) and the right-leaning Conservatives.

In November 2016, the Yukon Liberal Party defeated the Yukon Party (conservatives), which was in power for many of the terms dating back to 2000. With a very low unemployment level and 80% of the population located in Whitehorse, politics in the Yukon are somewhat unique. Much like the rest of the country, however, issues surrounding the environment – carbon tax, power generation and housing – price and availability seem to be hot topics in the land of the midnight sun.

From an investment perspective, I’m always most concerned with left-leaning government power. Although, NDP governments have been in power in the past, the conservatives have dominated the leadership of the Territory for much of the last 20 years. Given this fact, I believe that past will be prologue in terms of the Yukoners’ general political philosophy, but it’s always something that should be watched.

Yukon Mining Alliance

Uniquely, to my knowledge, many of the junior and major mining companies with projects in the Yukon have formed the Yukon Mining Alliance (YMA) with the Government of the Yukon and the Canadian Northern Economic Development Agency.

The YMA’s mandate is to,

“promote Yukon’s competitive advantages as a top mineral investment jurisdiction and its member companies and their Yukon-based project.†~ YMA

In my opinion, this is a huge advantage of investing in companies with projects in the Yukon, because clearly the marketing and promotion of mining within the Territory’s borders is a major priority. Bottom line, narrative plays a big role in the success of junior mining companies, and with the added help of the YMA, Yukon-based companies have a distinct advantage working together to promote the Yukon mining jurisdiction narrative.

Personally, I have seen the YMA presence at a couple of the top mining conferences in Canada, such as PDAC and Cambridge’s Vancouver Resource Investment Conference (VRIC). The YMA is putting the Yukon on the map for interested resource investors, which, I believe, will pay off in spades as we move into the next leg of the bull market.

Infrastructure

In my opinion, the biggest knock against the Yukon in terms of risk to investment is the lack of infrastructure. With close to 80% of the Yukon population concentrated in Whitehorse, the need for roads, telecommunications and power infrastructure to the remote or uninhabited portions of the Territory hasn’t been a high priority or practical, given the cost. However, this is rapidly changing as it’s now abundantly clear that access to power, telecommunications and roads have become the major sticking points for a few of the Yukon’s most advanced mineral development projects.

Yukon / Northwest Territories Fibre Optic Line

As you can see in the image below, the thick black line represents the existing fibre optic line which feeds the Yukon with its high-speed internet access. With only one fibre optic line feeding the Yukon’s internet demand, the system was highly susceptible to disruptions due to the fibre cable being cut along the Alaska Highway.

Source: CBC News

To improve the reliability of the internet access, the Government of the Yukon initiated the$50 to $70 million North Canada Fibre Loop Project, which would connect the Yukon to the Northwest Territories’ (NWT) fibre network via fibre optic lines running north from Dawson City to Inuvik, NWT.

During my site visit tour, it was announced that this project was successfully completed and, thus, has brought a new age of reliability to the Yukon’s internet access. This project is a major milestone for the Territory and should provide a reliable base from which to build, moving forward.

LNG Power Generation

In 2017, 97% of the Yukon’s electricity was produced from 3 hydro-electric power generation plants. For a number of years, these hydro-electric operations were backed up by diesel generators, which kicked in during peak demand scenarios.

With carbon emissions and the overall price of power generation becoming bigger constraints to development, in 2014, the Government of the Yukon made the decision to green-light Yukon Energy’s plan to move to a liquefied natural gas (LNG) as a fuel for generating backup power for the grid.

The fracking revolution dramatically changed the supply to demand balance in the oil and gas world, causing a major swing upward in the availability of natural gas for the market. Thus, natural gas prices have hovered around their multiple decade lows for a while, now.

While natural gas is one of the cheapest and cleanest burning fossil fuels available, the issue has been economic transportation. To allow for a meaningful amount of natural gas to be transported over a significant distance, it’s currently converted into LNG.

The natural gas is extracted from the ground and then refrigerated to minus 162 degrees Celsius, turning it into a liquid and, thus, more amenable to economic bulk transportation.

Source: Yukon Energy

LNG Storage

A big step toward making LNG a viable option for developing mines in the Yukon could be the construction of an LNG storage facility. Currently, Ferus Natural Gas Fuels Inc., the LNG supplier to the Yukon, is working with Yukon Energy to gauge the potential of such a facility.

