Featured Company /
Fathom Nickel Inc.
Nickel prices took a tumble in 2023, mirroring the global economic slowdown. However, a comeback is happening in 2024 that should capture investor attention for the long-term potential of this essential metal. We said this in January and nickel is up 16.5% so far on the year, although it remains down nearly 20% from a year ago, so upside abounds.
Nickel demand is expected to remain robust, driven by its use in stainless steel and, most importantly, rechargeable batteries that power electric vehicles.
While stainless steel currently accounts for the lion's share of nickel consumption, battery demand is projected to surge in the coming decades, ultimately expected to account for 41% of all nickel usage by 2040. The International Energy Agency even sees a net-zero emissions scenario as achievable by 2050, further solidifying the need for more nickel.
But how many more EVs need to be sold? According to the results of thousands of computer simulations run by Chris Hoehne, a climate and transportation expert at the National Renewable Energy Laboratory in Golden, Colorado, 80 percent of all vehicles sold in the next ten years need to be zero emission in order to meet 2050 targets to curb warming.
This is exactly why a concerted effort needs to start today.
The current supply of nickel may not be enough to meet this growing demand. With this in mind, exploration efforts, particularly in North America, become increasingly important. Canada, for example, boasts significant nickel reserves and is poised for a national comeback as it turns around years of declining production.
From 2014-2016, Canada’s nickel production was holding steady around 235,000 metric tons per year. In 2018, production dropped to 176,000 metric tons, the lowest level since 2010, and further slid to just 134,000 metric tons in 2021. A post-COVID rebound is happening (180,000 metric tons estimated for 2023), with plenty more room to grow production for the nickel-rich country.
Fathom Nickel: A Trans-Hudson Corridor Juggernaut
Fathom Nickel Inc. (CSE: FNI) (OTCQB: FNICF) (NASDAQ: SSRM) (TSX: SSRM) (NYSE: HBM) (TSX: HBM) (NYSE: AGI) (TSX: AGI)
Canada is recognized for world-class gold discoveries, including the Abitibi in Ontario and Quebec, the Red Lake District in Ontario, and the Golden Triangle in British Columbia. The sheer scale – stretching from South Dakota in the U.S. to James Bay in Canada – and the already known resources position the Trans-Hudson Corridor with undeniable potential to be Canada’s next high-grade metal district.
(TSX: FOM) (OTCQX: FMCXF)
Magmatic nickel sulfide (MNS) and VHMS are well known to contain other valuable metals. They are formed differently and found in different types of geological settings (e.g., molten rock vs. underwater volcanic vents rich in sulfur) and have another important differentiating feature: associated metals. For instance, MNS deposits contain copper, cobalt, and platinum group elements (PGEs) like palladium and platinum, alongside nickel.
Recent drilling programs at both Albert Lake and Gochager Lake yielded positive results for Fathom, with intercepts showing high-grade nickel mineralization and the appropriate associated metals indicative of a MNS deposit. Additionally, Fathom completed geophysical surveys at both locations, further pinpointing areas with strong potential that will be subject to additional exploration and drilling this summer-fall.
Why Gochager Lake is Particularly Interesting
Extensive assays from Gochager Lake confirmed the presence of nickel-copper-cobalt mineralization. Interestingly, cobalt was mostly overlooked historically as it didn’t have the industrial value it does today, particularly as a critical element to rechargeable batteries for EVs where ethical cobalt supply is in high demand.
The data to date aligns with a historic, non-compliant resource estimate for the area, suggesting significant potential for further exploration and development. Historic drilling (1966-1970) defined the Gochager Lake deposit with indicated reserves of 4,262,400 tons grading 0.295% Ni (nickel) and 0.081% Cu (copper) mineable by open pit, with a higher-grade core comprised of approximately 1.8Mt 0.74% NiEq (Ni+Cu). Fathom’s work has expanded this deposit in all directions and has been focused on increasing the grade of this historic deposit.
Moreover, BHEM (borehole electromagnetic) surveys, a technique adept at identifying conductive zones associated with nickel sulfide deposits, have revealed a plethora of untested target areas at Gochager.
The recently completed drill program (~2,000 meters) at Gochager Lake was designed to test continuity of mineralization outside the known boundaries of the historic deposit – both at depth and along strike. It has done just that.
The first four drillholes of the campaign all intersected significant mineralization and semi-massive mineralization has been confirmed to depths of 423 meters (drillhole depth), the deepest known mineralization to date at Gochager Lake.
Drilling was completed in mid-April, with results announced on May 28th, 2024 showing continued intersects of high-grade mineralization and expansion of the historic Gochager lake deposit in all directions.
