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September 28, 2024

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This Week’s “Sector to Watch” and “Industry Group to Watch”

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On Friday mornings in our DP Diamonds subscriber-only trading room, the DecisionPoint Diamond Mine, I like to look for a “Sector to Watch” and an “Industry Group to Watch” within. These are for your watchlist and not necessarily ready for immediate investment. In the case of this week’s Sector and Industry Group to Watch, we will need to take our cue from Monday’s trading to know if this area of the market will thrive.

I picked Technology as the Sector to Watch. I could’ve easily picked Materials, Communication Services, Consumer Discretionary and Utilities, all of which are sailing higher. The big problem with those sectors is that the RSI is overbought on all of them, so price is overbought. Technology, on the other hand, has rising momentum and an RSI that is not overbought.

Let’s look “under the hood” at Technology. (FYI – We have under the hood charts for all of the sectors, indexes and select industry groups on our website available to subscribers of any of our subscriptions on the website). Technology is overcoming the previous top from August. As noted above, the RSI is not overbought and the PMO is rising above the zero line. I particularly liked the acceleration on the Silver Cross Index, which tells us how many stocks have a 20-day EMA above the 50-day EMA. Participation of stocks above key moving averages is very healthy reading in the 80th percentile. Stochastics did top, but are firmly above 80, suggesting internal strength. We can also see outperformance against the SPY. All of this adds up to a likely advance higher.

The Industry Group to Watch is Semiconductors (SMH). We happen to have an under the hood chart for this group, so we’ll review it. Price has reached overhead resistance and, as of this writing, it is pulling back. However, the internals look very strong. The RSI is not overbought and the PMO is rising above the zero line, indicating new strength. The Silver Cross Index is above its signal line and is reading above our bullish 50% threshold. Participation is strong and, in the case of %Stocks > 50/200EMAs, there is room for improvement before getting too overbought. Stochastics have topped but, as with Technology, they are comfortably above 80, indicating internal strength.

Conclusion: Next week, we should put Technology and Semiconductors on our radar. They may not be ready for primetime right away, so we do need to watch what the market does on Monday. If it decides to decline, this area of the market will likely be hit. If it decides to inch higher, these will be the areas to pay attention to.

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(c) Copyright 2024 DecisionPoint.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

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Top Ten Charts to Watch for October 2024

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As we near the end of what has been a fairly solid Q3 for the equity markets, we are left with the eternal question for investors: “What’s next?”

We now have the Fed’s first rate cut in the rearview mirror, with multiple rate cuts expected into early 2025. We also have a highly contested election season, a rapidly escalating situation in the Middle East, and earnings season, which is only a couple weeks away.

The beauty of technical analysis is that price action should compensate for investor expectations for all of the above. If investors are excited, nervous, euphoric, despondent, or anywhere in between, the interplay between buyers and sellers can tell us a great deal about investor sentiment. With that in mind, here are some of the individual stock charts I’ll be watching as we transition into the fourth quarter.

Comcast Corp. (CMCSA)

As I reviewed hundreds of charts to eventually settle in on just ten to review, I was struck by the fact that five out of the ten are in the same sector: Communication Services. From Magnificent 7 names to old telecoms, there are plenty of improving charts in this sector.

While many stocks could be considered overextended after this week, Comcast is definitely not one of the them. This chart features a classic rotation from a distribution phase (lower highs and lower lows) through a consolidation phase (even highs and lows) and into a new accumulation phase (higher highs and higher lows).

This week, CMCSA finally pushed back above its 200-day moving average, as well as the previous peak from mid-July. If this stock can follow through above the $42 level, we could easily see a retest of the January 2024 peak around $46 and beyond.

Meta Platforms, Inc. (META)

One of the key questions for October is whether the market will remain strong despite the normal seasonal weakness around this time of year. META may be the best chart to watch to determine whether our benchmarks will remain in a bullish phase.

Meta has tested resistance in the $520 to $540 range since first arriving at these levels in March, and, a couple weeks ago, that level was finally eclipsed. Any time a stock breaks above a well-established resistance level, I want to see it hold that breakout point on any subsequent pullbacks.

META ended the week in an overbought condition, with the RSI remaining above 70. This often suggests a pullback is imminent, particularly when the RSI dips back below this overbought level. Will Meta Platforms hold $520 as well as the 50-day moving average on a pullback? If so, then this bull market could see unusual strength in arguably the weakest of the 12 months from a seasonal perspective.

VFCorp (VFC)

Next is VFCorp, my first selection outside of the Communication Services sector. This producer of apparel and footwear brands, including Timberland and The North Face, has entered a new uptrend phase off a major low back in March.

