Exploring the Blue River Project: Capacitor Metals’ Game-Changing Tantalum and Niobium Asset

DISSEMINATED ON BEHALF OF CAPACITOR MEALS CORP.  AND ZIMTU CAPITAL CORP.

Capacitor Metals is a forward-thinking company dedicated to the exploration and development of critical mineral resources, with a particular focus on tantalum and niobium. These minerals are essential for modern technologies, and Capacitor Metals is committed to ensuring a stable and ethical supply for industries worldwide. The company’s primary asset, the Blue River Project, showcases its strategic vision and technical expertise in the field.

Founded with the mission to tap into the growing demand for these critical minerals, Capacitor Metals has quickly positioned itself as a key player in the mining sector. The company’s approach is centered around responsible resource development, with a strong emphasis on environmental stewardship and community engagement. This commitment not only enhances the value of its projects but also aligns with global sustainability goals.

The Blue River Project

The Blue River Project is strategically located in the resource-rich province of British Columbia, Canada, an area renowned for its mining-friendly policies and abundant natural resources. The project site is situated approximately 250 kilometers north of Kamloops, within the Kamloops Mining Division, and is easily accessible by road, rail, and air. The proximity to major infrastructure significantly reduces the logistical challenges often associated with mining operations, making the Blue River Project an attractive asset for development.

Capacitor Metals holds 100% ownership of the Blue River Project, a critical advantage that eliminates any complexities related to royalties or back-in rights. The project spans an impressive 1,000 square kilometers, encompassing 249 mineral titles that are in good standing. This extensive land package not only covers the known deposits of tantalum and niobium but also includes over 20 additional exploration targets, providing significant potential for resource expansion.

Blue River Tantalum-Niobium Project

Geological Significance

The Blue River Project is underpinned by a well-understood and highly promising geological setting. The primary economic minerals of interest—tantalum and niobium—are found within carbonatites, which are igneous rock bodies composed predominantly of carbonate minerals. These carbonatites occur as sills and dikes, forming the geological foundation of the tantalum and niobium deposits at Blue River.

The project’s most significant deposit, the Upper Fir, has been the focus of extensive exploration and development activities. This deposit alone boasts an indicated resource of 9.6 million kilograms of contained tantalum and 77.8 million kilograms of contained niobium, with additional inferred resources. The geological consistency and high grades of the Upper Fir deposit make it a particularly attractive target for future mining operations.

Carbonatite from Upper Fir

Strategic Advantages

The Blue River Project’s strategic location, combined with its significant geological potential, positions Capacitor Metals as a leading player in the global tantalum and niobium markets. The project’s 100% ownership and absence of royalties or back-in rights ensure that Capacitor Metals can fully capitalize on its development, maximizing the economic returns from the extracted minerals.

Moreover, the project’s location in British Columbia offers several strategic advantages. The region’s well-developed infrastructure, supportive regulatory environment, and positive relationships with local communities and First Nations provide a stable and conducive environment for mining operations. These factors not only reduce operational risks but also contribute to the overall feasibility and attractiveness of the project.

Development and Investment in the Blue River Project

Historical Investment

The Blue River Project has attracted substantial investment over the years, reflecting the significant potential recognized by both industry experts and investors. To date, more than CAD$34 million has been invested in the project, covering a wide range of exploration, development, and community engagement activities. This level of investment underscores the confidence in the project’s viability and its potential to become a major source of tantalum and niobium.

The investment has been utilized across several key areas, including extensive drilling programs, metallurgical testing, environmental studies, and community consultations. Since the discovery of the Upper Fir deposit, which has been the primary focus of development, the project has seen a total of 271 core drill holes completed, amounting to over 59,000 meters of drilling. This comprehensive exploration has provided a detailed understanding of the deposit’s geological characteristics, helping to define the resource with a high degree of confidence.

