And Hathor Exploration continues to appreciate in value

Originally I wrote about Hathor Exploration (TSX:HAT) in late May of this year. In the two articles I posted, I explored the possibilities of Hathor becoming a takeover target as compared to becoming a stand-alone mine. Then in August we saw Hathor Exploration face a hostile unsolicited take-over bid from Cameco(TSX:CCO). Cameco's bid was for C$3.75 per share, and was declared as something that all shareholders should reject, according to a unanimous decision by the management of Hathor. I believe that management was indeed correct in their view of this offer. http://www.hathor.ca/i/pdf/NR_29aug2011_CCOresponse_V6-2.pdf
http://www.hathor.ca/i/pdf/2011-09-01_NR.pdf

Now, Hathor is faced with yet another bid, albeit fully expected although no one was certain who might be the next bidder, and this time it comes from none other than one of the world's largest miners, Rio Tinto. This offer is somewhat higher than Cameco's, coming in at C$4.15 per share. http://www.newswire.ca/en/story/861385/rio-tinto-makes-recommended-all-cash-offer-of-c-4-15-per-share-for-hathor-exploration
Considering that the price of Hathor shares closed at C$4.40, I believe the market is re-enforcing the belief that hathor shares are still significantly under-valued. This will quite likely lead to yet another bid, or as an alternative, we could see Rio Tinto and Cameco make a joint bid. I would hate to discount either scenario at this point, but I do fully expect that we will most likely see another bid.

There are many figures flying around regarding the correct valuation of Hathor shares at this point. Some people are stating that C$5.20 is completely within an acceptable range while others are view the closing today as an acceptable price. One thing that seems to remain constant is the fact that Rio Tinto's offer is still lacking the depth that the market is expecting. For this reason I believe that another bid is not only possible, but highly likely.

There are other aspects that also lead one to believe that this latest offer may be put to the test. For example if one looks at the drilling that has been carried out to-date on the Hathor Exploration properties, in particular the Far East zone of the Roughrider deposit, we will notice that this zone is surpassing all expectations. With the total amount of resources reported by Hathor Exploration, and with this figure constantly growing, it is not difficult to see that the share price could appreciate greatly from its current standing. http://www.hathor.ca/i/pdf/NR_26July2011.pdf
http://www.hathor.ca/i/pdf/2011-08-16_NR.pdf
http://www.hathor.ca/i/pdf/2011-09-06_NR2.pdf
http://www.hathor.ca/i/pdf/NR_20Sept2011.pdf

Another aspect that provides speculation that Hathor Exploration shares could realize a higher valuation, than this latest offer from Rio Tinto, is the fact of some of the statements that come from Rio Tinto's news release announcing their bid. Rio Tinto Energy chief executive Doug Ritchie said "The medium and long-term outlook for the uranium market is positive, with uranium assuming a significant role in the world's primary energy needs. This acquisition will allow us to build on the platform successfully laid out by Hathor and we will continue to draw on their expertise and commitment going forward. Canada is a country crucial to our business and growth plans and a location where Rio Tinto has a track record of delivering on major development projects to the benefit of the local community." http://www.newswire.ca/en/story/861385/rio-tinto-makes-recommended-all-cash-offer-of-c-4-15-per-share-for-hathor-exploration

Although Rio Tinto is definitely a world class miner of uranium, they are starting to experience declining production of the raw material in nuclear fuel because of lower grades and bad weather at its Ranger mine in the Northern Territory. Although bad weather and a recent labor dispute have hampered production, it has been reported that the grade of uranium is not near to reaching the grades from the Hathor Exploration properties located in the Athabasca Basin region of northern Saskatchewan.

I have put forth my opinion regarding the possibility of another bid, but one must also take into account that the management has given their unanimous support to this bid from Rio Tinto. As such, it is difficult to say with certainty, what the true outcome will be. Hathor Exploration is reportedly giving an update to the Far East zone resource calculation on approximately Nov. 11, and this truly could be the catalyst that precipitates another bid. In my opinion, I tend to favor those who have given Hathor Exploration the value of slightly more than C$5.00 per share. I base this on the speculation that the Far East zone will contain much more uranium than it is currently being credited for.

I am very pleased that I was able to see this chance and to be able to share it back in May of this year. I do not expect that this story is over yet though, and I do hope that Hathor Exploration will get what many seem to feel is the true value of this company. For those who may have bought when I first presented Hathor

For those who feel that this may fit their investment choice criteria, I would suggest that you definitely do your own due diligence. An excellent place to start would be at the company website, which is located at www.hathor.ca.

