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Announcements, Battery Materials, Battery Metals, Company News, Copper, Electric Vehicle, Green Energy, Nickel, St.Laurent, Voltage News

Voltage completes drill program at the St. Laurent Ni-Cu Project and flies airborne VTEM survey over the Jerry Lake Property

June 28, 2022 10:30 amFebruary 23, 2023

TORONTO, June 28, 2022 /CNW/ – Voltage Metals Corp., (“Voltage” or the “Company”) (CSE: VOLT) (OTC: VLTMF) is pleased to announce that it has completed a diamond drill program at the Company’s 100% owned St. Laurent Nickel-Copper-Cobalt Project, located 160 km northeast of Timmins, Ontario. The drilling consisted of 2,460 metres in seven holes, with downhole geophysical surveys completed on six of the seven holes. A total of 570 samples, representing 800 metres of core were split for analysis. All samples have been shipped to the lab, with results expected periodically over the next eight weeks.

The St. Laurent Project has received minimal exploration activity since the initial work in the mid 1960’s when nickel-copper mineralization was first identified in a limited number of shallow drill holes. Subsequent airborne geophysical surveys defined a strong electromagnetic (EM) anomaly with an associated bullseye magnetic response, both of which are coincident with the reported disseminated mineralized zone. Diamond drilling in 2008 and 2019 identified geological characteristics indicative of gabbro breccia/conduit hosted nickel mineralization similar to the Lynn Lake Deposit (28.4 million tons @ 0.91% Ni, 0.49% Cu) the Kenbridge deposit (7.5 million tonnes @ 0.58% Ni, 0.32% Cu), and the Montcalm Deposit (3.9 million tonnes @ 1.3% Ni, 0.67% Cu, 0.05 Co).

The recently completed drill program followed up on the results of the 2019 diamond drilling, where the highest nickel grades on the project were intersected with three separate intervals of >1.0% Ni, as well as the widest intersection (113.4 m) of lower grade nickel mineralization, Table 1. Nickel assays in conjunction with the associated sulphur results indicate a high nickel tenor¹ of 5% Ni for massive sulphides (35% S) in the magmatic system. Two priority Borehole EM anomalies from the 2019 program and a deeper Heligeotem II Anomaly modelled from a 2007 Survey were also targeted in this drill program.

Table 1 – St. Laurent Diamond Drill Assay Results 2019

DDH #	Year	From m	To m	Width m*	Ni %	Cu %	Co ppm	Au ppb	Pt ppb	Pd ppb	S %
SL-19-01	2019	238.5	248.6	10.1	0.32	0.33	155.4	66.9	23.9	31.8	2.2
SL-19-01	2019	252.4	256.0	3.6	1.10	0.45	503.9	46.0	279.6	84.4	5.1
SL-19-01	2019	256.7	260.9	4.2	1.30	0.47	567.5	690.2	132.9	124.7	5.6
SL-19-01	2019	265.8	270.5	4.7	1.00	0.83	506.0	119.9	243.9	91.4	4.8
SL-19-03	2019	328.0	441.4	113.4	0.22	0.17	139.4	16.3	23.7	20.5	3.4

*Reported width represents core measurements as insufficient information available to determine true thickness.

Bob Bresee, CEO of Voltage stated “The St. Laurent Project represents a previously unrecognized Ni-Sulphide system with very limited past exploration work. As we receive the borehole and assay results over the next while we are reminded that the Ontario Government recently announced (March 17, 2022), a Critical Minerals Strategy for the coming 5 year period to focus on exploration and development of Ni, Cu, Co, Pt, Pd, the very metals specifically contained within the St. Laurent project. We look forward to reporting on the assay and geophysical results in the coming weeks.”

Jerry Lake Property

A 285-line km Geotech VTEM survey has been completed on the Jerry Lake Project, situated 57 km northwest of the St. Laurent Project. The Jerry Lake gabbro represents the only sizeable gabbro body within the Burntbush Assemblage outside of the St. Laurent Gabbro. The Jerry Lake property has never been evaluated with an airborne EM survey, nor has any ground-based exploration been conducted. A well-defined glacial dispersal fan² of chalcopyrite and nickel suggests the unrecognized Ni-sulphide potential of the Jerry Lake Gabbro. CEO Bob Bresee commented “Jerry Lake is a very good opportunity for Voltage to evaluate an unexplored target with exploration features similar to our Montcalm and St. Laurent Projects. We expect to report the VTEM survey results over the next few weeks.”

