Nickel One Resources Inc (CVE:NNN) is a Canada-based exploration company with two nickel discoveries: the Tyko nickel/copper/platinum group elements (PGE) property in in North-western Ontario and the other is in Finland. As president and chief executive officer Vance Loeber explains to Proactive Investors, the Finnish asset has just been purchased – on Tuesday, in fact.
“We’ve just completed our due diligence on the project and we’re going to Helsinki on Thursday,” Loeber revealed in some truly hot-off-the-presses news.
The Nickel One team is very excited about the project.
“First of all, the geology is world class. It’s a very under-explored country; very few juniors [early stage mining companies] in there,” Loeber noted.
He also praised Finnish mining law, which is very strict, but very clear.
“It’s been voted the number one mining jurisdiction on the planet,” Loeber said.
The Finnish property has already had just over US$10mln spent on it, Loeber revealed. The previous owners viewed it as a bulk tonnage project, but Nickel One plans to re-engineer the existing data, reducing the amount it will extract by focusing on the higher grade material, though it will still be targeting around 12mln tonnes, probably at “somewhere in the neighbourhood of 1.8/1.9 grams [per tonne]”.
The Canadian company also plans to do some more exploration before drilling and hopefully boost the size of the asset and boost the grade.
As Loeber points out, the experienced management team has form when it comes to this sort of thing; junior miner followers might remember Loeber and company chairman Abraham Drost from their time with Sandspring Resources, which successfully developed the Toroparu gold deposit in British Guyana to almost 10mln ounces.
“To put it simply, my guys have found mines; they’ve financed mines; they’ve built mines and most importantly, they’ve sold mines,” Loeber said of his “world class team”.
As for the Tyko property in Ontario, the company has two deposits there but has not yet done enough drilling to assign tonnage estimates to it, “but we’ve got mining-width ore grade intercepts on the level of approximately 10 to 12 metres of over 1% nickel”, Loeber informed Proactive.
There’s also copper and PGEs in there, all near surface, and the infrastructure is all that a mining company could want.
Finally, Loeber gives his view on nickel prices, which have come off a multi-year low, and notes that nickel supplies “are actually in deficit for the first time in the last six years”.
The important thing is, according to Loeber, is that there are customers out there “that are hungry for the kind of ore we are developing”.