COQUITLAM, BC / ACCESSWIRE / December 21, 2023 / Fuse Battery Metals Inc. ("the Company" or "Fuse") (TSXV:FUSE)(OTCQB:FUSEF)(FRA:43W3) provides the following update to its Shareholders.
TO OUR SHAREHOLDERS
Happy Holidays, and I would like to start by thanking you for your support of our Company. We appreciate your continued support of our team and the development of our world class North American lithium and cobalt properties.
We have spoken many times in the past about the shift to Electric Vehicles (EV) in North America and throughout the globe. We have reached a global milestone in EV car production. There are now over 41 million electric vehicles on the road globally, thanks in part to forward looking consumers and auto manufacturers, government incentives and persistently high gas prices at the pumps!
The consumer trend to adopt EVs and leaving their gas guzzling automobiles by the wayside is undeniable. Governments around the world are beginning to require that all new cars be zero emission vehicles, and are stepping up with EV subsidies for both consumers and manufacturers. Auto manufacturers worldwide are producing more EVs for sale each year, both in terms of the number of car and truck model options available for consumers but also in terms of the numbers of cars produced. One good example can been seen by the recent announcement by Tesla Inc. (NASDAQ: TSLA) to increase the capacity of a newly proposed Mexican manufacturing facility to produce over 2 million vehicles / year and committing to an investment of US$10 Billion in 2025.
A key component in the production of EVs is the exploration, mining and refining of key battery metals like Lithium and Cobalt. Both Canada and the US have committed to supporting the mining industry for these key battery metals and recent legislation like the US Inflation Reduction Act confirms both financial and functional support to the mining industry as part of an overall long term strategy for clean technology and progressive solutions to climate change.
As you are aware, Fuse Battery Metals has completed a CAD$1.5 million financing at around this time last year and we currently have a cash balance of over CAD$1 million in our treasury and a healthy balance sheet. I am proud to say that we are fully funded for the 2024 mineral exploration season.
Nevada Lithium Exploration Plan
Recently we have added two new and highly prospective lithium properties to our asset portfolio in Nevada. The Monitor Valley and the Lithium Springs Properties been added to our existing Ontario Cobalt- Glencore Bucke and Teledyne Properties in Canada.
At the Monitor Valley Lithium Project, the Company contracted the services of Rangefront Geological to perform both a detailed soil sampling on a 100 m X 100 m spacing and KLM Geoscience LLC to perform a CSAMT geophysical survey to obtain information about subsurface resistivity and geology. A total of nine CSAMT lines were surveyed for a total coverage of 17-line kilometers. Together these geological techniques should help predict geological structure and possible locations for sub-surface lithium accumulation. Results from this Phase 1 exploration program will be key to determining our 2024 exploration plan and possible drilling locations for clay-based lithium targets.
Our geological team plans to meet up over the holidays to discuss next steps on this project. This first phase of the exploration plan in Monitor Valley is part of a methodical and systematic approach to understanding the underlying geology of our property. This work will assist our geological team to determine next steps for the overall lithium exploration program, including but not limited to a potential subsequent drilling program.
Exploration at Lithium Springs is planned to take place in the spring/summer of this 2024 for the beginning of the 2024 Nevada Exploration Season.
Our aim is to advance these projects as quickly as possible and build them into long-term robust assets benefiting all shareholders.
Ontario Cobalt Exploration Properties
We have previously announced the completion of a diamond drill program at the Glencore Bucke Property. On September 5, 2023, we announced the final assay results from this program, showing some great results and that we intercepted 7.75% Co and 5.44% Ni over 0.42m at Glencore-Bucke.
The Company successfully intercepted cobalt mineralization in seven of the diamond drill holes and encountered zones of increased copper bearing sulphides in five diamond drill holes. Several of the cobalt veins contained high grade cobalt. The drilling on the northwest part of the property was located underneath/below the existing intercepts and were successful in locating mineralized structures. This suggests the mineralization will continue at depth. To the south-west and bordering the Teledyne property, the drill holes were dual purpose; they were planned to both follow-up existing drilling and test the First Priority Geophysical Targets together. Several veins were encountered, and this suggests the veining may continue south onto the Teledyne property. We have recently announcedthat our cobalt properties in Ontario Canada are being spun into a subsidiary to better distribute focus and resources on this overall project. We now plan to list this company on the TSX Venture Exchange in the early part of 2024. It will be called Ignition Battery Metals Inc. ("Ignition"). Current Fuse shareholders will receive a significant boost in value from this transaction, as it will result in a free common share dividend in Ignition shares representing a proportionate value in this new public company. We are doing this to give our shareholders a bonus - a share in another public company for no cost.
For a bit of added perspective, our Ontario Cobalt Properties are located beside the former cobalt producing Agaunico Mine. From 1905 through to 1961, the Agaunico Mine produced a total of 4,350,000 lbs. of cobalt ("Co"), and 980,000 oz of silver ("Ag") (Cunningham-Dunlop, 1979). The amount of cobalt produced from the Agaunico Mine is greater than that of any other mine in the Cobalt Mining Camp.
