Authored by Lemuel Daher
Giga Metals (TSX-V: GIGA) (OTCQX: GIGGF) is working with its joint venture partner, Mitsubishi Corp. (MC) to develop the Turnagain Nickel Project into a leader in low-carbon nickel production. The objective is to build a world class mine that produces 35,000 tonnes per year of nickel and 2,000 tonnes per year of cobalt, as modelled in their Pre-Feasibility Study (PFS).
Mitsubishi Corp. is one of the largest companies in Japan. Its’ raw materials division has had a lot of success by buying into minority interests in projects around the world and helping to develop and build the mines. MC currently owns 15% of the project while Giga is the operator with 85%. Mitsubishi is very supportive, actively working with Giga to advance partnership discussions with potential strategic investors, including car makers, battery manufacturers and mining majors.
The nickel market has been trading at a bottom for more than a year now, but the current oversupply is shrinking, and the market is expected to tighten up later this year. Patient, strategic investors look for exactly this type of entry point.
The fastest growing demand driver for nickel is batteries, with growth projected at 13% annually. For batteries alone, more than 600,000 t/y of additional nickel supplies are needed by 2030, which is the equivalent of 18 new mines as large as Giga’s Turnagain project getting built in the next five years. That’s a tall order.
Giga CEO Mark Jarvis thinks that, in addition to the cornerstone open pit mine described in the PFS, a lot of exploration upside remains. “Approximately 80% of our mineralized complex remains unexplored or underexplored,” said Mr. Jarvis. “That is why we engaged Dr. Stephen Beresford to review our data, identify further targets and recommend an exploration program.”
Dr. Beresford has had a remarkable career in international mineral exploration, including stints as chief geologist at several majors. Most recently, he has been guiding exploration at Power Nickel (PNPN), which has been enjoying outstanding drilling success at the Nisk project in Quebec.
Beresford has identified several different targets at Turnagain. There could be massive nickel sulfide targets deeper in the intrusive. There may be semi-massive sulfide breccia pipes within the current resource. And the Attic zone, which has a large copper anomaly in soils and low-grade copper, platinum and palladium in shallow drill holes, could host a “Volkovsky type” massive sulfide copper deposit under the near surface halo of mineralization.
Success drilling any of these targets could be transformative for the project.
We think that the bottom of the nickel market is the best time for strategic investors to evaluate a company like Giga Metals.
Visit www.gigametals.com for more information.