SPC Nickel (TSXV: SPC) is the company best positioned to capitalize on Tesla (TSLA)'s rapidly growing need to source North American supplies of battery-grade Class 1 nickel!
Less than one week after NIA's December 21st suggestion of SPC, FT published an article entitled, 'Vale aims to transform misfiring metals division to win business of Tesla' with the sub-headline, 'Iron ore producer wants to become key supplier of battery materials to US carmakers'.
Vale (VALE)'s CEO Eduardo Bartolomeo was quoted as saying, "We think we can be the supplier choice, but we need to produce. We need to get the production up. That’s fundamental. Then we need to get the reserves and resources." Bartolomeo continued, "We are talking to Ford, GM, we are talking to all of them."
VALE has set a goal of capturing 30%-40% of the North American market for battery-grade nickel within five years. VALE has already sealed a deal to sell 5% of its highest-grade Class 1 nickel output to an automotive manufacturer in the U.S., which is rumored to be Tesla.
VALE's highest-grade Class 1 nickel is produced from its five active nickel mines located in the Sudbury Mining Camp of Ontario, which is the second largest nickel camp in the world, but VALE's Sudbury nickel reserves have been cut in half since 2011. In fact, 3 of VALE's 5 Sudbury nickel mines will run out of reserves within the next decade.
VALE's #1 most important Sudbury mine is its Totten Mine, which opened in 2014 after VALE spent $760 million developing it over a period of seven years. VALE's Totten Mine is its highest-grade nickel mine in the Sudbury Mining Camp, but even the Totten Mine only has 12 years left of reserves. For VALE to meet its goal of capturing 30%-40% of the North American market for battery-grade nickel within five years, it must rapidly increase its reserves/resources of high-grade nickel sulphide deposits thereby allowing VALE to rapidly ramp up Class 1 nickel production to supply Tesla and other North American EV manufacturers.
SPC's AER-KIDD Project is located in the Sudbury Mining Camp directly adjacent to VALE's Totten Mine and hosts very similar mineralization. SPC's AER-KIDD occupies a 1.5km portion of the 11km Worthington Offset Dyke, which is the same Offset Dyke that VALE's Totten Mine is located on. The Worthington Offset Dyke also contains KGHM's Victoria deposit that is currently under development. KGHM's Victoria deposit is located 3km NE of SPC's AER-KIDD Project and has an in-situ metals value of $13 billion or $900 per tonne of ore.
SPC believes that AER-KIDD has excellent potential to host a significant Ni-Cu-PGM deposit comparable to VALE's Totten and KGHM's Victoria. Both VALE's Totten deposit and KGHM's Victoria deposit have their highest-grade ore at a depth of 1-1.5km below surface, and SPC's AER-KIDD remains virtually untested at these depths.
SPC is the only small-cap publicly traded company that owns extremely high-quality assets in the Sudbury Mining Camp the #1 most important mining camp for supplying North American EV manufacturers with battery-grade Class 1 nickel!
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