The global renewable energy market is expected to soar in the next five years and Delrey Metals Corp. (CSE:DLRY) (OTCPK:DLRYF) is one junior resource exploration and development company that is looking to meet the growing demand.
The company is focused on developing several Canada-based energy metals projects, one of which is considered “one of the largest and most accessible vanadium projects in North America,” and has continued to turn out positive results.
Let’s take a look at the growing market for energy metals and Vanadium Flow Redox Batteries (VFRB) and why Delrey Metals is the company investors should keep an eye on.
The Burgeoning Renewable Energy Market
Concerns surrounding climate change and the environmental impacts of fossil fuels have sent the renewable energy market soaring in recent years, accounting for $928 billion in 2017. But this is really just the beginning.
Rapid urbanization and economic growth in developing countries across the globe, particularly in the Asia-Pacific, is also having a positive effect on the renewable energy market. An increase in stringent environmental regulations in those countries is also fueling the demand in this region, with China leading the charge.
Add to that the increasing push for electrical vehicles and it’s clear why Allied Market Research expects the renewable energy market to reach a massive $1.5 trillion by 2025, representing a CAGR of 6.1% over a seven-year period.
This growing need for renewable energy sources and electric vehicles has boosted the vanadium redox flow battery market significantly and has put companies like Delrey Metals in the spotlight. In fact, the VFRB market is on target to reach $1.11 billion USD by 2025. The electric vehicle market is projected to hit $567 billion during the same time period, which really puts into perspective how lucrative energy metals can be.
And while the demand for vanadium is at an all-time high, the supply of the energy metal is dwindling due to environmental restrictions and protectionist policies in China.
Delrey Metals recognized this opportunity early and has been hard at work bringing its vanadium projects closer to production.
Delrey Metals and its Promising Vanadium Projects
In December 2018, Delrey Metals acquired BC Vanadium Corp. along with its two vanadium projects, Porcher and Star. The projects cover a total area of 16,654 acres and host vanadium mineralization within large bodies of titaniferous magnetite.
Delrey strengthened its project portfolio further last year when it acquired Western Energy Metals, gaining two more BC-based vanadium projects. The Peneece and Blackie properties cover a total area of 2,714 hectares and are strategically located on tidewater near Port Hardy and Prince Rupert.
It’s the Four Corners Fe-Ti-V exploration project in Newfoundland, however, that is perhaps the most promising property under Delrey’s belt. The project is now 7,655 hectares in size, offers low exploration and development costs, has excellent infrastructure and has returned promising metallurgical results for iron, titanium, and vanadium.
Last month, Delrey Metals revealed its 2019 drill program plans. The company will drill a total of 500 meters from 20 drill pads to test over 3.5 kilometers of strike length.
On top of that, Delrey said it will also be conducting follow-up prospecting and sampling at Keating Hill West, Bullseye, Four Corners, and the newly discovered Keating Hill North Zones. The company also plans to conduct late-season drilling on the project’s most-promising targets.
In short, Delrey Metals is well-positioned to capitalize on the ever-increasing global demand for vanadium. The company is also in good hands, with a management team and board of directors that has a collective track record of helping raise over $250 million in financing.
Delrey Metals’ share price still remains relatively low in comparison to its peers at $0.06 USD on the OTC and $0.07 on the CSE. Investors who are interested in the renewable energy metals space might want to consider adding this company to its portfolio.
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