2019’s Hottest Commodity Is About To Explode
Commodities / Metals & Mining Oct 15, 2018 - 01:26 PM GMTBy: OilPrice_Com
It’s the most critical economic resource you’ve never heard of.
Element “V”.
Without this unknown commodity, you can’t build as strong a bridge, factory or skyscraper. It’s used extensively in planes, trains and supertankers.
It could soon form the backbone of America’s $386 billion electrical grid.
Forget oil or gold. Wars could even be fought over this unusual metal.
The scary part? None of it is produced in the United States. China, Russia and South Africa control almost all of the global production, and we’re locked in the middle of a trade war.
Now United Battery Metals Corp (CSE:UBM, OTC:UBMCF) is one of the few companies providing some hope.
As we speak, this tiny Colorado mineral explorer is sitting on an estimated resource of 2.7 million pounds of proven Element “V” reserves - estimated in an independent geologist’s 43-101 technical report. And, that’s not all.
The company has nearly 800 acres of property consisting of 39 claims, and one of the top exploration geologists in the western United States is on board.
Here are five reasons to follow United Battery Metals today:
- Powering The New Energy Economy
- “V” Is Becoming a Critical Element In American Industry
- The Backing Of President Trump
- Value In The Ground
- An Exploration “Ace” In The Hole
Element “V” Powers The New Energy Economy
Battery tech is poised to transform the electricity industry. In the U.S. alone, energy storage will grow 6x, from 120 megawatts to over 720 megawatts by 2020.
Globally, it will bring power for the first time to over a billion people by letting them tap into micro-grids. And, while lithium is the key battery metal of today…
Element “V” represents the true future of American battery energy.
As we speak, United Battery Metals Corp (CSE:UBM, OTC:UBMCF) is potentially sitting on one of the only reserves of this critical metal anywhere in the United States.
BBC Magazine says it will “soon be powering your neighborhood.”
Former US President Barack Obama has touted it as the key to generating 80% of the nation's electricity from renewable sources by the year 2035.
The little-known metal I’m talking about is vanadium.
Thanks to the VRF (vanadium redox flow) battery - it’s set to take the energy world by storm.
These game changing batteries are non-flammable and non-explosive. Unlike short lived lithium ion batteries, their battery life is almost infinitely long.
Vanadium batteries already provide complete energy storage systems for $500 per kilowatt hour, a figure that is expected to fall below $300 per kilowatt hour in less than 2 years.
Companies like CellCube are already building out the infrastructure with 130 installed VRF battery facilities. Soon they’ll be in electric car charging stations around the world.
Robert Friedland - the legendary mining magnate – believes that “there is a revolution coming in vanadium” thanks to this technology.
He’s building a 3-megawatt (MW), 12-megawatt-hour (MWh) vanadium flow battery in China as part of Phase 1 of a 10-MW, 40-MWh demonstration project.
The rise of the Element “V” powered, global energy grid is poised to skyrocket demand for this little-known metal - which is a huge boon for stocks like UBMCF.
How Vanadium Is Becoming A Critical Element In American Industry
Green energy is just one part of the Element “V” story.
You see - vanadium is critical to the production of steel. It helps make steel lighter, tougher and more efficient – making it one of the strongest alloy metals on Earth.
You’ll find it in car frames, pipelines, rebar, and even jet engines.
Twenty years ago, literally no vanadium went into cars, versus around 45 percent of cars today. By 2025, it’s estimated that 85 percent of all automobiles will include it.
For United Battery Metals Corp (CSE:UBM, OTC:UBMCF) it’s the opportunity they’ve worked for.
And, it’s not just cars. Right now, steel production is spiking globally.
On September 4th, 2018 - U.S. weekly steel production capacity utilization climbed to the highest level since 2014. The same day, China reported new output highs.
The United States Steel Corp. is opening new plants and modernizing others. They just invested $750 million into their facility in Gary, Indiana.
New regulations on low quality steel in China is forcing producers to embrace vanadium alloys like never before. Meanwhile, supply is horribly constrained.
It all points to one thing: higher vanadium prices.
The price per pound is up nearly 300% over the last three years. The world’s economic superpowers are locked in a life or death struggle over limited supply.
With a massive property and proven resources in safe, mining friendly Colorado – United Battery Metals stands to help give America a boost to catch up with the competition.
President Trump’s Domestic Vanadium Push
On December 20th, 2017 - President Trump issued an executive order to ensure and protect reliable supplies of minerals recognized as critical to “national security.”
The Department of Interior identified a list of 35 so-called critical minerals.
For all of the reasons we’ve just shared - element “V” is on the list.
Vanadium is used for America’s buildings, roads, bridges and future green energy infrastructure. Without it, we are way behind.
Which is a big problem because…
None of it is produced in the United States.
The big three producers are Russia, China and South Africa. Over 70% of global production is controlled by America’s enemies in Moscow and Beijing.
As Trump’s trade war escalates - it’s increasingly likely China will retaliate by restricting or even banning the export of strategic minerals.
A move like that could knee-cap the U.S. economy in weeks.
That’s where United Battery Metals Corp (CSE:UBM, OTC:UBMCF) comes in.
