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KMW Blog May 5, 2021: Discovery Watch May 5, 2021 with Jim Goddard and John Kaiser

Posted: May 5, 2021JK: Discovery Watch May 5, 2021 with Jim Goddard and John Kaiser
Published: May 5, 2021HSC: Discovery Watch May 5, 2021: Two Key Scandium Patents
Discovery Watch is a weekly 15-30 minute audio show produced by HoweStreet.com where Jim Goddard interviews John Kaiser about resource juniors with projects that have caught John's attention. The projects will not be limited to companies he has covered through the Spec Value Rating System. Jim and John will periodically circle back to review the projects and if necessary close them out as no longer worth watching. Check out the catalog of KRO Free Stuff. KRO offers a USD $450 Annual Individual Membership. This Discovery Watch session is available via YouTube or Podcast.

Discovery Watch Audio Links
Scandium Intl Mining Corp (SCY-T)

Nyngan Australia - New South Wales 8-Construction Sc May 5, 2021 - 0:00:01
Scandium International has not put out a press release since September 24, 2020, and has not made any announcements about its quest for a critical metals recovery hosting site among the dozen or so copper oxide producers in the United States since announcing it on May 13, 2020. The company has not updated its corporate presentation since March 2020 which continues to be available on the web site and misleadingly indicates that the focus of the company is still the pursuit of scandium offtake orders through LOI arrangements with potential end users. The company failed to use the Q1 2021 window of excitement for critical metal and ESG linked stories to finance beyond the exercise of $273,325 worth of options between $0.065-$0.13 by some insiders while the stock was above $0.30 (the others let their $0.13 options expire). On April 27, 2021 the US Patent Office granted two very important patents. The first, filed for on January 16, 2018, is for Scandium master alloy production, a method invented by the late Nigel Ricketts for the more efficient making of Al-Sc master alloy. The second, filed for on November 21, 2018, is for the Extraction of scandium values from copper leach solutions, a method invented by Willem Duyvesteyn for using ion exchange to recover scandium from the raffinates generated by copper oxide leaching mines. The method allows the recovery of additional critical metals that are dissolved by the leaching and which are sent back into the heap leach pile unrecovered. These two patents are very important to SCY. If SCY gets a hosting deal, it will be able to secure a domestic supply of scandium from which it can make Al-Sc master alloy to supply potential offtake partners without relying on an intermediary. The combination solves the chicken-egg problem with regard to funding the construction of a primary scandium mine such as Nyngan which SCY owns and for which it has a mining lease. Its DFS capacity is 35 tpa scandium oxide but it could easily be scaled to 100 tpa. Assuming that Rio Tinto is successful in developing offtake demand for scandium, it will be a natural bidder for SCY so that it can build Nyngan and boost its own scandium supply beyond the 50 tpa limit from its Sorel-Tracy operation. Based on the Nyngan asset alone SCY should be trading in the $0.50-$0.70 range while we wait for Rio Tinto to make an offer. But that assumes SCY will fail in developing its own offtake market to justify building Nyngan, and fail to get a decent CMR hosting deal with the likes of Freeport. But these two patent grants significantly enhance the company's negotiating power with regard to both Freeport and Rio Tinto which is developing its own incremental supply of scandium from the Lac Tio ore processed at its Sorel Tracy facility in Quebec. These two patent grants deserve a news release. Instead on May 3, 2021 the company granted new options at $0.18 to insiders after letting half the $0.13 options expire in February 2021. Given the paucity of news and a complete unwillingness to communicate with the 55% minority shareholders who do not qualify as insiders, it no longer appears that management is acting on behalf of all shareholders. There are only certain agenda consistent with a management practice that fosters a lower rather than higher stock price and they are all harmful to the interests of minority shareholders. If no such agenda exists, a management shakeup is needed to bring on board somebody who understands that SCY is a startup where perception and communication matter. SCY's financial condition is such that it fails the TSX's continued listing requirements and it is just a matter of time before the TSX initiates a delisting review. The AGM is June 3. We can't change anything at this rubber stamp event unless Scandium Investments LLC, the largest shareholder of SCY owned by members of the Evensen family, takes a public stand. But we can make a lot of protest noise leading up to the AGM. And nothing seems to annoy the CEO more than the stock going up without his permission. Rio Tinto doesn't need scandium recovery from Freeport's copper oxide mines, but it will need to own and develop Nyngan. If it does not act soon and Freeport's CEO Richard Adkerson wakes up to the goodwill a CMR deal would generate for Freeport, Alcan's competitors will wake up.
Nevada Exploration Inc (NGE-V)

South Grass Valley United States - Nevada 2-Target Drilling Au May 5, 2021 - 0:16:13

P2 Gold Inc (PGLD-V)

Gabbs United States - Nevada 4-Infill & Metallurgy Au Cu May 5, 2021 - 0:23:01

Disclosure: JK owns Scandium Intl & Nevada Expl; Scandium Intl, Nevada Expl & P2 Gold are Bottom-Fish Spec Value rated Favorites

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