Nickel Rush Heats Up in Canada: Opening Doors for Companies Like Fathom Nickel Inc. (CSE: FNI) (FSE: 6Q5) (OTCQB: FNICF) as Canada Eyes a Top Spot Among Global Producers

  • Nickel demand is expected to grow at a continually accelerating rate over the coming years and decades
  • By 2040, use in batteries will command 41% of total nickel usage, up from just 7% in 2021
  • Nickel is considered one of the most strategically vulnerable critical metals in North America or the west
  • Like Canada’s Critical Minerals Infrastructure Fund (“CMIF”), the west has been making increasing efforts to encourage critical metal exploration and extraction
  • Fathom is developing two highly prospective projects in Canada’s Trans-Hudson Corridor in Saskatchewan
  • Fathom has received a new drill permit that allows for up to 60 drill holes, a 25-person camp, and more, as the company advances its Gochager Lake Project

The global nickel market is experiencing a red-hot surge, driven by the electric vehicle revolution and questions about a potential supply shortage. Stainless steel remains the top use for nickel, but usage for batteries is forecast to jump for 7% of total use in 2021 to 41% by 2040. This trend is prompting major mining companies to make strategic investments, with Canada emerging as a potential new battleground for nickel production, especially as the race for critical metal independence continues to heat up.

Vale Pours Billions into Nickel Expansion

As an example, the Brazilian mining giant Vale recently announced a whopping $3.3 billion investment plan to boost its copper and nickel production capacity in Brazil and Canada. Vale’s global Base Metals business, headquartered in Toronto, Canada, is one of the world’s largest producers of low carbon, responsibly sourced nickel, copper, cobalt and platinum group metals. While the focus is on increasing copper output to 500,000 tons by 2028, nickel is also getting a significant boost. This move underscores the immense potential of the nickel market and the strategic importance of securing reliable supplies.

Canada Positions Itself as a Future Nickel Powerhouse

The real twist in this story lies in Canada. Vale’s investment isn’t the only indicator. Recently, the Canadian Government’s $1.5 billion Critical Minerals Infrastructure Fund underscores Canada’s strategic initiative to enhance its global standing on minerals like nickel. Companies like Fathom Nickel (CSE: FNI) (FSE: 6Q5) (OTCQB: FNICF) are actively exploring and developing large-scale nickel deposits in the Canadian metal hotbeds of the Trans-Hudson Corridor. Efforts like Fathom Nickel’s to uncover the next great Canadian nickel discovery are essential to any efforts by the west to secure critical metals. These efforts, if successful, could propel Canada to become one of the world’s biggest nickel producers in the coming years.

This type of development holds immense significance for North America. A robust domestic nickel supply chain would bolster regional security and reduce dependence on China, the current dominant force in nickel mining and refining through its investments in Indonesia, hands-down the world’s leading nickel producer. In 2023, Canada’s nickel production paled in comparison to Indonesia’s – 180,000 metric tons versus a staggering 1.7 million metric tons.

Canada is aiming to make up some ground with large and extremely high-grade deposits at Fathom’s Gochager Lake and Albert Lake projects spanning over 112,000 square hectares in Saskatchewan and CNC’s metal-rich (3.8 million metric tons of proven and probable nickel reserves) Crawford project in Ontario.

Weighing in at fifth in global nickel production in 2023, Canada has a real opportunity in the coming years to overcome the three others between the country and Indonesia. These include Russia (220,00 MT), New Caledonia (230,000 MT), and the Philippines (400,000 MT).

Fathom the Opportunity

Canada’s nickel ambitions present a compelling opportunity for smaller, agile players like Fathom Nickel that can contribute significantly by developing highly prospective, underexplored targets in prolific metal regions.

Fathom has delivered promising results to date at Albert Lake and Gochager Lake, both of which have strong historic data, including the Albert Lake producing high grade nickel, copper, and platinum group elements in the 1960’s and Gochager Lake the subject of an historic open pit resources detailing millions of tonnes of mineralization containing nickel and copper.

Historic resources aren’t compliant with today’s National Instrument 43-101 standards, but they do provide a roadmap to delineate and validate resources using the latest exploration technologies. Fathom has conducted a bevy of geological research indicating the historical records are only a small sampling of the potential metal reserves.

Fathom this month secured a drill permit that will allow for up to 60 new holes at Gochager Lake, construction of a 25-person camp, and more. This importantly will allow Fathom to explore more quickly, efficiently, and cheaply, increasing responsiveness and effectiveness.

As management prepares for a new drill program, additional work is already in motion. The company is conducting a soil geochemical survey for the purpose of defining a soil geochemical signature associated with the Gochager Lake deposit that will expand the known trend and locate additional Gochager-like deposits. More and more targets continue to be advanced to drill-ready status.

Keep an Eye on Canada

The nickel market is witnessing a surge in investment, with Canada emerging as a potential new frontier. While established companies like Vale are making significant investments, this trend also creates a fertile ground for smaller, innovative players. With a strategic approach and a focus on exploration and technology, companies like Fathom Nickel can potentially carve out a niche and benefit from the rising demand for nickel, especially in the crucial North American market.

For more information, visit the company’s website at www.FathomNickel.com.

NOTE TO INVESTORS: The latest news and updates relating to FNICF are available in the company’s newsroom at https://ibn.fm/FNICF

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