While VFC has already gained about 80% off the March low, the bullish phase appears very much still in place here. We can see a consistent pattern of higher highs and higher lows, and the price is now trending higher above two upward-sloping moving averages. The RSI indicator tells us the momentum is strong but not excessive. I tend to think of charts like this as “innocent until proven guilty,” and, as a trend-follower, that means I follow the trend until the chart tells me to do otherwise!

Looking for the other seven charts to watch?  Check out the full video on my YouTube channel!

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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Could U.S. Stocks Crash In October?

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That’s a great question right now as many folks still remain quite nervous. The Volatility Index ($VIX), for example, gained more than 10% today, despite a minimal decline in the S&P 500. It’s a signal that the stock market likely won’t handle bad news very well. Next week, we have the September nonfarm payrolls. And earnings season is set to kick off in just a couple weeks, when the banks begin reporting. Could we see an earnings warning or layoffs from a big name or two? We don’t know, but if we do see bad news, it’s quite possible we see another leg lower in October.

But could it crash?

Well, first we’d have to define “crash.” Over the past 74 years, the S&P 500 has seen a drop of 9% or more in a calendar month just 17 times. That’s 1 monthly drop of 9% or more every 4 years or so. If you’re looking for the start of a 20% to 30% drop, or even more, I’d say the chance of that is extremely slim, probably negligible.

Let’s take a look at the 2 worst October declines in U.S. history. First, there was October 1929 – The Great Depression:

October 1929 began the largest decline in U.S. stock market history. The decline didn’t find a bottom until nearly 90% of the stock market’s value was lost.

The other October decline that gives the month its bad name was October 1987 crash. Remember Black Monday? If you weren’t investing back then, this is what the chart looked like:

The 1987 “crash” happened over the course of a few weeks, not a few years like in 1929. There have been other rough Octobers, but they simply haven’t been as catastrophic as the 1929 and 1987 versions. In fact, earlier I mentioned that we’ve seen calendar month declines of 9% or more 17 different times since 1950. October has played a role in many of these. Furthermore, there have been 14 bear market declines (losses of 20% or greater from all-time highs) since 1950 and October has played a very interesting role in those too.

So what might we expect in October 2024?

If you’re interested in stock market history, then EarningsBeats.com is the right place to get your information. It’s interesting that the “Go Away” month (May, according to the Wall Street “experts”) has never had one of those 9% or more calendar month losses. May also has never started a bear market, yet the bottom of one was found in May. You can’t trust the historical information that you get from the media, but I can promise you that the information that we provide at EarningsBeats.com is 100% factual and ZERO percent false or misleading. As a practicing CPA for two decades, I can analyze and report data.

Tomorrow morning, on Saturday, September 28th at 10:00am ET, I’ll be hosting a FREE event, “History of Market Bottoms.” I want all of you to understand history the way we do at EarningsBeats.com. This event does require registration. To get more information and to save your seat, REGISTER NOW! If you’re reading this article and it’s beyond Saturday 10:00am ET, no worries. Anyone who registers (even late) will receive a recording of the event. Finally, we’ve developed an ebook, “74 Years of Market Bottoms”, that will be sent to you immediately upon registration, so don’t delay!

I’ll see you Saturday morning!

Tom

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Stock Market Regains Bullish Edge: Can Geopolitical Tensions Change Its Direction?

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There’s one trading day left for the month of September. Unless something drastic happens over the weekend, the stock market looks like it has bucked the September seasonality pattern of being the worst trading month for equities. That’s not to say seasonality doesn’t work; in the early part of the month, after all, there was a dramatic pullback. But the stock market has recovered and is now moving higher.

A handful of data this week stoked the stock market. The US economy continues to grow, the labor market appears to be moving toward a better supply/demand balance, the Federal Reserve made its first interest rate cut, and inflation is cooling. But the biggest news was the China stimulus decision. That was a surprise and sent Chinese stocks and ETFs soaring.

The August personal consumption expenditures (PCE) indicated that inflation is coming down and getting closer to the Fed’s 2.0% target. This isn’t a surprise, but it helped keep the optimistic sentiment going, at least into the first half of Friday’s trading.

The Dow Jones Industrial Average ($INDU) hit a record high, sold off in afternoon trading, and eked out a record close. The S&P 500 ($SPX) and Nasdaq Composite ($COMPQ) also sold off on Friday, closing in the red. Despite the selloff, the overall trend in equities is still very bullish.

An Analysis of the Broader Stock Market Indexes

Although the S&P 500 closed lower on Friday, the S&P 500 Equal Weighted Index ($SPEW) closed slightly higher (see chart below).

CHART 1. S&P 500 EQUAL-WEIGHTED INDEX.

$SPXEW is trading well above its 20-day simple moving average. Its relative strength index (RSI) is just below 70, which means it has a lot of upside room.