About Voltage Metals

Voltage is a mineral exploration company with a highly experienced team focused on nickel and other battery metals exploration in the Canadian provinces of Ontario and Newfoundland. The Company looks to create shareholder value by aggregating and exploring projects that display sound geology and brand-new discovery potential. Voltage has a deep roster of management and key stakeholders, who are expert in the essential resource trifecta of exploration, operations and finance.

Qualified Person:

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and reviewed and approved by Todd Keast, P.Geo., a Qualified Person as defined by NI 43-101.

References:

Nickel Tenor is a common practice in magmatic nickel-copper exploration where the nickel vs S ratio is extrapolated to 100% sulphides (35% S), to estimate the grade of massive sulphide. Nickel tenor does not provide certainty that massive sulphides will be discovered.
Gao, C. 2015 Results of regional till sampling in the Detour and Burntbush area, northern Ontario; Ontario Geological Survey,Open File Report 6297, 120p.

Forward Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. The forward-looking statements and information are based on certain key expectations and assumptions made by management. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Announcements, Battery Materials, Battery Metals, Company News, Copper, Electric Vehicle, Green Energy, Nickel, Voltage News, Wheeler

Voltage Metals Corp Reviews Data from its Newfoundland Nickel-Copper-PGE-Cobalt-Chromium Project and Outlines Next Steps

May 31, 2022 10:39 amFebruary 23, 2023

TORONTO, May 31, 2022 /CNW/ – Voltage Metals Corp. (CSE: VOLT) (OTC: VLTMF) (the “Company” or “Voltage”) is pleased to provide this update on the Company’s 100% owned Wheeler Project in Newfoundland.

Voltage Metals Newfoundland Wheeler Project (CNW Group/Voltage Metals Corp.)

The Wheeler property (“Wheeler”) is situated on the west coast of Newfoundland, 25 kilometres north of the deep-water port town of Stephenville. The property covers the southern extent of the Bay of Islands ophiolite complex and is composed of mafic and ultramafic assemblages dominated by gabbros, pyroxenites and peridotites. The target on the Wheeler property is magmatic Ni-Cu-PGE (plus Co-Cr) mineralization hosted within a mafic intrusion, similar to Norilsk in Russia, Lynn Lake and Namew Lake in Manitoba, Nkomati in South Africa, and Voisey’s Bay in the province of Newfoundland and Labrador.

Wheeler includes the locations of extremely anomalous lake-sediment samples collected as part of the federal and provincial government’s lake-sediment survey (a 35,768 lake-sediment sample database) including the four highest nickel values in the province with values of 4,980, 4,750, 4,390 and 4,230 parts per million (ppm) Ni (nickel), respectively. The property also hosts copper, chromium and cobalt sediment values that are in the 99.9^th percentile of the same dataset.

In August of 2021 the Company completed a 726-line-kilometre VTEM airborne geophysical survey at Wheeler, flown by Geotech Ltd, on northeast-southwest-oriented lines spaced 200 metres apart. Recent interpretation of that survey has identified several high-priority drill targets.

“Results from the 2021 VTEM survey show 6 discrete, moderate to strong-amplitude VTEM AEM anomalies over the ophiolite complex,” stated Alan King, the company’s consulting geophysicist. “Potential geological sources of the VTEM responses include conductive serpentinization, graphitic /black shales in sediments, or conductive sulphides. Based on known geology, the most likely source for the strongest two anomalies is pyrrhotite-dominated sulphides, due to local associated magnetic anomalies and the mafic to ultramafic host rocks.”

“We are eager to drill the Wheeler project and test these priority conductors,” stated Voltage CEO Bob Bresee. “This area of southwestern Newfoundland has become very prospective for base metals, as evidenced by the success of our next-door neighbour York Harbour Metals, whose quality drill results have been driving shareholder value in recent months. The historic results on Wheeler demonstrate the excellent potential for nickel, copper, cobalt and platinum group element mineralization.”

