Tungsten and Tin: Cadillac Ventures

Sometimes finding a mineral deposit is about having found it once before. Cadillac Ventures (V.CDC) CEO Norman Brewster had brought the Burnt Hill tungsten/tin mine to test production in the early 1980’s at which point the price of tungsten collapsed. For 30 years little work was done on the deposit.

Located 110 kilometers north of Fredericton New Brunswick, the Burnt Hill area was purchased by Brewster and was joint ventured in 2007. Because the work on the area was historical Brewster explained, “We have to recreate the work I did in the 1980’s. Redo the bulk sample and redo the drilling”.

This would advance Cadillac to feasibility at Burnt Hill itself. However, on November 5, 2013, Cadillac announced that it had discovered a second mineral occurrence a Wolf Ridge, 3-6 kilometers away from the original Burnt Hill deposit. This second occurrence was discovered by the use of airborne data and trenching. The size of this occurrence is comparable in scale and grade to the original Burnt Hill deposit.

Brewster points out that the new occurrence is somewhat different from the Burnt Hill deposit as it contains much more tin. “That’s important because the tin market is a bigger market than the market for tungsten.” Tin is something of a stealth strategic metal as it is used in the solder which is used in electronic devices. (For example, an I-Pad uses between 1-3 grams of tin.)

The tin market is tightening and China, the world’s second largest producer, recently announced a reduction in its export quotas for tin. In 2010 tin hit an historic high of $15.00 per pound and recently it has traded between $10.00 and $10.50 a pound. With tin values as high as 2.69% the Wolf Ridge occurrence is exceptionally promising.

Which is not to discount tungsten. This metal has recovered from 2008 lows of just over $11 per pound to a current price of just under $22.00. “There is a robust market for the metal.” said Brewster. “China is the major producer but it consumes tungsten as well.”

China has imposed a significant export tax on tungsten and supply is seen to be tightening.

“We could start with an open pit. At least 500,000 tons are pitable.” said Brewster. “The tungsten comes in swarms of small veins. You pre-concentrate the veins. Mine 1000 tons of material but only process approximately 300 tons. By eliminating the waste material you bring up the grade of the material you do process.”

Tungsten is used in everything from touch screen pads to hard materials (in the form of tungsten carbide where most of the world’s production ends up), as filaments in incandescent light bulbs and in armaments where its mass and hardness are used as an alternative to depleted uranium.

When the initial feasibility studies were undertaken in the 1980’s the price and demand for tungsten were a fraction of what they are today. In fact, demand for tungsten is four times what it was when Brewster first worked the Burnt Hill deposit.

The work on the Burnt Hill deposit is ongoing with its updated 43-101 resource estimate released July 15, 2013.

Cadillac Ventures is trading at $0.05 with a market cap of 8.23 million dollars.


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