Nickel Ranks #1 on the US Critical Minerals List; Here’s How to Take Advantage
In today’s competitive global landscape, few minerals are as essential as nickel. Its unique properties make it indispensable to the energy storage market, where it powers lithium-ion batteries with greater durability, enhanced safety, and improved performance under a range of conditions. Additionally, more than 70% of global nickel is used in stainless steel, highlighting its broad industrial importance. As a result, S&P projects that U.S. demand for nickel, cobalt, and lithium could grow by a staggering 23 times by 2035. What’s more, there’s five times more nickel than lithium in a typical lithium-ion battery, and it’s far more difficult to find. The challenge? The U.S. contributes only a fraction of the world’s nickel production and imports 100% of what it consumes. Meanwhile, Indonesia and China are on track to dominate the nickel market, which is projected to control 71% of global production by 2030. This makes the need for a domestic nickel supply not just critical—but fundamental to North America’s future energy independence. Enter Alaska Energy Metals (TSXV: AEMC) (OTC: AKEMF). For some time, we’ve been closely tracking its exploration initiatives, which have uncovered significant deposits of nickel and other strategic energy metals at its Nikolai Project. The numbers are impressive: the property has nearly 3.9 billion pounds of indicated nickel (813 Mt @ 0.22% nickel) and more than 4 billion pounds of inferred nickel (896 Mt @ 0.21% nickel). This resource size places Nikolai in the upper echelon of domestic nickel exploration projects. Yet, it continues to trade at a valuation well below its peers, creating a rare and compelling investment opportunity. With this project, investors gain exposure to a crucial domestic supply of nickel and other valuable minerals—and they’re doing so on the ground floor. Add to that a proven management team with a track record of success and a secondary project with major upside potential, and you have one of the most exciting energy metal plays on the market today. With that said, let’s dive in. What is Alaska Energy Metals and its Nikolai Project? Alaska Energy Metals is positioning itself as a critical player in the future of clean energy, offering a dependable and sustainable supply of high-quality nickel—a mineral the U.S. cannot afford to fall short on. Without AEMC’s contributions, the nation’s ambitious clean energy initiatives could face serious setbacks due to a mineral supply gap. But beyond simply supplying nickel, AEMC’s research and exploration efforts provide invaluable insights into the scale and quality of its deposits, helping mining institutions and battery manufacturers optimize their operations. The company’s flagship Nikolai Project, located in Alaska, is proving to be a game-changer. In March 2024, AEMC unveiled its updated NI 43-101 Mineral Resource Estimate (MRE) for the Nikolai Project, following a 2023 drilling program that consisted of eight diamond drill holes totaling 4,138 meters in the Eureka Zone. The company also acquired a comprehensive database of historical drill data from 1995 to 2012, offering a wealth of information. The results were striking: Indicated MRE: Inferred MRE: These updates weren’t just about adding numbers. AEMC introduced 813 million tonnes of indicated resources, increased its inferred resource by 180%, and significantly improved project economics by reducing the strip ratio from 3.7:1 to 1.5:1 (visit this Mineral Resource Estimate for full disclosure). Even more compelling, they identified a high-grade core zone with a NiEq grade of 0.34%. This kind of efficiency not only boosts the project’s profitability but also lowers its carbon footprint—a win for both investors and the environment. As a bonus, AEMC has partnered with the Colorado School of Mines and Virginia Polytechnic Institute to research the carbon sequestration potential of ultramafic rocks and tailings at Eureka. In other words, the partners are exploring how well they can absorb carbon dioxide using finely ground ultramafic rock. This has exciting ramifications as it could reduce the CO2 in the atmosphere, helping improve the environment, using a natural, carbon-negative technology. And they aren’t stopping there. AEMC has doubled down on its efforts with further metallurgical testing at the Eureka Zone including bond ball mill grindability, flotation, and magnetic separation tests. The company also completed three drill holes for a total of 1,048 meters at its Canwell prospect, located east of the Eureka Zone–results are expected later this quarter. Combined, the Eureka Zone and Canwell cover 10,683 hectares of land in Alaska’s tier-1, pro-resource jurisdiction. This continuous investment in these properties showcases the immense strategic value the project holds placing it in similar territory to Canada Nickel’s Crawford deposit (second largest nickel deposit globally). With more than $8.68 million raised in its two recent offerings, the company has the capital and momentum to keep discovering more high-quality deposits at the Nikolai Project and beyond. AEMC’s Angliers-Belleterre Nickel-Copper Project in Quebec While Alaska Energy Metals has made waves with its flagship Nikolai Project, the company’s 100%-owned Angliers-Belleterre nickel-copper project in Quebec presents a compelling secondary opportunity that could significantly boost its total resource potential. Known for its high-grade Kambalda-style nickel-copper mineralization, Angliers-Belleterre has become a critical focus for further exploration. To unlock its potential, AEMC recently conducted a machine-learning Mineral Potential Index (MPI), which synthesized both historical and current data to highlight four key areas of interest for exploration. This advanced analysis set the stage for the company’s next phase of evaluation in Fall 2024. During Phase 2, AEMC performed a helicopter-borne VTEM Max electromagnetic geophysical survey. This survey covered 1,568 line kilometers to identify zones of conductive anomalies, which could indicate the presence of metallic sulfide mineralization. At the same time, the team collected 4,971 soil samples to detect metal ions that might signal valuable mineral deposits beneath the surface. Once the results from these surveys are available in Q4 2024, AEMC will have a clearer view of the most promising drill targets. The combination of electromagnetic and soil anomalies often presents a compelling case for successful drilling, bringing the project closer to realizing its full potential. But there’s more. In mid-October, the company announced an exciting possibility for Angliers-Belleterre—natural
Could This Company Hold the Key to US Energy Metal Independence?
The United States is in dire need of domestic energy minerals. Metals like nickel, copper, and cobalt are critical components of America’s energy storage infrastructure, making up 15.7% (64lbs), 10.8% (44lbs), and 4.3% (10lbs) of EV batteries, respectively.