Pacific Rim Cobalt Provides 2019 Year in Review and Shareholder Update
Pacific Rim Cobalt Provides 2019 Year in Review and Shareholder Update
Vancouver, B.C. – January 7, 2020 – Pacific Rim Cobalt Corp. (the “Company” or “Pacific Rim Cobalt”)
(CSE: BOLT) (OTCQB: PCRCF) (FRANKFURT: NXFE) is pleased to update shareholders on progress
achieved during 2019 and its strategic goals for 2020 as the Company continues to develop Indonesia
based nickel‐cobalt opportunities to capitalize on the rapidly expanding global demand for
rechargeable batteries used in electric vehicles (EV’s).
The Company achieved several important milestones in 2019 as the result of ongoing drilling and
bench‐scale scoping tests for processing of materials from its Cyclops Nickel‐Cobalt Project as detailed
in the Company’s press release of July 17, 2019. With this in mind I am delighted reflect on the
Company’s progress during the second half of the year.
The Company continued bulk sampling, which included excavation and sampling of test pits
from the Cyclops project with a total of 530kg sent to Canada for the bench‐scale test program
and later pilot plant studies.
In September, the Company completed its shallow drilling program, which confirmed elevated
nickel and cobalt values from surface of the laterite profile. The drilling program was
extensive, including 75 drill holes at depths of between 10 to 29 metres, with a total of 1,020
metres drilled. In conjunction with 11 test‐pits of 2 to 6 metres in depth and 51 auger holes
to depths of 1 to 3 metres.
o These results are part of a multi‐faceted exploration program which further supports
the extensive suite of historic results, which included 856 drill holes, and 26 test‐pits.
Pacific Rim Cobalt’s shallow drilling program further supports the Company’s long‐
held view that the Cyclops Project is amenable to shallow, low‐cost, logistically
straightforward drilling and continued development.
o Within the overall results, Pacific Rim Cobalt was especially pleased to report
consistently elevated nickel levels in the saprolite zone as well as highly anomalous
cobalt values in the surface limonite zone. Overall, the zone forms a continuous
blanket across the entire 600 metres x 300 metres area drilled. Varying in thickness
from 2 to 11 metres, these findings considerably enhance the potential size of the
mineralized body of material.
o Selected elevated nickel results are given below from the Company’s shallow drilling
program (for further information, please refer to the Company’s press releases of
March 5, April 1, April 23, June 13, June 20 and September 10, 2019):
Intersection Length
(metres from surface) Nickel Percentage Cobalt Percentage
7.0 2.15% 0.03%
4.0 1.96% 0.04%
2.0 2.00% 0.01%
Intersection Length
(metres from surface) Nickel Percentage Cobalt Percentage
2.0 1.91% 0.05%
5.0 1.91% 0.03%
2.0 1.61% 0.26%
6.0 1.78% 0.06%
4.0 1.80% 0.06%
6.0 1.79% 0.05%
6.0 1.76% 0.03%
3.0 1.90% 0.05%
4.0 1.78% 0.06%
5.0 2.24% 0.05%
4.0 1.72% 0.03%
o Selected elevated Cobalt results of the Company’s shallow drilling program are set
out in greater detail below (for further information, please refer to the Company’s
press release of September 24, 2019):
Intersection Length
(metres from surface) Nickel Percentage Cobalt Percentage
11.0 0.89% 0.15%
8.0 1.03% 0.29%
7.0 1.19% 0.20%
8.0 1.42% 0.16%
10.0 1.31% 0.15%
10.0 0.80% 0.14%
10.0 1.65% 0.12%
8.0 0.96% 0.14%
In October, Pacific Rim Cobalt completed its recovery process bench‐scale test program in
conjunction with its extractive technology and process development partner, Process
Research ORTECH Inc. (“Ortech”) This followed rapidly on from the Company’s scoping test
program which had already confirmed the suitability of mixed chloride leach technology on
multiple samples of Indonesian laterite.
o The Company is delighted to confirm that, using Ortech’s patented solvent extraction
process, the bench‐scale test program successfully:
Defined optimal leach conditions;
Determined pregnant solutions for each relevant mineral; and
Established viable processes for separating the samples of nickel, cobalt and
iron from the Company’s Cyclops project.
o The solution quality of the nickel‐bearing pregnant strip solution indicates an estimate
of the NiCO3 product quality above 99.9% requiring only a single stage purification
process.
o The solution quality of the cobalt pregnant strip solution indicates that an estimate of
the CoCO3 product quality is 98.2%.
o The recovery percentages form the bench‐scale test program are set out below (for
further information, please refer to the Company’s press release of October 28, 2019):
Sample Ni(%) Co(%) Fe(%)
Limonite 99.26 98.82 97.77
Low Iron Transition 99.75 97.03 99.22
Saprolite 99.77 >99.9 99.74
o The Company is confident in its ability to further improve recovery rates as it conducts
further testing.
