Is This Company the Next Big Find for Fans of Highflyer Ramp Metals?

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Tuesday, July 23, 2024

The Canadian mining rush is on, fueled by the green energy revolution. Investors are scouring the landscape for the next Cameco (NYSE: CCJ) (TSX: CCO), SSR Mining (NASDAQ: SSRM) (TSX: SSRM), or Ivanhoe (TSX: IVN) – those future giants hiding as microcaps today. The key? Critical metals that are stores of wealth and/or the building blocks of a sustainable future.

If you've set your sights on Ramp Metals (TSX-Venture: RAMP) and its high-grade gold exploration in Saskatchewan, then Fathom Nickel Inc. (CSE: FNI) (OTCQB: FNICF) might be the next logical step in an investment journey. Here's why these two Canadian companies, though focused on different metals, could hold significant appeal for investors seeking exposure to the future of Canadian mining.

Similar Exploration Focus

Sharing a bullseye in Canada's critical metals exploration, Ramp Metals and Fathom Nickel both set their sights on Saskatchewan. Notably, the Rottenstone Domain emerges as a focal point for their endeavors, hinting at potential geological synergies that could benefit both companies.

Ramp Metals is targeting high-grade gold in the Rottenstone Domain, while Fathom Nickel is exploring for high-grade nickel sulfide deposits in the Proterozoic Age Trans-Hudson Corridor, also in the Rottenstone Domain. As it goes, Fathom Nickel’s Albert Lake project contains the past producing Rottenstone Mine.

The Rottenstone Domain isn't exactly famous in the traditional sense, but it holds significance for geologists and what it potentially holds in major metal discoveries. The domain is part of the Precambrian Shield, one of the oldest and most stable pieces of the Earth’s crust, formed over 2.5 billion years ago. It is well recognized for its complex geology, instrumental role in continent formation, and possibilities to host high-grade mineralization of gold, copper, nickel, and more.

Exploration Stage, Compelling Properties and Data

Both companies are in the exploration stage, which means higher risk but potentially higher rewards. Investors who are comfortable with the risks associated with early-stage exploration might be drawn to both companies for their growth potential. As of July 19, 2024, Ramp has a market capitalization of CDN$29.5 million, while Fathom Nickel – which is arguably bigger – has a much smaller market cap of CDN$7.7 million.

Ramp has the drill ready 1,175-hectare PLD project in Saskatchewan, but its flagship project is the Rottenstone SW property, located about 115 kilometers north of La Ronge, Saskatchewan. This is what investors are excited about. The property consists of 19 mineral dispositions covering approximately 32,715 hectares. Ramp currently made a new high-grade gold discovery of 73.55 g/t gold (Au) over 7.5 meters at Rottenstone SW.

The Rottenstone SW property is located along a regional NE-SW trend from the historic Rottenstone Mine, which, as mentioned, is now under ownership of Fathom Nickel. The Rottenstone Mine produced 28,724 tons of high-grade nickel-copper-platinum group elements plus gold grading 3.3% Ni, 1.8% Cu, 9.63 g/t 3E (Pd-Pt+Au) from 1965-1969.

Fathom Nickel recently intersected Rottenstone-like nickel tenor (~10%) during its 6-hole, 1,386-meter drill program at the 90,000+ hectare Albert Lake project. The program was highlighted by a cut of 0.42% Ni over an intersection of 2.01 meters.

Located only a few kilometers to the south of Albert Lake, Fathom Nickel also has its Gochager Lake project that historical drilling indicated reserves of 4,262,400 tons grading 0.295% Ni and 0.081% Cu (cobalt wasn’t even considered back then) mineable by open pit. Fathom’s drilling in 2023 intercepted 58.2 meters 1.49% Ni, 0.38% Cu, 0.11% Co, ranking as the 8th best nickel intercept drilled that year, according to Northern Miner Magazine.

Fathom Nickel added a third property last month, acquiring the Friesen Lake Ni-Cu-Pt showing, land that also puts Fathom adjacent to the Toppings Lake Cu-Ni showing.

The Differentiators

There are a couple key differences to consider in these companies. First and foremost is the primary metal target. Those highly interested in gold may gravitate towards Ramp, while those looking at security of supply for critical minerals in North America, may prefer Fathom Nickel with its base metal focus with a twist of precious metals.

Exploration stage is another important factor to consider. RAMP got a huge spike lately with its gold finding and there may be more with the next high-grade assay. On the other hand, Fathom Nickel has a much larger and more advanced portfolio undergirded by a growing library of data suggesting several large deposits still open in all directions.

Overall, an investor who is bullish on the future of Canadian critical metals exploration and the green energy transition would likely find both Ramp Metals and Fathom Nickel interesting.

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Fathom Nickel Inc. (CSE: FNI) (OTCQB: FNICF) Full Corporate Write-Up: Click Here. 

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