Historically documented occurrences on the Wheeler property consist of both net-textured pentlandite (nickel sulphide) and PGE-rich chalcopyrite (copper sulphide) mineralization, indicating that the minerals formed within a magma chamber. Voltage has applied for drill permits at Wheeler and is currently receiving quotations for a summer drilling program of approximately 2,000 metres, to test up to five near-surface EM anomalies.

Appointment of Technical Advisor

Voltage is pleased to announce the appointment of Alan King to its technical advisory board. Alan is a geophysics expert having consulted for decades on projects in Canada, Australia, South America, Africa and Asia. From 1990 to 2012, he was employed by Inco/Vale as a senior geophysicist and then as Manager of Geophysics with responsibility for global exploration. He was a member of the technical team that performed Inco’s due diligence during its review of Voisey’s Bay, prior to its eventual purchase from Diamond Fields in 1995. Subsequent to the acquisition, Alan continued in a supervisory role on Voisey’s Bay geophysics as the project was developed, as well as on other Inco green field and mine area projects. In his capacity as Chief Geophysicist for Vale Global Exploration, Alan worked on geophysical applications for base metals, gold, iron, manganese, coal and fertilizers (potash and phosphate), as well as target generation using regional and global data sets.

Qualified Person

The technical information contained in this news release has been reviewed and approved by Dr. Stephen Amor, PhD, PGeo, who is a qualified person, as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Voltage Metals

Voltage is a mineral exploration company with a highly experienced team focused on nickel and other battery metals exploration in the Canadian provinces of Ontario and Newfoundland. The Company looks to create shareholder value by aggregating and exploring projects that possess sound geology and brand-new discovery potential. Voltage has a deep roster of management and key stakeholders, who are expert in the essential resource trifecta of exploration, operations and finance.

Forward Looking Statements

Battery Materials, Battery Metals, Company News, Electric Vehicle, Green Energy, Nickel, St.Laurent

Voltage intersects widespread Nickel Sulphide mineralization and identifies priority deep EM conductor at St. Laurent Project

February 23, 2022 5:14 pmJune 26, 2023

TORONTO, Feb. 23, 2023 /CNW/ – Voltage Metals Corp., (“Voltage” or the “Company”) (TSXV: VOLT) is pleased to report final assay results from the diamond drill program at the Company’s 100% owned St. Laurent Nickel-Copper-Cobalt Project, located 160 km northeast of Timmins, Ontario. Exploration consisted of seven holes, (2,457m), with borehole EM geophysical surveys completed on six holes. The 2022 program was a follow up to encouraging results from a 2019 program by a previous operator, with SL-19-01 intersecting three separate intervals of >1.0% Ni, and SL-19-03 intersecting 113.4 m 0.22% Ni, 0.17% Cu

Highlights

Six out of Seven holes intersected encouraging Ni-Cu sulphide mineralization.
SL-22-07 intersected 51.8 metres of 0.24% Ni 0.18% Cu, was drilled to provide definition on the broad zone of mineralization intersected in SL-19-03 which included 113.4 metres 0.22% Ni, 0.17% Cu.
SL-22-09 intersected 23.1 metres of 0.36% Ni, 0.23% Cu, including a higher-grade section of 6.0 metres of 0.62% Ni, 0.36% Cu. A deeper intersection in this hole returned 14.0 metres of 0.25% Ni, 0.14% Cu.
SL-22-10 intersected 10.3 metres of 0.29% Ni, 0.17 % Cu and a deeper higher-grade interval of 0.67% Ni, 0.44% Cu over 4.0 metres..
SL-22-11 intersected multiple intervals of mineralization including 17.5m of 0.28% Ni 0.19% Cu, an intermediate interval of 13.0 metres of 0.53% Ni, 0.27 % Cu, and a deeper intersection of 14.4 metres of 0.36% Ni, 0.32% Cu.
A newly identified Maxwell Plate EM anomaly positioned between SL-10-01 and SL-19-02 suggests size and continuity of mineralization for follow-up drill testing.
A recently defined Maxwell Plate EM anomaly proximal to SL-19-06 providing a priority target for follow-up work and suggests continuity of the mineralized system to the northeast.