Positive Signs for Fathom
Fathom's early repayment of an earn-in agreement for Gochager is a positive sign. This move suggests confidence in the project's future, further bolstered by the original vendor's request for additional company shares in lieu of a portion of the cash payment.
Albert Lake: Following in the Footsteps of a Past Producer
The massive Albert Lake project is undergirded by the historic Rottenstone Mine which produced 26,000 tonnes at 3.28% Ni,1.83% Cu, 9.63 g/t Pd-Pt+Au (3E) during 1965-1969. It cannot be overstated that the production was essentially cherry-picking the easy to grab metal without delving into what even the Rottenstone area truly hosts.
Fathom's extensive drilling program at Albert Lake has yielded positive results, extended known mineralization zones and uncovered new areas with high nickel-copper-cobalt 3E potential, including a new nickel-copper-cobalt PGE discovery in the Bay-Island trend spanning over 300 meters along strike. Drilling here in 2022 was highlighted by a cut of 0.62% Ni, 0.29% Cu, 0.63 g/t 3E across 13.27 meters.
A new discovery made in February 2024; drillhole AL24077, intersected 0.42% Ni over 2.01 meters in an ultramafic rock containing minimal sulphide, suggesting high nickel tenor in this intercept. The geological characteristics of this discovery and the Bay Island Trend bear resemblance to the historic Rottenstone mine located within the project area. In geologist-speak, this is best explained by the fact that nickel mineralization is hosted in orthopyroxenite. Orthopyroxenite is part of the host rock assemblage recognized at the historic, and very high-grade Ni-Cu+PGE Rottenstone deposit located approximately 1.2 kilometers to the northeast of drill hole AL24077. This drill hole was part of a 6-hole, 1,386-meter drill program completed in January-February.
The company has now drilled 66 holes totaling 12,100 meters at Albert Lake since Fathom came public in 2021. Albert Lake results were released in April.
Investment Opportunity
In laymen terms, Fathom is proving that the Rottenstone deposit at Albert Lake is not an isolated system; it appears to be part of a significant MNS system that could be a company maker for Fathom. A similar opportunity is at Gochager Lake, where new data complements historic data, as Fathom accelerates work with the drill bit to further validate the mineralization.
While the broader market has cooled momentarily, Fathom's share price presents a potential opportunity for nimble investors. The company's ongoing exploration success strengthens its position in the race to meet the growing demand for nickel, particularly in the context of the North American push for critical mineral independence.
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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:
$0.0350
Current Stock Quote / Chart / News: Click here
Information as of
June 24, 2024
Nickel prices took a tumble in 2023, mirroring the global economic slowdown. However, a comeback is happening in 2024 that should capture investor attention for the long-term potential of this essential metal. We said this in January and nickel is up 16.5% so far on the year, although it remains down nearly 20% from a year ago, so upside abounds.
Nickel demand is expected to remain robust, driven by its use in stainless steel and, most importantly, rechargeable batteries that power electric vehicles.
While stainless steel currently accounts for the lion's share of nickel consumption, battery demand is projected to surge in the coming decades, ultimately expected to account for 41% of all nickel usage by 2040. The International Energy Agency even sees a net-zero emissions scenario as achievable by 2050, further solidifying the need for more nickel.
But how many more EVs need to be sold? According to the results of thousands of computer simulations run by Chris Hoehne, a climate and transportation expert at the National Renewable Energy Laboratory in Golden, Colorado, 80 percent of all vehicles sold in the next ten years need to be zero emission in order to meet 2050 targets to curb warming.
This is exactly why a concerted effort needs to start today.
The current supply of nickel may not be enough to meet this growing demand. With this in mind, exploration efforts, particularly in North America, become increasingly important. Canada, for example, boasts significant nickel reserves and is poised for a national comeback as it turns around years of declining production.
From 2014-2016, Canada’s nickel production was holding steady around 235,000 metric tons per year. In 2018, production dropped to 176,000 metric tons, the lowest level since 2010, and further slid to just 134,000 metric tons in 2021. A post-COVID rebound is happening (180,000 metric tons estimated for 2023), with plenty more room to grow production for the nickel-rich country.
Fathom Nickel: A Trans-Hudson Corridor Juggernaut
Fathom Nickel Inc. (CSE: FNI) (OTCQB: FNICF) (NASDAQ: SSRM) (TSX: SSRM) (NYSE: HBM) (TSX: HBM) (NYSE: AGI) (TSX: AGI)
Canada is recognized for world-class gold discoveries, including the Abitibi in Ontario and Quebec, the Red Lake District in Ontario, and the Golden Triangle in British Columbia. The sheer scale – stretching from South Dakota in the U.S. to James Bay in Canada – and the already known resources position the Trans-Hudson Corridor with undeniable potential to be Canada’s next high-grade metal district.