Cobalt continues to be in high demand and global cross-commodity reporting analysts like Fastmarkets, predict that increasing cobalt demand over the next decade driven primarily by fully electric EV (xEV) adoption. This bodes well for this commodity and our Company plans will benefit our shareholders in the long-term by spinning out this venture as a separate entity to be valued accordingly.
In closing out this year, we wanted to thank you for your continued support and we look forward to creating new value each and every day for our shareholders.
Happy Holidays, Tim Fernback President & CEO Fuse Battery Metals Inc.
Qualified Person
Mr. Seth Cude, P.G. is a Qualified Person as defined by National Instrument 43-101 and has approved the technical information contained within this news release with respect to our Nevada Lithium Properties.
The technical information in this news release relating to our Ontario Cobalt properties was approved and prepared under the supervision of Mr. Matthew Halliday, P.Geo., (PGO), President and COO of Canada Silver Cobalt Works Inc., a qualified person accordance with National Instrument 43-101.
Fuse Battery Metals Inc. is a Canadian based exploration company that trades under the symbol FUSE on the TSX Venture Exchange. The Company's focus is on exploration for high value metals required for the manufacturing of batteries.
Nevada Lithium Properties
Fuse owns 100% of the Lithium Springs Property which is located at the southern end of Black Rock Desert, Nevada, about 132 air-line km north-northeast of Reno, Nevada in Sections 1, 2, 11, and 12 Township 32 North, Range 23. The center of the property is about 40.676° North Latitude, 119.331° West Longitude, (40° 40' 33" N, 119° 19' 52"): UTM X 302,900 UTMY 4,505,400 NAD 27; Zone 11 N. Black Rock Desert basin is about 110 km long and up to 25 km wide at the widest point. The central playa measures about 50 km northeast - southwest and 10 km southeast - northwest. The western arm of the Black Rock Desert covers an area of about 2,000 square kilometers and contains 5 of the 30 currently listed Known Geothermal Resource Areas in Nevada.
Fuse also owns 100% of the Monitor Valley North Lithium Property which includes 97 placer claims (MVN1 - MVN97) covering approximately 770 hectares of alluvial sediments and clays located 134 km northeast of Tonopah, Nevada. The property is located in Monitor Valley, Nevada, and the center of the property is about 39.21° North Latitude, 116.65° West Longitude. The property is 55 km due west of the Little Smokey Valley, Nevada where exploration for lithium is ongoing.
Ontario Cobalt Properties
Fuse owns a 100% interest its Glencore Bucke Property, situated in Bucke Township, 6 km east-northeast of Cobalt, Ontario, subject to a back-in provision, production royalty and off-take agreement. The Glencore Bucke Property consists of 16.2 hectares and sits along the west boundary of Fuse's Teledyne Cobalt Project. The Company also owns a 100% interest, subject to a royalty, in the Teledyne Project located near Cobalt, Ontario. The Teledyne Property adjoins the south and west boundaries of claims that hosted the Agnico Mine.
Glencore Bucke/Teledyne Property
Situated in Bucke Township, 6 km east-northeast of Cobalt, Ontario the Glencore Bucke Property adjoins, on its northeast corner, the former cobalt producing Agaunico Mine. From 1905 through to 1961, the Agaunico Mine produced a total of 4,350,000 lbs. of cobalt ("Co"), and 980,000 oz of silver ("Ag") (Cunningham-Dunlop, 1979). The amount of cobalt produced from the Agaunico Mine is greater than that of any other mine in the Cobalt Mining Camp. Production ceased in 1961 due to depressed Co prices and over-supply (Thomson, 1964). The Glencore property is 100% owned by Fuse Cobalt subject to a back-in provision, production royalty and off-take agreement.
The associated Teledyne Property, located in Bucke and Lorrain Townships, consists of 5 patented mining claims totaling 79.1 ha, and 46 unpatented mining claim cells totaling approximately 700 ha. The Property is easily accessible by highway 567 and a well-maintained secondary road.
Over CAD$25 million has been spent thus far, (2020 dollars inflation-adjusted) on the Teledyne Property resulting in valuable infrastructure including a development ramp and a modern decline going down 500 ft parallel to the main cobalt mineralized vein. The Teledyne Property is subject to a production royalty in favor of New Found Gold and an off-take agreement in favor of Glencore Canada Corp., while the Glencore Bucke Property is subject to a back-in provision, production royalty, and an off-take agreement in favor of Glencore Canada Corp. Glencore PLC is the world's largest producer of cobalt. A significant portion of the cobalt that was produced at the Agaunico Mine was located along structures (Vein #15) that extended southward towards the northern boundary of the Teledyne Cobalt Property, currently 100% owned by FUSE. Mineralization was generally located within 125 ft (38.1 m) above the Huronian/Archean unconformity. Stoping widths of up to 50 ft (15.2 m) were not unusual at the Agaunico Mine (Cunningham-Dunlop, 1979).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as "continue", "efforts", "expect", "believe", "anticipate", "confident", "intend", "strategy", "plan", "will", "estimate", "project", "goal", "target", "prospects", "optimistic" or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company's ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.
