Fox River Resources Corporation (CSE:FOX) has announced a strategic collaboration with CanmetMINING, a Canadian government research organization within Natural Resources Canada (NRCan), to explore the extraction of niobium and rare earth elements (REEs) from the lateritic material and niobium from phosphate tailings at the Martison Phosphate Deposit. This partnership aligns with the Canadian government's critical minerals research and development initiatives, aiming to drive innovation and create jobs in the mining sector.

The Martison Phosphate Deposit, located near Hearst, Ontario, hosts the Anomaly A deposit, which forms the basis for a positive preliminary economic assessment (PEA). The deposit contains significant quantities of niobium and REEs in its lateritic material, as well as niobium in its phosphate tailings. Through this collaboration, Fox River and CanmetMINING will work together to develop efficient and cost-effective extraction methods for these valuable minerals.

CanmetMINING's research, development, and demonstration (RD&D) program will focus on two key areas: the extraction of niobium and REEs from the lateritic material and the extraction of niobium from phosphate tailings. The research projects will be funded by NRCan's Critical Minerals Research Development and Demonstration Program, which recently allocated $44.4 million to federal laboratories and includes collaboration with industry partners.

The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, emphasized the importance of this partnership in driving innovation and creating jobs in Canada's critical minerals sector. Stephen Case, Chief Executive Officer of Fox River, expressed his enthusiasm for the collaboration, stating that the research will help the company better understand the additional mineralization in the Martison Phosphate Deposit.

Niobium and REEs have numerous market applications, including the production of high-strength, low-alloy (HSLA) steel, lithium-ion batteries for electric vehicles (EVs), and permanent magnets for electric motors and wind turbines. The global niobium market size was valued at USD 1.5 billion in 2020 and is expected to grow at a CAGR of 6.5% from 2021 to 2028, while the global REE market size was valued at USD 11.5 billion in 2020 and is expected to grow at a CAGR of 7.5% during the same period.

By successfully extracting and marketing these resources, Fox River could generate additional revenue streams, complementing its core phosphate fertilizer business. The PEA for the Martison Phosphate Project estimated that the project could generate USD 1.2 billion in net present value (NPV) and USD 67 million in annual earnings before interest, taxes, depreciation, and amortization (EBITDA). The inclusion of niobium and REE extraction could further enhance these figures, contributing to Fox River's overall revenue and profitability.

The research findings from this collaboration could significantly influence the economics of the Martison Phosphate Project. If the extraction of niobium and REEs proves feasible and economically viable, it could add additional revenue streams to the project, potentially enhancing its NPV and internal rate of return (IRR). Moreover, the research findings could impact the project's timeline and overall development strategy, allowing Fox River to refine its plans accordingly.

In conclusion, the collaboration between Fox River and CanmetMINING presents an exciting opportunity to unlock the potential of the Martison Phosphate Deposit. By exploring the extraction of niobium and REEs, Fox River could generate additional revenue streams and contribute to the development of Canada's critical minerals sector. As the research progresses, investors should monitor the project's developments and assess the potential impact on Fox River's financial performance.