They’re sitting on one of the only potentially viable vanadium plays in the continental U.S.
U.S. policymakers will use the critical minerals list to identify which resource projects should be given fast track approval, and assistance with government grants.
For United Battery Metals - it has the potential to reduce red tape.
Environmental and Bureau of Land Management permitting that normally takes years could be slashed to the bone - radically improving the project’s economics.
For the company, that would be an incredible boon. Especially when you consider that they’re already sitting on a substantial, proven resource.
Value in the Ground With A 43-101
United Battery Metals Corp (CSE:UBM, OTC:UBMCF) has the Wray Mesa Project - an exploration stage uranium-vanadium property located in Montrose County, Colorado.
Their property sits in the vanadium rich sandstone of the Colorado Plateau.
It consists of over 39 contiguous mining claims for a total size of about 800 acres. It could be the one of the first vanadium mines in the United States.
Drill exploration started in the late 1940’s with the U.S. Geological Survey, then continued from the 1960’s through the 1980’s with the private sector.
For nearly a decade, the property hosted a producing uranium mine.
Over 739 historical drill holes have been punched across all 39 claims - at a cost that would exceed $30 million today. UBMCF inherited this exploration windfall.
The company now has an NI-43-101 on the property authored by Antony Adkins in 2013. According to that report, they’re sitting on an estimated 2.7 million pounds of vanadium and an indicated resource of 500,000 pound of uranium.
This confirmed resource dramatically lowers their risk.
At $18.50 per pound vanadium and $26.20 per pound uranium - we’re talking about a potential $63,050,000 find. Right now they have a $16 million market cap.
And, that may be the floor on this opportunity.
With hundreds of acres left to explore - the company expects that number to rise. They’re already initiating a $300,000 Phase I drill campaign.
It’s to firm up their numbers near the surface.
With hundreds of acres yet to explore, not to mention potential upside deeper underground - the “blue sky” on this project could be great.
They’ve Got An Exploration “Ace” In The Hole
Mineral exploration is a challenging proposition. Luckily, United Battery Metals Corp (CSE:UBM, OTC:UBMCF) has a secret weapon as an advisor.
Chief Exploration Advisor - Eric Saderholm
Mr. Saderholm is a professional Geologist who previously worked as Newmont Mining’s Exploration Manager for the entire Western United states.
He has almost 3 decades of experience in the industry with leadership in exploration, project development, property management and mining.
His resume includes large projects at Bingham Canyon, Carlin, Midas, Gold Quarry, Twin Creeks, Lonetree, Mule Canyon, Black Pine, Genesis and Yanacocha.
Over his career, he’s been integral to geologic teams that added millions of ounces of gold to reserve bases in Nevada, Washington and Peru.
With UBMCF his mission is to help dramatically expand the resource at Wray Mesa and also to find additional properties in North America with Vanadium discovery potential.
And, with the huge plot of land right in the heart of America’s new vanadium belt - he’ll be working one of the key exploration plays in America.
Conclusion
Urbanization is unstoppable. Globally, 1.5 million people are added to the urban population every week. That’s a city the size of San Antonio every 7 days.
Those new cities will require historic quantities of steel.
High quality steel production will spur massive demand for Element “V” - vanadium. And, when the energy grid expands beyond Lithium…
We expect a price spike in vanadium that could eclipse the 300% gain of the last 3 years.
Backed by the Trump administration’s new critical metals policy, Colorado based United Battery Metals Corp (CSE:UBM, OTC:UBMCF) is in a choice position.
They’ve got a $63 million resource, plus nearly 800 acres of exploration upside potential with the exact geologist you’d want to help find the mother lode.
For vanadium, the sky is the limit.
By. Charles Kennedy
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This article contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this article include that prices for vanadium will retain value in future as currently expected; that UBM can fulfill all its obligations to maintain its property; that UBM’s property can achieve drilling and mining success for vanadium, and potentially sell 2.7M pounds of vanadium; that the vanadium extraction process being developed will be cost effective; that the vanadium battery process can be commercialized for large scale production; that high grades found in samples are indicative of a high grade deposit; that vanadium prices will increase; that high-grade vanadium is in sufficient quantities to make drilling economic; that permits may be easier and quicker than usual because vanadium is considered a vital element for America; that batteries and EVs will start using large amounts of vanadium; that vanadium system costs will be reduced quickly and dramatically; and that UBM will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the Company may not be able to finance its intended drilling programs, aspects or all of the property’s development may not be successful, mining of the vanadium may not be cost effective; even if mining is successful, UBM’s property may not yield 2.7M pounds of vanadium; UBM may not raise sufficient funds to carry out its plans, changing costs for mining and processing; permits may not be easier or quicker than regular mining projects; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on current data that may change with more detailed information or testing; potential mineral recoveries assumptions based on limited test work with further test work may not be viable; competitors may offer cheaper vanadium; more production of vanadium could reduce its price, or the price may drop for other reasons; technological advances to reduce vanadium system costs may not occur as expected; alternatives could be found for vanadium in battery technology; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties, or that the required permits to build and operate the envisaged mines cannot be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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