For disclosure purposes I have not received any compensation of any kind for this post or my opinions. I do not own shares of Hathor Exploration. 

What can Focus Metals expect to gain from the current race concerning graphene research

There is currently an astounding amount of research being conducted on graphene, the one atom thick product discovered by  Andre K. Geim, 51, and Konstantin S. Novoselov, 36, both of the University of Manchester,  in the U.K., and as a result they were awarded the  the 2010 Nobel Prize in Physics.  http://pubs.acs.org/cen/news/88/i41/8841news4.html
To bring into perspective just how huge this research has become from a global standpoint, it has been reported that tens of billions of dollars are being spent on the research of graphene. This truly leads one to a fuller understanding of why graphene is being heralded as the product that will begin a new age, just as we have seen in the past, with the bronze age followed by the ages of steel and plastic. All of these products went through many growing pains, but have become so commonplace in our lives now, that it is virtually impossible to imagine life without any of them. As with all the hurdles that came up in the research of bronze, steel, and plastic, so too will graphene face many hurdles that need to be conquered, and we are seeing this being met head-on with the entire research community globally.

There are reports that graphene is already slated to be introduced in some products in the near future, as is evidenced in the news release by Samsung, that they have plans to release the new Galaxy Skin, their newest phone, in 2012. In this news release in the Telegraph, from the UK, and written by Gianluca Mezzofiore, we will find that the future has arrived, http://www.telegraph.co.uk/technology/news/8790189/Flexible-Samsung-phone-to-be-issued-in-2012.html

I am sure that many of us in the world would hope that graphene can be expected to accomplish much more than bendable phones, so let us look at just a sampling of some of the research being conducted currently. How many of us are familiar with catalysts? Surprisingly, we all are, but in many cases we do not realize it. Catalysts speed chemical reactions without being consumed by those reactions. Their importance to society and the economy is tough to overstate. Products made with catalysts include medicines, fuels, foods and fertilizers.
Ninety percent of U.S. chemical manufacturing processes involve catalysts, which also are used to make more than one-fifth of all industrial products. Those processes consume much energy, so making catalytic reactions more efficient would both save energy and reduce emissions of climate-warming carbon dioxide gas. In this article provided by the University of Utah, we learn how University of Utah chemists developed a method to design and test new catalysts, which are substances that speed chemical reactions and are crucial for producing energy, chemicals and industrial products. By using the new method, the chemists also made a discovery that will make it easier to design future catalysts.
http://www.physorg.com/news/2011-09-catalysts-chemists-important-molecules.html

In yet another research project being conducted at the University of California, Riverside, we read how graphene's electrical properties can be tuned. At first this may seem inconsequential, but it may in fact be what is missing from the multitude of research projects around the world, in which they are attempting to replace silicon with graphene. Of course this accidental discovery does not take graphene to the level where we will see graphene being used in supercapacitors just yet, but it does give the entire research community what can be described as a significant breakthrough. http://www.eurekalert.org/pub_releases/2011-09/uoc--hge092611.php

These research projects, mentioned in this post, do not even begin to cover the vastness of graphene research globally, but rather only touch on the proverbial tip of the iceberg, regarding the amount of potential uses of graphene. In most cases, although not all obviously, there is a cloak of secrecy being put in place by the various research companies and labs, so it is very difficult to garner information on many of these projects. The reason being given by most companies is that, with so much riding on the pending success of each particular research project, they refuse to speak about the details of their specific research.

As we can see, graphene is ready to start its debut into the mainstream of our lives, in the very near future. With the technology available to the researchers of today, and of course, with the potential for more accidental discoveries, it is completely reasonable to think that graphene will find more uses, also in the near future and in the coming years. As history has shown us over the years, every time we discover a new product such as graphene, it takes an almost immeasurable amount of research in order to bring about the actual full potential of the product. It is therefore, in my opinion, that graphene will continue to be tested and researched exhaustively, and it is this that will bring Focus Metals an unusually high valuation to their company. Focus Metals will obviously stand to make significant financial gains from the sale of graphite, but graphene, due to its pricing, will be what makes Focus Metals extremely valuable. As we experience a global increase in graphene research, it is only realistic to expect that there will be a need for a source of more graphene stock to work with. Since it has been proven that not all graphite can produce graphene, that is of a caliber high enough to make it usable, there will no doubt be value brought to Focus Metals since tests have shown the graphite from Lac Knife is indeed capable of producing graphene of a quality that will be in great demand.

