Multiple Nickel Projects Making All the Right Moves

This summary highlights the key points from our latest Battery Metals interview series on 28th June, 2023, featuring Mark Selby, Chairman & CEO of Canada Nickel. Selby has a proven track record in the field, having successfully procured more than $100 million in funding and advanced nickel-cobalt projects to the brink of construction. His vast experience encompasses key roles at RNC Minerals, spearheading the development of the Dumont nickel-cobalt project, which ranks as the world's second-largest nickel reserve and ninth-largest cobalt reserve. Selby also held important positions at Inco and Purolator Courier, cementing his position as a leading expert in the nickel industry since 2001.

As we witness a reversal in nickel prices and anticipate further traction by year-end, multiple nickel projects are already exhibiting significant progress. We’ll take you through some of the latest developments in the industry, detailing various companies' efforts in this domain.

Nickel Prices Surge, Testing $9.00/lb Mark

Nickel prices finally managed to test the $9.00/lb ($20,000/tonne) mark and are trading at these levels today. London Metal Exchange (LME) inventories have increased slightly but still maintain exceptionally low levels. This price test has been anticipated since the start of the year, with expectations of it trading below these levels for a few months before the Electric Vehicle (EV) restocking and underlying demand propel it back upwards by year's end.

Shifting Market Dynamics

Convergence trends continue to unfold as expected. The battery sulphate discount squeezed in another 25% as nickel prices fell. Moreover, with the influx of Russian nickel, which relieved tightness, the premiums for metal dropped. Meanwhile, the demand in the battery sector continues to improve, despite the continued softness in the stainless steel market, leading to slightly widened discounts.

Project Updates: New and Long-term Coverage

Several nickel projects have made headlines recently. Below, we detail the developments and breakthroughs of a few such companies.

Adavale Nickel: Drilling in Kabanaga Region

Adavale Nickel has reported several massive sulphide intervals spanning several metres in the Kabanaga region. It remains to be seen whether these findings deviate from historic results.

Talon Metals: Mine Permitting Underway in Minnesota

Talon Metals has officially begun the process of applying for permits for a mine in Minnesota. The company is strategically taking advantage of a nearby rail line to set up their mill and tailings facility in North Dakota, where permitting processes are expected to be more straightforward.

Centaurus Metals: Secures Offtake Rights from Vale

Centaurus Metals managed to reclaim offtake rights from Vale, a move that will allow them to directly market material to the battery supply chain. This opportunity also enables them to use the rights for financing purposes.

FPX Metals: Metallurgy Results Announced Pre-PFS

In preparation for the Pre-Feasibility Study (PFS) this fall, FPX Metals announced their metallurgy results. They registered a net increase of 4%, adding a tailings leach circuit that boosted the recovery by an additional 6% to a total of 89% of DTR nickel grade of 0.12% and 55% of the overall nickel grade of 0.21%.

Canada Nickel Texmont: Encouraging Initial Results

Initial results from Canada Nickel Texmont showed promise with samples grading 0.6% to 1.5% nickel, 79 - 84% nickel recoveries, and cobalt recoveries of 77 - 83%. Their final concentrate grades stood at 18 - 28% nickel with up to 0.7% cobalt. The results were especially encouraging for lower grades in the 0.6 - 1% range. The company has also consolidated a 20km trend with potential for more Texmont-type deposits.

These exciting developments in the nickel industry offer an optimistic outlook as we anticipate increased demand and price elevation by year's end. The progress of these projects stands as a testament to the industry's potential and resilience in the face of evolving market dynamics.

About Canada Nickel

‍Canada Nickel Company Inc. is spearheading the progression of the latest nickel-sulphide projects. Their goal is to meet the escalating demands of the electric vehicle and stainless steel markets for nickel. The company has sought to trademark the terms NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ across various jurisdictions. Additionally, they are working on developing methods for producing net zero carbon nickel, cobalt, and iron products. By operating in low political risk jurisdictions, Canada Nickel offers investors a valuable opportunity to leverage nickel. Currently, the company is primarily supported by its fully owned Crawford Nickel-Cobalt Sulphide Project, located in the prolific Timmins-Cochrane mining camp.

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