The 6ix Report - EV Nickel Welcomes Ontario Government Investment In Its Clean Nickel™ Strategy

0:00 Disclaimer. 6th Inc. Does not act as a securities dealer or advisor and does not register to do so under applicable securities law. The accuracy of any statements made by individuals interviewed is not verified by 6th Inc. These individuals or the firms they represent are solely responsible for their statements. Nothing in this interview is a recommendation by 6th Inc. For any securities, nor is it investment advice or a substitute for professional investment advice. All investments and securities carry risks. Everyone's investment needs are different. Investors should obtain professional advice from a registered investment dealer, advisor, or other professional third party. For a full disclaimer, please refer to the description below

0:37 Hello everyone and welcome to The 6th Report. I'm here with Sean Samson, President and CEO of CVNickel. And Sean is calling in from PDAC at the moment. So Sean, how's it been on the floor in the past couple of weeks?

0:47 It's going great, Kyle. It's been very busy. I don't have a booth at PDAC this year, because we spend most of our time away from the floor in meetings, but the business flow on the floor has been quite busy. So I think we're almost back to pre-pandemic sort of levels of activity and there's a real buzz. That's excellent to hear and Sean you're jumping on here because you released some news at EVNickel that you received 500,000 Canadian dollars from the Ontario government to advance this Clean Nickel strategy.

1:18 For people first hearing your story, what is this Clean Nickel strategy and why is the government eager to give you $500,000? Yeah, so EV Nickel is a company that has a huge amount of land that we pulled together just south of Timmins, Ontario, which is a famous gold mining district. And we've been exploring for nickel up there. And we have 2 tracks for potential development. We have a high grade with 1% or better grade on historic resource, which we are adding tons to when we come up with a new resource later this year, that's the W4. And then our second track is the lower grade, we call it large scale, car laying deposit in the north of our land package, all within 50 kilometers of Timmins. And we came out with, when you combine, well, but 500 million indicated, 500 million tons of inferred at about 0.23, 0.25.

2:13 So that's our mineralization in the ground. We pull it all together, Kyle, with our strategy around clean nickel, which is a trademark term that we use. And it's how we refer to all of our R&D we're doing, which is not drilling. So we're in the labs doing work around

2:30 carbon capture and storage, which is very interesting and looks as though it has a huge amount of economic potential on primarily our low-grade large-scale car lang and then we're also doing research on bioleaching Which could potentially work with a nearby mill on our high-grade mineralization, where the mill is currently set up to produce a concentrate. And using bio-leaching and tanks, we're looking at potentially doing fat leaching right there at the mill. So those 2 streams of research, we throw under the umbrella of clean nickel

3:04 and that's what the government invested in yesterday so we received 500,000 of funding with the announcement yesterday morning which is very exciting is that funds that R&D we're doing this year both those areas. Oh that leads into my next question beautifully actually because like right now I checked today your company sit in around 15 to 18 million after these recent press releases.

3:27 But 500,000 is a nice chunk of change for a company of your size. Was there a contract state and what the money has to be used for or any terms of this funding or grant? Yeah, so it's non-dilutive. They don't take equity or anything, but it goes directly into funding the R&D that we're doing, including a lot of the owner's costs. So basically that line item, all the work we're doing in the lab this year, it goes towards that, and it's a huge chunk of that spending. So

3:59 it's non-dilutive from an investor perspective, it's great money to get, and it's going towards the work we're already doing with our research and development. And are these grants in any way subjected to geological due diligence by an expert team?

4:14 Yeah, Well, the grants were extensive due diligence in the application process and the vetting process. So, working with team from the provincial government, and we're doing a similar in a federal program as well, which hopefully we'll have news on in the coming weeks. But what's happened with the province prior to yesterday's announcement was detailed due diligence of the work we're doing. And it really can be taken as a sign of comfort by the provincial government that they're excited to find out what we can learn from that work we're doing in the lab. So extensive due diligence in the run up to the

4:47 award. And then as we get output from our research, as we get output, it will go back through the provincial bureaucrats and we have to tell them to work as we're doing, but it's all consistent with what we'll be talking about publicly. So really nothing changes and it's a real vote of confidence from the provincial government that they're excited to see where we'll get with our work in the lab. Excellent, excellent. And last week your company also announced a maiden resource for their Carlang A zone deposit. Care to touch on that and what do you want people to take away from that news release? Yeah, well, that was our news last week when we came out with our maiden resource on the first 20% of the car lengths. The car length is our track 2, that's our large scale. So otherwise known as low grade deposit. We know we have 2 areas of mineralization on the north part of our property.

5:35 The one we first started working on, Kar Lang, what we call the A zones, the first 1.4, 1.5 kilometers of a 10 kilometer long trend. That's been historically drilled up the trend, so we know it's 10 kilometers long. It also has had surface samples, which is kind of neat because one of the really neat characteristics of the mineralization is it comes up to surface. So the fact that there's no overburden in chunks, it has outcrop for about 15% of it, means that it can be surface sampled. So we know it's 10 kilometers long. Last summer, we drilled it off just about 1.4, 1.5 kilometers, which we like to say conservatively is the first 20%. And we came out with that combined between the indicated at 500 million and the inferred at 500 million, it gets us up over 1 billion tons at 0.23, 0.24.

6:25 So that is a serious amount of mineralization. So it's got the equivalent contained nickel for about 37 million electric vehicle batteries based on current estimates. So that immediately puts us on the board. It's interesting to companies that want to buy a lot of nickels where the new demand is coming from with the car companies and also with the majors. So it's interesting because it puts us in the league of the world's biggest undeveloped nickel deposits. I think we compare very favorably, for example, to Canada nickel with the Crawford deposit. Big differences for us include that Ours has basically no overburden because it's an outcrop thing. Crawford averages 40 meters of overburden. And then ours goes on another 5 times the distance. And again, it's been historically drilled.

7:11 So it's not just me waving my arms talking about that. It goes 5 times bigger up on the Karlang.

7:17 And that really catches people's attention, including the majors. And we've just recently seen the Canada Nickels taking a 10% investment from Anglo. So it speaks a bit to the conversations we've been having, because we have similar mineralization, and frankly, ours goes 5 times bigger. And for Crawford, they're kind of done with their current mineralization and what they can find there. So we're very excited about that maiden resource announcement. And that's just a start of a bunch of news. So here at the show, we've had the investment from the Ontario government. And then folks know that we have assays coming out on the drilling that we've done on our high grade. So we're doing step out drilling, which we announced on a couple of weeks ago, saying that we've seen the solidifieds in the core, which is great news, because it likely stretches the W4 deposit, our high-grade deposit, further to the east.

8:05 And we're gonna come with the assays on that soon. And we're expecting some very interesting news on that front. So our stock is finally kind of dislodged from trading at 10 cents, as it was for a long time. Folks have really begun to take notice with our new resource, which we announced last week. But frankly, we started the day trading today at only 6%, I believe were the numbers, 6% of Canada Nickel's resource, sorry, Canada Nickel's equity valuation. And yet our resource, I think, compares very favorably to what they have. And for ours at Carlang, we're just getting started. So I think there's a huge amount of movements to come in our valuation to try to make up that valuation gap. So it's an exciting time for investors to look at our company. Thank you so much, Sean. If you want to learn more about EVNickel, you can go to EVNickel.com.

8:56 Thank you again and enjoy the rest of PDAC. Super. Thanks for the time, Kyle. Bye-bye. Bye-bye.