Featured Company /
Fathom Nickel Inc.
Nickel prices have been on a roller coaster ride in 2023 and you can bet that nickel bugs are going to start paying attention now that the industrial metal’s price has slipped back to June 2021 levels. Some sluggishness is unsurprising given the global economy, rising interest rates, and geopolitical uncertainty that have weighed on a number or industries and commodities. Rest assured that things will return to normal and nickel stockpiles that have grown in recent years will be whittled away without new mines coming online.
From Nickel to Batteries, Demand Not Going Away
Nickel is a versatile metal with a wide range of uses. It is the primary ingredient in stainless steel, which accounts for two-thirds of global nickel demand. Stainless steel is used in a variety of applications, including cookware, appliances, construction materials, and automotive parts. It is also an important component of nickel-based alloys, which are used in high-temperature applications such as jet engines and turbines. It is also integral to rechargeable nickel-cadmium (NiCd) and nickel-metal hydride (NiMH) batteries, as well as lithium-ion batteries that dominate the electric vehicle (EV) market today. Other uses include plating, catalysts, magnets, and minting coins, to name a few.
Simply, nickel is an essential metal for modern life and demand is expected to remain robust as such in the coming years. According to Statista, the proportion of usage will change, though. By 2040, stainless steel production will still command the lion’s share of the global demand for nickel, but at a much lower proportion, as batteries step up to hold a 41 percent share (up form 7% today) by that time.
Its utility in batteries will be instrumental in a net zero scenario that the International Energy Agency still sees as completely feasible by 2050. 2050 may sound like it is a long way off, but it is only 26 years, which further supports accelerating efforts to mine more nickel. Plus, with the unease between the East and West, mining in North America should be a top priority especially since there are already forecasts for a looming supply shortfall.
By 2030, additional nickel production of 3,225 kt/y compared to that in 2020 will be required to meet demand.
Look to Canada
According to GlobalData, Canada was the world’s sixth-largest producer of nickel in 2022, with output up by 2% on 2021. That reversed a trend, as during the five years to 2021, nickel production declined by an average of 9.6 percent each year. Looking ahead, GlobalData sees Canada regaining lost ground, forecasting compound annual growth of 9 percent between 2022 and 2026.
An up-and-comer in the space is Fathom Nickel Inc. (CSE: FNI) (OTCQB: FNICF)
And that’s exactly what it is doing at both its projects. In recent months, Fathom completed geophysical programs at Gochager and Albert Lake, BHEM (borehole electromagnetic) and surface TDEM (time-domain electromagnetic) surveys, as well as a Fall drill program announced in November which delineated high-grade nickel with multiple intercepts of 1% to 3.25%.
Fathom is currently preparing to initiate a 3,000 - 5,000 meter drill program at each project.
Why the Trans-Hudson Corridor?
The Trans-Hudson Corridor spans 2,000+ kilometers in North America from the north-central U.S. (the famous Homestake Gold Mine) up into Saskatchewan, where it makes a 90-degree turn and heads through eastern Canada. Part of the lauded Canadian Shield, the corridor is host to many critical and precious metals, including nickel, copper, palladium, platinum, zinc and gold. While still relatively underexplored for base metals in Saskatchewan, the Trans-Hudson is already home to numerous world-class nickel mining camps, such as the operating Thompson (MB) and Raglan (PQ) nickel belts, and Lynn Lake (MB), a past producer.
As shown in an image from Fathom’s investor presentation, its projects are in a sweet spot right where the belt bends.
As mentioned above, investors just received assay results from a seven-hole drill program at Gochager Lake. This data further supported a historic resource report. In the recent drill program, continuous nickel-copper-cobalt mineralization occurred in broad halos which host steeply oriented chutes of very conductive, semi-massive sulphide mineralization grading ~1-3% nickel. Nickel tenor calculations suggest Gochager Lake mineralization tenor of approximately 3.5% (Ni100), which is comparable to nickel tenors within the Sudbury Nickel Camp.
The BHEM survey was the first of its type on the project. In layman’s terms, a BHEM uses electromagnetic current to identify and map electrical conductivity variations in the ground. It is particularly useful in magmatic nickel sulphide deposits, which are associated with zones of semi-massive to massive sulphides which typically are very conductive.
The data from the BHEM conducted at Gochager points to a significant massive sulphide source for Fathom. Moreover, the data suggested there is more widespread mineralization to be explored up plunge and at depth and along strike. The targets are being compiled by priority level.
An interesting tidbit regarding Fathom taking ownership of Gochager arrived this month and, by large, was overlooked. Fathom made its cash and share issuance payment as required under its earn-in agreement ahead of schedule. That’s impressive on its face, but the vendor’s request speaks volumes as to optimism about the future. The vendor asked to drop $10,000 of the $15,000 cash payment in exchange for 40,000 more shares of the company.