This potential for added value to Focus Metals, will come from Gafoid Inc., since this is a joint venture which Focus Metals holds 40% of, and is a company that is heavily vested into graphene research, with the ultimate goal of patenting and licensing all usable technologies and processes. With Roche working on the 43-101 now that the assays have been returned, and with the knowledge that the graphite contained in the Lac Knife deposit, owned by Focus Metals, is capable of producing a graphene that is considered very usable by the research community, I am reminded of other companies that had just as humble beginnings. For instance, if we consider when  the late, Steve Jobs, first started working in his garage, on what would become the icon of the technology age, who could have foreseen the vision he envisioned. I believe graphene is capable of reaching this level of usability, throughout many sectors and industries, and that the fact of what they own in their Lac Knife deposit, along with the success they stand to potentially realize from Grafoid Inc, will help the company to reach the goal as described by management as the vision they had at the company's inception. Another aspect that will continue to help Focus Metals on their quest is the fact that they are attempting to position themselves with some of the worlds largest graphite and graphene companies. These efforts will prove to be invaluable as Focus Metals continues to work towards becoming a significant world supplier of graphite and graphene.

In closing, I would like to draw attention to one of the key aspects, of why Focus Metals is better positioned to make potentially huge financial gains, as compared to virtually all their competitors. It is well known that whichever company can produce a product at the lowest price is the company that stands to gain the most. Here again Focus Metals had a dramatic edge on competitors, and now with Grafoid Inc working on a process that will revolutionize the cost of production, Focus Metals will stand to benefit tremendously. This process not only lowers the cost of production, but will aid in the purification of the product. It is my understanding that this highly secretive process is one of the patents being applied for. Truly I view Focus Metals as one of the most unique companies available on the market at present.

If this article prompts you to consider Focus Metals as a potential investment choice, I strongly suggest that you do your own due diligence, and that a great place to start is at the Focus Metals website, which can be located at www.focusmetals.ca.

For disclosure purposes I have received no compensation of any kind for this post or my views and opinions contained therein. I own shares in Focus Metals.

Focus Metals continues push forward to realize its goal of being the global go-to company for gaphite and graphene

Focus Metals (TSXV:FMS)(OTCQX:FCSMF) has had one goal since the beginning of the company, and that has been, to become not just a graphite producer, but to become "the" graphite producer. The company's CEO, Gary Economo, has remained busier than the average CEO, with a constant desire to bring Focus Metals to the point, that it can fully realize this goal. Although Gary is extremely dedicated and committed to this progression of Focus Metals, it should be noted that the entire management team is, above all, exactly that, a team. They share a visionary approach to the production of graphite from the company's Lac Knife deposit. What they also had, and still have, was the ability to seize upon the moment and realize as fully as was possible at the time, just how much value this deposit presented in terms of a product that has swept the world. This product is none other than graphene. For the benefit of those who may not fully understand just how advantageously positioned Focus Metals is, please click on this link, http://www.focusmetals.ca/technology/graphene, as I feel this helps to bring clarity to  this topic.

Not only has Focus Metals taken full advantage of the opportunity to buy the Lac Knife graphite deposit, with all the potential there-in, but they have completely seized the moment, in that they envisioned just how graphene seemed to be destined to change the world as we know it. The result of this is what is now known as Grafoid Inc., and is what stands to set Focus Metals apart from virtually all other graphite companies. The added value, that potentially could come to Focus Metals, as a result of this graphene joint venture called Grafoid is phenomenal to say the least. The graphite from Lac Knife has been verified by the Chief Scientist, Dr. Gordon Chiu, as being of unusually high grade. This in turn has a significant impact on the graphene produced from graphite. The following is an excerpt of what Dr. Chiu reported to Gary, " Dr. Chiu reported to us that our raw, unprocessed graphite was much better in quality than the best processed laboratory graphite on the market today."
What I find even more compelling, is the fact that Dr. Chiu has been working on a processing and purification technology, whereby it will allow Focus Metals to produce graphene directly from the ore produced at Lac Knife. This is obviously a stellar accomplishment which will in my opinion bring Focus Metals onto a playing field shared with few if any competitors. This in my opinion speaks volumes of the future of this company and the value they are striving to bring to shareholders. One of the major issues that can significantly impact a company's bottom-line, is of course, the cost of producing the product initially. Since Dr. Chiu has reached a point where the graphene can be produced directly from the graphite ore, this has the over-all effect of lowering the cost of production dramatically.

