aaa nak a On the Market Commentary and Insights The next generation space age ‘element’ that will disrupt the status quo regarding metals used in the aerospace and automotive markets SCANDIUM METAL WILL REVOLUTIONIZE THE ALUMINUM INDUSTRY Clean TeQ* owns the world’s largest and highest-grade scandium resource. Scandium is revolutionary in ow it will transform aluminum for the aerospace, auto- ‘motive, marine, and rail transport industries. ‘The change is stl abit out in time; however, the major users of aluminum in the word are now deeply involved in developing appli: cations for scandium enhanced alominum. Lets imagine a world where you get all the scandium you want and at a lower cost than you've been abe to get it historically. That day lenear, Seandium is one ofthe most plentiful yet hard to extract elements there is it’s held? {in minute amounts in many substrates, occur ‘ing in trace quantities in over 800 minerals Now the ‘no supply /kigh cost dynamic i on the threshold of change as chemical solutions are developing that wil release the astonish BY DR. JOHN L. FAESSEL ao | | stconcay Resew Masgane ing metal for a multiplicity of uses. ‘Notably, Clean TeQ ovns one of these processes, which is highly efficient in the extraction and purification of a range of valuable strategic metals from slurries, tail lings and solutions with yield recoveries near 999%, Notably, Clean TeQ has sold one of these scandium recovery plants to a major Japanese company. ‘Adding a tiny amount of scandium (0.15% 6 020%) to aluminum creates this nest gen- craton alloyed metal that is corrosion ress tant, weldable (20 X faster than riveting 6 ith no loss of strengths at the weld), 3D printable, able to significantly enhance castings, ‘super plastic’ (can be fabricated (o form more com. plex shapes), stronger and harder Thus, the alloy can be formulated to be much lighter on ‘comparative basis than standard aluminum. Pondering the above one can laisly say that, in effect, a new and astonishing metal has been born. The problem—the produe- tion impasse—has been that there is so very lle scandium available, Besides occurring naturally in very lov concentrations, san- dium is very difficult to separate from ore and reduce to its elemental state. These rea sons drive the cost of scandium to US $270 per gram—that’s US $122,500 per pound. By comparison, gold is US $18,687 per pound, ‘And as mentioned, only about scandium are produced globally per year. tonnes of Ttis claimed that using aluminum-scandi- ‘um alloys could reduce the weight ofa large aircraft by an enormous 10% to 15%. There is obviously a clear and diect relationship between the weight of an aircraft the amount ‘of fuel that it uses, and the efficiency of its ‘performance. Simply put, weight is money in aircraft; the heavier a plane is the more fuel it takes to drive it through the aie Russian MIG-29 Fighter: A faster, lighter, and a more fuel-efficient Soviet / Russian military aircraft using a tiny amount of scandium (Se 21) allows the fuselage to be welded (no rivets), making it 15% lighter. an TeQ Holdings Limited (ASX-CLQ) is the owner of a unique nickel / cobalt / scandium mineral resource New South Wales, Australia. Prominently, mining mogul Robert Friedland isa majorinvestor and Co-Chairman ofthe company and he increased his sharehold- ing inthe open market last yeat, Last October Clean TeQ updated its scandium resource estimate by 639, mean. Jing that it increases the contained scandium ‘metal in the resource to 19,222 tonnes. As ‘mentioned, enly about 15 tonnes of scan- dium is produced globally each year. So ‘using a minimum scandium price of $1,500 per kilogram, this means that there could be over $28 billion of the metal in the ground. In addition, theres add tional gobs of way-more § billions worth af cobalt, nickel, and platinum in the very same near-surface resource. Send request for my ‘expanded reportonthemar@san.ercom AIRCRAFT APPLICATIONS In March 2015, CleanTeQ announced 2 collaboration agreement. with ATRBUS APWorks, and later announced additional collaboration agreements with alloy manu:facturer KBM Aiips in March 2015 and December 2016. Link here and here. Critically, using scandium-modified alu- ‘minum as a body skin, the alrerat fuselage ‘may not