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Over the last two or more
years having written extensively about Molybdenum, I currently see a very similar
pattern evolving in another sector, and for many of the same reasons. The
next hot ticket mineral is going to be "Manganese" (Symbol-Mn).
Manganese is a major Steel & Iron industry ferro-alloy component (the
primary use of Mn) and a very strategic minor metal in an extremely wide
variety of applications. Some of the more standard uses include the chemicals
industry, dry cell batteries, fertilizers, feeds, glass making, paints,
varnishes and medicinal uses etc. First recognized as an element in 1774 by
Swedish chemist C W Shule, Mn was in 1882 found to be of key importance in
the production of steel by one Robert Hadfield. Manganese having been long
ago classified by the US Gov't and some other nations as a strategic metal
during wartime has placed Mn production & exploration in varying degrees
of importance over the last 100 years. Currently there appears to be no new
Mn mines coming forward and after watching the price increases over the last
few months, I believe there is now a severe shortage of production on the
horizon. *Note* Today alone the Mn price took a hike of $1450 p/metric tonne
to $5500 p/mt from $4050 p/mt yesterday. That is an increase of $1450 in ONE
DAY. (Source- www.Indianmetals.com)
Price curve for past 30
days
Manganese Flake 99.7%min FOB China
USD/mt
Price curve for past 12
months
Manganese Flake 99.7%min FOB China
USD/mt
Charts: Courtesy Asian Metals- www.asianmetal.com
Earlier I mentioned a similar pattern evolving
between Molybdenum (Mo) and Manganese (Mn). In that context I see "China
& India as well as other emerging growth nations coupled with the
subsequent booming price of Nickel, & factoring the rapid growth in Iron
& Stainless Steel production all having a profound forward effect on Mn
prices." Nickel is rapidly pricing itself out of many equations and more
and more new applications are coming forward for metals like Mo & Mn. As
we have seen recently, China
in their quest to hoard metals and resources, has now placed a number of
"export taxes AND quotas" on many metals. Export taxes for ores
of manganese, cobalt, nickel, chrome and molybdenum (including concentrates
and roasted moly oxide) will now be increased to 15% from 10%. Worldwide
suppliers of size in the Mn markets are China,
Russia, Ghana, S Africa, Gabon,
Chile, Australia, Brazil
& India.
Here we may note that in what we consider the free world and stable
government environments there are a few countries whose Mn mines I myself
would not invest in. In the USA
today there are no Mn mines currently in operation. Russia holds what many
consider to be the two largest Mn deposits and China produces a reported +/-
42% of world production of Mn. NOTEWORTHY also is the fact that there are
NO known substitutes for Mn in the Iron & Steel industry, and EVERY bit
of Iron or Steel production needs Manganese to alleviate brittleness.
Only one other writer/analyst that I know of is
currently researching and gaining rapid interest in Manganese and that is Mr.
James Finch, Senior Editor of www.StockInterview.com James has done
some very commendable, articulate and serious research work w/ numerous
leading edge editorials on Uranium, & Molybdenum, including a very widely
read book on Uranium as well. I asked him earlier today what he thought about
Manganese in general. James had this to say:
"Our research is pointing to increased use of
chrome manganese grades in stainless steel production. High nickel pricing is
driving stainless steel manufacturers to make the switch. We saw this in an
Allegheny Ludlum presentation earlier this year, suggesting the high nickel
price would force the crossover to manganese. Outokumpu recently launched its
LDX 2101 product - a duplex stainless, which heavily relies on manganese to
do the job. In some applications, the market is moving away from the
austenitics to duplex, ferritic and other grades. One report suggests chrome
manganese production could jump by 50 percent over the next two years. As a
result nickel chrome grades could lose 20 percent of their stainless steel
market share."
I believe we will be hearing a lot more from James
Finch on Manganese in due course and I personally will be following his
unequaled research very diligently.
Manganese deposits are one of the more difficult
ores to evaluate as in general they are small deposits and often times
scattered over a large area. Deposits of Mn are known to exist on lake
bottoms and ocean floor areas, which will for obvious reasons, remain there
for generations to come. Many known deposits are not economically viable due
to low concentration of Mn a/o small size coupled with impurities. So where
to look? Or better yet what mining explorationist is already on the cutting
edge of Maganese exploration?