Pacific Rim Cobalt continued to engage with downstream users and commodity suppliers to
the EV battery space as the Company continues its strategy of actively engaging with market
players in China, Indonesia and Korea.
These developments further support the strong characteristics of Pacific Rim Cobalt’s Cyclops Project
which first attracted many of our existing shareholders to the Company. These characteristics include:
environmental and mining permits, comprehensive infrastructure including year‐round sealed road
access, proximity to air and sea transport links, gentle topography and an experienced local workforce.
Furthermore, these latest developments complement extensive development conducted during 2018,
which included finalizing access rights to the site for topographic and photographic surveys, mapping,
sampling, drilling and initial bulk sampling for small‐scale process testing programs.
These developments are supported by Pacific Rim Cobalt’s expanding international presence. This
includes an operations office in Sentani, located 15km from the Cyclops Project respectively, in
addition to the Company’s Jakarta, Shanghai and Vancouver offices which together provide the full
suite of human capital and expertise to ensure the Company’s continued success.
Looking Ahead
2020 will see continued and consistent development in Pacific Rim Cobalt’s strategy as the Company
continues to set ambitious milestones with the goal of becoming a leading international player in the
EV battery metals sector and creating significant long‐term shareholder value.
These will include preparations to commission and operate the Company’s pilot plant in Canada which
will contain an integrated circuit to produce high purity nickel and cobalt strip solutions in order to
develop battery‐grade nickel and cobalt.
The results of the pilot plant will then be used to establish the design criteria for the subsequent
demonstration plant in Indonesia which will produce nickel and cobalt products suitable to meet
market specifications. As well as demonstrating Pacific Rim Cobalt’s ability to produce a product within
market specifications, this will also be used to establish the design criteria for the Company’s
commercial scale plant.
The Market
The growth in global EV sales continues to expand rapidly. Deloitte’s latest research projects global EV
sales at 2 million units in 2018 and predicts that this total will double to 4 million units in 2020, and
21 million by 2030. The past five years have seen an annual 20% reduction in the cost of EV battery
packs which Bloomberg now forecasts to become cheaper than equivalent combustion engine models
by as soon as 2022.
According to CRU Mobility and Energy Futures, by 2030 the EV market will require an estimated 1.3
million tons per annum of nickel compared to just 600,000 tons in 2018. For cobalt, the required total
is forecast to be 314,000 tons per annum of cobalt, which equates to 332% of the metal’s entire global
supply in 2017.
The Company has always maintained that Indonesia is perfectly placed to take advantage of the
burgeoning EV sector and 2019 has seen the continuation of a number of exciting trends and
developments which lay the foundations for the continued future growth in every vertical of the EV
supply chain. These developments also strengthen Indonesia’s ability to capitalize on its abundant
resources, which includes 25% of global nickel reserves.
Spending on new nickel processing plants in Indonesia is expected to total US$20 billion by 2024,
supported by the Indonesian government’s determination to create a world‐leading EV supply chain.
This commitment extends to the very top of government, with Joko Widodo – Indonesia’s President –
stating in September 2019 that “for nickel, we want raw materials to be processed in Indonesia. We
want added values”. This supports previous pronouncements from key officials, including Indonesian
Maritime Minister, Luhut Pandjaitan who remarked that Indonesia will “become the main player in
lithium batteries” and that it will “control the world market”.
In pursuit of this goal, in August 2019, the head of Indonesia’s Investment Agency announced that a
ban on the export of nickel ore would become effective on January 1, 2020. Anticipation of the export
ban had pushed global nickel prices up by 40% between June and October 2019 to US$17,500 per ton.
Wood Mackenzie have stated their belief that mine production from the Philippines and other nickel
exporting countries cannot offset the loss to the Chinese nickel market from the Indonesian export
ban which was estimated at 350,000 tons in 2019.