This could mean that investors are shifting away from large-cap tech stocks and into other areas. The rise in the Dow Jones Average this week indicates that perhaps investors are rotating into Industrials and Materials. Small and mid-cap stocks also closed higher on Friday.

China-related stocks continued their bullish move on Friday. The iShares China Large Cap ETF (FXI) is getting pretty close to a resistance level. If it breaks above it on strong momentum, it would be worth allocating a portion of your portfolio to the ETF.

Then, There Are Bonds

After the Fed cut interest rates, US Treasury yields rose and bond prices pulled back. The August high in the chart of the iShares 20+ Year Treasury Bond ETF (TLT) is one to watch. If TLT breaks above this level (green horizontal area), bond prices could rise.

CHART 2. DAILY CHART OF TLT.

On Friday, TLT reversed after Thursday’s doji candle. However, Friday’s candle was also a doji, which failed to break above its 21-day exponential moving average. One day’s action doesn’t make a trend, but, in light of future interest rate cuts, there may soon be a buying opportunity in TLT. If you are already in bonds, like I am, then you could add to your positions after a breakout. This is one chart I’ll be looking at.

Of course, this could change if next week’s data doesn’t support an upward move in bond prices. Next week, there will be a lot of employment data and several speeches from Fed officials, including Chairman Jerome Powell.

The jobs data will show whether the labor market is tightening or loosening and could steer investor expectations about further interest rate cuts by the Fed. According to the CME FedWatch tool, the probability the Fed will cut rates by another 50 basis points is 54.8%. If the labor data supports a 50 bps cut, that probability could rise higher.

Metals Keep On Shining

The price of gold pulled back on Friday after a series of “all-time high” closes. Central banks continue to purchase gold and add it to their global reserves. Gold and silver prices have rallied this year, and interest rate cuts by the Fed, plus China’s recent stimulus measures, keep sending prices higher. Copper is another commodity that has benefited from China’s stimulus news.

One commodity that wasn’t rallying like the metals was crude oil. Oil prices saw massive declines this week but turned around on Friday afternoon. Geopolitical tensions that surfaced may have been the reason for the price turnaround. The Energy sector, which has been the laggard of late, was the top-performing S&P sector on Friday (see Friday’s MarketCarpet). It occupies very little real estate on the MarketCarpet, but it’s the greenest of the sectors.

FRIDAY’S S&P SECTOR PERFORMANCE.

While most of this week’s news was positive, we ended on a slightly uncertain note—the surfacing of geopolitical tensions in the Middle East. The CBOE Volatility Index ($VIX) inched up slightly. China’s stock exchanges will be closed most of next week in honor of China National Day, so there may be sideways movement in Chinese-related stocks and ETFs. There’s still plenty of US data to focus on, so keep an eye and ear tuned to the market. More importantly, keep an eye on the rotation. The StockCharts MarketCarpets are a great starting point.

End-of-Week Wrap-Up

  • S&P 500 closed up 0.62% for the week, at 5738.17, Dow Jones Industrial Average up 0.59% for the week at 42,313; Nasdaq Composite closed up 0.95% for the week at 18,119.59
  • $VIX up 4.48% for the week, closing at 16.87
  • Best performing sector for the week: Materials
  • Worst performing sector for the week: Health Care
  • Top 5 Large Cap SCTR stocks: Insmed Inc. (INSM); Applovin Corp (APP); Carvana (CVNA); Vistra Energy Corp. (VST); XPeng, Inc. (XPEV)

On the Radar Next Week

  • Fed Chair Powell speech; speeches from Bowman, Bostic, Cook, and other Fed officials
  • August JOLTS Job Openings
  • ADP Employment Report
  • Weekly Jobless Claims
  • September ISM Manufacturing PMI
  • September ISM Services PMI
  • September Non-Farm Payrolls
  • Nike (NKE) Earnings

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Why Were Chinese Stocks Up 20% Last Week?!

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In this StockCharts TV video, Mary Ellen reviews the broader markets, including sector and industry group rotation, before highlighting the sharp move into Chinese stocks. She shares her thoughts on whether it’s too late to participate. In addition, she looks at the key traits that signal your stock is in a new uptrend and presents several examples.

This video originally premiered September 27, 2024. You can watch it on our dedicated page for Mary Ellen on StockCharts TV.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

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West High Yield (W.H.Y.) Resources Ltd. Announces First Tranche Closing of Private Placement

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West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) (‘West High Yield‘ or the ‘Company’) announces that, further to its news release of August 29, 2024, it has closed the first tranche (the ‘Closing’) of its previously announced private placement offering (the ‘Offering’) of units (the ‘Units’).