(TSX: FOM) (OTCQX: FMCXF)
Magmatic nickel sulfide (MNS) and VHMS are well known to contain other valuable metals. They are formed differently and found in different types of geological settings (e.g., molten rock vs. underwater volcanic vents rich in sulfur) and have another important differentiating feature: associated metals. For instance, MNS deposits contain copper, cobalt, and platinum group elements (PGEs) like palladium and platinum, alongside nickel.
Recent drilling programs at both Albert Lake and Gochager Lake yielded positive results for Fathom, with intercepts showing high-grade nickel mineralization and the appropriate associated metals indicative of a MNS deposit. Additionally, Fathom completed geophysical surveys at both locations, further pinpointing areas with strong potential that will be subject to additional exploration and drilling this summer-fall.
Why Gochager Lake is Particularly Interesting
Extensive assays from Gochager Lake confirmed the presence of nickel-copper-cobalt mineralization. Interestingly, cobalt was mostly overlooked historically as it didn’t have the industrial value it does today, particularly as a critical element to rechargeable batteries for EVs where ethical cobalt supply is in high demand.
The data to date aligns with a historic, non-compliant resource estimate for the area, suggesting significant potential for further exploration and development. Historic drilling (1966-1970) defined the Gochager Lake deposit with indicated reserves of 4,262,400 tons grading 0.295% Ni (nickel) and 0.081% Cu (copper) mineable by open pit, with a higher-grade core comprised of approximately 1.8Mt 0.74% NiEq (Ni+Cu). Fathom’s work has expanded this deposit in all directions and has been focused on increasing the grade of this historic deposit.
Moreover, BHEM (borehole electromagnetic) surveys, a technique adept at identifying conductive zones associated with nickel sulfide deposits, have revealed a plethora of untested target areas at Gochager.
The recently completed drill program (~2,000 meters) at Gochager Lake was designed to test continuity of mineralization outside the known boundaries of the historic deposit – both at depth and along strike. It has done just that.
The first four drillholes of the campaign all intersected significant mineralization and semi-massive mineralization has been confirmed to depths of 423 meters (drillhole depth), the deepest known mineralization to date at Gochager Lake.
Drilling was completed in mid-April, with results announced on May 28th, 2024 showing continued intersects of high-grade mineralization and expansion of the historic Gochager lake deposit in all directions.
Positive Signs for Fathom
Fathom's early repayment of an earn-in agreement for Gochager is a positive sign. This move suggests confidence in the project's future, further bolstered by the original vendor's request for additional company shares in lieu of a portion of the cash payment.
Albert Lake: Following in the Footsteps of a Past Producer
The massive Albert Lake project is undergirded by the historic Rottenstone Mine which produced 26,000 tonnes at 3.28% Ni,1.83% Cu, 9.63 g/t Pd-Pt+Au (3E) during 1965-1969. It cannot be overstated that the production was essentially cherry-picking the easy to grab metal without delving into what even the Rottenstone area truly hosts.
Fathom's extensive drilling program at Albert Lake has yielded positive results, extended known mineralization zones and uncovered new areas with high nickel-copper-cobalt 3E potential, including a new nickel-copper-cobalt PGE discovery in the Bay-Island trend spanning over 300 meters along strike. Drilling here in 2022 was highlighted by a cut of 0.62% Ni, 0.29% Cu, 0.63 g/t 3E across 13.27 meters.
A new discovery made in February 2024; drillhole AL24077, intersected 0.42% Ni over 2.01 meters in an ultramafic rock containing minimal sulphide, suggesting high nickel tenor in this intercept. The geological characteristics of this discovery and the Bay Island Trend bear resemblance to the historic Rottenstone mine located within the project area. In geologist-speak, this is best explained by the fact that nickel mineralization is hosted in orthopyroxenite. Orthopyroxenite is part of the host rock assemblage recognized at the historic, and very high-grade Ni-Cu+PGE Rottenstone deposit located approximately 1.2 kilometers to the northeast of drill hole AL24077. This drill hole was part of a 6-hole, 1,386-meter drill program completed in January-February.
The company has now drilled 66 holes totaling 12,100 meters at Albert Lake since Fathom came public in 2021. Albert Lake results were released in April.
Investment Opportunity
In laymen terms, Fathom is proving that the Rottenstone deposit at Albert Lake is not an isolated system; it appears to be part of a significant MNS system that could be a company maker for Fathom. A similar opportunity is at Gochager Lake, where new data complements historic data, as Fathom accelerates work with the drill bit to further validate the mineralization.
While the broader market has cooled momentarily, Fathom's share price presents a potential opportunity for nimble investors. The company's ongoing exploration success strengthens its position in the race to meet the growing demand for nickel, particularly in the context of the North American push for critical mineral independence.
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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