In addition to drilling, significant work has been done on the metallurgical and environmental fronts. Preliminary metallurgical studies have confirmed the project’s potential to produce high-quality tantalum and niobium oxides, while environmental baseline studies have laid the groundwork for responsible and sustainable mining practices. These efforts have positioned the Blue River Project as one of the most advanced tantalum and niobium projects globally.

Infrastructure and Accessibility

One of the key advantages of the Blue River Project is its excellent infrastructure and accessibility, which greatly reduces the logistical challenges and costs associated with its development. The project site is well-serviced by major transportation networks, including paved roads, railways, and a nearby airport, all of which facilitate the movement of personnel, equipment, and materials to and from the site.

The project is accessible via a 4-kilometer gravel road that connects to a major highway, providing direct access to the site from regional centers such as Kamloops, Valemount, and Clearwater. The presence of BC Hydro electric power transmission lines from the Revelstoke Dam on the property ensures a reliable and cost-effective power supply for future mining operations. Additionally, the Canadian National Railway’s main line runs through the western part of the property, offering an efficient means of transporting bulk materials.

Water supply is another critical aspect of the project’s infrastructure, with local underground wells providing a dependable source of water for both exploration and future production activities. The combination of road, rail, power, and water access positions the Blue River Project favorably compared to other remote or less accessible mining projects, further enhancing its economic viability.

Excellent Infrastructure Main Line of the Canadian National Railway (CNR)

Strategic Use of Investment

The strategic allocation of investment funds has allowed Capacitor Metals to advance the Blue River Project in a methodical and efficient manner. By prioritizing essential exploration and development activities, the company has been able to de-risk the project significantly, providing a clear pathway to production.

The completion of a Preliminary Economic Assessment (PEA) in 2011 marked a major milestone in the project’s development. The PEA, prepared by AMEC, outlined a low-cost underground mining operation with a projected annual production of 700,000 pounds of Ta₂O₅ and 6.3 million pounds of Nb₂O₅. With a capital cost of $379 million and operating costs of $38.44 per tonne milled, the Blue River Project was defined as a potentially large-scale, low-cost producer of conflict-free tantalum and niobium.

Further metallurgical improvements have been made since the PEA, with recovery rates for tantalum and niobium increasing to 77% and 75%, respectively. These improvements have enhanced the project’s economic metrics, increasing the Net Present Value (NPV) and Internal Rate of Return (IRR), making the project even more attractive to investors.

Future Development Plans

Looking ahead, Capacitor Metals is focused on continuing to advance the Blue River Project through additional investment and development activities. The company plans to build on the existing resource base by exploring the numerous additional targets on the property, with the goal of expanding the known deposits and discovering new ones. This ongoing exploration effort is expected to further increase the project’s value and long-term production potential.

Capacitor Metals is also committed to maintaining strong relationships with the local communities and First Nations, ensuring that the development of the Blue River Project brings mutual benefits. Continued investment in community engagement and environmental stewardship will be key to securing the necessary permits and approvals for future mining operations.

Aerial view of Upper Fir Deposit

The Strategic Importance of Tantalum and Niobium

Tantalum and Niobium Uses

Tantalum and niobium are two of the most critical minerals in today’s high-tech world, playing essential roles in a wide range of applications. Tantalum is prized for its ability to store and release energy efficiently, making it a key component in capacitors used in almost every electronic device, from smartphones and laptops to medical equipment and automotive electronics. Its high melting point and corrosion resistance also make it invaluable in the aerospace and defense industries, where it is used in jet engines, turbine blades, and missile components.

Niobium, on the other hand, is primarily used to strengthen steel, making it an essential additive in the production of high-strength, low-alloy (HSLA) steels. These steels are vital in the construction of pipelines, buildings, and bridges, as well as in the automotive industry, where they contribute to lighter and more fuel-efficient vehicles. Additionally, niobium is used in superconducting materials, which are crucial for medical imaging devices like MRI machines, and in the emerging field of quantum computing.

