Dear Imperial Mining Friends and Shareholders:
We are actively monitoring the impact of the current trade war between the US & China and what this actually means for investors, manufacturers and producers of Rare Earth and Technology material products for the Defence, Electronics and Automotive Industries.
Imperial Mining Group a Canadian-based rare earth and technology metal company focused on developing a resource project considered by the minerals and mining industry to be the largest bedrock-hosted source of primary, low-cost scandium in North America as well as globally. Our Crater Lake property, as it is known, hosts an important scandium oxide (Sc2O3) and rare earth element (REE) mineralized horizon, which we have now traced through diamond drilling and surface prospecting for in excess of 4.5 km. In addition to scandium and rare earths, new mineralized areas containing significant niobium (Nb, up to 9.0%) and tantalum (Ta, 3,020 ppm) have been identified on the property. Historical drill values of up to 199.7 m @ 1.08% REE+Y* and 167.8 m @ 1.17% REE+Y were returned from our Boulder Lake Zone (see Table below). Imperial’s recent drilling three km west of the Boulder target (May 2019) also returned strong values of up to 48.2 m @ 385 g/t Sc2O3, including 8.8 m @ 528 g/t Sc2O3 and including 12.5 m @ 474 g/t Sc2O3 associated with the TGZ anomaly.
TABLE: 2014 HISTORICAL DRILL RESULTS – BOULDER LAKE ZONE – CRATER LAKE PROJECT, QUEBEC
NOTES: * = REE plus Yttrium (Y); 1 TREO+Y = Total Rare Earth Oxides plus Y; 2 = Light Rare Earth Oxides plus Y; 3 = Heavy Rare Earth Oxides plus Y
As the People’s Republic of China threatens to cut off REE supplies as part of its escalating trade dispute with the United States, China, which controls of over 70% of the global rare earth supply chain and provides 80% of the US rare earth demand, has placed global consumers in the precarious position of having it’s rare earth supply chain disrupted. Global supply chain models have once again been placed at significant risk, much like what happened in 2010 when China cut off supplying Japan with rare earths. This led to driving global REE prices to astronomic levels and causing demand destruction for these critical metals. Manufacturers can no longer withstand these shocks to their balance sheets over rare earth supply uncertainty. New, alternative suppliers must be established. The major consumers of rare earths must establish their own domestic supply chains to counter China’s virtual monopoly of these materials.
For Imperial Mining Group Ltd., we are very enthusiastic about the Corporations future. The current political narrative between the US and China is setting the dynamic tone for these critical metals, however the only political narrative our Group is interested in is the need to balance global supply chains. To do this, more low cost rare earth and technology metals projects need to come on-line outside China. This should be very clear. It is very high on the European Unions agenda given the events of 2010 and the impact on Germany’s electronic industry when it was the number one exporter of goods until being displaced by China in 2010.
Imperials Crater Lake project is a key component in that narrative. With the full suite of Rare Earth and Technology metals associated with their deposits, Imperial and Crater Lake offers global consumers with a sustainable critical material supply at a price that is long-term and commercial viable for manufactures.
We would be more than pleased to continue to supply you with market updates and Imperial activities, as we continue to advance our Crater Lake project forward.