Global demand for renewable power is fuelling a massive shift from traditional energy supply chain economics, and the most widely used power source for portable applications are cobalt-reliant lithium-ion batteries.
Pacific Rim Cobalt Corp. is a Canadian-based exploration company focused on the acquisition and development of production grade cobalt deposits, a key raw material input for the growing lithium-ion battery industry.
Leading the way in cobalt consumption is China, a powerhouse that is on-track to use over 8,000 tonnes of Cobalt annually by 2021 – just for electric vehicle (EV) production alone. With an aggressive program underway to dramatically increase EV production and the growing adoption of Lithium-Ion batteries for an ever-broader list of applications, the country currently is the largest consumer of cobalt in the world and is projected to lead that category for many years to come.
While much of the world’s supply of cobalt is located in the Democratic Republic of Congo (DRC), that nation has a well-documented and problematic history of political and economic instability, ethical concerns regarding child labour, and further suffers from periodic near-pandemic health issues. The DRC is also a significant distance from any of the world’s major consumers of cobalt, with significant cost factors inherent in managing a supply chain subject to periodic interruptions.
Pacific Rim Cobalt is seizing the opportunity of this unprecedented demand for cobalt, and has concluded that strategic access to major markets offers the most important factor to servicing the demand for this critical metal. As such, the Company identified and acquired initial assets in Indonesia offering near surface, strong nickel-cobalt mineralization and located adjacent to established infrastructure. Of critical importance is that the project is located well within economically attractive ocean going transportation range to industrial Asia, the largest cobalt markets on the planet.
The Company intends to continue exploration across prospective areas of interest throughout the region in order to build on its initial asset base and to grow a cobalt portfolio as a strategy to create shareholder value.
- Project Location: North Coast of Papua, Indonesia
- Project Area: 5000Ha with 9 prospects, 5 drill tested and with known cobalt-nickel deposits
- Historical Estimate of 37 million tonnes of 0.11% Co and 1.31% Ni at a 0.8% Ni cut-off grade
- High-Grade Drill Intercept Highlights: 8m @0.18%, 13m @0.15%, and 10m @0.19% Co
- Rapid Path to Development: Use of Proceeds to conduct mine planning
- Strategic Location: Close proximity to China, the world’s largest consumer of cobalt
- Favourable Geology with shallow mineralization
- Exploration Upside: Mineralization is open at depth, and along strike, posing potential for expansion
The Company is treating the cobalt and nickel tonnage and grade estimates above as historical estimates. The historical estimates do not use categories that conform to current CIM Definition Standards on Mineral Resources and Mineral Reserves as outlined in National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101“) and have not been redefined to conform to current CIM Definition Standards. They were prepared in the 1970s prior to the adoption and implementation of NI 43-101.
A qualified person has not done sufficient work to classify the historical estimates as current mineral resources and the Company is not treating the historical estimates as current mineral resources. More work, including, but not limited to, drilling, will be required to conform the estimates to current CIM Definition Standards. Investors are cautioned that the historical estimates do not mean or imply that economic deposits exist on the Property. The Company has not undertaken any independent investigation of the historical estimates or other information contained in this press release nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information. The Company believes that the historical estimates and other information contained in this press release are relevant to continuing exploration on the Property.
Management of the Company is relying on the historical estimates contained in the Pacific Nikkel report because the authors were experts and used industry standard procedures at the time. The historical estimates are relevant to the Company’s future exploration programs because they identify significant mineralization that will be the target of this exploration program.
No subsequent resource estimations have been attempted. Efforts to obtain any additional information regarding relevant historical work is ongoing, although there are no assurances that this original data will be found.
Cobalt is the next investment trend as a critical component of lithium-ion batteries; is currently in a supply deficit, has a vulnerable supply chain, and overlooked by many investors.
Pacific Rim Cobalt is poised to leverage the global shift from fossil fuels to renewable energy