If the LNG storage facility were to be built in Whitehorse, it could not only feed the backup generators, but also act as a depot for future mines that incorporate LNG into their long-term energy plan.

Having a reliable power infrastructure is paramount to the success of large-scale mining operations. With a number of sizable development projects waiting for their opportunity to be developed into mines, in my opinion, the Yukon is headed in the right direction by pursuing an LNG storage facility.

Yukon Resource Gateway Project

On September 2, 2017, the Yukon received a major commitment toward its development when it was announced that the Canadian Federal Government would contribute $247 million to the Yukon Resource Gateway Project.  The $247 million represents just over half of the $469 million needed to construct a road from Carmacks to Dawson City.

In my opinion, the main reason for this major undertaking was Goldcorp’s Coffee Project, which sits roughly half way between Carmacks and Dawson City, and is in the process of being developed into Canada’s next producing gold mine. Additionally, Western Copper and Gold’s Casino Project sits in the permitting stage of development and looks to benefit greatly from this announcement, as the road will give access to what is now a remote location.

Further, the Government of the Yukon will contribute $113 million to the Gateway Project, leaving the remaining $109 million to the mining companies to fulfill. The construction of the road has begun and, given the comments from Western Copper and Gold representatives, should take roughly 3 years to reach their property from Carmacks.

I think there’s no doubt that this road will be a major turning point for the Yukon and its development into a destination for mining, because I believe it and possibly slightly higher metal prices are the only things keeping this area of the Yukon from being developed, right now.

Mineral Potential

In my opinion, one of the most compelling reasons for investment in the Yukon is its mineral potential. With a good portion of the Yukon still not accessible by road, much of the Territory is still yet to be explored and, therefore, presents a blue sky type of opportunity for those who are willing to go off the beaten path.

Yukon Geological Survey

Both the Federal and Territorial Governments clearly recognize both the potential and the large expense associated with mineral exploration and development and are, therefore, directing funding accordingly. One such Territorial organization at the forefront of this PUSH is the Yukon Geological Survey (YGS).

The YGS’s mandate is to ‘provide the geosciences information required for resource and land management for the benefit of Yukoners, by acquiring and disseminating geological and geo-hazard knowledge to support exploration, inform resource and land management planning, and engage communities, schools and the public.’

Additionally, it manages the Yukon Mineral Exploration Program (YMEP), which has been set up to promote mineral prospecting and exploration activities in the Yukon. The YMEP has a $1,600,000 funding level for the 2018-19 fiscal year and is accepting applications for prospective projects.

It’s initiatives such as this that are keeping the pipeline of prospective geological targets full and, therefore, of keen interest to investors.

Tintina Gold Province

One of the most prospective regions for mineral exploration in the north-western portion of North America is the 150,000 square kilometre Tintina Gold Province (TGP). TGP runs east-west across the middle portion of the Yukon and Alaska, and is roughly 200 kilometres wide in its entirety. The TGP is essentially bound by the Kaltag-Tintina fault system to the north and the Farewell-Denali fault system to the south.

TGP encompasses arguably the Yukon’s most famous geological region, the Klondike gold fields which lay just south of Dawson City.  As stated earlier, the Resource Gateway Project will open this region up to development and exploration. Companies such as Klondike Gold, Trifecta Gold, Goldcorp, White Gold and Western Copper and Gold will greatly benefit from the road access to theirprojects.

View from the helicopter while flying over White Gold’s Property

White Gold Core Shack – red circle signifies visible gold

Klondike Gold Rush

The Klondike Gold Rush began in August of 1896, as three prospectors, George Carmack, Jim Mason and Dawson Charlie, discovered gold in what they referred to as ‘Rabbit’ Creek, or what is now referred to as Bonanza Creek. With the discovery and the rush to stake their claim, word quickly spread of their discovery, and so spurred an historic gold rush in Canada’s Yukon Territory and the United States’ Alaska.

Source: Yukon Government Archive

It’s estimated that the Klondike Gold Rush attracted 100,000 people from all walks of life, testing their luck against the odds to find their fortune.  Many of the new American prospectors found their way north via ships boarded in Seattle.  Former ports, such as Dyea, Alaska, were accessible at high tide and allowed prospectors to begin the lengthy trip north toward the centre of the Gold Rush, Dawson City, which is roughly 700km north.

