Critical Metals: Crème de la Crème

Rare earth elements and other critical metals have come to the forefront as the companies that seek to develop a new supply chain have provided investors with staggering returns since my original post, on September 16th, 2010, The Rare Earth Boom. Below is a list of the best companies I keep on the radar and reevaluate when they seem oversold. The junior resource sector is too volatile and the overall equity market too fragile to just buy and hold at this point. Though the fundamentals for these companies are as a whole outstanding, the environment warrants caution.


Molycorp Minerals: MCP
Major source of light rare earths at Mountain Pass mine, California. Recent acquisitions: Santoku America Inc, Arizona US and processing plant AS Silmet in Estonia. Currently producing rare earths from old tailings at Mountain Pass.


Lynas Corporation Ltd: LYSCF, ASX: LYC
Mt. Weld plant and on-going project development, western Australia. Advanced materials plant in Kuantan, Malaysia. Lynas is in direct competition with Molycorp to be the first rare earth mine to be producing a new source of rare earths.


Avalon Rare Metals: AVL (AMEX and TSXV)
Flagship property at Thor Lake, Canada. Late stage development company who is likely one of the first to follow Molycorp and Lynas into production.


Great Western Minerals Group: GWMG, TSXV: GWG
Projects and infrastructure in South Africa, US, and Canada. A mine to market operation is underway at Great Western, many have followed their strategy and developed as much infrastructure as much as capital would allow while properties are in the development stage.


Rare Element Resources: REE, TSXV: RES
Bear Lodge property in Wyoming, US. Extensive ree and gold deposits (one of which it had taken back from Newmont Mining in 2010). Feasibility study at Bear Lodge expected to be completed in 2012. Great management, interesting JV's and an AMEX listing to help REE to garner further attention and investment going forward.


Quest Rare Minerals Ltd: QSURF, TSXV: QRM
Flagship property at Strange Lake, Canada (54,000 hectares). 43-101 Preliminary Resource Estimate showed inferred resources at Strange Lake's B-zone great enough to warrant attention from end users and investors. Pre-feasibility study of Zone-b has been funded (est. $7.5mil) and the resource could be mined by open pit with a 60+ year mine life.

Soon to crawl out from the pink sheets and gain a major US exchange listing.


Stans Energy Corp: HREEF, TSXV: RUU
Current holder of Kuttessay II in Kyrgyzstan. Further exploration and potential to expand deposits close to it's open pit operation. Kuttessay II has been solidified by possession of a Kyrgyzstan mining permit and the purchase of a metallurgical plant nearby.


Tasman Metals Ltd: TASXF, TSXV: TSM
Projects throughout Sweden and Finland, the only significant 43-101 ree resource in Europe at Norra Kärr.


Matamec Explorations Inc: MTCEF, TSXV: MAT
Their flagship project is the Zeus property in Quebec, Canada. JV gold project with Goldcorp in Timmins, Ontario. Positive results from on-going exploration at the Kipawa deposit, one of seven areas on the Zeus property containing heavy rare earth mineralization. Though the property was previously abandoned by Unocal Canada Ltd and Ressources Minérales Mistassini in the 1990's, if Matamec can maintain a solid flow of capital they have a very high grade HREE property on their hands to develop.


Alkane Resources Ltd: ALKEF, ASX:ALK
Attractive rare earth projects in Australia. Significant gold deposits with a JV managed by Newmont Mining (48% interest for Alkane, 25% if Newmont produces a bankable feasibility study).


Ucore Rare Metals Inc: UURAF, TSXV: UCU
Projects in the US and Canada with it flagship property at Bokan Mountain, Alaska. Bokan Mountain is home to Alaska's only past producing uranium site the Ross Adams mine, which produced over 1 million pounds of U3O8 from 1957 to 1971.


Arafura Resources Ltd: ARAFF, ASX: ARU
projects in Australia, Nolans Bore is planned for an open pit mine to be in operation in 2013-2014. Additional metallurgical infrastructure is planned for Whyalla, Australia.


Greenland Minerals: GDLNF, TSXV:
Flagship property Kvanefjeld in southern Greenland, Canada. Over four years of work developing Kvanefjeld with over 50,000 meters of drilling. Prefeasibility study has given way to a definite feasibility study to be completed at the end of 2012.


Other Notables:
Medallion Resources, Frontier Rare Earths Ltd, Pele Mountain Resources, IBC Alloys, Neo Material Technologies