REG - Corcel PLC - Upstream Battery Metals Update & Nickel Price

CorcelAnnouncement

10/03/2022 07:01

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RNS Number : 2670E  Corcel PLC  10 March 2022

 

 

Corcel PLC

("Corcel" or the "Company")

 

Upstream Battery Metals Portfolio Update and

Nickel Price Increases

 

10 March 2022

 

Corcel, the natural resource exploration and development company with
interests in battery metals and flexible energy generation and storage,
provides an update on its upstream battery metal portfolio and recent nickel
price movements.

Highlights:

 

o  Mambare mining lease application progressing with the application now
passed to the National Executive Council, likely the final step in the
application process

 

o  Wowo Gap JORC upgrade and gap analysis underway

 

o  The Company notes the significant rise in nickel prices and the favourable
impact on the economics of its upstream battery metal portfolio, with prices
well in excess of the Company's "base case" assumptions.

 

Mambare Nickel/Cobalt Project Update (41% interest)

Nickel: 1.53MT, Cobalt: 146KT, JORC 2012 Resource

Following the environmental permit award in 2021, the Mining Lease application
has now been sent by the Papua New Guinea Mining Advisory Council to the
National Executive Council ("NEC") for final review.  The NEC is the team of
senior ministers in PNG, broadly equivalent to the Cabinet.

Work continues in preparation for the formal award of the Mining Lease and the
advancement of the project to Direct Shipping Ore ("DSO") production.  This
work includes the preparation of engineering reports on the existing 35
bridges between Kaumundo and Oro Bay, which is progressing.  Selective
improvements to the project site are also underway, alongside a photogrammetry
collection exercise as well as the routine warden's meetings and community
compensation negotiations.

Wowo Gap Nickel/Cobalt Project Update (100% interest)

Nickel: 1.33MT, Cobalt: 83KT, JORC 2004 Resource

The Company has now hired a small and highly qualified Australian team to
manage the project, and the first resupply journey to the camp to bring much
needed fuel, food and medicines has now been completed.

The focus for 2022 includes updating the 2004 resource estimate to the 2012
standard and a gap analysis (being conducted by AMC Consultants) focused on
producing a bankable feasibility study which the Company will use to apply for
a 20-year Mining Lease over the project.

 

Nickel Price Movement

 

The Company notes the suspension in nickel market trading at the London Metal
Exchange ("LME") following a 250% surge in prices over 7-8 March, with
intraday trading of over $100,000 per ton on Tuesday 8 of March.

 

The Company has historically utilized a $18,500/t price assumption in the
Company's base case modelling at its nickel projects in PNG.  The Company
therefore sees significant additional core net asset value from its upstream
Battery Metal portfolio and anticipates that ongoing turmoil and extended
volatility in global nickel markets will significantly enhance the business
case for taking both Mambare and Wowo Gap into DSO production.

 

As originally announced on 10 January 2022, the Company continues discussions
regarding offtake with Shandong New Powder COSMO AM&T ("NPC"), and in
light of recent price movements, expects further developments in this regard
as major nickel users such as NPC seek to lock in secure sources of
supply.

 

 

Scott Kaintz 020 7747 9960
                                        Corcel Plc CEO

James Joyce / Andrew de Andrade 0207 220 1666
              WH Ireland Ltd NOMAD & Broker

Simon Woods 0207 3900
230
                                     Vigo
Consulting IR

 

This announcement contains inside information for the purposes of Article 7 of
Regulation 2014/596/EU, which is part of domestic UK law pursuant to the
Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310) and is disclosed
in accordance with the Company's obligations under Article 17.

 

 

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