Albert Lake: Exploration in the Shadow of a Mine
Fathom’s sprawling Albert Lake Project has been the subject of more drilling and new discoveries. The company has completed 60 drillholes totaling 10,713 meters since it went public in 2021. The company refers to its work as “Nickel exploration in shadow of historic mine,” which is quite fitting. Drilling in that shadow has resulted in an extension based upon a drill intercept of 1.06% Ni, 0.88% Cu, 4.09 g/t 3PE across 7.47 meters.
In the Island Bay Trend at Albert Lake, Fathom cut 0.62% Ni, 0.29% Cu, 0.63 g/t 3PE across 13.27 meters, just 500 meters west-northwest of the Rottenstone deposit.
Again, the data points to strong mineralization in the rock. In the case of the Bay Island Trend, the host rock is like that at Rottenstone as evidenced by geochemistry, texture, and geophysical signatures. Similarities are true at the Tremblay-Olson Claims Area, approximately 1,500 south of the historic Rottenstone mine.
Carpe Diem
The trembles over inflation and the fighting in Europe have tempered optimism on many levels, including pulling off the rose-colored glasses many wore thinking climate change efforts could be implemented overnight. They can’t; but they will be installed over time more in line with what the IEA has to proffer. Shares of Fathom were holding a steady trek from February through September, rising from 4.5 cents to as high as 35 cents as the investment community heard about this little company with a big footprint in Saskatchewan. With the markets cooling, so has Fathom, back to around 12 cents, a level where they just may command attention all over again as the explorer keeps proving-up mineralization.
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As a result of its commitment to journalistic excellence and abundance of information in a particular area of equity investing (micro-cap investing) where there aren’t many credible sources of information, AllPennyStocks.com continues to have one of the largest audiences of micro-cap investors on the internet.
Corporate Snapshot:
Fathom Nickel Inc.
Stock Symbol:
FNI
Stock Exchange:
CSE
Sector:
Natural Resources
52 Week High:
$0.3500
52 Week Low:
$0.0450
Current Stock Quote / Chart / News: Click here
Information as of
January 17, 2024
Nickel prices have been on a roller coaster ride in 2023 and you can bet that nickel bugs are going to start paying attention now that the industrial metal’s price has slipped back to June 2021 levels. Some sluggishness is unsurprising given the global economy, rising interest rates, and geopolitical uncertainty that have weighed on a number or industries and commodities. Rest assured that things will return to normal and nickel stockpiles that have grown in recent years will be whittled away without new mines coming online.
From Nickel to Batteries, Demand Not Going Away
Nickel is a versatile metal with a wide range of uses. It is the primary ingredient in stainless steel, which accounts for two-thirds of global nickel demand. Stainless steel is used in a variety of applications, including cookware, appliances, construction materials, and automotive parts. It is also an important component of nickel-based alloys, which are used in high-temperature applications such as jet engines and turbines. It is also integral to rechargeable nickel-cadmium (NiCd) and nickel-metal hydride (NiMH) batteries, as well as lithium-ion batteries that dominate the electric vehicle (EV) market today. Other uses include plating, catalysts, magnets, and minting coins, to name a few.
Simply, nickel is an essential metal for modern life and demand is expected to remain robust as such in the coming years. According to Statista, the proportion of usage will change, though. By 2040, stainless steel production will still command the lion’s share of the global demand for nickel, but at a much lower proportion, as batteries step up to hold a 41 percent share (up form 7% today) by that time.
Its utility in batteries will be instrumental in a net zero scenario that the International Energy Agency still sees as completely feasible by 2050. 2050 may sound like it is a long way off, but it is only 26 years, which further supports accelerating efforts to mine more nickel. Plus, with the unease between the East and West, mining in North America should be a top priority especially since there are already forecasts for a looming supply shortfall.
By 2030, additional nickel production of 3,225 kt/y compared to that in 2020 will be required to meet demand.
Look to Canada
According to GlobalData, Canada was the world’s sixth-largest producer of nickel in 2022, with output up by 2% on 2021. That reversed a trend, as during the five years to 2021, nickel production declined by an average of 9.6 percent each year. Looking ahead, GlobalData sees Canada regaining lost ground, forecasting compound annual growth of 9 percent between 2022 and 2026.
An up-and-comer in the space is Fathom Nickel Inc. (CSE: FNI) (OTCQB: FNICF)
And that’s exactly what it is doing at both its projects. In recent months, Fathom completed geophysical programs at Gochager and Albert Lake, BHEM (borehole electromagnetic) and surface TDEM (time-domain electromagnetic) surveys, as well as a Fall drill program announced in November which delineated high-grade nickel with multiple intercepts of 1% to 3.25%.
