Pacific Rim Cobalt Corp. (the “
Company” or
“
Pacific Rim Cobalt”) (CSE: BOLT) (OTCQB: PCRCF)
(FRANKFURT: NXFE) is pleased to announce the commencement of phase
two drilling 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
producing a resource estimate in late 2019.
Phase one drilling confirmed the development of
a complete mineralized laterite profile consistent with grades and
widths, which form the basis of the historical estimate for the
project. Mineralization occurs from surface with elevated cobalt
values of up to 0.48% Co encountered in the limonite zone and a
highlight intersection of 7 metres (m) @ 0.27% Co and is underlain
immediately by the limonite transition and saprolite zones
containing elevated nickel values of up to 2.65% Ni and a highlight
intersection of 6m @ 2.28%Ni.
The Cyclops cobalt-nickel project is situated on
the north coast of Papua province, Indonesia, a country ranked
among the largest hosts of nickel laterite occurrences in the
world. The project's tidewater location offers strategic access to
China, the largest battery metal market in the world.
Other laterite projects in the region include
MMC's $2.1-billion Ramu nickel mine in Papua New Guinea at 1.0 per
cent nickel, Eramet's Weda Bay at 1.36 per cent nickel and Antam's
Gag island at 1.63 per cent nickel, both in Indonesia.
Pacific Rim Cobalt's efforts will continue to
focus on both historically identified and drill-tested areas, as
well as previously undrilled prospects. Our goal for the second
half of 2019 is to complete up to an additional 50 drill holes and
then establish a maiden compliant resource on the project.
"With the commencement of our phase two program
guided by historical data, we are optimistic about the unique
possibility of developing this project into an asset that will add
shareholder value and position the company to play a future role in
the battery metals supply chain," remarked Ranjeet Sundher, chief
executive officer of Pacific Rim Cobalt. "We expect the
near-surface nature of cobalt/nickel mineralization at the Cyclops
project will lend itself well to low-cost, logistically
straightforward drilling."
The project area benefits from excellent
infrastructure, including proximity to a work force and supplies,
sealed roads, ocean access, electrical grid power, nearby port
facility, and gentle topography. The road system enables year-round
access to the project and connects it with the large town of
Sentani, located about 15 kilometres to the east, and with
Jayapura, the capital city of Papua province, located about 40
kilometres to the east.
Drilling will continue to consist of shallow
holes (up to 35-metre vertical depth each), which, based on recent
drilling, is sufficient to intersect both the upper limonite zone,
as well as the lower nickel saprolite zone. The Cyclops project was
extensively explored by previous operators with a focus on nickel
mineralization, during which time they completed 856 drill holes
and 26 test pits.
The case for nickel
Batteries play a vital role in modern society,
powering everything from flashlights and phones to electric cars.
While the role of cobalt and lithium in these batteries is widely
recognized, nickel is also critically important. The element is a
primary ingredient in the production of a wide range of batteries,
including those installed in the majority of electric cars.
Nickel also plays an important part in steel
production, which led to a surge in demand from China 1-1/2 decades
ago. At that time, production efforts increased to meet the demand.
Today, the growing importance of nickel in batteries is causing
fresh pressure, along with a supply deficit.
Nickel is further differentiated from other
battery metals in its inability to respond quickly on the supply
side due to the fact that bringing on a new large-scale nickel mine
can often run into the billions of dollars (Anthony Milewski, The
Often Forgotten Battery Metal (Benchmark Minerals, 2018)).
Emergence of the electric vehicle
Interest in electric vehicles and demand for the
batteries needed to power them are gaining significant momentum.
One of the most compelling reasons behind that increased demand is
the desire for clean energy.
More than 40 automakers are pivoting toward
electric vehicles. While Tesla is grabbing most of the headlines,
most recently by reducing the price on its Model 3 to make electric
cars more affordable, established car companies are also getting
into the game. It took five years to sell the first million EVs but
just six months to sell the next million, and forecasts are for
sales of up to 36 million units in 2030. Electric cars are
increasingly common, as are the charging stations they need, and
all but one of the major electric vehicle manufacturers use nickel
in their batteries (Bloomberg NEF).
Global automaker investments in EVs now total
more than $90-billion (U.S.), with at least $19-billion (U.S.)
attributed to the United States, $21-billion (U.S.) to China and
$52-billion (U.S.) to Germany. CRU predicts that EVs will account
for 30 per cent of car sales by 2030, up from just 2 per cent in
2020 -- a staggering compound annual growth rate of above 30 per
cent over this period. If EVs account for 30 per cent of automobile
sales, this will require an estimated additional 1.1 million tons
of nickel and 314,000 tonnes of cobalt.
Indonesia is nickel
One of the world's largest sources of nickel
production by nation is Indonesia. The country is rich with
deposits of the metal, many of which have yet to be effectively
exploited.
The dominant source of nickel in country is
laterite deposits. The company's Cyclops is such an occurrence.
Nickel laterites are composed of long tabular bodies, over several
hundred metres, but only tens of metres deep.