St. Laurent Nickel Sulphide Mineralized System

The St. Laurent Project displays geological characteristics indicative of a gabbro breccia/conduit hosted style of nickel mineralization, comparable to the Lynn Lake Deposit (28.4 million tons @ 0.91% Ni, 0.49% Cu)¹ the Kenbridge deposit (7.5 million tonnes @ 0.58% Ni, 0.32% Cu)², and the Montcalm Deposit (3.9 million tonnes @ 1.3% Ni, 0.67% Cu, 0.05 Co)³. Characteristics of these systems include, irregular massive sulphide lenses contained within broad intervals of lower grade mineralization, often disrupted by barren xenoliths of gabbro intrusion material and the surrounding wall rock material.

Nickel and sulphur assay data from St Laurent predicts a high nickel tenor⁴ of 5% Ni for massive sulphides (35% S) in the St. Laurent system. Drilling to date has intersected multiple intervals of wide, lower grade disseminated, stringers and blebby sulphide mineralization.

2022 Drill Hole Results

SL-22-05 was drilled 45 metres up-dip from the three closely spaced mineralized zones intersected in SL-19-01 (1.1% Ni, 0.5% Cu, 503 ppm Co, 5.1% S over 3.6m, 1.3% Ni, 0.5 % Cu, 568 ppm Co, 5.6% S over 4.2m, 1.0% Ni, 0.8% Cu, 506 ppm Co, 4.8% S over 4.7m) coincident with the center of a strong Maxwell Plate EM anomaly. The hole encountered sulphide mineralization at the expected depth with 0.7% Ni, 0.3% Cu over 2.6 m, but was abruptly terminated by the presence of mafic volcanic xenoliths. Several narrow intervals were intersected, including 3.9 m of 0.21% Ni, 0.25% Cu, and a deeper section of 0.8m of 0.81% Ni, 0.14% Cu. The presence of mafic volcanic xenoliths is an expected component of the conduit type system. Identifying the position of the larger xenoliths is important for future drill planning.

SL-22-06 was drilled to test the north-east extension of the mineralized system in the down plunge direction, targeting a deep-strong Maxwell Plate EM anomaly. Non mineralized Gabbro and Diorite were intersected throughout the entirety of hole with no explanation for the anomaly. Follow up Borehole EM surveys have defined a strong, large off-hole anomaly indicating the presence of conductive material continuing in the northeast down-plunge direction.

SL-22-07 was drilled 400 metres in front and oriented back towards SL-19-03. The purpose of the hole was to further define the width and orientation of the low- grade mineralization in SL-19-03, while at the same time testing multiple Maxwell Plate EM anomalies. SL-22-07 intersected 51.8m of 0.24% Ni, 0.18% Cu. The broad zone of mineralization was cut-off early by the presence of a large mafic volcanic xenolith. The mineralized zone in this area is interpreted to be approximately 75 metres wide. Borehole EM surveys have defined a large continuous Maxwell Plate EM anomaly coincident with the broad zone of mineralization, suggesting good continuity to the system.

SL-22-08 was drilled 80 metres east of SL-22-05 to test the edge of a Maxwell Plate EM anomaly. A wide interval of 52.7 metres of 0.12% Ni, 0.09% Cu with a higher-grade interval of 0.25% Ni, 0.18% Cu over 9.0 metres was intersected.

SL-22-09 was drilled from the same setup as SL-22-08 at a steeper dip. SL-22-09 intersected 0.62% Ni, 0.36% Cu over 6.0 m within a broader interval of 23.1 metres of 0.34% Ni, 0.23% Cu. Variation in grade of mineralization between SL-22-09, SL-22-08 drilled 60 metres above, and SL-19-01 drilled 65 metres to the west, highlight the expected variations in this style of a mineralized system. SL-22-09 encountered a large mafic volcanic xenolith interpreted to have cut off a portion of the mineralized zone.

SL-22-10 was drilled to test wide sections of mineralization reported in drill holes PA-2 and PA-4 (1966). Drill casings for these two holes were located in the field, which allows the historical data to be accurately incorporated into the current model. SL-22-10 was positioned between the two older setups and planned to evaluate the western portion of the mineralized system. SL-22-10 intersected 10.3 metres of 0.29% Ni, 0.17% Cu and a second interval of 4.0 metres of 0.70% Ni, 0.44% Cu.