The Closing consisted of the issuance 905,000 Units for gross proceeds of $181,000. The Units were issued at a price of $0.20 per Unit, and each Unit consists of one (1) Common share of the Company (each, a ‘Common Share’) and one (1) Common Share purchase warrant (each, a ‘Warrant’). Each Warrant, together with CAD$0.30, entitles the holder thereof to acquire one (1) additional Common Share for twelve (12) months from the date of the Closing. All securities comprising the Units issued on the Closing will be subject to a trading hold period expiring four months plus one day from the date of issuance.

The proceeds from the Closing will be used to conclude the Company’s permitting process, covering essential operations, general working capital purposes and expenses, and for supporting the Company’s planned drilling program for the water monitoring holes at its Record Ridge magnesium deposit, as required by the British Columbia Ministry of Energy, Mines and Low Carbon Innovation.

About West High Yield

West High Yield is a publicly traded junior mining exploration and development company focused on the acquisition, exploration, and development of mineral resource properties in Canada with a primary objective to develop its Record Ridge magnesium, silica, and nickel deposit using green processing techniques to minimize waste and CO2 emissions.

The Company’s Record Ridge magnesium deposit located 10 kilometers southwest of Rossland, British Columbia has approximately 10.6 million tonnes of contained magnesium based on an independently produced National Instrument 43-101 – Standards of Disclosure for Mineral Projects (‘NI 43-101’) Preliminary Economic Assessment technical report prepared by SRK Consulting (Canada) Inc. in accordance with NI 43-101.

Contact Information:

WEST HIGH YIELD (W.H.Y.) RESOURCES LTD.

Frank Marasco Jr., President and Chief Executive Officer
Telephone: (403) 660-3488
Email: frank@whyresources.com

Barry Baim, Corporate Secretary
Telephone: (403) 829-2246
Email: barry@whyresources.com

Cautionary Note Regarding Forward-looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the ‘U.S. Securities Act’) and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Source

Click here to connect with West High Yield Resources Ltd. (TSXV: WHY) (to receive an Investor Presentation

This post appeared first on investingnews.com

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JZR Gold Announces Private Placement Offering Of Units To Raise Up To $750,000

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(TheNewswire)

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION,
DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART,
IN OR INTO THE UNITED STATES.

Vancouver, British Columbia, Canada September 27, 2024 TheNewswire JZR Gold Inc. (the ‘ Company ‘ or ‘ JZR ‘) ( TSX-V: JZR ) is pleased to announce that it intends to undertake a non-brokered private placement offering (the ‘ Offering ‘) of up to 5,000,000 units (each, a ‘ Unit ‘) at a price of $0.15 per Unit, to raise aggregate gross proceeds of up to $750,000. Each Unit will be comprised of one common share (each, a ‘ Share ‘) and one share purchase warrant (each, a ‘ Warrant ‘). Each Warrant will entitle the holder to acquire one additional common share (each, a ‘ Warrant Share ‘) in the capital of the Company at an exercise price of $0.20 per Warrant Share for a period of thirty-six (36) months after the closing of the Offering.

The Units will be offered pursuant to available prospectus exemptions set out under applicable securities laws and instruments, including National Instrument 45-106 – Prospectus Exemptions. The Offering will also be made available to existing shareholders of the Company who, as of the close of business on September 24, 2024, held common shares (and who continue to hold such common shares as of the closing date), pursuant to the existing shareholder exemption set out in BC Instrument 45-534 Exemption From Prospectus Requirement for Certain Trades to Existing Security Holders (the ‘ Existing Securityholder Exemption ‘) . The Existing Securityholder Exemption limits a shareholder to a maximum investment of CAD$15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. If the Company receives subscriptions from investors relying on the Existing Shareholder Exemption which exceeds the maximum amount of the Offering, the Company intends to adjust the subscriptions received on a pro-rata basis.

Certain Insiders (as such term is defined under the policies of the TSX Venture Exchange (the ‘ Exchange ‘)) of the Company may participate in the Offering. Any participation of Insiders in the Offering will constitute a ‘related party transaction’ within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (‘ MI 61-101 ‘). The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under subsections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Offering by Insiders will not exceed 25% of the fair market value of the Company’s market capitalization.

The Offering may close in one or more tranches, as subscriptions are received. The Securities will be subject to a hold period of four months and one day from the date of issuance. Closing of the Offering, which is expected to occur on or about October 4, 2024, will be subject to satisfaction of certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including approval by the Exchange.

The Company intends to use the net proceeds from the Offering to prepare and commence operation of the gravimetric processing mill that was constructed on the Vila Nova gold project located in the state of Amapa, Brazil, and for general working capital purposes.