Source: Yukon Government Archive

Unfortunately, for the vast majority of newly minted prospectors, their dream of discovering a fortune never came to fruition; if it wasn’t the weather and the long trip to the prospective gold claims, it was the exorbitant costs that came with exploring and living in the north. In many of the articles I read while researching the Klondike Gold Rush, many estimated that costs were 10 times higher than what most of the people would have experienced in their former lives, living in Toronto, New York or Chicago.

Source: Yukon Government Archive

The Klondike Gold Rush is estimated to have produced $29 million in gold over its 3-year span. Additionally, the Yukon Geological Survey estimates that a total of 20 million ounces of gold has been extracted from the Klondike goldfields since 1896. Gold mining can be credited with spurring the development of much of Canada and America’s northern most territories and states. In my opinion, the Yukon holds tremendous mineral potential and will only increase its prestige within the mining community.

Selwyn Basin

Moving to the eastern portion of the TGP within the Yukon, you enter the Selwyn Basin, host to the famously rich, Keno Silver District, which has 214 Moz of historic silver production and is located north-east of Mayo. It’s also in the immediate vicinity of Keno City, one of the Yukon’s smallest communities with just 24 residents.

For those who may not know, Alexco Resource’s Bellekeno silver mine is located in the Keno Silver District, which began operation in 2011 and produced until its suspension in 2013. The Keno Silver District is not only famous for its past production, but its high silver grades, which range up to 1,000 grams per tonne, putting them near the top in the world.

Standing in Alexco’s Flame & Moth decline

ATAC Resource’s Rackla Gold Project, also in the Selwyn basin, is a standout, in my mind, given the Carlin Style gold mineralization which has been found on the property. With its typically cheap mining and recovery methods, Carlin Style gold mineralization has made Nevada one of the premier gold producing jurisdictions in the world. In recent news, ATAC released their maiden resource on their Osiris Project, which has an inferred resource of 1.685 Moz at an average grade of 4.23 g/t.

ATAC Resources – Rackla Gold Property

Finally, the Selwyn Basin is home to sedimentary exhalative (SEDEX) deposits (Pb-Zn-Ag), which, in terms of Fireweed Zinc’s Macmillian Pass Zinc Project, rank near the top of the world’s largest in terms of zinc and overall mineral content.

In my opinion, world-class mineralization potential awaits those exploring in the Yukon. As the infrastructure quality improves and cash begins to pour back into the mining sector on a whole, I have no doubt that the Yukon will play a major role in Canada’s mining future.

Concluding Remarks

No investment is without risk, and for many companies within the junior resource sector, jurisdiction is the greatest risk. Personally, having researched the Yukon and now visited, I have to agree with the Fraser Institute rankings and believe the Yukon is a premier jurisdiction for mining investment.

In terms of the risk that I see with the Yukon, it’s mainly related to infrastructure and the time required to build it. In terms of investment, however, I like that the risk is associated with what I believe is a ‘when’ and not an ‘if’ question – it’s just a matter of time before the necessary roads, power and telecommunications are in place to move many of these projects forward.

I must note that there’s a good portion of projects in the Yukon that sit in close proximity to everything that is needed and, therefore, I caution anyone from painting all of the projects with the same brush.

The Yukon has world-class mineral potential and it’s attracting the world’s major mining companies, which, over the last few years, have taken either portions of a few of the juniors or have acquired the entire project for development into a mine.

With what looks to be a politically stable government and a good relationship with its self-governing First Nations, the Yukon is ready for investment, and I will be looking to invest in a couple of the companies that I believe present the greatest price to value propositions.

Don’t want to miss a new investment idea, interview or financial product review? Become a Junior Stock Review VIP now – it’s FREE!

Until next time,

Brian Leni  P.Eng

Founder –Junior Stock Review

Disclaimer: The following is not an investment recommendation, it is an investment idea. I am not a certified investment professional, nor do I know you and your individual investment needs. Please perform your own due diligence to decide whether this is a company, sector or jurisdiction that is best suited for your personal investment criteria. Brian Leni does not own any shares of the companies mentioned in this article at this time.

