PCRCF Positive Drilling Data Confirms Significant Mineralization
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Pacific Rim Cobalt Corp. (PCRCF)
Current Price: $0.1198
Investor Presentation
Company Website | Recent News
========================
If you missed out on the Cobalt Boom of 2017, you now have a chance for redemption.
Experts are calling for another Cobalt boom in 2020, and we have found the perfect junior mining company to ride the anticipated rally with.
Please turn your immediate attention to PCRCF.
Pacific Rim Cobalt Corp. is focused on the development of nickel-cobalt projects ideally located close to China, the world’s first & largest “Gigafactory.” Nickel and cobalt are critical components of lithium-ion batteries and are currently in a global supply deficit.
Their key asset, the Cyclops nickel-cobalt project, has over 850 historical drill holes, numerous test-pits, as well as production and environmental permits in place. With a historic estimate of 37MM tonnes of 1.31% nickel and 0.11% cobalt, Cyclops contains significant nickel and cobalt mineralization as well as excellent infrastructure for year-round development activities.
Company Highlights
100 percent ownership of the Cyclops Nickel-Cobalt Project in strategic location along northern coast of Indonesia
Strategically located near China, the world’s largest cobalt buyer
Cobalt in supply deficit that is expected to increase over the next years. Cobalt spot price expected to be one of the best performing commodities . Auditable supply chains are becoming necessary for corporations as they seek ethical cobalt supply
Pacific Rim Cobalt is priced at a significant discount to its pre-production and late-stage exploration peer group and there remains potential for upside valuation adjustment.
A rapid path to development. Use of proceeds will focus on exploration and development planning.
Infrastructure in place, including airport, roads, and ocean port. Will aggressively pursue off-take agreements and strategic partners looking to secure cobalt.
Management team with experience in Indonesia for the last 20+ years. Numerous successful exits from public and private companies
Preliminary Offtake Agreement signed with China’s top battery materials supplier, Beijing Easpring
Significant, shallow, historical estimate of 37Mt @ 0.11% Co and 1.31% Ni at 0.8% Ni cut-off grade.
Significant potential for expansion as mineralization is open at depth and on-strike (See addendum for historical drill results).
Pacific Rim Cobalt is priced at a significant discount to its pre-production and late-stage exploration peer group and there remains potential for upside valuation adjustment.
A rapid path to development. Use of proceeds will focus on exploration and development planning.
Infrastructure in place, including airport, roads, and ocean port. Will aggressively pursue off-take agreements and strategic partners looking to secure cobalt.
Management team with experience in Indonesia for the last 20+ years. Numerous successful exits from public and private companies
Production/mining permits issued along with environmental (AMDAL) permit issued
Significant, shallow mineralization at project site with a historical* estimate of 37Mt @ 0.11% Co and 1.31%Ni at 0.8% Ni cut-off grade
Significant potential for expansion as mineralization is open at depth and on-strike
Estimate based on over 856 shallow drill holes and 26 test pits
Historical* high-grade drill intercepts of 8m @ 0.18% Co; 13m @ 0.15% Co; and 10m @ 0.19% Co
Cyclops Project Area covers 5,000 hectares with 9 prospects including 5 drill-tested and known cobalt-nickel prospects
Pacific Rim Cobalt Drilling Confirms Significant, Near Surface Cobalt and Nickel Mineralization
Shallow intersections with highly anomalous cobalt and nickel encountered in a continuous zone overlying the previously reported nickel saprolite mineralization
Today, the Company announced results from its ongoing 2019 shallow drilling program at its flagship Cyclops, nickel/cobalt development project, Indonesia. The drilling is part of a multi-faceted exploration program aimed at confirming historical results and guiding a project development plan.
This zone varies in thickness from 2 to 11 metres and immediately overlies previously reported nickel values in the saprolite zone and considerably enhances the potential size of the mineralized body of material.As previously announced highly anomalous cobalt values together with elevated nickel were intersected in the near surface zone. These intersections were encountered in the limonite zone and form a continuous blanket over the entire 600 metre x 300 metre area drilled.
