A few months ago, we started to follow Infinity Stone Ventures Corp. (CSE: GEMS) (OTC Pink: TLOOF) (FSE: B2I) after it reported a series of positive developments.
From acquiring strategic assets to strengthening its balance sheet, the critical energy metal company has been executing on a series of key growth initiatives and we want our reader to be aware of the business.
On a comparative basis, Infinity Stone is trading at a fraction of that of other operators who are focused on similar critical energy metals. After conducting analysis on operators that are similar to Infinity Stone, we determined that the business is undervalued and find the disparity in market capitalizations to be worth noting.
- Patriot Battery Metals Inc. (TSX Venture: PMET) has rallied more than 750% from its 2022 lows and is valued at more than C$290 million
- Frontier Lithium Inc. (TSX Venture: FL) is focused on similar verticals as Infinity Stone and is valued at more than C$425 million
Advances the Zen-Whoberi Property
Last week, Infinity Stone issued an update on the soil sampling program at the Zen-Whoberi property and we are favorable on several of the data points that were reported. As part of the program, the company took a soil geochemical survey of 950 samples which revealed two new anomalous copper zones and two new anomalous nickel-cobalt zones.
One of the reasons for our bullish view on this development is related to how the property will greatly facilitate the stripping and blasting process. Going forward, the nickel-cobalt anomalies will be analyzed for platinum group metals (PGM). We believe the process has been de-risked since previous work had identified a correlation between sulphides and PGM content in the drill core.
Concurrent with the update, Infinity Stone appointed Case Lewis, P.Geo., as an independent director of the company. He is a registered Professional Geologist with Professional Geoscientists Ontario and a Qualified Person with more than 14 years of diverse project and business experience.
From managing grassroots programs to running advanced-stage exploration projects for precious metals and industrial minerals across the globe, we are favorable on his involvement with the business due to his extensive experience when it comes to working on critical mineral projects. As Infinity Stone continues to expand exploration on core projects and evaluate expanded work programs, his knowledge and expertise should play a major role in the advancement of the business.
A De-Risked Execution Story
Prior to the issuing the update on the Zen-Whoberi property, Infinity Stone reported to have acquired an option to purchase a property that is highly prospective for manganite, an important manganese ore mineral. The property, Thor Manganite covers almost 700 hectares and is comprised of two blocks.
A historical report on the northern block identified ten diamond drill holes that previously completed by Quebec Manganese Mines Limited. All the previously drilled holes reported to have intersected significant manganese mineralization and we are favorable on this data point as it relates to the project’s risk-reward profile.
The previously published historical report estimated the project would yield approx. 153,111 tons of ferro-grade ore after beneficiation. Although the forecasts were legitimate, the information to make the assessment was not considered to be valid. Going forward, Infinity Stone plans to verify the historical results through additional field work and we expect positive data to serve as a major catalyst for the business.
Historical Data De-Risks the Thor Manganite Project
Based on the historical data, the drill samples that were analyzed did not have high enough manganite content for making steel, however, manganese is a key element in electric vehicle (EV) battery production process and we are favorable on this aspect of the story for Infinity Stone.
We believe the focus on manganese will benefit Infinity Stone as demand and prices continue to steadily increase. During the last few years, interest in downstream manganese processing has been increasing as demand for using manganese in lithium-ion batteries has been growing.
Tesla CEO Elon Musk recently said, “I think there’s an interesting potential for manganese….It is relatively straightforward to do a cathode that’s two-thirds nickel and one-third manganese, which will allow us to make 50% more cell volume with the same amount of nickel.”
The transaction shows Infinity Stone’s commitment to acquiring critical battery metals and has been executing on the previously announced plan to be an aggregator and owner of energy metals mineral deposits that are expected to continue to be in high demand.
Led by a Management Team that is Focused on Creating Value
Last week, Infinity Stone issued an update on its current exploration activities and we are impressed with how the business has advanced since we started to cover it. Concurrent with the update, the company announced the appointment of Michael Townsend as Executive Chairman. We recently spoke with Mr. Townsend and consider him to be the right person to drive the operation forward.
With more than twenty years experience in the mining sector, Mr. Townsend adds significant value to the leadership team. We believe his addition puts the critical energy metal company in a better position to maximize value for shareholders and to further advance the projects that are associated with its portfolio of properties.
A Company with Significant Potential Growth Catalysts
As part of the operational update, Infinity Stone reiterated its plan to conduct additional exploration projects on its portfolio of energy metals mineral properties. During the last quarter, the company has reported a series of positive developments including the acquisition several promising assets.
One of the initiatives we are focused on is the Buda Pegmatite Project which Infinity Stone started to explore in June. After working extensivley on the project for several weeks, the team has sent 55 samples for testing and should receive the results in the coming weeks. We expect positive data to serve as a major catalyst for Infinity Stone and will monitor how this aspect of the story evolves in the near-term.
Another project we are excited about is the Galaxy Pegmatite Project Work Program. The company mobilized an exploration team for the project and all of the samples collected will be assayed for lithium, niobium, tantalum, rubidium, as well as other elements. We are bullish on the possible value that is associated with the program and expect positive data to be a potential catalyst for the story.
In June, Infinity Stone received assay results from the geochemical survey carried out at the Zen-Whoberi Project. Currently, the company is in the process of plotting the results on a geochemical map and completing the assessment. In the near future, the management team expects to provide an additional update on the project and we want our readers to be aware of this.
A Multi-Faceted Growth Story with an Attractive Valuation
When it comes to analyzing Infinity Stone, we believe it is important to understand the critical energy metals it is focused on mining. We are of the opinion that the company is focused on discovering minerals that have more demand than supply and find this to be an attractive aspect of its value proposition.
Although the media loves to talk about how the global economy is in a recession, we believe certain sectors are better positioned than others. With Infinity Stone, we are of the opinion that the business is focused on verticals of the energy metals market that have showed continued strength which has reaffirmed the leadership team’s focus on the need to fuel the electrification of the global economy
If you are interested in learning more about Infinity Stone, please send an email to support@onthebids.com with the subject “Infinity Stone” to be added to our distribution list.
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