Cesium may not be one of the best-known critical minerals, but its rarity, strategic applications and concentrated global supply are putting it increasingly in focus.
In the latest episode of The Capital Compass, Ricki Lee speaks with Grid Metals (TSXV:GRDM, OTCQB:MSMGF) President and CEO Robin Dunbar following the company’s maiden mineral resource estimate for its Falcon West Project in Manitoba.
Falcon West hosts high-grade, near-surface cesium mineralization in pollucite, with Dunbar describing the project as the second-largest cesium resource currently in development in the Western world.
This content has been prepared as part of a partnership with Grid Metals and is intended for informational purposes only.
Its location could also prove significant. The project sits just off the Trans-Canada Highway and in the same region as the Tanco mine, home to North America’s only cesium chemical processing facility.
Dunbar explains why cesium is considered strategically important, with applications spanning specialized drilling fluids, defence, optics, chemical and petroleum processing, medical imaging and emerging solar technologies.
Attention is now shifting towards advancing Falcon West. Grid has completed environmental baseline work, begun preliminary permitting work and commenced metallurgical testing. Dunbar says the project’s relatively straightforward processing requirements could also help limit its capital intensity.
Grid is advancing Falcon West alongside Avenir Minerals, the critical-minerals subsidiary of Agnico Eagle. Grid remains operator and intends to maintain a majority interest, while gaining access to its partner’s expertise across areas including mining, metallurgy, project design and community engagement.
The company also maintains exposure to other critical-mineral opportunities through relationships with Teck at its Makwa nickel-copper project and Boliden at Thompson East.
Watch the full interview to hear Dunbar discuss the Falcon West resource, the emerging cesium opportunity and what investors should be watching over the next 12 months.
Transcript
This transcript has been lightly edited for clarity and readability.
Ricki: Cesium is one of the world’s rarest critical metals, and chances are it’s probably not one that’s been on many investors’ watch lists.
Hello, I’m Ricki Lee, and this is The Capital Compass. Today, we’re looking at Grid Metals, a Manitoba-focused critical minerals company that is putting cesium at the centre of its investment story.
Its flagship Falcon West Project hosts high-grade, near-surface cesium mineralization and sits within the same region as the Tanco mine, home to North America’s only cesium chemical processing facility.
Grid has now reached an important milestone at Falcon West with its maiden mineral resource estimate, giving investors their first formal picture of the scale and grade of the discovery.
The company isn’t advancing its projects alone. Its relationships include Avenir Minerals, a subsidiary of Agnico Eagle, alongside strategic agreements with major industry players including Teck Resources and Boliden.
Joining me now to explain the resource, why cesium matters and what comes next is Robin Dunbar, President and CEO of Grid Metals.
Robin, great to have you with us.
Robin: Thanks, Ricki. Good afternoon.
Ricki: Robin, before we get into the resource itself, cesium is still relatively unfamiliar to many investors. What makes this metal so important? Where is it actually used? And why is securing new sources becoming strategically significant?
Robin: That’s a great question. And you’re right, cesium is not a very well-known mineral, but it is certainly a very rare mineral and very strategic.
First thing is, the supply chain for cesium is controlled almost 100 per cent by non-Western countries. There’s really no Western-world supply of cesium.
When you look at some of the major uses that it has, including advanced drilling fluids for offshore drilling, defence applications, night-vision goggles, optical uses, chemical processing, petroleum processing and things like medical imaging, it’s a metal that is very strategic.
It also has forward-facing applications, such as use in the next generation of solar panels. It’s a very critical metal. It’s been designated a critical metal. Really, if the world could find more cesium, it would certainly use more.
Ricki: You’ve now published the maiden mineral resource estimate for Falcon West. What are the main takeaways for investors, and how does its scale and grade compare with other known cesium resources globally?
Robin: As context, there’s only been six sources of cesium globally ever found. You’re looking for a mineral called pollucite, and we have high-grade pollucite located within an average of about 20 metres from surface, just off the Trans-Canada Highway.
Our resource is now the second-largest resource in development in the Western world. There’s really three. We’re number two by a large margin.
It’s a very significant new deposit of cesium. These are extremely hard to find and very rare. It’s a real cornerstone resource now for the company, which we’ll look to expand in the future.
Ricki: Getting to a maiden resource is one milestone, but proving you can turn that resource into a viable project is another. What are the next steps at Falcon West, and what work will determine how quickly you can move it further along the development path?
Robin: There’s a number of steps that we’ve already taken. The environmental baseline work for the project has been done. We’re proceeding with preliminary work on our permitting. We want to have a permit submitted for the project.
Then there are very critical steps like the metallurgical test work. We’ve commenced that work, which we hope to have the initial stage completed later this year.
One of the things about cesium which is very unique is that you don’t need water in the processing. You’re really just crushing the ore and putting it through an ore sorter. The capital cost is very low, and the permitting should be much easier because you’re not affecting the watershed in the process.
It’s kind of a unique metal — very high-value and rare, but relatively easy to process.
Ricki: Interesting. You’ve also brought Avenir Minerals, a subsidiary of Agnico Eagle, into Falcon West as a strategic partner. What does having that kind of industry backing bring to the project? And how do you view Avenir’s ability to increase its interest in Falcon West?
Robin: We think it’s invaluable, really, because Avenir is the critical-metals subsidiary, as you mentioned, of Agnico Eagle. They’re one of the largest gold producers, and I think you’d rate them as one of the most successful mining corporations in Canada.
They really have the opportunity to review many projects across Canada and around the world. The fact that they’ve chosen to invest with Grid at Falcon West at an early stage is, I think, a real testament.
They bring all elements of the mining development process into play, including community development, mining, metallurgical work, project design — all kinds of things.
What’s unique about this arrangement with them is, although they’re a much larger company, we’re the operator of the project and we’re going to maintain a majority interest.
I think we have a very collaborative process with them, and they have a great depth of knowledge of all facets of the mining business. We’re very fortunate to have them in our corner for a unique metal like cesium.
Ricki: Finally, Robin, Falcon West may be the immediate focus, but Grid has built relationships with some significant industry players, including Teck at the Makwa Nickel-Copper Project and Boliden at your Thompson East project as well.
How important are those partnerships to the Grid Metals strategy, and what should investors be watching over the next 12 months?
Robin: We’ve focused on southeast Manitoba geographically, and we like Manitoba as a jurisdiction. It’s a very minerally rich area. It has base metals and lithium and cesium, and other commodities as well.
We have an operating team that works in southeast Manitoba. We’ve been able to attract Teck on base metals to help fund that project, and Boliden a little bit further north in Manitoba for Thompson East.
Those are projects that provide great optionality for our shareholders, in that we’re using large corporations’ funding to advance these projects, so we’re not diluting the shareholder base.
Those are projects which we’re certainly hoping, down the road, even by holding a minority position, will bring a lot of value to the Grid story.
It’s a testament to our ability to get good projects, attract major mining companies and bring in capital for our shareholders.
Ricki: Well, Robin, thank you so much for your time today, joining us and giving us a closer look at the emerging cesium opportunity at Grid Metals.
Robin: Thank you, Ricki. My pleasure.
Ricki: For more information, you can visit gridmetalscorp.com. I’m Ricki Lee, and this has been The Capital Compass. Thank you for watching, and I’ll see you again next time.