On June 14th I presented and was apart of a panel during the first day of the Mining Investment North America Conference. While at the show I had the chance to speak with Georgia Williams from the Investor News Network (INN). In the interview we discuss the upside potential and risks associated with investing in junior nickel companies and also a few points on how I think you can be more successful in the market. Enjoy!

Disclaimer: The following is not an investment recommendation, it is an investment idea. I am not a certified investment professional, nor do I know you and your individual investment needs. Please perform your own due diligence to decide whether this is a company and sector that is best suited for your personal investment criteria. I do own shares in FPX Nickel Corporation. Junior Stock Review and/or Brian Leni has NO business relationship with FPX Nickel Corp. or any other company mentioned within this interview.

Lately, I’ve spent a lot of time debating the criteria I use and the level of risk I’m willing to take with regards to jurisdiction. I find the topic of jurisdictional risk very interesting because, although, there’s a quantifiable aspect to jurisdiction, I believe many of the general opinions regarding jurisdictional risk are based on qualitative observations or anecdotal themes that are proliferated through the mainstream media.

A good example is Russia. Many jump to the conclusion that it’s a VERY risky country and, therefore, not a place to invest. I don’t necessarily disagree; most of the propaganda about Russia, today, is ‘negative.’

Let’s, however, take a look at one of the criteria listed by the Fraser Institute in its examination of jurisdictional risk; political stability. Relative to its peers, Russia scored low, which too many translate into ‘stay away.’ While political stability is a complex factor, I was taken aback when a friend, whose company does business in Russia, said he finds this scoring comical; “does anyone really think there’s going to be some serious political upheaval while Putin is in charge?” Given the complexity of evaluating political stability, his answer isn’t complete, but it still reveals the contrast in views – those who have experience in these ‘risky’ jurisdictions, and those who rely solely on narrative to form their opinions.

Last year, one of the mining industry’s best, Rick Rule, gave me some sage advice regarding jurisdictional risk;

“My own experience is that most investors equate political risk to their emotion rather than to reality, and you tend to react more strongly to political risk that you haven’t experienced or don’t understand. My own belief is that money that is stolen from me by white people in English, according to the rule of law, is just as gone as money that is extorted from me in some third world kleptocracy.

My experience, further, by doing business internationally, and this is going to sound like a generality, which it is, but it is also true, countries that can’t get any worse don’t, and countries that can’t get any better don’t, either.  This plays out over time, not immediately, but the truth is, the countries that have rewarded me the best are countries that have been coming off low bottoms. An example would be Chile, with a superb exploration endowment coming off, first, the idiocy of socialism under Allende, and then, the murderous regime of Pinochet. The response of the geology in Chile to stability and the sort of social sense that they had had enough of rightist and leftist autocracy was spectacularly good for me. I made money in hard places like Russia, Sudan, Congo. The truth is that most of the great, easy to find, tier one deposits that exist in countries that have been able to be explored efficiently in the last 40 years have been made. The big tier 1 discoveries that have yet to be made are going to be made in places where there have been problems with access or problems with cost of capital. Places like the Tethyan metalagentic belt, running through Turkey, Pakistan, Kazakhstan, Afghanistan, Uzbekistan, Kyrgyzstan, Mongolia, those types of places. The easy deposits in safe places have mostly been found.” ~ A Conversation with Rick Rule, CEO of Sprott US Holdings

With this in mind, and through my process of due diligence, I believe Ecuador is a country which is coming off a bottom in terms of mining investment attractiveness. I’m a buyer of what I believe are the highest quality junior mining companies exploring and developing projects in Ecuador, and believe that money invested now, near the bottom, gives the investor a great risk to reward opportunity.

Ecuador

• Capital City – Quito
• Population – 16.529 million
• Currency – U.S. Dollar
• 2017 GDP – $70.955 billion USD
• 2017 Unemployment Rate – 4.34%
• Main Industries – Petroleum (more than 40% of exports), food processing, textiles, wood products and chemicals
• Main Export Partners – United States, Chile, Peru, Colombia, Japan and Russia

*All Figures taken from IMF website

Ecuador’s economy is the 8^th largest in South America and is driven by the oil industry, where petroleum makes up almost half of the country’s exports. The agriculture sector is a distant second with a little more than 10% of exports.

NOTE: Ecuador is the largest banana producer and exporter in the world.

