Inomin Mines has a Beaver by the Tail

Inomin Mines Inc. (TSX.V: MINE) Beaver-Lynx project has the potential to be among the largest  discoveries in Canada of high-grade magnesium and sulphide nickel with other critical minerals: chromium and cobalt.  Previous drilling produced impressive grades of 20.6% magnesium, 0.16% nickel, and 0.33% chromium.  The company has recently finished a new phase of drilling and is waiting for assay results. “Positive assay results would increase Beaver’s mineral footprint to 6 kilometres in length.’’

Magnesium, a lightweight and strong metal, is becoming increasingly important in various industries, particularly in the green energy sector. Its applications range from the production of high-strength alloys in the aerospace industry to its use in the manufacturing of frames and batteries for electric vehicles (EVs). As the demand for EVs and renewable energy technologies continues to grow, so does the need for magnesium. The magnesium metals market is predicted to be valued at US$ 5.3 billion in 2023 growing to US$ 9 billion by 2033, a 5.4% annualized growth rate . 

China currently dominates the global magnesium market, controlling over 85% of production. This vulnerability in the magnesium supply chain was exposed by Chinese domestic policy, first giving the west a wake up call in 2016. China introduced a dual-control policy focused on reducing energy intensity and limiting overall consumption. In 2021, the central government began actively monitoring consumption, leading to the shutdown of high-energy-intensity industries, including aluminum production, in Shaanxi Province. This caused an international supply crisis and soaring prices. The fragility of the global supply chain has been further highlighted by recent events, such as the COVID-19 pandemic and trade tensions between China and other countries. Recognizing the strategic importance of magnesium, over 40 countries including the US & Canada have placed it on a critical minerals list.

Canada has the potential to replace a substantial part of China’s production and reduce the risks associated with the current concentration of production. The country’s rich mineral resources, and mining expertise make it well-positioned to become a major player in the global magnesium market.  Last year the US announced $250 million in Defense Production Act funding for US & Canadian companies to mine and process critical minerals.

Inomin Mines’ Beaver-Lynx Project: A Significant Magnesium Discovery

In 2021 Inomin Mines Inc. (TSX.V: MINE) reported significant new discoveries of nickel, magnesium, and chromium at the company’s Beaver nickel-cobalt property in south-central British Columbia. Drill-hole B21-02 intersected 252.1 meters grading 20.6% magnesium, 0.16% nickel, and 0.33% chromium. This is the longest mineralized hole ever drilled at Beaver and the first-ever drilling in the Spur zone, one of five large mineralized areas at the property.

The drilling program, consisting of 5 holes (716 m), successfully tested mineralization over a strike length of 5.7 kilometers. Drilling confirmed the presence of significant, near-surface, polymetallic mineralization over the tested strike length and discovered mineralization in untested areas of the property. Drilling in the Spur and North Lobe zones intersected long intervals of favorable mineralization up to 252 meters in thickness, open to expansion in all directions. All drill holes ended in mineralization.

John Gomez, President of MINE, stated, “Our initial drilling program demonstrated Beaver’s potential for hosting large volumes of nickel, as well as magnesium and chromium – all critical metals. Finding significant magnesium and chromium in new areas of the property is a tremendous discovery that adds considerably more value to the project.”

Inomin’s 100% owned Beaver-Lynx project, approximately 20,000 hectares in size, is located 15 – 25 kilometers east and southeast respectively of Taseko Mines Ltd.’s Gibraltar Mine in British Columbia’s Cariboo Region. Initial exploration and metallurgical studies at Beaver in 2013 – 2014 demonstrated the property’s potential to host large volumes of near-surface, Class 1 sulphide nickel and cobalt, amenable to conventional extraction methods.

Inomin Mines recently completed a follow-up drilling program at the Beaver-Lynx property, focusing on the Beaver and Lynx nickel-cobalt deposits. The drilling program consisted of 1,500 meters of drilling in 8 holes, targeting the Beaver and Lynx deposits. The company has sent the core samples for analysis, and the results are pending. The Company previously reported achieving 99% magnesium recoveries from Beaver drill core samples using hydrochloric acid leaching. 

Magnesium is a critical mineral with a wide range of applications in various industries, particularly in the green energy sector. China’s dominance of the global magnesium market has created risks in the global supply chain, which Canada has the potential to mitigate by replacing a substantial part of China’s production. Inomin Mines’ Beaver-Lynx project is a promising source of magnesium, with significant discoveries of nickel, magnesium, and chromium. The property’s location, infrastructure, and accessibility further enhance its attractiveness. Investors interested in critical mineral discoveries should keep an eye on Inomin Mines and the developments at the Beaver-Lynx property.