Some key Indonesian based project and investment highlights include:
Investment in downstream nickel projects clustered around Sulawesi Island and Halmahera
Island have already passed US$9 billion, and are expected to increase to US$20 billion within
five years.
PT Vale and Sumitomo Metal plan to spend US$5 billion on nickel projects during the next few
years, including a US$2.5 billion plant to make battery‐grade metal.
Chinese battery materials company GEM has stated its intention to work with CATL and
Tsingshan to construct a US$700m plant in Indonesia to produce nickel for the EV battery
market.
Toyota Motor Corp. has committed to invest US$2 billion by 2023 to develop electric vehicles
in Indonesia.
Closing Remarks
When Pacific Rim Cobalt’s major shareholders and executive management team chose to focus on
Indonesian nickel and cobalt, we did so understanding the potential of the Indonesian market;
especially its ability to serve as an international powerhouse for the EV sector, far exceeded its current
level of development. It is therefore both heart‐warming and energizing to see that the Company’s
hard work in developing the Cyclops Project has been matched by an unprecedented level of progress
within the Indonesian market as a whole.
Pacific Rim Cobalt provides unique leverage to participate in the rapidly expanding Indonesian nickel‐
cobalt space through the capital markets.
Now more than ever, Pacific Rim Cobalt’s assets are a strategically‐located, ethical source of nickel
and cobalt for the EV sector. The Company is looking forward to the work ahead with continued
commitment and confidence.
As CEO of Pacific Rim Cobalt, I would like to thank the Company’s shareholders for their continued
support. I also thank my fellow directors, managers and employees for their continued hard work and
their achievements in confirming the potential of the Cyclops Project. We continue to make
outstanding operational progress which forms the bedrock of our confidence as we move forwards
knowing that we have an asset with outstanding potential both in today’s economic climate and even
more so as the EV sector continues its astonishing growth in the years to come.
National Instrument 43‐101 Disclosure
The technical content of this news release has been reviewed and approved by Mr. Garry Clark, PGeo,
independent director of Pacific Rim Cobalt and a Qualified Person as defined by National Instrument
43‐101.
About Pacific Rim Cobalt
Pacific Rim Cobalt is a Canadian‐based exploration company focused on the acquisition and
development of production grade nickel‐cobalt deposits, key raw material inputs for the growing
lithium‐ion battery industry.
Pacific Rim Cobalt Corp.
Ranjeet Sundher – President and CEO
(604) 922‐8272
Steve Vanry – CFO & Director
(604) 922‐8272
Sean Bromley – Director & Investor Contact
(778) 985‐8934
Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of
Canada accepts responsibility for the adequacy or accuracy of this release.
FORWARD‐LOOKING STATEMENTS
Statements in this news release that are forward‐looking statements are subject to various risks and
uncertainties concerning the specific factors disclosed both here and elsewhere in Pacific Rim Cobalt’s
periodic filings with Canadian securities regulators. When used in this news release, words such as
“will”, “plan”, “estimate”, “expect”, “intend”, “potential”, “should,” and similar expressions, are
forward‐looking statements. Information provided in this document is necessarily summarized and
may not contain all available material information.
Forward‐looking statements include, without limitation, statements regarding future‐oriented events
and other statements that are not facts. Forward‐looking statements are based on a number of
assumptions and estimates that, while considered reasonable by management based on the business
and markets in which Pacific Rim Cobalt operates, are inherently subject to significant operational,
economic and competitive uncertainties and contingencies.
Such forward‐looking statements should therefore be construed in light of such factors.
Although Pacific Rim Cobalt has attempted to identify important factors that could cause actual
results, performance or achievements to differ materially from those contained in the forward‐looking
statements, there can be other factors that cause results, performance or achievements not to be as
anticipated, estimated or intended. There can be no assurance that such information will prove to be
accurate or that management’s expectations or estimates of future developments, circumstances or
results will materialize.
Accordingly, readers should not place undue reliance on forward‐looking statements. The forward‐
looking statements in this news release are made as of the date of this news release, and Pacific Rim
Cobalt disclaims any intention or obligation to update or revise such information, except as required
by applicable law or securities regulators, and Pacific Rim Cobalt does not assume any liability for
disclosure relating to any other company herein.