Mining project generator Cloudbreak Discovery (LSE:CDL) has been successfully executing its current model across the resource sectors, with 13 of 17 projects in its growing portfolio being advanced by partners. Investors in Cloudbreak Discovery have exposure to in excess of CAD$5 million of exploration expenditures being incurred by its partners in the coming 12 months.
Here we take a further look at progress with the company since it listed on the London Stock Exchange, and we started following it more closely.
What is Cloudbreak Discovery
For readers unfamiliar with the company, Cloudbreak Discovery is a mining project generator; it sources new projects across the world, which it seeks to develop in coordination with partners. This requires its management team to have the ability to identify lucrative new projects which the market will want, and also the network that allows it to source the right partners to work with.
Cloudbreak Discovery currently has five polymetallic projects that have been generated and staked in Northwestern British Columbia, representing over 45,000 hectares of mineral tenures. It has successfully confirmed mineralisation across the portfolio during its phase one exploration programme.
Cloudbreak’s Yak and Atlin West projects have been optioned to partners who are spending a total of CAD$0.3 million in the coming year. There are also ongoing negotiations with potential partners on the remaining projects within the portfolio.
Strategic alliance with Alianza MineralsCloudbreak entered into a strategic alliance with Alianza Minerals Ltd (TSX-V: ANZ) for the identification and advancement of copper projects in the Southwestern United States. The alliance has allowed Cloudbreak to leverage Alianza’s extensive experience through the region and has resulted in several early successes including the acquisition of the Klondike and Stateline projects in the Paradox basin, both of which are targeting sediment hosted copper exploration opportunities.
The alliance has also seen a successful exploration programme on Klondike which identified over six kilometers of mineralised structures and grab samples, including 6.3 per cent copper and 23.3 grams per tonne silver in outcrop, demonstrating the potential of the geological system. It has yielded a partnership with the well-financed Allied Copper Corp. (TSX-V: CPR) on both the Klondike and Stateline projects to advance the assets, adding considerable potential upside to the Cloudbreak portfolio.
Cloudbreak Discovery said this week it would continue to work actively with Alianza to develop the strategic alliance.
Cloudbreak says it continues to execute significant initiatives in North America and West Africa, its two core geographical areas of focus. Cloudbreak’s primary corporate focus remains on early stage and large regional exploration packages.
North American projects
Cloudbreak’s partners have been actively exploring projects that it has previously optioned or sold. In British Columbia, Norseman Silver Corp. (TSX-V NOC) has executed exploration programmes on three of the four projects Cloudbreak generated for its portfolio. Currently, Norseman has results pending from drilling at Silver Vista and is awaiting results on the Caribou project. It is also anticipating results from a programme designed to refine the geochemical trend on the Silver Switchback project.
Temas Resources Corp. (CSE: TMAS) is actively advancing the La Blache Titanium Oxide (TiO2) project in Quebec, Canada, through a Preliminary Economic Assessment, as well as growing its assets base through a farm-in on the advanced Piskanja borates project in Serbia. Temas has also acquired the intellectual property of a suite of proprietary metallurgical processes.
Buscando Resources, Moonbound Mining and Calidus Resources Corp. have all filed preliminary prospectuses to list on public exchanges in Canada.
Finally, Imperial Helium Corp (TSX-V: IHC) has completed three wells and testing has been completed on two wells on the Steveville asset in Alberta, Canada, with guidance that it will be producing helium later this year.
West African projects
Cloudbreak is making progress in Côte d’Ivoire, West Africa, where it is currently generating base and precious metals projects through partnerships with local prospectors. The company will update shareholders on this prospect in due course.
Cloudbreak Discovery says it sees benefit in maintaining flexibility within its business model. The strength of the team across the technical and financial disciplines has afforded Cloudbreak the ability to access more advanced mineral assets. To that end, it has been actively reviewing complementary business streams that have the potential to build ongoing value, including royalties which are generated or acquired, and opportunities to spin out assets at the appropriate time.
Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery
Key commodities for Cloudbreak
Cloudbreak’s key commodities of focus will continue to be copper, lithium and precious metals, whilst also considering lead, zinc and industrial minerals, if the Company sees opportunities that represent value creation potential to Cloudbreak shareholders. Many of these commodities are integral to the decarbonisation of energy sources and thus have an extremely strong demand outlook in the coming years.
“There is currently a fundamental shift taking hold in the metals and energy sectors which will result in increased consumption of critical metals globally,” said Kyler Hardy, President and CEO of Cloudbreak Discovery. “Cloudbreak’s portfolio and strategy positions us at the vanguard of this shift and enables our shareholders to benefit from the changing dynamics within the metals and mining sectors. Our multi-asset approach, targeting a range of commodities across different jurisdictions, also significantly reduces shareholder risk. I am extremely excited about the coming year and look forward to updating the market in due course.”