The US Federal Reserve reduced its benchmark interest rate for the first time in four years on Wednesday (September 18), beginning its cutting cycle with a sizeable 50 basis point reduction.

The Federal Open Market Committee has held rates steady since July 2023 after starting to hike in March 2022.

Speaking at a press conference after the decision, Fed Chair Jerome Powell said the US economy has come into balance, which means the time has come to cut rates. He added that the cut puts the central bank in a good position to respond quickly with changes should inflation begin to reverse or should the labor market deteriorate.

When asked if the Fed made a larger cut because it’s trying to catch up, Powell said the central bank hasn’t fallen behind — instead it’s taking strong measures to avoid falling behind. He suggested that the committee has been patient in making its policy decisions and said he believes that keeping rates higher for longer has benefited the US economy.

Powell added that while the upside risk to inflation has decreased, the downside risk to employment markets has increased. He also indicated that he is encouraged by inflation coming closer to the Fed’s 2 percent target, but said more data will be needed to demonstrate inflation is sustainably within the target range before declaring victory.

The 12 Federal Open Market Committee members were not unanimous in their decision, with Fed Governor Michelle Bowman casting the sole dissenting vote, indicating that she would have preferred a 25 point reduction.

It marks the first time since 2005 that a governor has voted against a policy change. Powell said there was good discussion at the meeting, suggesting that despite the difference of opinion there was also much common ground.

Dr. Stephen R. Foerster, professor of finance at the Ivey School of Business, said a 50 point cut will provide a more stimulative effect on the American economy, but highlighted the impact won’t be known immediately.

Ultimately, the cut could be a boon for commodities investors. “Rate cuts often make commodities more attractive on a relative basis. Lower rates lower the cost of carrying inventories which should increase commodity prices,” Foerster said.

In the longer term, Saidel-Baker sees up to 100 points of total cuts between now and the first half of 2025, a viewpoint that’s at odds with the broader market expectation of 200 points.

Markets saw increased volatility following the Fed’s announcement. The S&P 500 (INDEXSP:INX) was down by 0.29 percent to 5,618.25 points, while the Nasdaq-100 (INDEXNASDAQ:NDX) fell 0.45 percent to 19,344.49 points and the Dow Jones Industrial Average (INDEXDJX:.DJI) closed just 0.25 percent lower to 41,503.11 points.

Precious metals were volatile, with gold peaking during afternoon trading at US$2,599 per ounce; it ultimately retracted and at 4:00 p.m. EDT was down 0.48 percent to US$2,557.16. Likewise, silver saw a sharp gain following the announcement to trade above the US$31 per ounce mark, but ultimately shed 2.04 percent to US$30.05.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

GTI Energy Limited (ASX: GTR) (GTI or Company) advises that the 73 resource development drill holes planned for 2024 have now been completed at its 100% owned Lo Herma ISR Uranium Project (Lo Herma), located in Wyoming’s Powder River Basin. GTI has completed 16,205m (53,166 ft) of drilling at Lo Herma this summer representing ~96% of the planned 76-hole program. The remaining hydrogeologic focused drill holes and water monitoring wells will be completed during October.

HIGHLIGHTS

7 additional drill holes completed at the Lo Herma ISR uranium project with all 73 resource development holes planned for 2024 now completedDrilling confirms deeper uranium mineralisation at elevated grades within the upper Fort Union Formation, presenting significant upside potential for Lo HermaBest mineralised intercepts reported include 3.5ft (1m) at 0.185% (1,850ppm) eU308 in hole LH-24-071, and 6.5ft (2m) at 0.074% (740ppm) eU308 in hole LH-24-069Best total hole GT of 1.092 over 23.5 ft (7.16m) in 5 stacked sand units in LH-24-069

This release follows on from GTI’s 31 July 2024 and 11 September 2024 news releases which together reported results from the first sixty-six (66) drill holes. Results from this next seven (7) drill holes (Table 1) included six (6) holes which purposely targeted deeper mineralisation in the upper Fort Union Formation (Figure 2) and delivered the following highlights:

Drill hole LH-24-071 returned the highest-grade intercept at 3.5ft (1m) of 0.185% eU3O8, and a total hole grade thickness (GT) of 0.800*.Significant mineralisation is present in multiple sands units within the upper Fort Union Formation, as demonstrated by hole LH-24-069 which encountered 6.5 ft (2m) of 0.074% eU3O8, 7.5ft (2.3m) of 0.030% eU3O8, and 6.5ft (2m) of 0.046% eU3O8 for a total hole GT of 1.092 across 23.5 ft (7.16m) in 5 stacked sand units.5 of 6 holes targeting the Fort Union Formation intercepted on trend mineralisation, with 4 holes exceeding minimum GT resource cutoff and one hole lost before it could be logged.
* Typical economically viable ISR grade and GT cut-offs are: 0.02% (200ppm) U3O8 and 0.2GT i.e., 10 ft (3 m) @ .02% (200ppm) U3O8.