need to be clad or painted—which would further reduce it weight and lead {o significantly reduced maintenance costs. ‘Aluminum-scandium alloys can also be used in the aircraft seetor for the production of welded gas tanks, structures for dash- board panels and compartments, and large stamped and welded structures, Analysis by specialty metals experts finds that scandium-aluminum alloys can deliver {nthe range of $9 million in net present value savings for every mid-body airliner because of the metals ight weight and abiliy to reduce for eliminate the use of rivets, reducing fuel consumption, (The weight of rivets in an AisBUS 380 is thought be about 10 tonnes) Incorporating aluminum-scandium alloys wil allow aircraft manufactures to boost ann al revenue by huondreds of millions of dollars per year through lower materials eoss, lower rect manufacturing costs, and higher manu- facturing throughput. In addition, Ive read that casting the scandium-modifed aluminum ‘an reduce the number of steps for AIRBUS to build a planes body from 22 down to 9, significanly reducing both build time and again, cost. ‘The image is showing the following: + Proposed Clean Te@ Sunrise Project location and supporting infrastructure (rail, roads, local communities) + Forbes, Fifield, Parkes etc are all local towns: + Sunrise is not in production yet, but has a resource of : 101Mt @ 0.59% Ni and 0.13% Co. Ore Reserve of S6Mt @ 0.65%Ni and 010% Co. + Cadia, Northparkes and Cowal are other mines In the area (not ‘owned by Clean TeQ) AUTOMOTIVE APPLICATIONS ‘Clean TeQ is fasc-traking the development of scandium applications forthe automeive indstry and sn dscusins with key alloy producers currently providing products to the industry to extabish programs wising scandlam-containng alloys for aplication such as high-strength extrusions of body frame skeletons, bumpers, ete Additional, casting of tomorive pars that require com. plex geometries, ranging fom hody nodes wheels wll make posible the redaction of the number of pars necessary to assemble com. plete vehicle, Clean TeQ has inated pre competitive development work witha North “American consort where a successful out come will open a we new nt of racine component markets or alainum-scandium, “The automotive sector is subsantally increasing its use of alarinum, with 50% sronth forecasted by 2020. Cleary a revolu- tionary change inthe aut industry iat hand KEY ELUCIDATION RE SCANDIUI big picture—scandiumm is the most industi- ally disruptive metal there it has all the lightweight characteristics of aluminurn and the strength of cle of titanium. Is corrosion resis tance and weldabisty are key characters, Clean Te@ Sunrise Project Location ‘What has been created isan alloy / metal that docs not appear en the period table, but his aluminum-scandium alloy has qualities ht far surpass exer metals ou there Titanium i very expensive and very heavy compared to alumi- nur eels heavy and has ses wilh corrosion that need scrupulous and exacting manage- ment. "The use of scandium-modiied alum rum solves both ofthese dilemmas Researchers clatn that scandium provides the highs incre smert of tense strength per ato percent tas ary ther alloying clement when adel 10 a mnirum. in. adivon, scandium exhibits very nod electri conductivity and excellent heat stablzation qualities. Dr John Facil is seasoned and respected Wall ‘Stet profesional with industey-ide recognition for experts market strategy and analyse He ie ely recogni for Bis insghs nv publc com panies For over 25:yeurs Dr, Fossels ON THE MARKET soporte have been widely ditt to 2 throughout the wold to an extensive list of finan- al instutions bres, foundations, mutual funds, ‘bee funds and prvatehigh net worth investe. Contac at onhemartan neon ole: This nice tnt am tent to pve iet- ‘neat ace. The coment Is purely the authcs pee= sonal opinioas and sould nt be cosine avis of sy Hn metre ad Yo ence thee en research or ek the atic of a regteed investment Profesional. The ator has bought shares inthe open rake nd nme share efor ot pbishng The Auta hasnt bee compensate o wt hist Diaslonure: The author has Bought shares of Clan TQ onthe open marke Clean Te website: http:/wwv:Clean TeQ.com/company! he ene in i oft fp Hee MicroCap Review Magazine | 41