Polymet Mining Corp., a development stage base metals exploration and development company, works to discover, develop and exploit various base metals in the upper Midwestern regions of the United States. The company has found significant progress in its activities and is, for the most part, 100% owner of its properties. The company is based in Vancouver BC, Canada and recently closed its first round of financing at $10 million. $15 million remains in the company’s next round of financing.
To understand the advantages that the company is bringing to market one must understand the region in which it is operating. Northern Minnesota has a rich and productive mining past, which was mined with older technology. This is not to suggest that deposits were “played-out”, but rather that they could not be fully accessed with equipment of the era. Polymet has gained access to sites that were heretofore ignored and brought the full force of current technology to access, refine and transport product such as gold, platinum, copper and palladium. Although gold appears to be the base metal of choice for the moment, it might be suggested that these other metals could actually be quite a bit more profitable for the company going forward – palladium being the leader in this sense until copper and the housing market begin to move.
The fact that this particular region is well known for its past metals productivity offers several advantages. The company has taken note in this regard and stands to benefit to a very large degree in reduced infrastructure and employment costs. Rail, water transport, processing and other required elements for mining have been in place for some time and will ultimately reduce costs. This is not to suggest that upgrades will not be needed but rather that the infrastructure has been in place to support a vibrant mining community in the past and is much more cheaply and easily put into place.
Projections from the company’s operations are fairly conservative and are most likely to increase as production begins to move forward. As might be expected, copper estimates are the largest annual gross at approximately 36,000 tons. From a value assessment looking into the future, nickel and cobalt appear to be high values product with annual yield of 7,700 and 360 tons per year. Not to diminish value, precious metals are projected for an annual production of 106,000 troy oz.
From all appearance Polymet Mining is quickly approaching construction and operations as permits are finalized. Facilities do seem to be in order at past and existing facilities and ready to operate as upgrades are made. An investor interested in basic metals might want to do some research on Polymet as its product has been proven in the past and prices are ripe.