For further information, please contact:

Robert Klenk

Chief Executive Officer

rob@jazzresources.ca

Forward-Looking Statements

This news release contains forward-looking statements, which includes any information about activities, events or developments that the Company believes, expects or anticipates will or may occur in the future.  Forward-looking statements in this news release include statements with respect to the details of the Offering, including the anticipated use of the net proceeds.  Forward-looking information reflects the expectations or beliefs of management of the Company based on information currently available to it.  Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information.  These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mineral exploration industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks related to inaccurate geological and engineering assumptions; risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with the specifications or expectations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action and unanticipated events related to health, safety and environmental matters); risks related to adverse weather conditions; geopolitical risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company’s continuous disclosure documents filed with the Canadian securities regulators.  The forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.  The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

None of the securities of JZR have been registered under the U.S. Securities Act of 1933, as amended (the ‘U.S. Securities Act’), or any state securities law, and may not be offered or sold in the United States or to, or for the account or benefit of, persons in the United States or ‘U.S. persons’ (as such term is defined in Regulation S under the U.S. Securities Act) absent registration or an exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Copyright (c) 2024 TheNewswire – All rights reserved.

News Provided by TheNewsWire via QuoteMedia

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Astron, Energy Fuels Form Joint Venture for Donald Rare Earths and Mineral Sands Project

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Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands project.

The agreement was executed on June 4, and since then development activities at Donald have progressed, including work related to process plant engineering, auxiliary infrastructure, contract tendering and permitting and approvals.

Under the deal, Astron has received Energy Fuels shares with a current market value of US$3.5 million.

Energy Fuels has also provided an interest-free loan amounting to US$8.6 million to cover development costs dating from the execution of the joint venture to its effectivity. This has been converted into a roughly 3.2 percent equity stake in the joint venture, with Astron’s interest in the partnership currently standing at 96.8 percent.

Astron’s press release explains that Energy Fuels’ stake in the joint venture will eventually increase to 49 percent as it funds AU$183 million towards the execution and construction of the project’s first phase.

A rare earths concentrate offtake agreement with Energy Fuels is now also in effect. The company will receive 100 percent of Donald’s Phase 1 and Phase 2 rare earths concentrate output at commercial prices.

“The completion of the transaction represents another material step in bringing to life the globally significant, Tier-1 Donald resource,” Astron said on Thursday (September 26). “It will signify the establishment of another western-rare earth mine to oxides value chain, and one that can come into production as soon as late 2026.”

Both companies are now working to arrive at a final investment decision for Donald, likely in early 2025.

Earlier this month, Energy Fuels received approval from the Australia’s federal court to acquire Base Resources (ASX:BSE,OTC Pink:BSRUF) and develop another minerals sands project called Toliara.

Toliara’s Ranobe deposit has a mineral resource of 2.58 billion tonnes at 4.3 percent heavy minerals, while Donald has a mineral resource of 5.8 billion tonnes at an average heavy minerals grade of 3.2 percent.

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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SRC and Defense Metals Sign MOU for Rare Earths Processing in Canada

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Defense Metals (TSXV:DEFN,OTCQB:DFMTF) has signed a memorandum of understanding (MOU) with the Saskatchewan Research Council (SRC) to support the development of a domestic rare earths supply chain.

The collaboration was announced on Thursday (September 26) and has three main objectives.

The organizations will explore potential joint initiatives related to the processing and supply of rare earth materials, and will discuss the use of the SRC’s rare earths separation technology for Defense Metals’ products.

They also plan to pursue negotiations for a long-term supply agreement.

The SRC has developed proprietary technologies for rare earths separation, while Defense Metals is developing its Wicheeda rare earths project, located about 80 kilometers north of Prince George in BC, Canada.

Guy de Selliers, executive chairman of Defense Metals, emphasized the partnership’s strategic importance in enhancing North American supply chains for critical materials.

“By working together with SRC, we believe we can make substantial progress toward closing the rare earth supply chain loop and ensuring the availability of these critical materials for green energy and defense applications that are essential for national security,” he said in a press release shared by the company.

The agreement coincides with broader national efforts to reduce reliance on foreign sources for critical minerals.

The Canadian government is prioritizing the development of domestic mineral industries through its Critical Minerals Strategy, which seeks to support the country’s economic security and competitiveness in clean energy and defense.

The partnership is expected to contribute to national security objectives by ensuring the availability of key rare earths that are essential for a range of modern technologies, including electric vehicles and military systems.

The MOU with Defense Metals is one of several recent moves in the sector by the SRC.

The SRC recently achieved commercial-scale production at its rare earths processing facility in Saskatoon, Saskatchewan. The facility, which became operational this past summer, is now producing rare earth metals at commercial levels, with an initial output of 10 metric tons per month of neodymium-praseodymium metals.

The facility’s purities exceed 99.5 percent, and its conversion rate is reported to be over 98 percent.