"The Company is very pleased with this latest round of drill results. The elevated cobalt values are of significant importance, considering the commodity’s recent price increase and the role it plays in the battery metals supply chain. Both our cobalt and nickel results continue to add to our optimism that the Cyclops project will create shareholder value," remarked Ranjeet Sundher, President and Chief Executive Officer of Pacific Rim Cobalt.
This month, Indonesia’s president Joko Widodo said the country should process more of its own natural resources, such as coal, bauxite, palm oil and nickel, rather than just exporting them. Indonesia has said it wants to use its abundant nickel reserves to build an electric car industry. Last year, Chinese battery materials company, GEM, said it would work with battery giant CATL and stainless steel producer Tsingshan, to build a US$700 million plant in Indonesia to produce nickel for batteries.
The zone has been bulk sampled for follow up metallurgical test work in the current on-going bench scale program. This style of mineralisation from previous scoping test work is amenable to processing by acid leach for the recovery of cobalt and nickel and will be subject to further test work in the current detail bench scale work.
The program was completed on the target plateau area developed over a lateritized upfaulted block of peridotite in order to test the continuity of the mineralized laterite profiles.
Experts Predict The Next Cobalt Boom Will Be In 2020
George Heppel, head of cobalt and lithium analysis at CRU International, recently stated: “When we look at the EV market over the next 10 years, we see the big increase coming in 2020 to 2021. That will be the crunch time for global demand for cobalt as the big car companies, the BMWs, the VWs, Ford, and Daimler are set to increase production.” He estimates demand for cobalt for car batteries will grow by between 24% and 35% every year from 2020 to 2023. Even if Glencore brings Mutanda back on stream (the shutdown is for “care and maintenance”), and with the artisanal miners producing anything up to 40,000 tonnes a year, Mr Heppel believes it won’t be sufficient to meet demand. “There needs to be new supply of cobalt.”
Cobalt investors have had a wild ride the past 3 years, as prices soared in 2017 then crashed in 2018/2019. For those investors with a longer time frame, the long term demand/supply opportunity remains intact. That is, post 2022 we may start to see increasing cobalt deficits as the electric vehicle ( EV ) boom takes off. One reason 2022 is significant is that is when electric vehicles are forecast to cost the same as conventional cars. At this point, the demand for electric cars should explode. And speaking of ‘explode’, cobalt is an essential part of the lithium-ion battery that stops thermal runway and explosion.
Cobalt Demand Could Skyrocket
Almost all industry experts agree cobalt will be needed in future lithium-ion batteries and in increasing volumes. Industry expert Benchmark Minerals say cobalt demand will outstrip the decline from cobalt thrifting. Experts agree cobalt thrifting will reduce the amount of cobalt in a 100% battery electric vehicle ( BEV ) from around 20-33kgs ( NMC 1:1:1 chemistry) to around 8-12kgs cobalt ( NMC 6:2:2 chemistry) over the next 5-10 years. Tesla’s low cobalt NCA battery is alleged to have as little as 6kgs cobalt, but as we know Tesla’s have also had several issues with battery fires. Most large car OEMs will not want to risk large scale battery recalls and fire risk, and hence will go with NMC 6:2:2, and possibly in some cases NMC 8:1:1. NMC refers to nickel, manganese, and cobalt. The NMC 6:2:2 cathode is 2 parts cobalt or 20% cobalt. Again most experts see solid state batteries in electric cars as not likely in the next decade. All of this means cobalt is most likely here to stay for the next decade at least and possibly many decades beyond that, as the NMC battery is the battery of choice. The NMC lithium-ion battery is improving each year with lower costs per kilowatt hour (kWh), thereby lowering the costs of EVs each year.
Beat The Rush For The Next Cobalt Boom
Despite thrifting, cobalt demand is set to surge driven mostly by the EV boom. The forecast suggests by as early as 2022 or 2023 we will start to see cobalt deficits. Furthermore, the deficits are forecast to grow substantially each year.