Ecuador’s oil production began in the early 1970s and is clearly the main driver of the economy. In the years before oil production, Ecuador was a country whose people identified with an agrarian social philosophy, meaning they valued rural society as superior to urban society. With the influx of cash into the country, this has slowly started to change and, in my opinion, is a key point in understanding the Ecuadorian culture.

Social Unrest – Taxes and the Environment

Looking into Ecuador’s past, it’s evident that its people are not afraid to protest, especially when it comes to the environment or a number of social issues. Ultimately, moving forward, the government will have to choose how they deal with future protests but, either way, social unrest surrounding a potential mine site could have a major impact on the success of the project.

Environment

If I were to pick the most likely point of contention regarding mining’s future in Ecuador, it would be related to the environment. Ecuador is near the top of the world list of biodiversity hotspots in terms of vertebrate species, endemic vertebrates and plants. Specifically, the Intag region, named for the river that runs through it, spans two of the world’s 34 most biologically important areas.

This biodiversity is highly coveted by many who live within Ecuador and many of the environmental NGOs around the world.  Doing a quick search of environmental organizations with propaganda referencing Ecuador reveals a long list of interested parties including, The Ecologist and Fund My Planet.

While there is the potential for turmoil regarding the environment, I think that the probability of there being issues can be reduced if handled correctly by the mining companies. By ‘handled correctly,’ I think it’s really important to educate and support the local communities in the region with which you’re developing or exploring. Educate on the benefits of mining and how the company intends to protect the environment in which it’s working.

Additionally, an X-Factor in this type of relationship are ties with Ecuadorian companies that have operated within the country for many years. I think the companies that leverage their relationships within Ecuador are miles ahead of those who try to navigate the culture and government from the ground floor.

There’s one such relationship which I think has a ton of potential to bring shareholders value through their expertise and recognition within the local communities.  Adventus Zinc Corporation and Salazar Resources (SRL:TSXV) have this type of agreement, and I had the opportunity to ask Sam Leung, Adventus’ VP Corporate Development, about it.

Adventus Zinc Corp. (ADZN:TSXV)

MCAP – $45.5 million (at the time of writing)

Brian: In your opinion, why was it important to have a partner, such as Salazar, in Ecuador?

Sam: Local know-how is often invaluable, particularly in the mining sector and developing jurisdictions such as Ecuador. Many foreign companies and corporate personnel often fail to recognize what they do not know about a project jurisdiction and its normal business and community practices, so a trusted local partner can add significant value with operational experience and local networks. For Adventus’ Curipamba Project and the Ecuador country-wide alliance, a strong partnership has been formed with Fredy Salazar and his local Salazar Resources team, who are pioneers in Ecuadorean mineral exploration with over 30 years in their home country. The Salazar team work closely with Adventus to help expedite and complete tasks in country with minimal complications, and share important business insights from domestic developments.

Brian: What do you see as the biggest risk for mining investment in Ecuador?

Sam: We perceive community relations and integration to be the biggest risk not just for mining investment in Ecuador but most other developing countries. Each project has different stakeholders and dynamics, so investors need to be aware of management teams’ capabilities and limits in addressing social needs in project development. For the Curipamba Project, the Salazar team are well-respected members of the project communities, while Adventus brings additional resources and international best-practices to address social needs.

Left-Leaning Socialism

The political philosophy which I’m most apprehensive about, especially from an economic standpoint, is left-leaning socialism. Throughout history, political structures rooted within these frameworks have been bad for business.

I believe, however, that given the obvious PUSH toward reducing taxes and attracting mining investment dollars, at least in the short-term, the risk associated with this form of political philosophy is reduced, but never too far away.

For me, when a political philosophy is so ingrained in the culture of a country, it’s only a matter of time before the cycle shifts and once again reflects the country’s history during Correa’s rein. I’m very optimistic that the next few years will remain positive for mining investment, but will remain open-minded about the subtleties that may be indicating a reversion back to the mean!

The Last 10 Years

A major turning point in Ecuador’s history, in terms of how it relates to mining, occurred in November 2006 with the election of Rafael Correa as President.  Interestingly, Correa’s 10 years as President was unusual given the fact that there had been 7 different Presidents in the previous decade.

Correa’s appeal to the Ecuadorian people appears to have been rooted within socialist or left-leaning political philosophy, which saw a major portion of tax dollars diverted into social causes, such as healthcare, education and agricultural subsidies. Additionally, and more to the point of this article, Correa focused his attention on extracting more cash from the mining business.