Together, these minerals are indispensable in the development of next-generation technologies, driving innovations across multiple industries. As the world continues to advance technologically, the demand for reliable and secure sources of tantalum and niobium is expected to grow exponentially.

Market Demand

The market for tantalum and niobium is characterized by increasing demand and limited supply, making these minerals highly strategic. Tantalum, in particular, is facing a critical supply shortage due to its limited availability and the complexity of its extraction and refinement. This scarcity is exacerbated by the fact that tantalum is often sourced from conflict-affected regions, raising ethical concerns and supply chain risks. As a result, industries are increasingly seeking conflict-free sources of tantalum to ensure the sustainability and integrity of their supply chains.

Niobium, while more abundant than tantalum, is still subject to supply constraints due to the concentration of production in a few key regions, primarily Brazil. The strategic importance of niobium has been recognized by governments and industries alike, as it plays a crucial role in infrastructure development, energy production, and advanced manufacturing.

The rising demand for these minerals is driven by several factors, including the growth of the electronics industry, the increasing need for lightweight and durable materials in automotive and aerospace applications, and the expansion of renewable energy technologies. As countries around the world ramp up their infrastructure projects and transition to cleaner energy sources, the demand for niobium and tantalum is expected to rise significantly.

Strategic Implications for Capacitor Metals

Given the critical importance of tantalum and niobium, Capacitor Metals is strategically positioned to become a key supplier of these minerals. The company’s Blue River Project offers a conflict-free and potentially low-cost source of tantalum and niobium, which is highly attractive to industries seeking to secure their supply chains and meet ethical sourcing requirements.

Capacitor Metals’ focus on these minerals aligns with global trends towards responsible and sustainable resource development. By developing the Blue River Project, the company is not only addressing the supply challenges of these critical minerals but also contributing to the broader goal of ensuring that the technologies of the future are built on a foundation of ethical and sustainable practices.

Leadership Team

The strength of Capacitor Metals lies in its experienced and highly skilled leadership team, who bring decades of expertise in mining, exploration, and resource development.

• Chris Grove, President & CEO: Chris has over 20 years of experience with the Blue River Project and is renowned for his encyclopedic knowledge of the global tantalum and niobium industries. Alongside Dave Hodge, he played a key role in raising over $34M to advance the project.
• Dave Hodge, Chairman: Dave, the founder and former CEO of Commerce Resources Corp., led the team that IPO’d the company in 2001, originally owning the Blue River Project. Alongside Chris Grove, he raised over $34M to advance the project.
• Dr. Axel Hoppe, Director: Axel is a globally recognized leader in the tantalum market. Formerly Head of Technical Services and Engineering at H.C. Starck, the world’s largest tantalum consumer, he also served as President of the Tantalum and Niobium International Study Center in 2002 and 2007.
• Justin Schroenn, Director: Justin, a former Commerce Resources team member, has 8 years of experience with the Blue River project. Alongside Chris and Dave, he has raised significant capital for both the Blue River Project and the Ashram Rare Earth Element project in Quebec. He is well known to Capacitor and Commerce shareholders.
• Max Lentz, Director: Max has over 40 years of experience in business ownership and management. As the Electoral Area Director for Thompson Nicola Regional District’s Area B (Avola – Blue River), he served as Vice Chair of the Regional Growth Strategy Committee. His achievements include securing TELUS cell towers and high-speed internet for Blue River and surrounding areas.
• Nate Schmidt, P.Geo: Nate, a Senior Geologist at Dahrouge Geological, has planned and managed multi-drill and ground geological programs across Canada, the United States, and Africa.

Together, this team forms a robust foundation for Capacitor Metals, driving the company’s success in developing the Blue River Project into a world-class source of tantalum and niobium. Their combined experience, industry knowledge, and dedication to responsible mining practices position Capacitor Metals as a leader in the critical minerals sector.

Chief Keith Matthew (Simpcw First Nation) and Former President David Hodge (Commerce Resources Corp.) Signing the Mineral Exploration Agreement