 Focus Metals Inc., through its New York-based joint venture headed by Dr. Chiu, its Chief Scientist, surprised the scientific community in early 2011 when it announced its entrance into the graphene development arena – a domain dominated by industrial heavyweights IBM, Intel and Samsung. When I recently inquired of Gary as to what Dr. Chiu might be working on, I was told "The proprietary nature of some 25 specific projects at this time preclude the company from identifying its commercial development targets." With the reported spending of tens of billions of dollars currently being spent on graphene research globally, at university laboratories and in corporate research and development facilities, in three principal sectors, namely: consumer electronics; computing devices and, industrial materials, it comes as no surprise that secrecy is over-abundant. The fact that we are given the knowledge of some 2 dozen specific projects, which of course will undoubtedly upon successful completion, become large cash cows in the form of patents and licensing agreements, reinforces just how the management team is working diligently to bring more value to this company, and in so doing, also to the shareholders of Focus Metals.

I find all of this quite compelling as an indication of the direction Focus Metals is headed, but there is even more reason to expect great things to come, besides those points I've covered so far. Gary had stated previously that acquisitions were something Focus Metals would continue to consider. In this NR dated September 9, 2011, we find that Focus Metals has not only bought slightly more than 200 additional claims, but have also brought another person on board in the form of, Mr. Tony Brisson, P.Geo., as Vice-President, Exploration. The following is what Gary had to say as he introduces Mr. Brisson,
“Mr. Brisson’s addition to Focus Metals’ management, particularly his strong mining and mine development background in Quebec and abroad, brings additional strength to our core management team as we begin to implement our longer-term corporate agenda,” Mr. Economo said.
“Mr. Brisson’s exploration and mine development skills and experience dovetail with our current mission to expand and enhance our understanding of our Lac Knife, Quebec graphite property and our future domestic and international acquisitions,” Mr. Economo said.
A former recipient of the Quebec Exploration Mining Association’s Prospector of the Year award, Mr. Brisson assumes his responsibilities with Focus Metal after serving seven years as VP Exploration, Cogitore Resources Inc. Mr. Brisson holds a B.Sc. Geology degree from the University Du Quebec a Chicoutimi. His previous experience includes nine years with Cambior Inc., as an exploration and mining geologist and he has held various senior mining management positions with Breakwater Resources Ltd., and Campbell Resources Inc.
Mr. Brisson lives in Rouyn-Noranda. I believe that the addition of Mr. Brisson will be a positive one as we watch Focus Metals continue their push forward to their ultimate goal.

In this same NR, it is reported that Focus Metals has purchased more claims, which Mr. Economo has stated, are known to contain graphite. As we can see from this announcement, this acquisition clearly lends credence to the company's goal of increasing value both for the company and their shareholders.
   http://www.focusmetals.ca/news/press-releases/2011-2/sept92011
The following are some maps that were provided, courtesy of Focus Metals, which show the general area in which these claims are located, as well as some other maps that detail the claims. I should add that these maps show the claim application numbers not the actual claim numbers.

The dedication and commitment of the management team just seems to keep getting clearer as we watch the acquisitions begin, the push to expand our drilling, the very busy schedule of meetings and confrences in order to bring Focus Metals before the entire world, and of course the enormous effort of getting Grafoid Inc. incorporated and still maintaining the enormous workload that comes with all the research prsently being conducted.

 There is obviously much to be anticipated from Grafoid Inc. as we look forward. The fact that their every move is not being kept as transparent as possible is, in my opinion, not only quite normal but is a prerequisite. Historically, this has been proven, to be the only strategy that a company can use when there are so many competitors competing fr the same technology. Imagine where Apple, Microsoft, and Google would be if they had made their every move completely transparent. We know that Grafoid is currently working on some 25 or more specific projects, and with this in mind, it is with ease that I would expect to hear some astounding news that has the potential to move Focus Metals into a completely new global position. With the global graphene research tab reaching well into the billions of dollars, it should be starting to become more clear that graphene is not going away, but rather will truly continue to undoubtedly become the product that will start us into a new age. In my opinion, to under-estimate just how huge the potential for Focus Metals is, considering all that graphite and graphene have to offer the world, would be a mistake.
If we consider the fact that Focus Metals had the lowest projected cost for production when the company first started, it should be easy enough to appreciate the fact that Dr. Chiu has effectively lowered this cost considerably. The fact that Dr. Chiu has provided the company with a processing and purification technology, whereby Focus Metals can produce graphene directly from the ore at Lac Knife, should be accepted as a very monumental step. I would venture to say that this will add untold value to not only the company, but also to the shareholders.

If this has prompted anyone to consider Focus Metals as an investment choice, I would urge everyone to do their own due diligence. An extremely good starting point would be the Focus Metals website which can be found at www.focusmetals.ca.

