Metals One – Exploring for Finland’s next Talvivaara
Metals One plc (MET1.AIM) is a critical metals-focused exploration company, advancing the Black Schist Nickel Project through resource expansion and into production.
The Black Schist Project is located in the Kainuu Schist Belt of Finland, a 200km long north-south trending terrain, which also contains the Talvivaara Mine, Europe's largest operating nickel mine.
Black Schist Comparable to Talvivaara
The Talvivaara Mine is located within 65km of Metals One’s exploration permits, in the same geology, with a similar style of polymetallic mineralisation.
The mine has been operational since 2008 and is currently operated by Terrafame Ltd , a private company owned 64.4% by the Government of Finland and 32.9% by Galena Funds, the private equity arm of Trafigura .
In 2023, Terrafame generated revenue of €560.9 million, with earnings before interest tax depreciation and amortisation (EBITDA) of €84.3 million. This positive EBITDA, even during a year when the nickel price was depressed, demonstrates the potential economic value of these large-tonnage, near-surface, polymetallic nickel sulphide deposits, when put into production.
Metals One Securing Strategic Position in the Kainuu Schist Belt
Following a regional prospectivity assessment of the belt, Metals One recently submitted a series of applications to expand the size of the Black Schist Project. If successful, the expanded area of 150km2 will give the Company the largest ground holding in the Kainuu Schist Belt, a strategic scale land package.
The permits and applications are grouped into two areas, Rautavaara and Paltamo, located around 55-65km north and south, respectively, of the Talvivaara Mine (Figure 1).
Source: Metals One
Rautavaara – Solid Resource Base with Targets for Expansion
The southern group of permits and applications, known as Rautavaara, contains the R1 polymetallic nickel-zinc-copper-cobalt deposit (Figure 2), which has an Inferred JORC 2012 compliant Mineral Resource Estimate of 28.1 million tonnes at a nickel equivalent grade of 0.31% (based on current metal prices).
Source: Metals One
To date, Metals One has already identified further targets for exploration at and to the east of the R1-Hook anomaly, and at the K1 anomaly.
R1-Hook and Kirkkosuo Targets
Metals One completed an initial 1,551.2m drill programme at the R1-Hook Target, a strong electromagnetic (EM) anomaly, located close to the R1 Deposit (Figure 2) in December 2023. This programme demonstrated the presence of polymetallic mineralisation in the majority of holes, with the best thickness and grades intersected on the eastern limb of the main R1-Hook fold.
The thickening of the eastern limb, together with confirmation of the synformal nature of the fold dipping steeply to the south, suggests significant potential for further mineralisation to the east, at the Kirkkosuo Target, prompting the Company to apply for permits in that direction.
K1 Target
Previous exploration at the K1 Target, also in the Rautavaara area, intercepted high-grade polymetallic mineralisation associated with a strong EM anomaly (Figure 3).
Metals One reinterpreted the historic drill results based on its increased understanding of the geology of the strata-bound contiguous orebodies in this area and believes that the K1 Target potentially represents significant volumes of mineralised black schists.
Source: Metals One
The Company is currently refining its modelling of the area ahead of an initial drill programme. Metals One has secured landowner consent to drill, allowing it to drill ahead of the licence application being granted.
Further Targets
In addition to these targets, the Company has generated several similar high-prospectivity targets in the Rautavaara area that it is currently evaluating and prioritising for further investigation.
Paltamo – P5 Significant Exploration Potential
The northern group of permits and applications, known as Paltamo, contains the P5 Target, which has a JORC 2012 Exploration Target of between 16 and 24 million tonnes associated with a strong EM anomaly (Figure 4). Metals One is confident the wider Paltamo area has the potential for over 200 million tonnes.
Source: Metals One
The previous operator of the project drilled a total of 5,911.45m across 25 holes at the P5 Target intersecting broad zones of polymetallic mineralisation, including:
192m at an average grade of 0.13% Ni, 0.35% Zn, 0.08% Cu from a depth of 40m (M343211R325)
133m at an average grade of 0.16% Ni, 0.44% Zn, 0.09% Cu from a depth of 42m (M343211R322)
100.6m at an average grade of 0.15% Ni, 0.41% Zn, 0.13% Cu from a depth of 16m (M343211R305)
Interestingly, the previous permit holder did not assay all the intersections of mineralisation within the drill cores. Metals One has sent all un-assayed intersections for assay at a nearby laboratory. It expects to receive the assay results in late March 2024, and will update investors shortly after.
The Company is currently planning a 3,000m drill programme at P5 to confirm grade continuity and scale, with a Mineral Resource Estimate planned to follow.
Gunsynd Deal Funds Exploration
Metals One has secured around £1 million of initial exploration and development funding from natural resources investor, GUNSYND PLC (AIM: GUN). Gunsynd will earn up to a 25% interest in Metals One Finland OY, which holds the Black Schist Project, by investing £250,000 in a series of four equal tranches. Gunsynd completed the earning of its initial 6.25% interest in November 2023.
Conclusion
Metals One has a pathway to rapidly increase the size of its resource base at its Black Schist Project, located in the Kainuu Schist Belt of Finland.
The Company has assessed historic drill results based on an increased understanding of the mineralisation in the area and, as a result, defined a number of drill-ready exploration and resource expansion targets.
The Talvivaara Mine has proven the potential of these large-tonnage polymetallic nickel deposits to return significant value even at low nickel prices when put into production, showing the potential for Metals One should it be successful in proving up substantial black schist mineralisation.
This month the Council of the European Union announced that it had established a framework to ensure a secure and sustainable supply of critical raw materials, known as the Critical Raw Materials Act (CRMA).
This favourable legislation is designed to boost the European mining sector, introducing clear deadlines for the permitting process of mining projects and allowing projects to gain recognition as strategic assets.
This legislation is favourable to companies like Metals One, which is aiming to become a low-cost and low-carbon supplier of critical metals to the domestic European market to enable the Energy Transition.
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This newsletter has been published by Mining and Metals Research Corporation (“the Company”). The information used to compile the article has been collected from publicly available sources and the Company cannot guarantee the 100% accuracy of those sources. This communication is intended for information purposes only and does not constitute an offer, recommendation, solicitation, to make any investments. Nothing in this communication constitutes investment, legal accounting or tax advice, a personal recommendation for any specific investor. The Company do not accept liability for loss arising from the use of this communication. This communication is not directed to any person in any jurisdiction where, by reason of that person's nationality, residence or otherwise, such communications are prohibited. The Company may derive fees from the production of this newsletter.