SL-22-11 was drilled from the same setup as SL-22-10 at a shallower dip. Multiple zones of mineralization were intersected throughout the hole, including 5.5 metres of 0.28% Ni, 0.18% Cu, 6.5 metres of 0.22% Ni, 0.21% Cu, 17.5 metres of 0.28% Ni, 0.42% Cu, and 13.0 metres of 0.53% Ni, 0.27% Cu. The mineralized zone is interpreted to be approximately 100 metres thick based on drilling in this area.

Assay results are included in Table 1. Drill intervals in the table are core lengths, as true widths have not been determined due to insufficient drill detail.

Table 1 – St. Laurent 2022 Diamond Drill Program Assay Results

BHID	From m	To m	Width m	Ni ppm	Cu ppm	Co ppm	Au ppm	Pt ppm	Pd ppm	S %
SL-22-05	196.4	204.9	8.5	2978	2116	155	0.01	0.02	0.04	1.9
SL-22-05 incl	196.4	199.0	2.6	6733	3127	315	0.03	0.04	0.07	3.6
SL-22-05	216.6	220.5	3.9	2108	2491	135	0.05	0.03	0.04	2.2
Sl-22-05	256.2	257.0	0.8	8060	1395	408	0.02	0.21	0.13	4.5
SL-22-06	NSA
SL-22-07	289.2	341.0	51.8	2356	1817	159	0.03	0.07	0.07	3.7
SL-22-07 incl	330.5	339.8	9.3	3447	3130	192	0.07	0.14	0.09	3.7
SL-22-07 incl	334.0	339.8	5.8	4176	3718	232	0.09	0.18	0.12	4.3
SL-22-08	190.0	242.7	52.7	1203	917	98	0.01	0.02	0.02	2.5
SL-22-08 incl	190.0	199.0	9.0	2482	1806	129	0.01	0.02	0.02	2.2
SL-22-08	274.5	280.5	6.0	1332	777	112	0.01	0.04	0.04	2.5
SL-22-09	237.4	260.5	23.1	3577	2332	178	0.02	0.02	0.03	2.3
SL-22-09 incl	240.0	246.0	6.0	6183	3564	278	0.02	0.04	0.04	3.4
SL-22-09	284.0	298.0	14.0	2458	1372	149	0.02	0.01	0.03	2.3
SL-22-10	86.0	96.3	10.3	2938	1692	193	0.02	0.07	0.06	3.1
SL-22-10	164.0	168.0	4.0	6696	4352	329	0.16	0.06	0.03	4.5
SL-22-10 incl	165.3	168.0	2.7	8346	5885	408	0.22	0.07	0.04	5.3
SL-22-11	25.0	30.5	5.5	2701	1749	174	0.02	0.06	0.04	2.6
SL-22-11	85.0	91.5	6.5	2148	2183	146	0.03	0.05	0.04	2.2
SL-22-11	106.4	114.0	7.6	1561	770	116	0.01	0.04	0.03	1.6
SL-22-11	134.5	152.0	17.5	2801	1859	178	0.02	0.04	0.02	2.8
SL-22-11	175.5	188.5	13.0	5270	2674	314	0.01	0.04	0.05	3.7
SL-22-11 incl	185.4	186.5	1.1	13445	4480	810	0.01	0.10	0.12	6.9
SL-22-11	209.1	223.5	14.4	3603	3208	196	0.02	0.09	0.04	3.1

2022 Drill Program

Exploration consisted of seven holes, (2,457m), with borehole EM geophysical surveys completed on six holes. A total of 570 samples, representing 800 metres of core were split for analysis. All drill holes, with the exception of SL-22-06, intersected multiple intervals of sulphide mineralization. The St. Laurent mineralized system has been sporadically tested along 650 metres strike extent, with only 4,792 metres of drilling in three separate programs since 2008. In 1966, 13 holes were competed, with drill logs (limited assay data) provided for 7 of the 13 holes (1,081m). Drill Hole locations for the 2022 program are included in Table 2.

