With the junior mining sector struggling in the past few years, it is difficult for investors to find comfort in investing in companies with projects that will never become a mine. However, if a company can survive the tough times and continue to advance its core project with strong economics, it will still be able to attract investors’ interests.
One of the main factors now when investing into mining companies, is of course looking at the flagship project that they have. When looking at the project, what are the most important factors to consider? Cost. Is the project’s operation cost be sustainable? Can it really make money? This is where the direction of Crystal Peak Minerals (TSXV:CPM) going, to show the public that its SOP (Sulfate of Potash) deposit has robust economics to be profitable
The development project owned by Crystal Peak Minerals is known as the Sevier Playa Project in south-central Utah. and it's a project that has had quite a history. Crystal Peak (“CPM”) has been working on the deposit and the opportunity for the last several years. It's unique in the world from a geologic perspective, as it is a brine deposit, and there are only three producing potassium sulfate deposits in the world right now that produce from a brine.
If one can produce subsurface brine deposit, like CPM, you have a very good chance to have a low capital expense project with very low operating expenses too. CPM is blessed with both of these opportunities, based on their work to date. The 43-101 technical report and pre-feasibility study numbers suggest that CPM is in the bottom quartile on the operation cost side, and one of the lowest capital expense projects of any potassium deposit project development in the world. Most of those are well north of a billion dollars while CPM’is sub- 400 million dollars all-in to develop.
The project also sits at the lowest quartile on the CAPEX of any potassium project in development in the world; the very lowest on the operation costs, end of the curve from an operating perspective; and a product that we'll produce right now in the PFS, for approximately 180 dollars a metric tonne that is currently selling for over 700 dollars a metric ton. The market for potassium sulfate is growing at about four to six percent a year, on a global basis. Then, the company have those ancillary minerals to look at, including the additional suite of minerals that includes lithium, magnesium chloride, magnesium sulfate, boron, and others that are all looking like minerals that continue, as commodities, to move up in price and in demand, even in these challenging times.
The company is in the pathway forward on the permitting, where Utah is very supportive. Then CPM has all the infrastructure at or near the site, from a development standpoint, so the risk associated with process, with infrastructure, with permitting, and with markets for products, looks as favorable as any resource project that exists in the world today.
In moving forward, within the next 12 months, the company CPM will be looking to complete the feasibility study, and complete its final permitting, and going into construction. It will be a very exciting time for the company and the shareholders.
Recently the company also raised $15M through the exercise of warrants and completed a $5.35M financing which give CPM enough working capital to do the work, where its major shareholder EMR Capital has always been one of the strongest supporters for the company. CPM is poised to have an active year ahead.
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Mine Location: Central Canada
Mine Type: Gold
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