In April of 2008, Correa’s government adopted a new mining mandate which restricted companies to holding a maximum of three concessions and instilled a 180-day suspension of activities for almost all mining concessions in Ecuador while a new mining law was put together. This controversial move did not go over well with investors, and most of the mining companies which held property in Ecuador, as they saw their share prices fall in response to the news.

Months after, still under the guise of the new mining mandate, Aurelian Resources sold their multi-million gold ounce deposit, Fruta del Norte, to Kinross Gold Corporation for $1.2 billion.  I believe this deal single-handedly marked the height of ‘doom,’ so-to-speak, of the hard-rock mining industry within Ecuador.  Over the coming years, Kinross participated in negotiations with the government over terms to develop Fruta del Norte into a mine but, ultimately, couldn’t come to an agreement.

As cited in many articles relating to the negotiations, the Ecuadorian Government insisted on a 70% windfall profits tax, which, in essence, would limit the profitability of the mine in a rising gold price environment. Ultimately, this led to negotiations falling apart in 2013. Within a year, Kinross formally stepped away from Fruta del Norte with its sale to Lundin gold for $240 million – a whopping 80% loss!

As I stated, I believe this marked the low point for hard-rock mining in Ecuador; outside of nationalizing Fruta del Norte, selling it for a fraction of the purchase price because of negotiations with the government had a major effect on how the mining industry viewed investment within Ecuador’s borders.

The failure of these negotiations is clearly visible in the popular Fraser Institute Rankings, as Ecuador’s score for mining investment attractiveness fell to a low of 38.1, ranking it 80^th out of the 122 countries that were covered by the 2013 report. In the years since, Ecuador has slowly improved its ranking with a score of 45.9 in 2014, 45.36 in 2015, 50.38 in 2016, and 52.09 in 2017. While this is a marginal improvement year over year, the score is headed in the right direction, and one which, I believe, will improve again in 2018.

2018

Why do I believe that Ecuador’s mining investment attractiveness score is going to continue to improve in 2018? Great question and one that needs to be explained in further detail, as Ecuador’s past needs to be kept in perspective when making prognostications.

Goal of Attracting $4.6 Billion Investment Dollars Over the Next 4 Years (2021)

In May 2017, Lenin Moreno replaced Correa as President of Ecuador.  While much of what I have read describes Moreno as having a socialist or leftist political philosophy that’s very similar to Correa’s, Moreno has publicly stated a desire to attract close to $5 billion for Ecuador’s mining sector. This is a lofty goal because, in my opinion, they will have to make great strides with regards to changing their image in the mining sector in order to accomplish this.

At this year’s PDAC, Ecuador may have made a crucial step in improving their image, as they were the headline country sponsor for the event and had a large booth at the show. While advertising is great and a step in the right direction, if they don’t take action to improve the country’s mining investment attractiveness, it may be all for not.

Even before this advertising PUSH, however, Ecuador has shown that it’s poised to change. The biggest change, in my mind, comes with hiring Wood Mackenzie as a consultant to assist in changing Ecuador’s mining tax regime, making it competitive with the rest of the world.

Here’s a list of some of the positive fiscal and financial reforms made over the last few years:

• Value Added Tax (VAT) Recovery – Starting in 2018, VAT will be recoverable for mineral exports
• Windfall Tax – A bill has been expedite to remove the windfall tax, and should be approved in the next 30 days.
• Sovereign Adjustment
• Currency Transaction Tax – exemption on tax relating to currency outflows
• Accelerated Depreciation – Investors’ choice of 5-10 years (locked in fiscal stability contract)
• Fiscal Burden – For example, the fiscal burden on a large scale copper project has dropped from 30% to 23% with the changes to the tax regime

NOTE: Review Wood Mackenzie “Ecuador Tax Regime”

Brian: Of the positive fiscal and financial reforms made by the Ecuadorian government to date, which do you feel will be the most effective in changing perception of the mining community?

Sam: We believe the significant reduction in the Windfall Tax terms over the past few years has been integral to changing the investment perception. Due to the negative connotations, we also believe the government of Ecuador could go further and remove the Windfall Tax outright, but that remains to be seen. Please refer to our corporate presentation on the Adventus website for more details on the Windfall Tax.

