As demand for critical minerals has been outpacing supply, there has been a major increase in the number of firms that are focused on this burgeoning vertical.
Last year, President Joe Biden followed through on his promise to protect the US by creating a program to make the country less reliant on the supply of such critical minerals from China. From issuing large grants to creating tax incentives for companies that are focused on this vertical, President Biden has been very supportive of the sector and this is a trend that we expect to continue.
Many companies have benefited from the capital and resources that are being allocated to the sector and we recently identified a business that could be a beneficiary of this trend. The company, Infinity Stone Ventures Corp. (CSE: GEMS) (OTC Pink: TLOOF) (FSE: B2I) is executing on a multi-faceted growth strategy to become a single source supplier for critical energy metals that are being used in the clean energy revolution.
Starts Exploration Program at the Zen-Whoberi Project
Last week, Infinity Stone announced a key milestone and initiated an exploration program at its Zen-Whoberi Copper-Cobalt-Platinum-Palladium Project. We expect the results of the initial exploration to serve as a catalyst if it can confirm data from historical work programs by Quinto Resources in 2006 and 2007.
A few days after the announcement, Infinity Stone reported a major milestone and announced that its technical team has already discovered gold at the project during the reconnaissance program. We consider the finding to be of great significant and believe the discovery de-risks the project while enhancing the growth prospects of the business.
During the reconnaissance program, the technical team reported to have identified multiple instances of visible gold and copper. We believe the visibility demonstrate the opportunity in mining the high-value metals and consider this to be an underappreciated aspect of the project. Following the finding, the company has resampled three outcroppings and has identified a new mineralization zone.
We consider the timing of the finding to be significant as Infinity Stone is planning to raise C$450,000 by selling units (comprised of one common share and one-half of a share purchase warrant). The company plans to use the capital to advance several core growth projects and we will monitor how the story advances as a result.
Historical Data Enhances the Potential Value from the Project
According to historical work data from Quinto, several high value critical minerals (gold, platinum, and palladium) were identified in the historical drilling program. The results also highlighted intervals from a single geophysical anomaly and we expect Infinity Stone to generate more awareness if the historical drilling data is confirmed.
The reconnaissance program is a comprehensive study and will include a soil sampling program of approximately 1,000 soil samples on a 25-metre-spaced grid. The program will also conduct a lithogeochemical outcrop sampling, mapping, trenching, and more.
Going forward, Infinity Stone plans to use new data from the initial exploration program to conduct a comprehensive drill program later this year. According to historical data from Quinto, the project include several untested parallel geophysical anomalies and we consider this to be an important data point for Infinity Stone.
Infinity Stone is Nearing an Inflection Point
A key reason for our bullish view on Infinity Stone is related to the management team’s focus on further developing and expanding its portfolio of battery metal projects. Before the end of the calendar year, we expect the company to confirm the historical drilling data and expand the asset into a larger scale exploration project.
We believe the next few months are crucial for Infinity Stone’s Zen-Whoberi Project. We expect it to be much easier for the company to raise capital to expand the project if the initial exploration program confirms Quinto’s historical drilling data.
An Execution Story that is Flying Under the Radar
A couple weeks ago, Infinity Stone reported an important development as it successfully upgraded a sample of graphite from its Rockstone Graphite Property to 96.1% (Cg graphitic carbon). We consider the upgrade to be a major milestone and a potential catalyst for the business.
The Canadian junior miner was able to achieve this upgrade through a combined pressurized alkaline leach (PAL) and atmospheric acid leach (AL) process. Following the development, Infinity Stone is conducting additional tests and hopes to further upgrade the results in order to be classified as battery grade.
The following week, Infinity Stone entered into a property option agreement with 3EX Resource to acquire the 353.2-hectare Zen-Whoberi Copper-Cobalt-Platinum-Palladium Project. The property is comprised of six claims which cover 353.2 hectares in a region that is north of Mont Laurier, Quebec. The property is located in the central metasedimentary belt of the Grenville geological province where copper mineralization forms as disseminated sulphides (pyrrhotite, chalcopyrite and bornite) in calcosilicate rocks.
Two primary reasons for our bullish view on the transaction are the data from previously drill programs and the untested nature of the vast majority of the property. Almost twenty years ago, Quinto Resources conducted drill programs on the project and encountered gold, platinum, and palladium.
Another important data point from the prior drill programs is related to mineralization being mainly found in the hinges of folds as well as in veinlets in a network of sub-vertical fractures. We consider this data to be of importance when analyzing the potential value that is associated with the property and believe our readers need to be aware of this.
The Zen-Whoberi Project is located near Canada’s only operational copper smelter and refinery. We consider the location to be of geographical significance and believe the strategic location enhances the value proposition that is associated with the property. We believe the combination of the data from previous drill program and the location of the property is a recipe for success and will monitor how this aspect of the Infinity Stone story advances.
Owns Properties that Provide Substantial Upside Potential
Last year, a flotation test was conducted by SGS Canada Ltd on one sample of graphitic material from the Rockstone Graphite Property. Following the test, the firm upgraded the sample to approx. 80% which is considerably lower than the 95% purity level that is required to be classified as battery grade.
The management team is highly focused on reaching the 95% purity level by completing a two-stage process. We consider the upgrade to 96.1% to be a bullish indicator for the test and expect positive data to be the most significant potential catalyst for the project. If Infinity Stone is able to achieve this level of purity, we expect to see a spike in interest in the business and consider the project’s risk-reward profile to be favorable.
Based upon the reprocessed Versatile Time Domain Electromagnetic (VTEM) survey completed by Sabina Silver in 2007, there are 18 drill-ready electromagnetic targets. We are favorable on the work that has already been conducted on the Rockstone Graphite Property and believe the initial data de-risks the project.
Trading at a Considerable Discount to Competitors
Infinity Stone has attractive leverage to the critical battery mineral market and we are favorable on the experience and track record associated with the management team. We believe the strength of the management team is core pillar of our bullish thesis and find the fundamentals of the business to be attractive aspect of the story.
At current levels, we believe the Canadian junior miner has considerable upside potential and a bullish risk-reward profile. After conducting analysis on operators that could be considered to be 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. (PMET.CN) has rallied almost 1000% from its 2022 lows and is valued at more than C$250 million
- Frontier Lithium Inc. (FL.V) is focused on similar verticals as Infinity Stone and is valued at more than C$650 million
When comparing Infinity Stone to Patriot Battery or Frontier Lithium, we believe that Infinity Stone has similar business models and find the disparity between valuations to be of great importance. We consider the company to be an emerging growth story and are bullish on the potential value that is associated with its portfolio of properties.
We are of the opinion that Infinity Stone’s management team has its finger on the pulse of the critical battery metals market and are bullish on how the story has advanced so far this year. We believe the business is executing on a multi-faceted growth strategy and has significant upside potential. Stone is that is trading at a discount when compared to other operators that are focused on the battery metal mineral vertical.
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.
.
.
.
.
.
.
.Pursuant to an agreement between StoneBridge Partners LLC and Infinity Stone Ventures Group. We have been hired for a period of 90 days beginning April 11, 2022 and ending June 11, 2022 to publicly disseminate information about (GEMS) including on the Website and other media including Facebook and Twitter. We are being paid $4,000 per month for a period of 3 months. We own zero shares of (GEMS), which we purchased in the open market. We plan to sell the “ZERO” shares of (GEMS) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (GEMS) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
