Cobalt is primarily mined as a by-product of nickel and copper and is important as a key input for most lithium-ion batteries, and thus electric vehicles. While 2018 saw a retreat in cobalt prices as a result in new supply, many analyst firms are forecasting a strong recovery for cobalt prices boosted by the electric vehicle (EV) boom. Many see the cobalt crunch (deficits) starting in 2022/2023 and beyond, as electric car sales are forecast to dramatically ramp up from then. Nickel sulphate, which is also used in lithium-ion batteries, is also expected to go into deficit about the same time if not earlier. Copper is also expected to have possible deficits beyond 2020, as the green energy boom intensifies.
Roskill cobalt supply vs demand forecast to 2027
Roskill cobalt supply v demand forecast to 2027 (note this chart is now about 1 year old)
Pancontinental Resources Corporation (TSXV: PUC) (Pancon) is a Canadian-based mining company focused on strategic battery metals projects, with a particular focus on prospective nickel-cobalt-copper properties in proven mining districts. Pancontinental has five exploration stage projects focused on nickel (Ni), cobalt (Co), copper (Cu), and some gold (Au), all in Ontario Canada.
A summary of Pancontinental Resources five Ni-Co-Cu projects in Ontario Canada
A summary of Pancontinental Resources five Ni-Co-Cu-Au projects in Ontario Canada
2019 maiden drilling program has commenced at the nickel-cobalt-copper Montcalm Project
In what’s turning out to a busy year so far for Pancontinental they have commenced their maiden diamond drill program on their nickel-cobalt-copper Montcalm Project, located 65 km northwest of the historical mining district of Timmins Ontario. Pancontinental’s objective for the initial phase is to drill a minimum of 4,500 m to test a series of new conductor targets. Pancontinental’s maiden drill program at Montcalm is the result of extensive preparation and geological analyses of historic work and advanced geophysical technology that was not available to previous operators.
Layton Croft, President and CEO, said: “We spent 2018 re-positioning Pancon for the global battery metals bull market we believe is just beginning. Today our seasoned team has amassed a strong exploration portfolio of nickel-cobalt-copper projects in the world’s safest, best endowed, and most prospective mining jurisdiction.”
Pancontinental Resources to acquire up to a 75% interest in the Strachan Ni-Co-Cu Project near Timmins
In late January 2019, Pancontinental announced they plan to acquire a new Ni-Co-Cu Project near Timmins, thus consolidating their dominant position in emerging Montcalm battery & energy metals district. The Company has entered into a binding letter of intent (LOI) with Pelangio Exploration Inc. (TSXV: PX) to acquire up to a 75% interest in the Strachan Project, covering 2,280 hectares 65 km northwest of Timmins, Ontario. Strachan is Pancon’s fourth early stage Ni-Co-Cu exploration project and it consolidates 15,760 hectares of control over most of the highly prospective gabbro intrusives. The Strachan Project binding letter of intent (LOI) forms the basis for an option for a future Joint Venture Agreement.
CEO Layton Croft added: “Pancon now controls more than 157 square km in a proven nickel-cobalt-copper mining location west of Timmins. Pancon is the dominant player in an emerging battery and energy metals exploration district. Pelangio is an excellent company led by high quality exploration and mining professionals, and we are excited to be their partner.”
By now the world is realizing the next green evolution is upon us in all things electric. The Electric Vehicle metals sector alone is predicted to create a huge demand in the very near future as globally we head further away from human dependence on fossil fuels for energy.
Pancontinental Resources is now advancing 5 prospective Ni-Co-Cu (and some Au) projects in Ontario with access to excellent infrastructure. Near term catalysts will include drill results from the current drilling campaign at Montcalm, along with other exploration activity results in 2019. The recent option to acquire 75% of the Strachan Ni-Co-Cu Project near Timmins offers further exploration upside.