Investors may want to keep an eye on nickel stocks. In fact, according to Fastmarkets.com, “Demand for nickel from the battery industry is, therefore, set to increase significantly. Fastmarkets.com, researchers forecast that demand for nickel for use in EV batteries represents around 280,000 tonnes per year of nickel metal globally, which corresponds to around 10% of worldwide demand for nickel. But this figure is set to grow significantly. Demand from the battery industry is expected to increase to close to 314,000 tonnes in 2023 and to 668,000 tonnes by 2025.” That’s a major catalyst for companies such as Power Nickel Inc. (TSXV: PNPN) (OTCBB: PNPNF), BHP Group (NYSE: BHP), Vale (NYSE: VALE), Sherritt International (TSX:S) (OTC: SHERF), and Nickel 28 Capital Corp. (TSXV: NKL) (OTC: CONXF).
In addition, global demand for nickel could grow fourfold over the next few decades, according to the BHP Group, as noted by Bloomberg. In fact, “The world’s biggest miner predicts nine in 10 cars sold by 2040 will be EVs, helping to boost worldwide usage of key battery materials including nickel. The market for nickel is already being transformed as car batteries take over from stainless steel as the major growth market.”
Look at Power Nickel Inc. (TSXV: PNPN) (OTCBB: PNPNF), For Example
1.47% Cu, 13.1 g/t Ag, 0.28 g/t Au, 5.71 g/t Palladium, 20.76 g/t Platinum over 7.75m in Hole PN-23-031A, including 3.90% Cu, 25 g/t Ag, 0.52g/t Au, 19.97g/t Palladium, 90.60g/t Platinum over 1.75m.
Power Nickelannounced the discovery of a new high-grade Cu-PGE mineralized zone approximately 5km northeast of the main Nisk deposit. The target area was never previously drilled and was identified as “Wildcat”. It is characterized by a strong magnetic anomaly from an ultramafic unit previously mapped in surface outcrop. Ultramafic rocks consistent with the main Nisk deposit were intersected in hole PN-23-031A, but the high-grade mineralization is hosted in amphibolite and tonalite which lie on top of the ultramafic sequence.
Hole PN-23-031A intersected multiple chalcopyrite stringers and veinlets, almost continuously in the first sixty (60) metres of the drill hole. The thickness and density of these stringers increased at 60.50 to 68.25 m down the hole. The main mineralization is characterized by a high density of chalcopyrite veinlets with local massive chalcopyrite (Figure 2). The veins are greatly enriched in platinum and palladium with significant accessory gold and silver. The samples rich in platinum and palladium will be re-analyzed to include the complete Platinum Group Elements (PGE) such as osmium, iridium, rhodium, and ruthenium.
The Wildcat area represents an entirely new target to explore and is wide open laterally along strike and at depth (Figure 3). This new discovery is very significant with high-grade platinum and t is probable that the high-grade platinum and palladium originated in the underlying ultramafic unit and remobilized to the tonalite unit where the mineralization occurs. As the mineralization is remobilized, there is potential for discovery in a broader target area in vicinity of the ultramafic source rocks palladium associated with the copper. Follow-up drilling will consider all other lithological units in addition to identifying the source mineralization in the ultramafic unit.
“Wow, what a hole! Hats off to the team for identifying the outcrop and selling me on testing it. We did not go too deep, only 200 metres, as we will be conducting the Ambient Noise Tomography (see January 31. 2022 news release) over this area looking for similar signatures that we have on our main Nisk ore body. It is entirely possible that the massive sulfides containing the nickel sequence are below this unit deeper in the Ultramafic. It’s not unheard of for nickel deposits to have a lot of high grade PGM’s but this hole is special. Obviously, we will be following this sector up in our next round of drilling. This certainly has potential to contribute greatly to the project’s economics” commented Power Nickel CEO Terry Lynch.
“Power Nickel recently conducted an Airborne EM survey over this 5.5 Kilometre sector and preliminary data review identified several encouraging signals that will require follow up exploration and eventually drilling in our fully funded Q3/Q4 2023 campaigns that will commence sometime around late July” Lynch advised.
Other related developments from around the markets include:
BHPAmericas President Rag Udd said it is imperative to streamline the permitting process, push for regulatory and fiscal certainty for the development of large mining investments, while highlighting the natural resources company's willingness to increase its contribution to the country.The President of BHP Americas, Rag Udd, spoke at the World Copper Conference and called for a broad public-private agreement to enable new long-term investments in the mining sector in Chile, guaranteeing faster permit delivery and ensuring regulatory and fiscal certainty. In a panel discussion with other mining company executives, Rag Udd addressed the urgent need to reduce investment uncertainty so that the industry can keep developing capital-intensive projects that can continue to contribute to the country's development.
Vale distributed MYR40,000 worth of Hari Raya Aidilfitri food aid to various communities in Manjung. The initiative, which benefits 200 socioeconomically vulnerable families, is a continuation of the company’s flagship MYR2.0 million ‘Vale Bersama Manjung’ community assistance programme, which started during the early days of the pandemic in 2020. To ensure the effectiveness in the delivery of the festive food aid programme, Vale collaborated closely with local community chiefs in Lekir, Beruas, Pengkalan Baharu and Pangkor to identify the families most in need in various locations in the district.
Sherritt International, a world leader in the mining and refining of nickel and cobalt – metals essential for the growing adoption of electric vehicles, said it is filing an updated National Instrument 43-101 Technical Report (NI 43-101 or 2023 Moa JV Technical Report) for the Moa Joint Venture (the Moa JV) indicating that current reserves are expected to support a 26 year life of mine. “The updated reserves and associated life of mine at the Moa JV underpins and validates our long-term strategy for producing low cost, high purity nickel and cobalt,” said Leon Binedell, President and CEO of Sherritt International. “With an estimated 26-year mine life and a strong market outlook for our products, the revised economics supports both our near-term strategy of expanding production capacity and our long-term growth ambitions to meet the demand from evolving markets increasingly driven by the energy transition and, in particular, electric vehicle battery supply chains.”
Nickel 28 Capital Corp. provided operational results for the quarter ending March 31, 2023 for the Company’s largest asset, the Ramu Nickel-Cobalt integrated operation in Papua New Guinea. "Ramu delivered strong operational and financial results again with operations performing at 111% of nameplate capacity in the first quarter of this year," stated Nickel 28’s Executive Chairman, Anthony Milewski. "In addition, we are seeing reductions in input and operational costs which resulted in improved production costs compared to the last quarter. We expect that Ramu’s full year costs and production will remain within guidance being 33,000 tonnes of contained Ni in MHP and cash costs in the range of $2.50-$3.50/lb. of Ni. The first quarter saw sales improve from traditionally sluggish first quarters and we anticipate sales to remain strong for the balance of 2023 as EV production increases globally.”
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