The key take away here is that should the EV boom continue to grow rapidly, cobalt is likely to go into deficit again as soon as 2022/23.
Cobalt supply
The cobalt swing producers right now are the Democratic Republic of Congo ( DRC ) artisanal miners and Glencore (including their 86% owned Katanga Mining). Given the recent oversupply from the DRC (and the onerous new DRC cobalt royalties and profit tax) swing producers have reduced supply. In fact, just last week Glencore announced it plans to put its massive DRC Mutanda copper-cobalt mine on care and maintenance at the end of 2019, which will take out ~25,000 tonnes or ~20% of global supply from the market. This latest news is positive for cobalt prices which reacted by rising about 8% from their recent lows.
CRU’s view
CRU’s George Heppel, head of cobalt and lithium analysis at CRU International, recently stated: “When we look at the EV market over the next 10 years, we see the big increase coming in 2020 to 2021. That will be the crunch time for global demand for cobalt as the big car companies, the BMWs, the VWs, Ford, and Daimler are set to increase production.” He estimates demand for cobalt for car batteries will grow by between 24% and 35% every year from 2020 to 2023. Even if Glencore brings Mutanda back on stream (the shutdown is for “care and maintenance”), and with the artisanal miners producing anything up to 40,000 tonnes a year, Mr Heppel believes it won’t be sufficient to meet demand. “There needs to be new supply of cobalt.”
In conclusion, cobalt is now set for a mild come back in the years 2020-2022; but by 2022/23 we may see a new cobalt boom that will be longer and stronger than the 2017 cobalt boom. Naturally, this will be very positive for cobalt junior miners wanting to enter the market.
Savvy traders should add PCRCF to the top of their watchlists immediately.
*Past performance is not an indicator of future returns. The publishers of this report are not investment advisors and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. The publishers of this report have received compensation from a third party of USD $5,000 cash for a 2-day marketing contract for PCRCF. Never make investment decisions based on anything the publisher of this report says. This message is meant for informational and educational purposes only and does not provide investment advice.
Pacific Rim Cobalt Corp. (PCRCF)
Current Price: $0.1198
Investor Presentation
Company Website | Recent News
========================
If you missed out on the Cobalt Boom of 2017, you now have a chance for redemption.
Experts are calling for another Cobalt boom in 2020, and we have found the perfect junior mining company to ride the anticipated rally with.
Please turn your immediate attention to PCRCF.
Pacific Rim Cobalt Corp. is focused on the development of nickel-cobalt projects ideally located close to China, the world’s first & largest “Gigafactory.” Nickel and cobalt are critical components of lithium-ion batteries and are currently in a global supply deficit.
Their key asset, the Cyclops nickel-cobalt project, has over 850 historical drill holes, numerous test-pits, as well as production and environmental permits in place. With a historic estimate of 37MM tonnes of 1.31% nickel and 0.11% cobalt, Cyclops contains significant nickel and cobalt mineralization as well as excellent infrastructure for year-round development activities.
Company Highlights
100 percent ownership of the Cyclops Nickel-Cobalt Project in strategic location along northern coast of Indonesia
Strategically located near China, the world’s largest cobalt buyer
Cobalt in supply deficit that is expected to increase over the next years. Cobalt spot price expected to be one of the best performing commodities . Auditable supply chains are becoming necessary for corporations as they seek ethical cobalt supply
Pacific Rim Cobalt is priced at a significant discount to its pre-production and late-stage exploration peer group and there remains potential for upside valuation adjustment.
A rapid path to development. Use of proceeds will focus on exploration and development planning.
Infrastructure in place, including airport, roads, and ocean port. Will aggressively pursue off-take agreements and strategic partners looking to secure cobalt.
Management team with experience in Indonesia for the last 20+ years. Numerous successful exits from public and private companies
Preliminary Offtake Agreement signed with China’s top battery materials supplier, Beijing Easpring
Significant, shallow, historical estimate of 37Mt @ 0.11% Co and 1.31% Ni at 0.8% Ni cut-off grade.
