Materials & Mining: Critical Minerals Move Up - Feb 20

The Big Picture

Today the Materials & Mining sector was driven by a clear theme: critical minerals and operational tech are moving from the margins into mainstream investment conversations. New exploration results, a near-term acquisition, and expanded R&D for battery and recycling technologies underlined investors' appetite for materials tied to energy transition and electronics supply chains.

That matters because supply concentration risks and improved operational efficiency both affect project economics and long term returns. If you're tracking exposure to critical minerals, today's stories give you concrete signals about where capital and attention are heading.

Market Highlights

Here are the quick takeaways you need for the close and what traders are parsing as they position for next week.

• Norsemont announced the first seven holes of its Phase 3 programme at Choquelimpie in northern Chile, totaling 1,650 metres of drilling, a step that advances resource definition and exploration momentum.
• Core Critical Metals revealed plans to acquire an 80% stake in the Lucky Mike silver-copper-tungsten property, pending TSX Venture Exchange approval, signaling continued M&A interest in critical metal plays.
• Volta Metals, listed as $VLTA on the CSE, reiterated its multi-commodity Ontario portfolio that includes rare earths, lithium, gallium, cesium and tantalum, keeping junior explorers in focus for strategic supply plays.
• Redwood expanded its San Francisco R and D footprint to connect battery recycling with critical minerals recovery and energy storage projects, a development that customers and partners will watch for scaling signals.
• Recycling sector watch: $LKQ outlined a simplification and productivity push in an uncertain demand environment after reporting 2025 results, a sign that recyclers are prioritizing margins and operational discipline.
• Policy note: The Supreme Court struck down IEEPA-based tariffs and the administration responded by invoking Section 122 of the Trade Act of 1974, creating a new regulatory backdrop for recycled goods and imports.

Key Developments

Exploration activity ramps up at Choquelimpie

Norsemont's completion of the first seven holes for a total of 1,650 metres in Phase 3 is the most tangible near-term advance among today’s field stories. That drilling will feed resource models and could unlock permit and financing conversations if assays are favorable.

For you as an investor, more drilling means updated geological data and potential re-rating events ahead, especially for juniors where positive assays often catalyze attention.

Acquisition spotlight: Core Critical Metals and Lucky Mike

Core Critical Metals’ planned purchase of an 80 percent stake at Lucky Mike formalizes investor appetite for tungsten and multi-metal projects. Check your exposure to juniors that control critical mineral permits because consolidations like this can accelerate project timelines.

Approval from the TSX Venture Exchange is the next procedural step. That makes this a story to watch rather than a closed deal right now.

Tech, recycling and policy influence supply resilience

IoT and predictive maintenance are getting real traction, with a featured piece on digitizing slurry pump maintenance showing how operational tech can cut downtime and lower unit costs. At the same time, Redwood’s R and D expansion links recycling and battery recovery with near-term industrial scaling.

Policy moves matter too. The Supreme Court decision on IEEPA tariffs followed by tariff action under Section 122 introduces a policy variable that could affect recycled metal flows and pricing. How will companies adapt supply chains and pass costs to customers? You'll want to keep an eye on that question.

What to Watch

Focus your attention on a handful of catalysts and risks that could move the sector next week and beyond.

• Earnings and guidance from mid-cap miners and recyclers, where management commentary on demand and pricing will tell you whether simplification moves like $LKQ's are enough to offset soft end markets.
• Assay results from Norsemont's Phase 3 holes, which could materially change resource estimates and project valuations once released.
• Regulatory updates and tariff implementation details related to the Supreme Court decision. Tariff scope and effective dates will determine near-term trade flows and margin pressure for recyclers and smelters.
• Progress on the Lucky Mike transaction and any financing steps Core Critical Metals announces after TSXV approval, since funding is frequently the gating factor for early-stage development.
• Technology adoption metrics, including pilot outcomes from IoT pump programs and Redwood's R and D partnerships, because operational gains can be a game changer for mining margins.

Bottom Line

• Critical minerals are taking center stage, with tungsten, cesium and other specialty metals moving up institutional watchlists.
• Exploration and M&A activity continued, exemplified by Norsemont drilling and Core Critical Metals' 80 percent Lucky Mike stake announcement.
• Operational tech and recycling R and D expansions are improving the sector's efficiency profile and could support margins over time.
• Policy moves on tariffs add a near-term headwind for trade-exposed recyclers, so manage risk and watch implementation details.
• If you're allocating to materials, favor names with scalable processing or clear path to production, and monitor assays and regulatory updates closely.

FAQ Section

Q: How soon will Norsemont assay results affect the share prices of exploration companies? A: Lab turnaround varies but assays often arrive within weeks to months; meaningful high-grade results can trigger rapid re-rating while lower results take longer to be priced in.

Q: Will the Supreme Court tariff decision hurt recyclers right away? A: The decision changes the legal basis for tariffs, but the administration's Section 122 action creates a new pathway; short-term disruption depends on implementation specifics and affected product categories.

Q: Should I add critical minerals exposure now? A: That depends on your risk tolerance and time horizon; if you're patient you can look for well-capitalized developers and companies with processing or recycling capabilities, and diversify across metals.