Fathom is currently preparing to initiate a 3,000 - 5,000 meter drill program at each project.
Why the Trans-Hudson Corridor?
The Trans-Hudson Corridor spans 2,000+ kilometers in North America from the north-central U.S. (the famous Homestake Gold Mine) up into Saskatchewan, where it makes a 90-degree turn and heads through eastern Canada. Part of the lauded Canadian Shield, the corridor is host to many critical and precious metals, including nickel, copper, palladium, platinum, zinc and gold. While still relatively underexplored for base metals in Saskatchewan, the Trans-Hudson is already home to numerous world-class nickel mining camps, such as the operating Thompson (MB) and Raglan (PQ) nickel belts, and Lynn Lake (MB), a past producer.
As shown in an image from Fathom’s investor presentation, its projects are in a sweet spot right where the belt bends.
As mentioned above, investors just received assay results from a seven-hole drill program at Gochager Lake. This data further supported a historic resource report. In the recent drill program, continuous nickel-copper-cobalt mineralization occurred in broad halos which host steeply oriented chutes of very conductive, semi-massive sulphide mineralization grading ~1-3% nickel. Nickel tenor calculations suggest Gochager Lake mineralization tenor of approximately 3.5% (Ni100), which is comparable to nickel tenors within the Sudbury Nickel Camp.
The BHEM survey was the first of its type on the project. In layman’s terms, a BHEM uses electromagnetic current to identify and map electrical conductivity variations in the ground. It is particularly useful in magmatic nickel sulphide deposits, which are associated with zones of semi-massive to massive sulphides which typically are very conductive.
The data from the BHEM conducted at Gochager points to a significant massive sulphide source for Fathom. Moreover, the data suggested there is more widespread mineralization to be explored up plunge and at depth and along strike. The targets are being compiled by priority level.
An interesting tidbit regarding Fathom taking ownership of Gochager arrived this month and, by large, was overlooked. Fathom made its cash and share issuance payment as required under its earn-in agreement ahead of schedule. That’s impressive on its face, but the vendor’s request speaks volumes as to optimism about the future. The vendor asked to drop $10,000 of the $15,000 cash payment in exchange for 40,000 more shares of the company.
Albert Lake: Exploration in the Shadow of a Mine
Fathom’s sprawling Albert Lake Project has been the subject of more drilling and new discoveries. The company has completed 60 drillholes totaling 10,713 meters since it went public in 2021. The company refers to its work as “Nickel exploration in shadow of historic mine,” which is quite fitting. Drilling in that shadow has resulted in an extension based upon a drill intercept of 1.06% Ni, 0.88% Cu, 4.09 g/t 3PE across 7.47 meters.
In the Island Bay Trend at Albert Lake, Fathom cut 0.62% Ni, 0.29% Cu, 0.63 g/t 3PE across 13.27 meters, just 500 meters west-northwest of the Rottenstone deposit.
Again, the data points to strong mineralization in the rock. In the case of the Bay Island Trend, the host rock is like that at Rottenstone as evidenced by geochemistry, texture, and geophysical signatures. Similarities are true at the Tremblay-Olson Claims Area, approximately 1,500 south of the historic Rottenstone mine.
Carpe Diem
The trembles over inflation and the fighting in Europe have tempered optimism on many levels, including pulling off the rose-colored glasses many wore thinking climate change efforts could be implemented overnight. They can’t; but they will be installed over time more in line with what the IEA has to proffer. Shares of Fathom were holding a steady trek from February through September, rising from 4.5 cents to as high as 35 cents as the investment community heard about this little company with a big footprint in Saskatchewan. With the markets cooling, so has Fathom, back to around 12 cents, a level where they just may command attention all over again as the explorer keeps proving-up mineralization.
About AllPennyStocks.com:
AllPennyStocks.com Media, Inc., founded in 1999, is one of North America’s largest and most comprehensive small-cap / penny stock financial portals. With Canadian and U.S. focused penny stock features and content, the site offers information for novice investors to expert traders. Outside of the countless free content available to visitors, AllPennyStocks.com Pro (premium service) caters to traders looking for that trading edge by offering monthly stock picks, daily penny stock to watch trade ideas, market commentary and more.
As a result of its commitment to journalistic excellence and abundance of information in a particular area of equity investing (micro-cap investing) where there aren’t many credible sources of information, AllPennyStocks.com continues to have one of the largest audiences of micro-cap investors on the internet.
Forward Looking Statements
This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. Fathom Nickel Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Fathom Nickel Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.
Disclaimer
AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Fathom Nickel Inc. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.
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