ONE COMPANY AT THE FORE-FRONT
In typical mine-finder, leading the pack fashion, as
with Molybdenum (Adanac Molybdenum Corp.) over 3 years ago, we once
again see Mr Larry Reaugh taking the lead and paving the way. With
more than three mines to his credit in his 40 years in the business and now a
Goldmine in China (Goldrea Resources) plus the new Atlin BC, Ruby
Creek Moly mine in the development and permitting stage, Mr Reaugh seems in
many respects to have the lead in finding the next Manganese mine of size and
scope. This relatively new junior company "Rocher Deboule Minerals"
as per todays news release {link} www.rdminerals.ca/Pressrelease/07_0605.pdf has just
expanded their scope from their Olympic Dam style project (IOCG) on the multi
mineral 8051.07
hectare (19,896.7 acre) gold/silver/copper/cobalt
& tungsten property located 9
km south of New Hazelton, BC. {See link www.rdminerals.ca/GeoReport_Rocher.pdf for further
data on this project} to Arizona Manganese in the historic Artillery Range
Mtns. The Manganese Properties encompass 90 unpatented lode mining claims on
which are located several deposits and stockpiles that were worked
sporadically from 1928 to 1952 ("Manganese Deposits of Western Arizona"
in 1958 Information Circular #7843 (the "Information Circular" by
L.L. Farmham and L.A. Stewart). The Information Circular describes the Artillery Peak
area, measuring 8 miles
by 3 miles
as being generally recognized as containing one of the "largest
resources of low grade manganese-bearing material in the United States".
Grab & Channel/Chip samples taken over last few
weeks have shown assays from 2% to as high as 50% Manganese on the Rocher Deboule Artillery
Peak claims. (See RD's latest
news release linked earlier)
Another report I have states,
"The deposit at Artillery
Mountains in Arizona has been operated from time to
time during national emergencies. It has been estimated that the deposit contains
approximately 175 Million Tons grading from 3 to 4% Manganese, with zones
carrying values as high as 20%"(SME- Olsen, Bentzen, Presley)"
Earlier today I spoke w/ Larry Reaugh Pres/CEO of
Rocher Deboule and asked him if he would comment w/ his views on Manganese
and he had this statement for me:
"Less visable essential metals like Manganese
which is required in every lb of iron or steel produced have been front page
news in metal publications that are not on the majority of investor radar
screens. This news deals with shortages and the rising prices of these
metals. This creates tremendous opportunities for astute companies like
Rocher Deboule to get in on the ground floor and acquire valuable assets in a
short period of time. Manganese has benefited from a price increase of 450%
in the past 5 months [$1450/T from $4050.00/t to $5500.00/t or to$2.50/lb
today, as reported on Indian Metals website] For 99.8% Mn, Ferro &
Siicate Mn are trading between .85 & .95cts/lb, Mn demand was up a
incredible 14% to 11.8 million tonnes {25.96 billion lbs includes all states
of saleable Mn from 30 to 99.8% pure } in 2006. Metal inventories and supply
sources are rapidly depleting, strained and are unable to keep up with demand
which will not be met for several years. The opportunity for profitably
mining lower grade Mn deposits at bulk tonnage rates in North
America has finally arrived."
As with James Finch's future commentaries on
Manganese & Moly, I will be looking forward to Rocher Deboule's forth
coming NI- 43-101 report on the Artillery
Peak deposit & Mr
Reaugh's habit of rapid progression of his projects. There has never been any
amount of drilling done on these Manganese properties and none whatsoever in
recent times. For an online Smartstox interview done recently (Apr/07) with
Larry Reaugh concerning Rocher Deboule's Hazelton IOCG Project see link: www.smartstox.com/interviews/rd.php
The IOCG (Olympic Dam) project now coupled with the Artillery
Peak Manganese project currently underway and the fact that RD.H has only 20
Million shares o/s, gives me a sense of great potential that good things will
unfold for Rocher Deboule over the next few months. I look forward to hearing
of drills turning on both projects in the next while.
Rocher Deboule Trading Symbols - RD.H: NEX.V &
PINK SHEETS: RDBHF
Ken Reser
Disclaimer: Ken Reser is an independent
Investor Relations & Research Consultant, currently employed by Goldrea
Resources Corp, Adanac Molybdenum Corp. Molycor Gold Corp and NOT presently
employed by Rocher Deboule Minerals Corp. I may own shares in these or other
companies from time to time a/o hold options of said companies other than in
Rocher Deboule (no options, but do own shares). This editorial is not a
recommendation to own or buy shares of said companies as I am not an
accredited investment adviser, nor were any fees paid for the writing of this
editorial. KR.
If
you wish to receive 'periodical' reports on Gold, Silver, Molybdenum, Manganese
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