As any seasoned Wall Street trader will say, it is important to keep a close eye on the %Commodities market, particularly those that are essential to the manufacturing and industrial sectors. %Nickel fits that mold, as a crucial component in the production of stainless steel and other alloys, in addition to growing in importance for its use in electric vehicles.
Speaking strictly to the topic of EVs and high nickel cathode materials market, Transparency Market Research estimates the global industry at $1.9 billion in 2021. Their analysts are predicting 20.4% compound annual growth rate (CAGR) in the market to reach $10.1 billion in 2031. Drivers for this spectacular growth include adoption of cobalt-free batteries for EVs and increased use of high nickel cathode materials that offer higher energy capacities at lower costs than other cathode materials.
More broadly, the global nickel market is expected to grow at a 5.57% CAGR from $31.5 billion in 2021 to $43.8 billion by 2027, according to IMARC Group. Drivers include rising demand for stainless steel and alloys for automotive, aerospace, construction, and electronics applications. Incumbents in the space include %Sumitomo (OTC: $SSUMY), %BHPGroup (NYSE: $BHP), and Vale (NYSE: VALE).
In recent years, the nickel market has experienced a number of fluctuations and uncertainties surrounding trade tensions and pandemic supply chain disruptions, which is why last week’s news of %FathomNickel (CSE: $FNI) (OTC: FNICF) tripling the size of its Gochager project in Canada has caught investor’s attention. Fathom Nickel, a Calgary-based mining company focused on the exploration and development of nickel deposits, said on March 22, 2023, that it has acquired additional mineral claims adjacent to the Gochager project from %SKRRExploration (TSX-Venture: $SKRR), which will allow the company to expand the project three-fold to 18,569 hectares.
Fathom also owns the 90,000+ hectare Albert Lake high-grade nickel project in Saskatchewan.
The Gochager project is a nickel-copper-cobalt-platinum group element deposit located in north-central Saskatchewan, a world-class mining jurisdiction.
Per the deal with SKRR, Fathom Nickel has acquired SKRR's 100% owned Watts Lake zinc project for cash, stock, and net smelter royalty. The property consisting of 24 mineral claims comprising a total of 13,708 hectares located approximately 65 kilometers northeast of La Ronge, Saskatchewan and within 20 kilometers of a major provincial highway network.
Adding Watts Lake to the Fathom portfolio creates a solid, contiguous land package that connects the historic Gochager Lake nickel deposit with the Mal Lake property thought to be an analogous nickel occurrence.
“While Fathom's focus is nickel, Watts Lake also includes Borys Lake, a VMS-style Pb-Zn deposit,” said Ian Fraser, CEO and VP Exploration at Fathom. “VMS mineralization within this overall contiguous mineral package speaks to the potential of a significant metal endowment in the land package and the tremendous exploration potential of this combined land package,” he added.
The Borys Lake Corridor at Watts Lake is anchored by the shallow depth historic Borys Lake lead-zinc deposit, including all four known drill hole delineated zones; Mac, Main, Will A/Will B and Sam zones. The main zone was interpreted to have an approximate strike length of 975 meters and widths varying from 5.3 to 19.5 meters with the zinc-to-lead ratio being approximately 10:1. Mineralization is open along strike and at depth.
The Watts Lake project area covers multiple, parallel basement conductive corridors, identified by a 2008 airborne versatile time-domain electromagnetic (VTEM) geophysical survey, including the entire approximately 14-kilometer-long Borys Lake conductive corridor, as well as significant portions of parallel corridors. Drilling and surface exploration at these corridors has identified mineralized occurrences of zinc, copper, and silver as well as anomalous gold, nickel and cobalt.
Fathom now controls approximately 60% of the area covered by the 2008 VTEM survey. Importantly, this new land package encompasses all of the most prospective areas identified by Fathom’s consulting geophysicists.
Overall, the news of Fathom Nickel tripling the size of its Gochager project is an important development in the nickel market. It demonstrates the potential for new discoveries and expansions in the %MiningSector, which could help meet the growing demand for nickel in various industries.
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Fathom Nickel Inc. (CSE: FNI)(OTC: FNICF) Full Corporate Write-Up: Click Here.
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