GTI Director & CEO Bruce Lane commented“We are delighted that these results confirm excellent grades across good thicknesses in multiple stacked sands of the Fort Union formation. We remain very optimistic that additional pounds from this eastern part of Lo Herma can be bought into resource. This year’s drilling has successfully confirmed that stacked sand units of both the lower Wasatch & upper Fort Union contain reliable continuity of mineralisation across extended areas of the project. The 2024 resource drilling is now completed with hydrogeologic and water monitoring wells to be completed in October. Following completion of that work, we plan to update the Mineral Resource Estimate and Exploration Target for Lo Herma by year end.”

DRILLING RESULTS

Mud rotary drilling commenced at Lo Herma on Wednesday, 24 July 2024. Over the first three days of drilling, ten (10) drill holes were completed for a total of 1,908m (6,260 ft) of drilling. Results of those drill holes were previously announced to the ASX on 30 July 2024. Subsequent to that, GTI reported the results of drill holes 11 through 66 on 11 September 2024. The results of the next seven (7) drill holes, 6 of which targeted mineralisation in the deeper Fort Union formation (Figure 2), are reported here.

The current drill program was designed to further expand the mineral resource, upgrade the classification of a portion of the inferred mineral resource, and collect additional geochemical and hydrogeologic data necessary to advance a scoping study for Lo Herma.

Of the seven (7) drill holes reported here, six (6) drill holes targeted deeper mineralisation in the Fort Union Formation. Of those drill holes, four (4) drill holes exceeded the minimum grade cutoff of 200 ppm eU3O8 and the total hole grade-thickness (GT) cutoff of 0.2 GT, one (1) drill hole demonstrated trace mineralisation but did not meet the grade cutoff, and one drill hole was lost before the downhole gamma log could be completed. An additional drill hole in the northern extent of the property reported here encountered trace mineralisation.

All drill holes completed were beneficial in determining the lateral geometry of the sinuous roll front type uranium deposits present at Lo Herma across multiple sandstone units.

The best individual mineralised intercept was encountered in drill hole LH-24-071 which encountered 3.5ft (1m) of 0.185% (1,850 ppm) eU3O8 from a depth of 1302.5 ft, providing a 0.648 GT for the intercept. The total hole GT for drill hole LH-24-071 was 0.800. The greatest total Hole GT was encountered in drill hole LH-24-069, which encountered mineralisation above the 0.02% eU3O8 cut-off within five (5) sand units, providing a total hole GT of 1.092.

Click here for the full ASX Release

Sarama Resources Ltd. (“Sarama” or the “Company”) (ASX:SRR, TSX- V:SWA) is pleased to report that on 18 September 2024, it had completed the issue of shares in part settlement of deferred executive salaries and director fees (the “Compensation Shares” or the “Shares for Debt”) as previously announced in a news release dated 17 July 2024.

The Shares for Debt arrangement comprised the issue of 22,348,980 Chess Depository Instruments (“CDIs”) at a deemed issue price of A$0.02 per CDI, equivalent to A$446,979.60 as detailed in Table 1 below. Each new CDI issued under the Placement will rank equally with existing CDIs on issue and each CDI will represent a beneficial interest in one common share of the Company. The issuance of the Shares for Debt was subject to TSXV and shareholder approval which was obtained at the annual general meeting held on 11 September 2024 (the “Meeting”).

The Compensation Shares and Shares for Debt were issued upon receipt of shareholder approval, as required by the Australian Securities Exchange Listing Rules, at the Meeting. An Appendix 2A was announced to the ASX on 18 September 2024 and provides further detail on the issue of the Compensation Shares and Shares for Debt.

The Share for Debt arrangement will reduce the Company’s liabilities.

The CDIs issued under the Placement are subject to a TSX Venture Exchange (“TSXV”) “hold period” of 4 months and one day from the date of issue of the CDIs.

The Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from registration is available. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the Securities within the United States or to, or for the account or benefit of, U.S. Persons (as defined under Regulation S under the U.S. Securities Act), nor shall there be any sale of these Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Click here for the full ASX Release

The pharmaceutical industry is a major player in the overall life science sector, responsible for developing and manufacturing the majority of prescription drugs.

Companies in this space are constantly researching and creating innovative treatments for various medical conditions. In recent years, there has been a particular focus on developing new treatments for diabetes, weight loss and cancer.

With the pharmaceutical sector projected to reach a staggering US$1.6 trillion in total revenue by 2028, there is an opportunity for investors to gain exposure to the growth potential of this industry while also benefiting from the diversification and stability provided by established companies.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

NioCorp Developments (NASDAQ:NB) said on Wednesday (September 18) that it will discuss its plans for producing and potentially recycling rare earth elements at the International Rare Earths Conference.

The event will be held in Washington, DC, and NioCorp will present on October 15. The company will focus on its efforts to produce magnetic rare earth oxides, such as dysprosium and terbium, at its Elk Creek project.

In addition to production, the company will explore the possibility of recycling post-consumer rare earth magnets, aiming to contribute to a growing need for sustainable rare earths supply chains.

Elk Creek, which is located in Nebraska, is designed to utilize a whole ore leach process that would allow NioCorp to extract niobium, scandium, titanium and potentially rare earth oxides from the site.

According to the company, the asset contains the largest indicated terbium resource in the US, as well as the second largest indicated neodymium-praseodymium and dysprosium resources.

The project’s scope may include the recycling of neodymium-iron-boron (NdFeB) magnets, which are commonly used in various high-tech applications, such as electric vehicles and wind turbines.

Recycling these magnets could provide a new source of rare earth oxides, reducing reliance on traditional mining operations and global supply chains, particularly from China.

The company is looking to process magnetic rare earth concentrates from sources outside the Asian nation, potentially boosting the production of rare earth elements like dysprosium and terbium.

These elements are critical for various industries, including energy, electronics and defense.

NioCorp plans to begin testing the feasibility of recycling NdFeB magnets once it secures sufficient funding. It aims to research processes to de-magnetize, prepare and grind used magnets into feedstock that could be converted back into separated rare earths products at the Elk Creek facility through NioCorp’s planned chemical processes.

If successful, this could allow NioCorp to increase its planned production of neodymium-praseodymium oxide, dysprosium oxide and terbium oxide beyond what is contained in the Elk Creek ore.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

Wheaton Precious Metals ( TSX:WPM,NYSE:WPM)announced the launch of the Future of Mining Challenge, a global competition aimed at advancing technological innovation in the mining sector.

The initiative, developed in collaboration with Foresight Canada, seeks to foster solutions that will reduce greenhouse gas emissions and improve overall efficiency in mining operations.

The focus is on technology that can reduce the environmental impact of base and precious metals mining, in line with Wheaton’s commitment to addressing challenges revolving around carbon emissions and efficiency.

Cleantech companies and innovators from around the world are invited to participate. The goal is to identify scalable solutions that can be applied to mining operations across the globe.

A US$1 million prize will be awarded to the winner, with applications opening on Wednesday (September 18).

Randy Smallwood, president and CEO of Wheaton Precious Metals, emphasized the critical role that mining plays in the global economy. “It is critical that we foster innovation and collaboration to improve the future of mining, with a goal of making current practices more efficient and sustainable,” he said in a press release.

Foresight Canada specializes in fostering clean technology innovation, and CEO Jeanette Jackson echoed the dual objective of the competition: reducing emissions while enhancing productivity and profitability in the mining sector.

‘By working together, we will seek to identify solutions whose goal is to not only reduce emissions but enhance the productivity and profitability of the global mining sector. We are excited to see the innovations that emerge,’ she noted.

A panel of industry experts will review the proposals, and the winner will be announced at next year’s Prospectors & Developers Association of Canada convention, scheduled to run from March 2 to 5, 2025, in Toronto, Canada.

The deadline for Future of Mining Challenge applications will be at the end of the year.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

Resource investors new to the market might see quite a few unfamiliar phrases in news releases. Prefeasibility and feasibility studies are definitely two key mining terms to know.

Prefeasibility and feasibility studies are inherently linked to each other — understanding their differences creates a clearer idea of what they are and how they’re used. Their key similarity is that they represent milestones for mining and exploration companies.

On that note, let’s take a closer look at what exactly prefeasibility and feasibility studies are, as well as how they fit into company plans and the lifecycle of a mining project.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.