STOCK MARKET NEWS – COMPANY PROFILES
Company Profile: Kendrick Resources
Kendrick Resources (KEN) focused on battery metals in Scandinavia and well-placed in both the nickel and vanadium space is an overlooked company and one that is quietly making significant progress with both acquisitions and the building of its nickel and vanadium mineral resources.
To those people that dismiss the region as being too expensive and too hard to permit, take note. Kiruna iron ore mine is the largest underground operation in the world, Boliden’s Aitik and Kristinberg mines between them mine over 40Mtpa, Zinkgruvan operated by Lundin Mining has been in continuous operation for more than 165 years and FQM’s Pyhasalmi mine is the deepest base metal producer in Europe. Some of the most advanced and innovative environmental legislation worldwide that can and is applied by operators who know exactly where they stand, and you have an environment receptive to new mine development.
Kendrick has focused on brownfield locations and many of its operations are located close to major mining districts where production is actively encouraged.
The Company’s vanadium exploration is focused in Sweden and Finland with a drill-defined Mineral Resource at the Airijoki project in N. Sweden of 44.3Mt containing 5.9Mt of magnetite at 1.7% V2O5 for 100kt V2O5 contained metal and the Koitelainen project in Finland with a JORC (2012) Mineral Resource of 116.4Mt containing 5.8Mt of magnetite at 2.3% V2O5 for 131kt V2O5 contained metal.
Recent land acquisitions, geophysics and geochemistry has identified significant growth opportunities and a second drill programme is scheduled and the Company is hoping to double the Airijoki Mineral Resource. Metallurgical test work is taking place and we are expecting a significant upgrade of the Airijoki project in due course. The Airijoki licences are adjacent to the Talga Group graphite mine project that has recently been granted its environmental permit, so the precedent has been set for future mine development at Airijoki.
Kendrick’s nickel exploration has been directed at the Espedalen project in central southern Norway and specifically the Stormyra deposit where a Resource has been declared of 1.16Mt @ 1% Ni, 0.42% Cu & 0.04% Co. Some impressive drill intercepts were recently achieved including 6.85% Ni Eq over 1.25m from 38.2m, 3.39% Ni Eq over 11.6m from 52.4m, 2.59% Ni Eq over 3.65m from 37.8m and 2.29% Ni Eq over 4.14m from 92.35m. Subsequent follow up and re-interpretation of the orebody geometry supported by geophysics indicates an additional 500m of strike length to test. Add to this a further half a dozen high quality targets all of which have associated drill intercepts of nickel and it is clear this project has potential for the development of a small-scale nickel mine. Kendrick maintains close contact with the community and has held regular meetings to update interested parties. Watch for further updates on the current Stormyra orebody and plans to expand the project resource with drilling of other priority targets.
The Company’s recent acquisition of two high quality nickel licences in central Sweden is a clear sign of an intention to develop the business based on a growing confidence in the willingness of the various jurisdictions where they operate to welcome new mines.
The Mjovattnet and Njuggtraskliden projects host drill-defined mineralisation with some impressive nickel intercepts that suggest a large well-mineralised system that is hugely underexplored. The Brannora prospect for example reports drill intercepts of 0.82% Ni over 11.6m from 65.8m, 0.58% Ni over 25.73m from 59m and 0.64% Ni over 27.7m from 40.3m. the nearby Njuggtraskliden project has even more impressive drill intercepts including 1.01% Ni, 0.51% cu, 1.08g/t Pt and 0.56g/t Pd over 24.35m from 63.4 and 1.04% Ni, 0.6% Cu, 0.51g/t Pt and 0.23g/t Pd over 23.01m from 66.55m. Both projects have well-defined extensions of 10km each ready to drill and ample evidence of further mineralisation along strike. The presence of Platinum Group Metals, cobalt and gold in mineralisation offers additional by-product value.
Battery Metal Mining
Battery metal mining is becoming ever more strategic and alliances with downstream users is an evolution that we expect to see for Kendrick particularly as they have vanadium and nickel resources to offer. It is no coincidence that the two new nickel acquisitions are located near a well-known large-scale commercial producer of lithium batteries. While investors may be aware that battery metals are going to be key over the next few years to power the journey to Net Zero, they may not be aware yet that Kendrick is one of the leading lights in this area. This is backed by its geographical edge of being Scandinavia focused, hence near to the major central European industrial and manufacturing conglomerates.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.