Cobalt-rich nickel-iron mine is European Electric Metals latest acquisition
Main haulage tunnel at Skroske in excellent condition.
By Kevin Silva
While most people have heard of lithium due to the electrification theme, cobalt is still relatively unknown to many investors.
Cobalt is key to electrification and is crucial for electric vehicle and battery manufacturers, which is why the power system that runs Apple phones and Tesla cars is formally called the lithium-cobalt cell.
There is a current cobalt crunch, in part because cobalt primary mines are rare outside of the controversial supply available in the Democratic Republic of Congo, where child labour and horrible working conditions have made it an unethical source.
The price of cobalt is now double where it was 5 years ago, and mining companies are scouring the earth for potential ethical supply. That said, many of the projects that have been identified will take years (or decades) to come online.
European Electric Metals Announces Major Acquisition in Albania
This is what makes the EVX situation so different, and so compelling.
European Electric Metals Inc. (TSX.V: EVX) (OTC: EVXXF) has announced the major acquisition of the Skroske Mine, a cobalt-rich nickel-iron mine.
Skroske is a fully permitted mining operation, strategically located in a European setting. Logistics are excellent, and the mine is situated in an area with great transportation links to the major electric vehicle manufacturing regions of Europe. One of the largest investors in EVX is reported to be the European Bank for Reconstruction and Development (EBRD), an influential financier owned by 67 countries and two international organizations. The EBRD has invested more than $125 billion in more than 5000 projects since its inception.
Mining operations at Skroske occurred from 2008–2013 using an open stope method. The operation previously focused on nickel production and the mine was put on care and maintenance in 2013 due to low nickel prices. The cobalt potential of this project was never considered in the past and after a detailed review, EVX’s geological team believed there was potential for high-grade cobalt in this geological setting. Sampling conducted by EVX geologists not only confirmed this, but very high cobalt grades of up to 0.54% were identified.
Mr. Fred Tejada, EVX CEO and Director states, “We are excited our geological team recognized the potential for the cobalt-rich horizons at Skroske, and very pleased that this potential has been confirmed in the sampling program, via high-grade cobalt results. This transaction represents a major step towards our goal of becoming an ethical source of high-grade cobalt production, within a European setting.”
EVX trades on the TSX Venture Exchange as EVX and as EVXXF in the United States.