Beyond Minerals (BY.CN) engages in the acquisition, development, and exploration of mineral property assets in Canada. The company primarily has a focus on Lithium, a commodity with great fundamentals given the increasing demand for Electric Vehicles.
At the end of March 2023, the Company announced it had entered into agreements to option 57 high potential greenfield lithium properties totalling 125,751 hectares and has acquired through staking three properties totalling 9,104 hectares. This brings Beyond Minerals total lithium property portfolio in Ontario to 66 properties covering 147,975 hectares.
With such a deal, Beyond Minerals has become the largest greenfield lithium player in the province of Ontario. With this focus, and a strong presence in lithium, the Company is considering a special resolution to change the name of the Company to “Beyond Lithium Inc” to more accurately reflect the Company’s focus on lithium assets. The name change will be a topic at the annual general and special meeting of shareholders called for May 15th 2023.
With so many projects, Beyond will have to review all the properties and determine which will be advanced by Beyond Mineral’s exploration team and which will be optioned to joint venture (JV) partners.
On Friday April 14th 2023, Beyond Minerals announced that it has entered into a master services agreement with Bounty Gold Corp. and Last Resort Resources Ltd., two leading prospecting companies in grassroots lithium exploration in the province of Ontario.
The Company will work directly with Bounty Gold and Last Resort to advance the properties through an assessment of currently available data and grassroots exploration field work to be carried out on the properties starting next month. Both Companies are familiar with the geology of the various properties, having performed extensive analysis of government recommendations, historical geological reports and boots-on-the-ground reconnaissance work guided by data-driven techniques for the discovery of lithium, cesium, tantalum pegmatites within the province of Ontario.
The first phase of exploration is intended to identify the most fractioned/evolved pegmatites on each property and identify relevant geochemical trends. This will lead to a second phase of prospecting that will be more focused on those areas showing the highest potential for discovery, and will include activities intended to identify and de-risk diamond drill targets.
“These agreements mean that Beyond will be able to deploy exploration teams on its properties as soon as the conditions on the ground permit. Planning and budgeting of 2023 field work is currently underway. Initially the focus will be on conducting a “first pass” grassroots prospecting exploration program on each property. This phase of exploration will involve conducting traverses to identify and document the characteristics of all exposed pegmatites encountered, and collect samples for geochemical analysis,” commented Allan Frame, President and CEO. “The currently compiled information on our properties, and other available data, forms the basis for the development of our exploration plan aimed at establishing a mineral resource estimate at one or more of the properties.
Jason Leblanc, President of Bounty Gold Corp. commented: “We conducted preliminary ‘first pass’ prospecting on a number of the Beyond properties in 2022, recording the location, photographing and documenting the minerology and characteristics (size/orientation) of pegmatites we found. We discovered several new rare-element pegmatites in the process, validating the staking methodology that we used to assemble our overall portfolio of properties. This next phase of exploration will serve to advance the Beyond projects forward and deliver further exploration success.”
Mr. Leblanc concluded: “Beyond Minerals’ field teams are eager to commence exploration field work. Initial reconnaissance work to confirm snow conditions and verify road accessibility will commence next week. Snow cover is currently estimated at 75% snow cover-25% exposed in forested areas, and 25% snow cover-75% exposed in open areas (clearcuts). Given the current rate of spring thaw, it is anticipated that the full grassroots prospecting program will commence on or about May 1st.”
The stock is currently up 2.50% at time of writing with a market cap just over $9.5 million.
Looking at the stock chart, it is clear that the uptrend is in play with the stock still above the 50 day moving average. Recently, Beyond Minerals printed new all time record highs on April 6th 2023. This resulted in a breakout above previous resistance I had marked at $0.425.
The stock has since pulled back and is in its correction phase, although it has closed back below the $0.425 zone. Generally, when a resistance zone is taken out, we would expect to see buyers jump in on the retest of the broken zone. This has not happened.
With a close back below $0.425, there is a chance the stock could correct some more.
If we go down to the hourly chart, you can see the market structure more clearly. The stock is ranging around this zone, and a potential reversal pattern leading to a deeper pullback could be in play. Structurally, we do have a head and shoulders pattern on the intraday chart. However, this does not confirm a deeper retracement. The trigger is always important, and in this case, it would mean an hourly (and daily) close below the $0.385 level.
The daily chart shows the overall trend, so even though the hourly chart shows a potential pullback, traders and investors should understand that this would just be a corrective move in the current uptrend. Since it is best to not go against the trend (the trend is your friend!), corrections should be seen as a buying opportunity. As long as the stock remains above $0.30, the uptrend remains intact.