This milestone makes the Canadian province the first jurisdiction in North America to achieve commercial-scale rare earths production. The SRC plans to ramp up production to 40 metric tons per month by December of this year, and aims to reach an annual production capacity of 400 metric tons by early 2025.

Last month, the SRC signed a similar MOU with Arafura Rare Earths (ASX:ARU,OTC Pink:ARAFF) to explore the processing of rare earth materials from Arafura’s Nolans project in Australia at SRC’s Saskatoon facility.

This agreement focuses on processing heavy rare earths like dysprosium and terbium, which are used in high-performance magnets for electric vehicles and other technologies.

The rare earths industry has gained increasing attention due to the growing demand for clean energy technologies amid the ongoing energy transition. However, the supply chain remains vulnerable due to China’s dominance.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Forum Energy Metals

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Actively exploring the highly prospective Aberdeen uranium property in Nunavut’s Thelon Basin, Forum Energy’s highly experienced technical team led by former Cameco geologist Dr. Rebecca Hunter is poised to build on its significant Tatiggaq discovery amid a continuing uranium bull market.

Overview

Forum Energy Metals (TSXV:FMC,OTCQB:FDCFF) is an established uranium explorer searching for high-grade deposits in Saskatchewan’s Athabasca Basin and Nunavut’s Thelon Basin. In 2024, the company is primarily focused on exploring the Aberdeen project in Nunavut, where successful drilling confirmed and expanded high-grade uranium mineralization over significant widths at the Tatiggaq discovery. Nunavut’s underexplored Thelon Basin may be the most prospective region for discovering new, high-grade uranium deposits outside Saskatchewan.

With a strong local and regional presence in Saskatchewan, Forum took advantage of weak metals markets to broaden its commodity exposure by adding a diverse portfolio of energy metals exploration projects in the copper, cobalt and nickel space.

Company Highlights

Saskatchewan (Athabasca Basin) and Nunavut (Thelon Basin) Uranium Projects

Aberdeen Uranium Project (Thelon Basin-Nunavut): Athabasca Basin 2.0? – The Thelon Basin may be the most prospective region in the world for discovering new high- grade uranium deposits outside Saskatchewan’s Athabasca Basin. Both basins exhibit similar geological characteristics.

Forum’s 2023 Aberdeen Maiden Drill Program Intersects High-grade Uranium

Forum’s 2024 Aberdeen 7,000 Meter Drill Program Underway

Wollaston Uranium: Forum: 100 percent – Located in eastern Athabasca Basin. Limited drilling in 2023 identified elevated uranium and boron values on several geophysical targets on this large property, well located close to the Orano/Denison McClean Lake mill. Forum is reviewing data from its magnetic/electromagnetic survey to plan the next exploration steps.Highrock Uranium: Forum: 80 percent, Sassy Gold 20 percent – On trend with Cameco’s past-producing Key Lake Mine.Fir Island: Forum: 49 percent, Orano Canada: 51 percent (operator) – Located on the northeastern edge of the Athabasca Basin. Forum is awaiting further exploration plans following Orano’s data review from an extensive resistivity survey.Maurice Point: Forum: 100 percentGrease River: Forum: 100 percent (Traction Uranium earn-in option) – Forum and Traction recently completed airborne magnetic, electromagnetic (EM) and radiometric surveys over the entire project area to aid structural mapping and help define drill targets. Analysis of the EM data has outlined prospective targets along several conductive trends in the East claim block north of the Grease River shear zone.Henday: UEC: 60 percent, Forum: 40 percent – Strategically located along the Midwest/Roughrider trend near UEC’s Roughrider uranium depositCostigan: Forum: 100 percent – On trend with Cameco’s past-producing Key Lake mine.Clearwater: Forum: 75 percent, Vanadian: 25 percent – Located in the Patterson Lake Corridor, Western Athabasca Basin

Key Projects

Aberdeen Project (Thelon Basin, Nunavut)

Nunavut Uranium: Forum’s Aberdeen project claims comprise ground formerly held by Cameco with discoveries made at Tatiggaq, Qavvik and Ayra. The claims surround Orano’s Kiggavik uranium deposit.

Previously explored by Cameco between 2005 and 2012, this ground hosts two uranium discoveries made by former Cameco geologist Dr. Rebecca Hunter, who now leads Forum’s team as VP of exploration.

Cameco abandoned the claims due to the decade-long period of low uranium prices during the post-Fukushima period, which were later acquired by Forum. Renamed the Aberdeen project, Forum’s claims surround Orano Canada-Denison-UEC’s 133-million-lb Kiggavik uranium deposit.

Dr. Rebecca Hunter spotting drill hole locations. As Forum’s VP of exploration, Hunter is managing the Aberdeen uranium exploration project.

