Can Canada’s Newest Discoveries Reduce Fears of Battery Metal Shortages?
This Tiny Company is Positioned to Capitalize on Two Significant Battery Metal Plays in Canada
Quite possibly the most important metal in most of today’s electric vehicles (EVs) isn’t lithium, cobalt, nor manganese—it’s NICKEL.1
According to London-based CRU Group’s principal base metals analyst Nikhil Shah, the chaos that has ensued in this market is not only “unprecedented” but prices will likely remain higher for the rest of 2022.2
Showing how potential nickel shortages were already a concern, Tesla CEO pointed out back in 2020 the importance of adding more nickel production.3
Thankfully, recent discoveries in Canada have given hope to a market fearing shortages of some of the world’s most important battery metals.
Follow the Battery Metals Trends
BOTH nickel and copper are in the spotlight due to the green electric revolution already underway.
In nickel, the long-term outlook is VERY strong. Earlier this year, the London Metals Exchange halted trading of nickel for several days, because excessive short sellers stood to lose billions.4
According to analyst Nikhil Shah, who was quoted as saying: “In my 15 plus years (working in the industry), I mean, it’s definitely unprecedented… I’m thinking that the price still will remain elevated in the second half of the year.”5
But there’s a shortage looming in the type of high-grade nickel that’s needed for EV batteries.6
More nickel is needed to maintain the energy density (battery life) of new batteries.
According to Mark Beveridge at Benchmark Mineral Intelligence:
“We’re heading towards, you know, 90 percent of the cathode being nickel for certain specific cell types.”
Domestically, the US is short on nickel resources, with only one primary nickel mine (Michigan’s Eagle Mine) in operation—and that mine is expected to close in 2025.7
Copper is another story, having seen its price fall by nearly a third since March. However, a massive shortfall looms for the world’s most critical metal.8
Goldman Sachs Group estimates that miners need to spend about $150bn in the next decade to solve an eight million-tonne deficit,9 according to a report published in September 2022.
Goldman Sachs also forecasts that the benchmark London Metal Exchange price will almost double to an annual average of $15,000 a tonne in 2025.10
BloombergNEF predicts that by 2040, the mined-output gap could reach 14 million tonnes, which would have to be filled by recycling metal.
“We’ll look back at 2022 and think, ‘Oops’”
- John LaForge, Head of Real Asset Strategy at Wells Fargo on copper’s downturn
It’s clear that inventories tracked by trading exchanges are now near historical lows.
Coupled with the latest price volatility, this means that new mine output—already projected to start petering out in 2024—could become even tighter in the near future. Because it takes years to get a mine into production, supply simply can’t keep up with demand.11
So we’re left with upcoming shortages in both nickel and copper on deck.
In recent years, the market greatly rewarded explorers when making new copper or nickel discoveries, especially those in the most mining-friendly jurisdictions in Canada.
This company has the right geologists to lead the exploration programs in both their Big Onion and Tyee projects in British Columbia and Quebec respectively.
Directly adjacent to this companies Tyee project is the HSP Nickel project of Go Metals, which most recently had a discovery on it that sent the company’s stock soaring.
It’s worth taking a look at the impact that a new discovery has had on some of Canada’s miners, and their respective share prices.
Tyee Ni-Cu Project – Nickel Sulphide in Quebec
Located 130km north of the town of Havre St. Pierre, Quebec, and adjacent to Go Metals’ recent HSP Ni-Cu discovery this companies newly-acquired Tyee Ni-Cu project is optimally positioned for big moves ahead.
The Tyee Claims cover the Havre St. Pierre anorthosite complex, which contains known nickel, copper and PGE occurrences.
In terms of infrastructure, the project is only 12km from the Romaine IV hydroelectric power facility, with roads in place to the property.
Initially not meant to be a flagship property, it’s hard to ignore what the Tyee Ni-Cu project brings to the table with its nearly 81.5km2 footprint and glaringly obvious vicinity to the Go Metals discovery.
A distinct magnetic anomaly is present within the claims, which could represent a mafic to ultramafic feeder to the surrounding anorthosite (magnetic low). This feature will be a key focus for exploration as these types of feeders and conduits are prospective for nickel-copper sulphide cumulate systems.
Big Onion Cu-Mo-Au Project – Smithers, BC
Like the Tyee, the Big Onion Cu-Mo-Au project is located close to current infrastructure, providing access to experienced local workers. The project is only 16km (only a 20-minute drive) away from the mining-friendly town of Smithers, BC.
Far ahead of the Tyee in terms of development, this company’s flagship project, the Big Onion already has nearly 50,000 metres of historical drilling on the site, as well as 630km of heliborne magnet geophysical survey completed in 2016, with defined 2D and 3D anomalies in place.
Early exploration work recognized the property’s potential to host a large, low-grade bulk tonnage copper resource. Work further developed the premise that a significant portion of the mineralization is hosted within a near-surface zone of supergene enrichment.
Copper and molybdenum mineralization is largely contained within northeast trending, northwest dipping shears and veinlets that parallel the fault controlled intrusive.
Cashed Up with Very Little Overhang
Recently this company successfully raised $1.28 million at $0.25 with no warrant attached.12
The company has only 86,000 warrants outstanding at $0.30.
For those looking at junior miners that have great discovery potential involving battery metals in Canada, they’ll want to do more research on this well-structured company and great management team presented by this company.
As stated, big things can happen quickly for new discoveries in the mining sector, just like what happened with Go Metals. This company is set for action in both British Columbia (copper) and Quebec (nickel) with world-class geologists.
Look out for them to be releasing a steady stream of updates in the weeks and months to come. So, be sure to continue following the this companies story starting today, sign up with your email address to learn more.
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