Table 2- 2022 Drill Hole Locations

BHID	UTM E	UTM N	Elev Z	Az	Dip	EOH m
SL-22-05	603758	5469208	290	330	-55	300.0
SL-22-06	603988	5469744	290	150	-70	486.0
SL-22-07	603835	5469675	290	150	-55	471.0
SL-22-08	603828	5469243	290	330	-55	309.0
SL-22-09	603828	5469243	290	330	-68	384.0
SL-22-10	603590	5469409	290	150	-65	219.0
SL-22-11	603590	5469409	290	150	-50	288.0
						2457.0

Borehole EM Surveys

Borehole EM surveys were performed on the majority of 2019 and 2022 drill holes. The interpreted Maxwell Plate modeling is an effective method at tracking the trend of the mineralization and provides a high level of confidence for future drill targeting.

Comment on Results

The 2022 Voltage diamond drill program has improved the geological understanding of the St. Laurent project and greatly expanded the footprint of the mineralized system. Bob Bresee, President of Voltage states “The objective of the 2022 drill program was to identify massive sulphide mineralization, which based on the nickel tenor of this system indicates high grade 5% nickel. The St. Laurent magmatic system includes appreciable amounts of cobalt and PGE’s which combined with a high nickel grade provides an extremely desirable exploration target due to the high dollar value of the contained minerals. Although massive sulphides are the primary exploration focus, wide lower grade nickel mineralization in conjunction with the current high metal prices present exploration opportunities to evaluate lower nickel grade, larger volume material. The broad zones of lower grade mineralization at St. Laurent indicate a large continuous system that has been lightly drill tested with 5,873 metres total drilling since 1966, along a strike distance of 650 metres.”

Assaying & QAQC

Core was logged, tagged and sawn at the Company’s logging facility in Cochrane, Ontario. Samples were transported in sealed bags to ALS Canada Ltd. facility in Timmins for preparation. Pulps were transported to Vancouver, British Columbia for 35 element MEICP41 Aqua regia ICP AES analysis, PGM ICP23 analysis for Au- Pt- Pd analysis, S-IR08 for Sulphur analysis, Cu OG46 analysis for >10000 ppm Cu and NiOG46 analysis for >10000 ppm Ni. the sampling of, and assay data, from drill core is monitored through the implementation of a quality assurance – quality control (QA-QC) program designed to follow industry best practice.

Qualified Person

The St. Laurent 2022 diamond drill project was completed under the direct supervision of Todd Keast, P.Geo, a consultant to Voltage Metals Corp. Todd Keast, P.Geo. is a Qualified Person as defined in National Instrument 43-101. He has reviewed and approved the technical content of this press release.

References:

Pinsent R.H., 1980, Nickel Copper Mineralization in the Lynn Lake Gabbro, Manitoba Department of Energy and Mines Minerals Resources Division Economic Geology Report ER-79-3.
Tartisan Nickel Corp. Sedar Website P & E Mining Consultants, Sept 17,2020, Technical Report and Updated Mineral Resource Estimate of the Kenbridge Nickel Project.
Atkinson, 2011, Ministry of Northern Development and Mines.
Nickel Tenor is a common practice in magmatic nickel-copper exploration where the nickel vs S ratio is extrapolated to 100% sulphides (35% S), to estimate the grade of massive sulphide. Nickel tenor does not provide certainty that massive sulphides will be discovered.

Battery Metals, Electric Vehicle, Nickel

Tesla partners with nickel mine amid shortage fears

March 5, 2021 12:08 pmFebruary 18, 2022

Tesla has decided to become a technical partner in a nickel mine – which is needed for lithium-ion batteries that power electric cars.

Elon Musk’s car firm will also buy nickel from the Goro mine on the small Pacific island of New Caledonia to secure its long-term supply.

The move comes amid growing concerns about future supplies of nickel.

New Caledonia is the world’s fourth largest nickel producer, which has seen a 26% rally in prices in the past year.

“Nickel is our biggest concern for scaling lithium-ion cell production,” Musk said on Twitter last month.

New Caledonia is a French overseas territory although it has seen growing calls for its independence.

What is the Goro mine?

New Caledonia’s huge nickel reserves are crucial for the local economy, and the Goro mine, in the south of the island, has the potential to be one of the world’s biggest nickel producers.

In December, its owners Brazilian mining giant Vale and the French state, tried to sell it to Swiss commodities trader Trafigura.

Residents were so angry about the loss of local ownership and control that it sparked the collapse of New Caledonia’s government and led to workers going on strike.