Cameco completed 36,000 meters of drilling in 135 drill holes. After reviewing Cameco’s data, Forum’s technical team determined the Tatiggaq deposit to be the primary exploration target. Tatiggaq is found within a large gravity anomaly that remains open along strike for 1.5 kilometers and at depth. Previous drilling by Cameco identified results as high as 2.69 percent U3O8 over 7.9 meters, including 24.8 percent U3O8 over 0.4 meters at a depth of approximately 200 meters.

Examining drill core in the field at the Nunavut camp, August 2023

Forum’s maiden drill program, completed in August 2023, successfully confirmed and expanded high-grade uranium mineralization at the Tatiggaq and West Zones. At Tatiggaq, drilling intersected high-grade near-surface uranium mineralization with TAT23-002 (Main Zone) intersecting 2.25 percent U3O8 over 11.1 meters, while TAT23-003 a 200-meter step-out at the West Zone) intersected 0.40 percent U3O8 over 12.8 meters.

Further drilling in 2024 has continued to intersect uranium mineralization at the Main and West deposits along the Tatiggaq Fault. As of August 2024, 17 holes have been completed, totalling 4,307 meters along the Tatiggaq Fault within the 1.5 km by 0.7 km Tatiggaq anomaly. A total of 685 samples have been shipped to SRC Laboratories in Saskatoon, Saskatchewan for analysis. Results are expected by the end of September 2024.

Wollaston Uranium Project

The property is located within 10 kilometers of Cameco’s Rabbit Lake uranium mill and 30 kilometers of Orano/Denison’s McClean Lake uranium mill. Its successful winter 2022 drilling program discovered anomalous uranium in all four holes at the Gizmo target. Forum recently received results of an airborne electromagnetic (EM) and magnetic survey to augment structural interpretations and precisely locate the EM conductors. The following maps show these results and identify new target areas for diamond drilling.

New Gravity Trends and Future Target Areas

Energy Metals Projects

Love Lake Nickel-Copper-PGM Project (Forum 100 percent): Strategically positioned near Forum’s Janice Lake copper project.Still Nickel-Copper-Cobalt Project (Forum 100 percent): The 11,411-hectare property surrounds the historic Howard Lake nickel-copper-cobalt deposit located 35 kilometers northwest of La Ronge Saskatchewan. Forum has completed a prospecting and geochemical sampling program, and in Q3 2023, completed electromagnetic and magnetic surveys.Fisher Copper Claims (Forum 100 percent): The Fisher property is located 40 kilometers west of Pelican Narrows, Saskatchewan. The property hosts a stratabound, volcanogenic massive sulphide deposit with a historical estimate of 650,000 tons grading 0.5 percent copper and 3 percent zinc (Not NI 43-101 compliant. Sufficient exploration work has not been completed to verify and classify as a current mineral resource, but the estimate is considered relevant and reliable due to extensive exploration work completed by previous operators). Forum’s geological team has identified further targets and completed a prospecting and sampling program.Quartz Gulch Cobalt, Idaho, USA (Forum 100 percent): On trend with Jervois Mining’s Idaho Cobalt Project, the only permitted cobalt mine in North America.

Forum’s uranium and energy metal projects in northern Saskatchewan

Management & Advisory Team Members

Richard J. Mazur – President, CEO and Director

Richard Mazur is an executive and geoscientist with over 45 years of Canadian and international experience in the exploration and mining industry as a project geologist, financial analyst and senior executive on uranium, gold, diamonds, base metals and industrial minerals projects. Mazur founded Forum in 2004. He is also a director of Big Ridge Gold, Impact Silver and Midnight Sun Mining. Mazur graduated with a BSc in geology from the University of Toronto in 1975 and obtained an MBA from Queen’s University in 1985.

Dr. Rebecca Hunter – Vice-President Exploration

Dr. Rebecca Hunter has over 15 years of experience as a uranium exploration geologist in Saskatchewan and Nunavut. As a project geologist for Cameco from 2005 to 2016, Hunter led the Turaqvik-Aberdeen exploration project, where the high-grade Tatiggaq and Qavvik uranium deposits were discovered nearby to the west of Orano’s (formerly AREVA) Kiggavik uranium project in Nunavut. Hunter completed her PhD at Laurentian University, which focused on the litho-geochemistry, structural geology and uranium mineralization systems of the Tatiggaq- Qavvik uranium trend in the Thelon Basin. She was recently appointed VP of Exploration and will continue her work as the lead member of Forum’s Aberdeen uranium project exploration team in the Thelon Basin, a geologic analogue to the prolific Athabasca Basin.