Brian: In your opinion, is there anything else that needs to occur to change the perception of the mining and investment communities?

Sam: With regards to exploration investment jurisdictions globally, Ecuador has been arguably the hottest over the past 12 months and this momentum continues. Longer term, we believe a significant milestone for Ecuador will be the completion and successful commercial operation of the first large mines which are currently in construction. Once these foreign companies demonstrate returns on their investments, many more deep-pocketed investors will be drawn into Ecuador.

Cash Flow Back Into Ecuador

As Ecuador’s actions align with the statements they’ve made about bringing mining investment dollars to the country, cash has begun to flow back into the country’s hard-rock mining sector. Arguably the best example of this comes from Lundin Gold and their push toward the development of Fruta del Norte.

Fruta del Norte

On January 14^th, 2016, Lundin Gold announced that they had completed the negotiation of the definitive form of the Exploitation Agreement for the Fruta del Norte Project with the Government of Ecuador.  The completion of this Agreement is a huge milestone given the controversy associated with its history. For those interested in reviewing the details of the Agreement, please follow the link to the news release.

The completion of the Agreement was very important, but most important is Lundin’s ability to take the Agreement and put it into action via financing for the development of the Fruta del Norte Project. On March 26, 2018, Lundin Gold took a major step forward by announcing that they would be closing their $400 million USD equity private placement.  In my opinion, while the risk to reward ratio is very much in favour of Lundin Gold, considering the upfront capital cost versus upside potential related to expected gold production, the raising of this amount of cash for a gold project located in Ecuador speaks volumes about how the market is changing its view of the country, and Lundin’s level of influence within the industry.

Collaboration – Chile and Ecuador

On March 10^th, 2018 Codelco, the world’s largest copper miner, announced that Chile’s Minister of Mining, Aurora Williams, and her counterpart in Ecuador, Rebecca Illescas, signed a joint declaration that strengthens the agreements of the Codelco-Enami EP alliance, and expedites the execution of the Llurimagua bi-national copper project, located in northeast Ecuador.

To date, there has been $34 million USD spent on the Llurimagua Project. It’s expected that the total will be upwards of $50 million USD by the end of the advanced exploration phase. The signing of the agreement and the money being spent by Codelco on the Llurimagua Project is another example of the changing tides in Ecuador.

Cascabel

One of the hottest stories in the junior mining sector in 2017 was about Sol Gold, which is developing Cascabel, its porphyry copper-gold deposit, located in the Imbabura province in the northwest region of Ecuador.

Cascabel is a great example of the mineral potential that exists within Ecuador. Clearly, investors are attracted to Sol Gold with their high-grade copper over wide intervals, such as that which was found in Cascabel Hole 12 and produced an interval of 1560 meters at 0.93% CuEq, or Hole 9, which produced an interval of 1197.4 meters at 1.16% CuEq.

Are mining investors avoiding Ecuador? Glancing at Sol Gold’s stock chart, I think the answer is no. With Ecuador’s push toward change in its hard-rock mining policy, and what looks to be world-class mineral potential, investors are clearly interested in the risk to reward potential.

Ecuador’s Potential

In my opinion, the top reason for investing in junior mining companies that are exploring or developing projects in Ecuador is the mineral potential that exists within its under explored borders.  Also, more with regards to the projects that are in development, Ecuador produces 90% of its internal energy requirements via hydro electric dams, giving Ecuador some of the cheapest electricity in the world.

Mineral Potential

Ecuador is located on the northwest coast of South America and is host to the northern portion of the Andes Mountain chain. The Andes are famous for their mineral endowment, as a couple of South America’s most prolific mining countries, Chile and Peru, have produced some of the richest deposits in the world.

In a presentation entitled, Geological and Mining Potential in Ecuador, John Efrain Bolanos cites,

“the spatial-time distribution of the Cu porphyries and related epithermal mineralizations of the Peru metallogenic belts are very similar to those ones in Ecuador.”