For disclosure purposes I have received no compensation for this post or my opinions. I own shares in Focus Metals.

An expanded look at my trip to Focus Metals' Lac Knife property

In this post I will be writing more about my recent trip to Lac Knife, the deposit owned by Focus Metals (TSXV:FMS)(OTCQX:FCSMF). I am still quite inspired by what I saw, and also by the detailed tour narrative given by CEO Gary Economo. It quickly became evident, why Gary has such an energy and enthusiastic spirit, in regards to Lac Knife. The scenery was beautiful as we dropped below the clouds, as we prepared to land at Wabush airport in Labrador. As we drove from the airport towards Lac Knife in Quebec, it was very noticeable to me that this was indeed such a serene setting. As we got closer to Lac Knife this only intensified, until we actually entered the property.
The following 3 images are some of the outcrops that are visible at surface. All of these outcrops are easy to chip and it becomes clear that these are actually graphite.

 As we stopped in various locations on the Lac Knife property, and got out to walk around, it provided a chance to examine many of the surrounding outcrops, of which there were several. As I stood beside a couple of these outcrops, which dwarfed me, and listened as Gary explained that the over-burden is, generally speaking, about 3-6 meters thick. This heightened my sense of what this deposit truly held, and then to consider that this entire deposit is open both at depth and to the south. Considering the size and basic shape of the deposit, it was indeed quite a feeling, as I fully realized what I was standing on. When I reached the southern portion of the mineralized zone, and could look farther to the south, that was when I saw one large outcrop and a few smaller ones. The larger being approximately 2 to 2.5 meters high and approximately 2 meters in diameter. This is an image of the above mentioned outcrop which is beyond the southern edge of the known mineralized zone. As you can see this was not taken on my trip, due to some of my images not being usable, I graciously thank Focus Metals for providing these images.

There was lots of evidence of the last drilling program, with all the holes being clearly marked. As we talked about the previous drilling, Gary pointed out approximately where they would like to drill some of the holes in this expanded drilling program, which was announced on June 30, 2011.  http://www.focusmetals.ca/news/press-releases/2011-2/june302011

In this news release, Gary states, " Samples will be drilled out by large-bore machines to depths of up to 300 meters – almost twice the depth of previous drilling – while new areas will be drilled on the southern portion of the Lac Knife property."
Once this drilling begins and Focus Metals begins to test the depth of just how deep the graphite truly goes, as well as drilling in the southern portion of the property, where no drilling has been performed to date, this could truly re-define Focus Metals completely.
Lac Knife reportedly has a 40 year mine life, (non NI43-101 compliant as yet), so it may not seem that important in that respect, however, if the resource can be enlarged, this will undoubtedly add to shareholder value.

According to Gary, the processing plant is most likely to be built in Fermont, Quebec. The distance from Lac Knife to Fermont is approximately 35 kilometers, with a portion of this on a paved provincial highway, and the remaining portion being a gravel road. The gravel portion will need some upgrading, however, the base of the road is in place. This road is maintained by the electric utility company, whose high-voltage transmission line passes with-in 7km of the property.

What I believe makes this deposit stand out from any other is the fact of the grade. Although this is non 43-101 compliant at this point, it has had major studies done as recently as 2001, and it would appear that the grade can be expected to be very close to 17%. This may not hold much meaning for some but it is in reality one of the highest concentrate flake graphite resource in the world at nearly 17% (pre-NI 43-101). It has attracted worldwide attention because of its purity and its economic value.
If that sounds extremely good, then let me tell you what has the potential to take Focus Metals into a leading global position. As we all know graphene has taken the world by storm, and as recent tests suggest, the graphite from Lac Knife has proven to produce some of the highest quality graphene. With the use of graphene actually entering products in our lives as we speak, it is with little difficulty that I can foresee Focus Metals becoming a go-to global company for graphite and graphene, which will obviously lead to enormous wealth for both the company and the shareholders.

I should add, that as we watch the markets as of late, it is evident that most if not all juniors and mid-tier companies are experiencing significant drops in their share price. For many this can become quite disconcerting, but I think this is a time when we need to watch very closely as I believe this is exactly what it takes to afford those with a high risk tolerance to gain some very envious possible entry points.

For those who find Focus Metals attractive as a possible investment choice, I strongly urge you to do your own due diligence on this company. As usual I recommend starting at the Focus Metals web site which can be found at www.focusmetals.ca.

For disclosure purposes I have received no compensation for this post or my opinions. My travel expenses to Lac Knife were paid by Focus Metals. I own shares in Focus Metals.