Allison Rippin Armstrong – Vice-President, Nunavut Affairs

Allison Rippin Armstrong is a biologist and environmental scientist with over 25 years experience specializing in Environmental, Social and Governance (ESG) practices across Canada and internationally. Allison’s accomplishments over the years have been recognized on a number of occasions, including being awarded the 2009 Kivalliq Inuit Association Expert Counsel Award and the 2011 Mike Hine Award for her contributions to the mining industry in Nunavut. A long-standing board member of Yukon Women in Mining, past member of the NWT & Nunavut Chamber of Mines, and founding member of the Yukon University Foundation Board, she is also the Board Chair of Tectonic Metals Inc.

As VP Nunavut Affairs, Allison’s focus will be on community, regulatory and government relations in Nunavut Territory.

Dan O’Brien – Chief Financial Officer

Dan O’Brien is a member of the Institute of Chartered Professional Accountants of British Columbia and has over 15 years experience working with public companies in the resource industry. O’Brien is the chief financial officer for a number of publicly listed exploration companies trading on the TSX and TSXV exchanges and was previously a senior manager at a leading Canadian accounting firm where he specialized in the audit of public companies in the mining and resource sector.

Richard Aksawnee – Manager of Nunavut Affairs

Richard Aksawnee was born and raised in Baker Lake. Inspired by his late father, David, who also served as mayor, to pursue leadership roles, Aksawnee served as mayor from 2019 to 2023 and has chaired the Hunter and Trappers’ Organization for 20 years. His commitment to community service is further demonstrated by his active involvement in search and rescue operations and youth sporting activities.

Peter Wollenberg – Technical Advisor

Peter Wollenberg has 45 years of experience in the uranium exploration and mining business. He has worked in Europe, Canada, Africa and Australia as an exploration geologist and VP of exploration for Urangesellschaft on the Kiggavik Project, where he was instrumental in the discovery of the End and Andrew Lake deposits. Later he joined Cogema/Areva where he worked in several leading roles in Canada, Africa and Australia. He is currently the director of exploration and resource development for Global Atomic in Niger.

Anthony Balme – Director

Anthony Balme is the managing director of Carter Capital and Lymington Underwriting, two private UK investment funds, where he is an active participant in several global base and precious metals resource ventures in North America, Sweden and the DRC.

Paul Dennison – Director

Paul Dennison worked for 27 years in the front end of three leading investment banks: Credit Suisse, Merrill Lynch & Deutsche Bank. His focus was capital markets origination, underwriting, sales and trading in all regions outside the Americas. Thereafter, Dennison managed his own asset management company for 12 years, which was licensed in Singapore, Switzerland and the United States. He is currently based in Zurich and Singapore with his own firm, specializing as an introducing broker, sourcing international investment capital for clients.

Janet Meiklejohn – Director

Janet Meiklejohn is the principal of Emerald Capital, a consulting company providing CFO, strategic, valuation, corporate governance and marketing services to high-growth companies. She was formerly VP of institutional equity sales focused on the mining sector with several Canadian investment banks including Desjardins Securities, National Bank, Salman Partners and Macquarie Capital from 1997 to 2015. Meiklejohn grew up in Saskatchewan and has a close personal interest in the development of the uranium industry in the province.

Larry Okada – Director

Larry Okada is a member of both the Canadian Chartered Professional Accountants and the Washington State Certified Public Accountants Association with over 45 years of experience in providing financial management services to publicly traded companies, with emphasis on junior mineral exploration companies. He holds a B.A. in economics and was in public practice with his own firm of Staley, Okada and Partners and PricewaterhouseCoopers LLP. Okada also serves as chairman of Forum’s Audit Committee.

Michael A. Steeves – Director

Michael A. Steeves has been involved in the mining industry for over 50 years. He has previously held executive positions with Zazu Metals, Glamis Gold, Coeur D’Alene Mines,

Homestake Mining and Pegasus Gold. Steeves also worked for several years as a mining analyst. He holds a Master of Science degree in earth sciences from the University of Manitoba and is also a chartered financial analyst.

Brian Christie – Director

Brian Christie’s professional career spans over 45 years as a geologist, securities analyst, and investor relations executive. During his tenure as vice-president investor relations at Agnico Eagle Mines from 2012 to 2022, Agnico Eagle was consistently recognized as having one of the top investor relations programs in Canada. Christie is currently retained by Agnico Eagle as a senior advisor, investor relations. Prior to joining Agnico Eagle, he worked for over 17 years as a precious and base metals analyst with Desjardins Securities, National Bank Financial, Canaccord Capital, and HSBC Securities, in addition to 13 years as a geologist with several mining companies including Homestake, Billiton, Falconbridge Copper, and Newmont. Christie holds a BSc. in geology (University of Toronto) and an MSc. in geology (Queen’s University). He is also a member of the Canadian Investor Relations Institute (CIRI) and the National Investor Relations Institute (NIRI).

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