Pacific Rim Cobalt's management in pleased to
have established a presence in Indonesia, a strategically located,
ethical jurisdiction within the geographic sphere of China, the
dominant EV market player on the planet.
Debt Settlement
The Company also announces that it has completed
a debt settlement with three creditors (the "Debt
Settlement"). The Debt Settlement will result in an aggregate
of $180,000.00 of indebtedness being retired in consideration for
the issuance of 600,000 common shares at a price of $0.30 per
common share. The indebtedness is held by arm’s length
parties and will not result in the creation of a new insider or a
new control person. The Debt Settlement is subject to
Canadian Securities Exchange approval.
The securities to be issued under the Debt
Settlement will be subject to a hold period expiring four months
and one day from the date of issuance.
National Instrument 43-101
Disclosure
The technical content of this news release has
been reviewed and approved by Mr. Garry Clark, PGeo, independent
director of Pacific Rim Cobalt and a Qualified Person as defined by
National Instrument 43-101.
Historical Estimate (1)
A historical estimate, which dates from before
the requirement for uniform regulatory compliance and therefore
fails to meet the current standards of National Instrument 43-101,
is being referenced as a guide for Pacific Rim Cobalt's 2018 work
program. This early data employed measurements still in use today
and indicate mineralization from surface with an estimated
potential of 37 million tonnes of 0.11 per cent cobalt and 1.31 per
cent nickel at a 0.8-per-cent-nickel-cut-off grade. The company
intends to validate the resource and, where possible, expand upon
the historical estimate, as only five of the nine known
cobalt/nickel occurrences were the subject of the historical
studies. The company affirms this data in no way implies an
estimated resource valuation but are offered as a basis for its
current exploratory efforts and approach.
Pacific Rim Cobalt considers the cobalt and
nickel tonnage and grade estimates contained herein to be
historical estimates. The historical estimates are contained in the
summary geologic investigations, PT Pacific Nikkel Indonesia 1969
(Reynolds, 1979). These historical estimates do not use categories
that conform to current CIM (Canadian Institute of Mining,
Metallurgy and Petroleum) definition standards on mineral resources
and mineral reserves as outlined in National Instrument 43-101
(Standards of Disclosure for Mineral Projects) and have not been
redefined to conform to current CIM definition standards. These
estimates were prepared in the 1980s prior to the adoption and
implementation of NI 43-101. A qualified person has not done
sufficient work to classify the historical estimates as current
mineral resources, and Pacific Rim Cobalt is not treating the
historical estimates as current mineral resources. More work,
including, but not limited to drilling will be required to conform
the estimates to current CIM definition standards. Investors are
cautioned that the historical estimates do not mean or imply that
economic deposits exist on the company's project. Efforts to obtain
any additional information regarding relevant historical work are
continuing, although there are no assurances that these original
data will be found. Pacific Rim Cobalt believes that the historical
estimates are relevant to continuing exploration on the project.
For more information, please refer to the technical report, filed
on SEDAR on Dec. 8, 2017, and available under the company's profile
at SEDAR.
About Pacific Rim Cobalt
Pacific Rim Cobalt is a Canadian‐based
exploration company focused on the acquisition and development of
production grade nickel and cobalt deposits, key raw material
inputs for the growing lithium‐ion battery industry. Visit
https://pacificrimcobalt.com/ to find out more.
Pacific Rim Cobalt Corp.
Ranjeet Sundher – President and CEO(604)
922-8272rsundher@pacificrimcobalt.com
Steve Vanry – CFO & Director(604)
922-8272steve@vanrycap.com
Sean Bromley – Director & Investor
Contact(778) 985-8934sbromley@investfortuna.com
Reader Advisory
This news release may contain statements which
constitute “forward-looking information” that are subject to risks
and uncertainties. All statements herein, other than statements of
historical fact, are to be considered forward-looking, including
statements regarding the plans, intentions, beliefs and current
expectations of the Company, its directors, or its officers with
respect to the future business activities of the Company and with
respect to the results of exploration and prospective plans in
regards to the Cyclops project. The words “may”, “would”, “could”,
“will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”,
“expect” and similar expressions, as they relate to the Company, or
its management, are intended to identify such forward-looking
statements. Although the Company believes the expectations
expressed in such forward-looking information are based on
reasonable assumptions, such information is not a guarantee of
future performance and actual results or developments may differ
materially from those contained in forward-looking information.
Information provided in this document is necessarily summarized and
may not contain all available material information. Although
Pacific Rim Cobalt has attempted to identify important factors that
could cause actual results, performance or achievements to differ
materially from those contained in the forward-looking statements,
there can be other factors that cause results, performance or
achievements not to be as anticipated, estimated or intended.
Factors that could cause actual results to differ materially from
those in forward-looking information include, but are not limited
to, fluctuations in market prices, success of the operations of the
Company, continued availability of capital and financing and
general economic, market or business conditions. There can be
no assurances that such information will prove accurate and,
therefore, readers should not place undue reliance on
forward-looking statements. The forward-looking statements in this
news release are made as of the date of this news release, and the
Company does not assume any obligation to update any
forward-looking information except as required under the applicable
securities laws.
Neither the Canadian Securities Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Canadian Securities Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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