Significant potential for expansion as mineralization is open at depth and on-strike (See addendum for historical drill results).
Pacific Rim Cobalt is priced at a significant discount to its pre-production and late-stage exploration peer group and there remains potential for upside valuation adjustment.
A rapid path to development. Use of proceeds will focus on exploration and development planning.
Infrastructure in place, including airport, roads, and ocean port. Will aggressively pursue off-take agreements and strategic partners looking to secure cobalt.
Management team with experience in Indonesia for the last 20+ years. Numerous successful exits from public and private companies
Production/mining permits issued along with environmental (AMDAL) permit issued
Significant, shallow mineralization at project site with a historical* estimate of 37Mt @ 0.11% Co and 1.31%Ni at 0.8% Ni cut-off grade
Significant potential for expansion as mineralization is open at depth and on-strike
Estimate based on over 856 shallow drill holes and 26 test pits
Historical* high-grade drill intercepts of 8m @ 0.18% Co; 13m @ 0.15% Co; and 10m @ 0.19% Co
Cyclops Project Area covers 5,000 hectares with 9 prospects including 5 drill-tested and known cobalt-nickel prospects
Pacific Rim Cobalt Drilling Confirms Significant, Near Surface Cobalt and Nickel Mineralization
Shallow intersections with highly anomalous cobalt and nickel encountered in a continuous zone overlying the previously reported nickel saprolite mineralization
Today, the Company announced results from its ongoing 2019 shallow drilling program at its flagship Cyclops, nickel/cobalt development project, Indonesia. The drilling is part of a multi-faceted exploration program aimed at confirming historical results and guiding a project development plan.
This zone varies in thickness from 2 to 11 metres and immediately overlies previously reported nickel values in the saprolite zone and considerably enhances the potential size of the mineralized body of material.As previously announced highly anomalous cobalt values together with elevated nickel were intersected in the near surface zone. These intersections were encountered in the limonite zone and form a continuous blanket over the entire 600 metre x 300 metre area drilled.
"The Company is very pleased with this latest round of drill results. The elevated cobalt values are of significant importance, considering the commodity’s recent price increase and the role it plays in the battery metals supply chain. Both our cobalt and nickel results continue to add to our optimism that the Cyclops project will create shareholder value," remarked Ranjeet Sundher, President and Chief Executive Officer of Pacific Rim Cobalt.
This month, Indonesia’s president Joko Widodo said the country should process more of its own natural resources, such as coal, bauxite, palm oil and nickel, rather than just exporting them. Indonesia has said it wants to use its abundant nickel reserves to build an electric car industry. Last year, Chinese battery materials company, GEM, said it would work with battery giant CATL and stainless steel producer Tsingshan, to build a US$700 million plant in Indonesia to produce nickel for batteries.
The zone has been bulk sampled for follow up metallurgical test work in the current on-going bench scale program. This style of mineralisation from previous scoping test work is amenable to processing by acid leach for the recovery of cobalt and nickel and will be subject to further test work in the current detail bench scale work.
The program was completed on the target plateau area developed over a lateritized upfaulted block of peridotite in order to test the continuity of the mineralized laterite profiles.
Experts Predict The Next Cobalt Boom Will Be In 2020
George Heppel, head of cobalt and lithium analysis at CRU International, recently stated: “When we look at the EV market over the next 10 years, we see the big increase coming in 2020 to 2021. That will be the crunch time for global demand for cobalt as the big car companies, the BMWs, the VWs, Ford, and Daimler are set to increase production.” He estimates demand for cobalt for car batteries will grow by between 24% and 35% every year from 2020 to 2023. Even if Glencore brings Mutanda back on stream (the shutdown is for “care and maintenance”), and with the artisanal miners producing anything up to 40,000 tonnes a year, Mr Heppel believes it won’t be sufficient to meet demand. “There needs to be new supply of cobalt.”
