TICKER: DNI:TSX.V; DG7:FSE
"DNI Metals Inc. holds six contiguous mineral properties in northeast Alberta, comprising a 2,720 sq-km land position over black shales locally enriched in base metals, uranium, lithium, specialty metals and rare earth elements. The company has delineated a 3.5 billion short ton Inferred resource over a 14 sq-km portion of one of its six zones believed to extend over 26 sq-km."
The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
The Gold Report with Leonard Melman
"I like DNI Metals Inc. It is working to develop black shale deposits in northern Alberta fairly close to the shale oil deposits and those black shales contain an enormous variety of metals. DNI has proven up very sizeable ore bodies at two locations on its properties, Buckton and Buckton South, and its current work involves resolving metallurgical problems. It's obviously a high-risk investment. The shares are about $0.18/share right now, but there could be a very substantial return if the project works out. . . .From a risk/reward ratio, I believe it is a good time to acquire the shares—being fully cognizant of the risks and, of course, an investor should always do his own due diligence, but I think the potential gains outweigh the potential risks."
H & L Market Report
"DNI Metals Inc. has come a long way in the past year and has several big things coming up. Most recently the company wrapped up their most recent drill program, which will extend the already massive deposit by about another 30%. . .DNI has been in contact with potential partners in the past, and will certainly be in contact as we get closer to the PEA."
The Gold Report Interview with Tom MacNeill
"DNI Metals Inc. has been doing everything it said it was going to do and has been having great success with it. The initial resource on the Buckton Zone, which is a shale that runs 10–20m thick with polymetallic material in it, was defined at 250 Mt. It also is abundant in rare earth elements, which makes the per-ton value very attractive. The LaBiche formation, another black shale that was assumed to be barren cover rock, turned out to have better rare earth element content than the Buckton pay zone. The LaBiche formation is so thick, up to 100m, that it has a multiple of the tonnage of the 250 Mt initial Buckton resource. The company should be able to expand the gross Inferred resource in short order to 3.5 Bt and once all of the work from drilling is processed, likely in 2013, it should be able to report on a resource of about 5 Bt. Let's look at the metrics: 5 Bt of $30 rock, maybe even $50 rock with scandium credits, and costs of $5–15/ton based on other projects like Talvivaara in Finland, creates a profit somewhere around $20/ton. It costs about $1B to build the plant. Even if it only profits $10/ton and metals prices stay where they are, there's $50B in potential profit sitting in the ground.
DNI Metals has been doing a great job of going through all of the scientific work, making sure that it is professional, confirming and reconfirming that drilling is where it needs to be. The preliminary economic assessment (PEA) is underway. The company should be able to finish up the processing work on the drilling that's been done so far very shortly. It is striving to hit a 5 Bt resource at grades that should provide rock values in the $30–50/ton range. This suggests an enormous quantity of profit in the ground that is an analog to the neighboring oil sands mining that started 40 years ago. The beautiful thing for DNI Metals is all of the roads, power, manpower, infrastructure and experience with strip mining in the area—it's all there. DNI Metals is a small junior exploration company that doesn't spend its budget on beating its drum. It spends it on good science and that's good for us because we love massive resources that are being developed at low costs. It will catch on. . .DNI Metals is going to have a PEA and a resource calculation that's huge. The next steps will be to either finance its way into or partner up for a test facility. If you do good science, you end up with good projects, and then the capital market comes knocking."
The Gold Report Interview with Leonard Melman
"I had the pleasure of visiting DNI Metals Inc.'s mineral development projects located to the north of the famous Alberta tar sands projects. DNI's SBH property covers a wide area and DNI's President and CEO Shahe Sabag told me that knowledge of metals contained within the oil sands has been known for years, but it is only through the recent discovery of a process known as 'bioleaching' that a method of recovery has become available. That process is now being used at a project in Finland. There are numerous project areas at SBH, and Sabag noted one of the most promising is the Buckton Zone, where there is presently an ongoing drill program with the goal of advancing Buckton South through to a PEA. Sabag noted that the areas under DNI's control are known to contain sizeable resources of several metals including 338 million pounds of molybdenum; 34 Moz silver and just under one billion pounds of zinc."
The Gold Report Interview with Arie Papernick
"There's a company called DNI Metals Inc. that is attempting to [develop synergy between metal mining and the oil tar sands operations]. Its large Alberta property has expansive black shale hosting low metal concentrations. Its initial resource estimate for Buckton, which covers a fraction of its total land package, contains about 250 Mt with low parts-per-million grades of a host of different minerals like molybdenum, nickel, uranium, vanadium, zinc, copper, cobalt and even rare earths. . .DNI is taking advantage of infrastructure that's already in place for the mining of oil sands and applying that to bulk metal mining, instead of building everything from scratch. . .DNI has been working on perfecting its bioleaching technique with the CanmetENERGY technology center in Ottawa."
DNI Metals Inc. Content
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