#Canada #Saskatchewan #Canadian Energy Metals #Thor Project #Alumina Resource

Canadian Energy Metals' Thor Project: A Game Changer for Alumina Supply

Canadian Energy Metals Corp. (CEM) recently unveiled the findings of its Preliminary Economic Assessment (PEA) regarding the Thor Project, located in Saskatchewan, Canada. This report underscores the scale, quality, and economic potential of what could be Canada’s first major domestic alumina source. Notably, this project could reshape the aluminum supply landscape in North America.

A Major Discovery

The PEA has been conducted by two reputable engineering firms, detailing an expansive mineral resource estimate confined within 600 square kilometers. It includes a Measured and Indicated Resource of 49.5 billion tonnes, encompassing 6.8 billion tonnes of alumina and an Inferred Resource of 86.6 billion tonnes. This robust estimate represents 23% of CEM’s primary property, highlighting the significant potential of the Thor Project.

As Christopher Hopkins, President and CEO of CEM, stated, "This PEA confirms that the Thor Project is a possible game changer for North America's aluminum supply chain." Aluminum plays a crucial role in various sectors, from product transportation to energy storage. Therefore, securing a reliable source of alumina domestically could significantly bolster the region's economy.

Impressive Economic Prospects

The PEA details a surface mining operation with an impressive throughput of approximately 16.5 million tonnes per year of ore feed, forecasted to yield 1.8 million tonnes of alumina annually for a project lifespan of 25 years. Financial projections indicate initial capital expenditures of around US$6.3 billion and operating costs estimated at US$1.6 billion annually. With aluminum prices anticipated at US$5,000 per tonne for Chemical Grade Alumina and US$25,000 per tonne for High Purity Alumina, the projected internal rate of return (IRR) reaches an extraordinary 72%, yielding a net present value (NPV) of cash flows estimated at US$72.3 billion (after-tax, discounted at 10%).

Economic and Job Growth Opportunities

The Thor Project promises to initiate a new processing and value-added industry within Saskatchewan and across North America. As the province’s Premier Scott Moe highlighted, the significance of the Thor discovery lies in pairing Saskatchewan's mining-friendly policies with a substantial geological advantage. This project could generate high-paying jobs, tax revenues, and significant economic growth in the region.

The company has emphasized its commitment to collaborating with local Indigenous communities to integrate their perspectives effectively into development plans. Regular meetings with community leaders aim to address socioeconomic concerns and develop tailored employment and retention plans as the project progresses.

Strategic Location

Geographically, the Thor Project stands advantageously near the center of North America, benefiting from strategic infrastructure like reliable power sources, roads, and rail transport. This accessibility ensures efficient transportation to various markets across North America. Additionally, the Thor Project might become a pivotal resource for addressing geopolitical needs, establishing Canada as a reliable alumina supplier and potentially lessening dependence on imported bauxite.

Moving Forward

As CEM moves toward commercialization, plans include engineering a demonstration facility to highlight the project's economic and environmental benefits. The company aims to further validate the mineral resource estimates through ongoing drilling and metallurgical testing while preparing for a Prefeasibility Study that includes designing a commercial demonstration plant. Success in these areas could pave the way for financing and advancing the Thor Project, ultimately benefiting shareholders and stakeholders alike.

Conclusion

Canadian Energy Metals' Thor Project not only promises to be a beacon of economic opportunity for Saskatchewan but could also influence aluminum supply chains across North America. With extensive resources and strategic planning, the future of the Thor Project appears bright, potentially reshaping the landscape of alumina production and processing in the region.

Learn more about CEM and their innovative approaches at www.canadianenergymetals.com.