Cobalt investors have had a wild ride the past 3 years, as prices soared in 2017 then crashed in 2018/2019. For those investors with a longer time frame, the long term demand/supply opportunity remains intact. That is, post 2022 we may start to see increasing cobalt deficits as the electric vehicle ( EV ) boom takes off. One reason 2022 is significant is that is when electric vehicles are forecast to cost the same as conventional cars. At this point, the demand for electric cars should explode. And speaking of ‘explode’, cobalt is an essential part of the lithium-ion battery that stops thermal runway and explosion.
Cobalt Demand Could Skyrocket
Almost all industry experts agree cobalt will be needed in future lithium-ion batteries and in increasing volumes. Industry expert Benchmark Minerals say cobalt demand will outstrip the decline from cobalt thrifting. Experts agree cobalt thrifting will reduce the amount of cobalt in a 100% battery electric vehicle ( BEV ) from around 20-33kgs ( NMC 1:1:1 chemistry) to around 8-12kgs cobalt ( NMC 6:2:2 chemistry) over the next 5-10 years. Tesla’s low cobalt NCA battery is alleged to have as little as 6kgs cobalt, but as we know Tesla’s have also had several issues with battery fires. Most large car OEMs will not want to risk large scale battery recalls and fire risk, and hence will go with NMC 6:2:2, and possibly in some cases NMC 8:1:1. NMC refers to nickel, manganese, and cobalt. The NMC 6:2:2 cathode is 2 parts cobalt or 20% cobalt. Again most experts see solid state batteries in electric cars as not likely in the next decade. All of this means cobalt is most likely here to stay for the next decade at least and possibly many decades beyond that, as the NMC battery is the battery of choice. The NMC lithium-ion battery is improving each year with lower costs per kilowatt hour (kWh), thereby lowering the costs of EVs each year.
Beat The Rush For The Next Cobalt Boom
Despite thrifting, cobalt demand is set to surge driven mostly by the EV boom. The forecast suggests by as early as 2022 or 2023 we will start to see cobalt deficits. Furthermore, the deficits are forecast to grow substantially each year.
The key take away here is that should the EV boom continue to grow rapidly, cobalt is likely to go into deficit again as soon as 2022/23.
Cobalt supply
The cobalt swing producers right now are the Democratic Republic of Congo ( DRC ) artisanal miners and Glencore (including their 86% owned Katanga Mining). Given the recent oversupply from the DRC (and the onerous new DRC cobalt royalties and profit tax) swing producers have reduced supply. In fact, just last week Glencore announced it plans to put its massive DRC Mutanda copper-cobalt mine on care and maintenance at the end of 2019, which will take out ~25,000 tonnes or ~20% of global supply from the market. This latest news is positive for cobalt prices which reacted by rising about 8% from their recent lows.
CRU’s view
CRU’s George Heppel, head of cobalt and lithium analysis at CRU International, recently stated: “When we look at the EV market over the next 10 years, we see the big increase coming in 2020 to 2021. That will be the crunch time for global demand for cobalt as the big car companies, the BMWs, the VWs, Ford, and Daimler are set to increase production.” He estimates demand for cobalt for car batteries will grow by between 24% and 35% every year from 2020 to 2023. Even if Glencore brings Mutanda back on stream (the shutdown is for “care and maintenance”), and with the artisanal miners producing anything up to 40,000 tonnes a year, Mr Heppel believes it won’t be sufficient to meet demand. “There needs to be new supply of cobalt.”
In conclusion, cobalt is now set for a mild come back in the years 2020-2022; but by 2022/23 we may see a new cobalt boom that will be longer and stronger than the 2017 cobalt boom. Naturally, this will be very positive for cobalt junior miners wanting to enter the market.
Savvy traders should add PCRCF to the top of their watchlists immediately.
*Past performance is not an indicator of future returns. The publishers of this report are not investment advisors and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. The publishers of this report have received compensation from a third party of USD $5,000 cash for a 2-day marketing contract for PCRCF. Never make investment decisions based on anything the publisher of this report says. This message is meant for informational and educational purposes only and does not provide investment advice.
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