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- How to 10x your investment with Carbonatites
How to 10x your investment with Carbonatites
& why these deposits are so important
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This week is sponsored by Ryse
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What to expect (June 12)
🌌 10x your chance at mining investment success
✅ Monster Pick - Gold’s near all time highs, this company will be there soon
If you’ve been invested in mining (especally juniors), you’ll know that the chance of success, that being a project goes into production, is low.
How low?
1 in 100.
That’s right, only 1% of projects get developed into an actual producing mine.
These are terrible odds, but what if I told you there was a way to 10x your chances?
Well, there is.
Welcome to the world of Carbonatites.
What Are Carbonatites?
In simple terms, carbonatites are rare igneous rocks that contain more than 50% carbonate minerals.
They are formed from magma that is rich in carbonate and alkaline elements. Carbonatites are often full of valuable minerals like rare earth elements (REEs), niobium, and fluorite.
Why Carbonatites are so good
Carbonatites are the desposit of choice for a few reasons.
Data shows that while only 1 in 100 mining projects make it into production, 1 in every 10 carbonatites becomes a producing mine.
This is due to the high concentration of minerals, reducing the amount of ore that needs to be processed - which in turn lowers production costs.
For instance, the Mountain Pass mine in California, a well-known carbonatite deposit, has been a major source of rare earth elements for decades, producing 15% of the worlds rare earth elements.
Mountain Pass mine, California
Monster Stock Pick
Banyan Gold
Why we like it ✅
The AurMac Gold Project's has a solid resource. With an updated mineral resource estimate at 7M ounces of gold and an inferred mineral resource of 347.5 million tonnes grading 0.63 g/t gold at a 0.3 g/t Au cut-off, including intersections like 0.95 g/t gold over 35.7 meters.
Management knows how to run gold mines. Tara Christie has over 25 years in the exploration including her previous role as President of Gimlex Gold Mines Ltd., one of Yukon's largest placer mining operations.
Money, money & more money: You need money to make money, and Banyan raised $16M in 2022 which is funding the resource development in the Yukon.
Stock Info
Ticker Symbol: TSX.V: BYN
Price: $0.33 (as of June 12, 2024)
Market Cap: $94M
Website: https://banyangold.com/
Want to view our previous Monday Monster Stock picks? View them here.
Why are they so unique?
So what makes carbonatites worth so much more?
Rare Earth Elements and other metals found in carbonatites are used in important technology like EV’s, defense systems and electronics - making them highly sought after for advanced countries like the USA.
So much so that they’re listed as critical minerals in the US, meaning they are crucial to the countries development.
That’s essentially a vote of confidence from the US government to say “We need these minerals and will do what we need to ensure the US has a stable source for the future”.
Bullish.
Safety? Please tell me more
If you’re a junior resource investor, any ‘safety’ is welcomed.
With a 10 times higher success rate than other types of deposits, carbonatites offer a much safer bet for investors.
There are just over 500 known carbonatites in the world, and the ones that are being mined are worth a lot.
For instance, the Araxá mine in Brazil, managed by CBMM, is one of the world's largest producers of niobium - acquired by Magris for $530 million.
That means if you find a carbonatite, hold on tight - you’ve found a gem (literally).
Carbonatites are a unique opportunity in the mining sector.
Their high success rate & the strategic importance of their minerals make them a somewhat “safer” bet, while still having the potential of a high-growth mining stock.
As the demand for advanced technologies and sustainable energy solutions continues to rise, carbonatites will continue to grow in importance.
👋 Colton, Stock Monster.
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This newsletter is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions. All content is based on public knowledge. We have not been compensated in any way for this pick or content; we genuinely just like it. Assume that contributors to articles own or have interest in stocks they talk about, therefore may be biased, but not compensated to promote them.