Key Highlights

  • In September 2019, Giga Metals Corporation (“company”, “Giga”) announced an updated resource estimate on its 100% owned Turnagain project in northern B.C.
  • Giga’s shares are up 131% since we initiated coverage in May 2018.
  • The updated estimate showed a measured and indicated resource of 5.21 Blbs of nickel (0.22%) and 312 Mlbs of cobalt (0.013%), and an inferred resource of 5.47 Blbs of nickel (0.22%) and 327 Mlbs of cobalt (0.013%).
  • Relative to the previous estimate calculated in 2011, the updated measured and indicated contained nickel is up 28%, and the updated inferred contained nickel is up 27% Contained cobalt is up 24% and 17%, respectively.
  • Turnagain remains one of the largest undeveloped nickel-cobalt sulphide deposits in the world. The company is now conducting engineering studies to potentially lower the project’s initial CAPEX of $1.36 billion estimated in the 2011 Preliminary Economic Assessment (“PEA”). The PEA had showed an after-tax Net Present Value (“NPV”) at 10% of $724 million, based on a nickel price of $8.50/lb, and cobalt price of $14/lb.
  • Previous metallurgical test work has indicated that the project can reliably produce clean concentrates grades in the range of 18% – 22% nickel and >1% cobalt, that can be upgraded to high purity for use in lithium ion batteries.
  • At the end of Q2-2019, the company had a healthy working capital of C$4.53 million.

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