A new agreement hammered out on Thursday by pro-independence groups, loyalist parties and indigenous Kanaks will see the mine sold to a consortium that now includes employees as well as three regional provinces. Trafigura will hold just 19%.

Tesla will be involved in a “technical and industrial partnership” to help with product and sustainability standards along with taking nickel for its battery production, according to the agreement.

It will play the role of technical consultant in the design and improvement of the manufacturing process.

Vale said the deal would “enable the operations to continue with a sustainable path for the future, preserving jobs and delivering economic value to the country”.

Greater control

While Tesla will not have an equity stake, its partnership in the mine gives it greater control over its electric battery supply chain as it ramps up production.

Nickel is mined mostly in Russia, Canada, New Caledonia and Indonesia and primarily used to make stainless steel. But the growth in electric vehicles has added a new source of demand for the metal.

The extraction of nickel, particularly the use of coal-fired power, comes at an environmental and health cost and mines have been criticised repeatedly by campaigners

Thursday’s agreement called for reinforced environmental standards and set a target for the mining complex to be carbon neutral by 2040.

Source: BBC News

Battery Metals, Electric Vehicle, Nickel

Nickel Supply Chain Worrying Tesla and EV Battery Suppliers

August 5, 2019 12:01 pmFebruary 18, 2022

The need for the high-purity material used in batteries, known as class-one nickel, is likely to outstrip supply within five years

Battery producers and electric automakers, including Tesla Inc., are concerned over longer-term supplies of nickel, a key material in their supply chain that’s forecast to fall into deficit, according to an Australian miner that’s held recent talks with the sector.

The need for the high-purity material used in batteries, known as class-one nickel, is likely to outstrip supply within five years, fueled mainly by rising consumption in the EV industry, according to BloombergNEF.

It’s a concern shared by Tesla, according to Peter Bradford, chief executive officer of nickel producer Independence Group NL, who last week met with a member of the car producer’s battery metals supply chain team.

“They are getting ready to have the new factory in China, and are at full capacity in North America,’’ Bradford said. “They recognize the biggest risk from a strategic supply point of view is nickel.’’

There’s been a lack of sufficient investment in new mines for materials including nickel, a factor that could spur prices as battery sector demand builds, Tesla’s global supply manager of battery metals Sarah Maryssael, told a Washington meeting in May. Tesla didn’t immediately respond to a request for comment on its outlook for nickel and other metals.

Demand for nickel from lithium-ion batteries is forecast to surge about 16 times to 1.8 million tons of contained metal by 2030, BNEF said in a July report. Batteries will account for more than half of demand for class one nickel by that date, shifting a market that’s currently focused on stainless steel.

Perth-based Independence last year increased nickel output from its Nova mine in Western Australia by about a quarter and is spending as much as A$75 million (US$51 million) on exploration in an effort to extend the asset’s life and find new deposits.

Nickel in London has jumped more than a third in 2019 and last month touched the highest in more than a year. Future battery demand will add further pressure on prices, according to Bradford, who is awaiting delivery this month of his own Tesla Model S.

“The dramatic price rise we’ve seen will pale into insignificance compared to the future,’’ Bradford said.

Japan’s Sumitomo Metal Mining Co., said in June the nickel market faces a deficit of 51,000 tons in 2019, raising an earlier forecast. Last month, First Quantum Minerals Ltd. confirmed it’ll reopen the Ravensthorpe mine in Western Australia –- shuttered since 2017 — in the first quarter of 2020 amid the strength of interest from potential nickel and cobalt customers.

Western Areas Ltd. recently visited China’s Contemporary Amperex Technology Co. Ltd., a leading battery maker, and is winning interest from the EV sector for nickel supply contracts, the Perth-based producer said Monday in a presentation. Contracts with BHP Group and Tsingshan Holding Group Co. are scheduled to expire in January.

Meetings with companies in the EV supply chain in China and South Korea in the past month, including battery suppliers and producers of key raw materials and chemicals, had also underscored the industry’s concerns about supply, Bradford said.

“The big question everyone will be asking in a year’s time is where does the nickel come from to satisfy the demands for nickel in stainless steel, as well as the increasing demand for nickel into electric vehicle batteries?’’ he said.

Source: MH&L