Source: John Efrain Bolanos Presentation – Geological and Mining Potential of Ecuador

From Bolanos’ presentation, Ecuador can be broken down into 6 geo-structural domains, which showcase Ecuador’s geological potential:

1. The Fore Arc Basin of the Coast

• Cretaceous to Cenozoic basin underlain by aloctonous basaltic ocean crust

2. Western Cordilera

• Formed by an accretionary prism mainly of ocean crust composition, continental crust and accreted Late Mesozoic to Cenozoic ocean terrains

3. Interandean Graven

• Formed by thick and large Oligocene to Miocene volcano-sedimentary sequences

4. Real of Central Cordilera

• Formed by several litho-tectonic divisions of Andean bearing and separated by regional faults. Guamote division, Alao division, Loja division, Salado division and Zamora division

5. Eastern Subandean Zone

• Formed by forearc belt of the basement covered by volcano-sedimentary sequences

6. Back Arc Basin of Iquitos

• Comprises of Oriente or Amazonian basin mainly formed by sedimentary and volcano-sedimentary sequences

Given Ecuador’s favourable geography, similarities to a couple of the world’s most prolific mining countries and lack of modern exploration activity, Ecuador may be one of the world’s last frontiers for potential world-class deposit discoveries.

Brian: Was Ecuador’s mineral potential a factor, first, in choosing  the Curipamba Project, and second, in expanding upon the exploration and development deal with Salazar?

Sam: In our global hunt for zinc-related projects in 2017, the quality of the Curipamba Project with respect to its high grade El Domo deposit and the additional exploration potential over its 22,000 hectare area stood out when compared with other known projects and operations globally. During our due diligence process, we also recognized the scale of potential discoveries within under-explored Ecuador and how a well-aligned partnership with Salazar would provide us with first-mover advantages during Ecuador’s adolescence as a mining jurisdiction. Ecuador’s mineral potential, located between Peru and Colombia, is at the heart of the investment thesis.

Concluding Remarks

It’s my contention that Ecuador is in the midst of a renaissance toward perceived mining investment attractiveness. While there’s a conscious effort being made by the Ecuadorian government to attract investment from the global mining industry, I believe investors and mining companies are rightly skeptical about placing their money in a place where so much destruction to capital has occurred in the past.

In my opinion, the risks that pose the largest threat to investment dollars still exist and will not cease to exist at any point in the future. I believe the Ecuadorian people have a culture which is rooted in left-leaning socialism. Currently, the pendulum, while still hanging under the socialist umbrella, has pushed further right and will remain there for the next few years, but will revert back to the mean at some point in the future – to that I think it’s inevitable.

Additionally, given the biodiversity of Ecuador and the global push toward environmental diligence, mining within Ecuador’s borders will always ‘walk the line’ between being accepted and being protested. Companies that do not make an effort to explain how they will protect the environment and the other benefits of mining to the communities will not be successful.

While the risk associated with investing in Ecuador is very real, I believe there’s tremendous opportunity in Ecuador right now. This is based on the following:

• Current President, Lenin Moreno, has stated that it’s his goal to attract close to $5 billion in mining investment dollars over the course of his 4 years as President. Lundin Gold’s $400 million financing for the development of Fruta del Norte speaks to the market beginning to turn in favour of investment within Ecuador.
• Adventus Zinc, Lundin Gold, Codelco, BHP and Sol Gold are all examples of companies that have started putting investment dollars to work within Ecuador. It’s my opinion that smart money begins to flow into the smart contrarian markets first.
• Wood Mackenzie’s influence in Ecuador’s mining taxes is a major step toward becoming a world-class destination for mining exploration and development. Reductions in VAT and the company’s fiscal burden, along with the proposed elimination of the windfall tax, are all integral steps in attracting further investment dollars.
• Immense mineral potential – Much of Ecuador has not been explored with modern exploration techniques. Given Ecuador’s geographical location, I believe it’s safe to say that Ecuador may be one of the world’s last remaining jurisdictions with tier 1 deposit type discovery upside potential.

I’m investing my money in Ecuador and believe it’s just a matter of time before the market recognizes the changes that have been made and will follow suit.

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Until next time,

Brian Leni  P.Eng

Founder – Junior Stock Review

Disclaimer: The following is not an investment recommendation, it is an investment idea. I am not a certified investment professional, nor do I know you and your individual investment needs. Please perform your own due diligence to decide whether this is a company and sector that is best suited for your personal investment criteria. I do own shares in Adventus Zinc Corporation. Junior Stock Review and/or Brian Leni has NO business relationship with Adventus Zinc or any other company mentioned within this article.