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Work on cobalt-rich nickel-iron mine continues for European Electric Metals

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Skroska is a fully developed mine with close to 6000m of underground workings in excellent condition.

By Kevin Silva

  • The demand for cobalt from favourable mining jurisdictions is increasing
  • European Electric Metals (EVX) has commenced a sampling program at the Skroska Mine
  • EVX aims to be an ethical source of high-grade cobalt in Europe

The cobalt supply crunch combined with dramatically increasing demand is starting to cause concern for a number of large end users. Companies such as Tesla, Apple, and BMW need cobalt for their battery processes but cobalt is hard to come by outside of Congo where working conditions are horrible and child labour is prevalent. Therefore, there is a search for ethical cobalt.

European Electric Metals is Exploring a Potentially Significant Source of Cobalt within Europe

European Electric Metals Inc. (TSX.V: EVX) (OTC: EVXXF)  is wasting no time since announcing plans to enter the European nickel-cobalt market, via an acquisition of the Skroska Nickel Cobalt Mine located in Southern Europe. The company, backed by the European Bank for Reconstruction and Development as a major shareholder, has made a number of recent announcements regarding the project where recent sampling returned high grade cobalt levels.

The company has announced they are commencing an underground sampling program over two adjoining parts of the laterite deposit measuring 250m x 45m and 70m x 40m. The blocks are accessible and supported by existing underground mining infrastructure. Company personnel have recently been onsite and note that the area has been deemed during company inspections to be in good working condition, and, subject to engineering review, conducive to restarting mining operation.

There is electricity throughout the mine and the track system and air compression systems are in good working order. There is no water issue and the mine is well ventilated with no mechanized ventilation system in place. There are no rockfalls in any areas of the mine.

The mine is serviced via hydro-electric power (the mine is on the power grid) and has paved road access nearby the property area with well-maintained gravel roads to the site. The site also has good office infrastructure and various storage/outbuildings that formerly supported previous state-run operation (1985–1990) and operation by current owner from 2008 to 2013 when it was put on care and maintenance.

It is anticipated that the sampling program will be completed within the next 30 days, during which time the company also intends to engage an engineering firm to conduct geological model and engineering studies focused on restarting operation.

EVX CEO, Fred Tejada, states, “The infrastructure and development at Skroska is in excellent condition. The recent EVX news regarding elevated cobalt levels describes, in our view, a new discovery within an existing mine. We believe this new cobalt discovery has the potential to positively impact the economics of the project.”

European Electric Metals Inc. (TSXV: EVX) will be exciting to watch as its mine restart plans at Skroska evolve.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.