December 2019 PUC Monthly Report Gold & Battery Metals Insights • Month over month commodity prices • Year to date commodity prices Industry News • Pancon Intersects 1.3% Nickel, 0.47% Copper and 5.6% Sulphur over 4.2 Me- tres at the St. Laurent Project • Pallinghurst and Traxys to invest $2bn in battery materials • Barrick Gold Chief Eyes Growth In ‘Stra- tegic’ Copper: “It Is More Strategic Than Cobalt, More Strategic Than Lithium. You Can’t Replace Copper On Conductivity. It Is A Modern Metal.” • Nornickel: 2020 a ‘transitional year’ for nickel market balance, EV uptake • Australians make a $475-million splash in Red Lake • Kirkland Lake buying Detour Gold in all-stock deal • Mongolia seeks better terms for its vast mining project • Lundin Mining Expects Higher Copper, Zinc Production for 2020 • Chile’s Codelco to cut spending by $8bn through 2028 as profit halves Supply & Demand News • Average Nickel Use per EV Battery Up 20% Year-over-Year in September 2019 • Global gold demand grows 3% in Q3 • Why is nobody buying the copper need- ed for a greener world? • Funds are starting to turn more bullish on copper • Australia overtakes Canada in explora- tion stakes as global funding declines • How Much Gold is Left in the World? • EU to witness fastest growth in indirect demand for battery metals • China Oct. nickel ore imports from Indo- nesia jump 23.4% as ban nears • “Copper demand is going to be psyche- delic!” Electric Vehicle News • Caterpillar unveils two new electric-drive mining trucks • GM President: Electric cars won’t go mainstream until we fix these problems • Every Electric Vehicle That’s Expected in the Next Two Years +++ lots more news inside Gold (Au) Nickel (Ni) Copper (Cu) Cobalt (Co) October 31, 2019 $1,512.20 $16,830.00 $5,823.00 $35,000.00 November 30, 2019 $1,463.80 $13,805.00 $5,853.50 $35,000.00 Change (+/-) $48.40 $3,025.00 $30.50 No change MoM Change (%) -3.20% -17.97% +0.52% 0% Source: The London Metal Exchange * Gold price per ounce COMMODITY PRICES (in US$ per tonne) INCLUDED IN THIS REPORT PANCON INTERSECTS 1.3% NICKEL, 0.47% COPPER AND 5.6% SULPHUR OVER 4.2METRES, DEMONSTRATING NI-CU SULPHIDE POTENTIAL AT ST. LAURENT Pancontinental Resources Corporation (TSXV: PUC) (“Pancon” or the “Company”) provides exploration results from a recently completed program at the Company’s St. Laurent Nickel-Copper-Cobalt Project. The program was planned to evaluate an histor- ical Ni-Cu showing coincident with a pronounced 600-metre-long unexplained airborne electromagnetic anomaly. Recent drilling and downhole geophysical results confirm and expand upon the exploration potential of this new magmatic nickel sulphide target. The St. Laurent Project is located in northeastern Ontario, 50 kilometres south of the produc- ing Detour Lake Mine and 20 kilometres southwest of the producing Casa Berardi Mine. Figure 1: SL-19-01: 53.6m sulphide breccia at 1.6% Ni, 0.41% Cu, 7.7%S CONTINUE ON PAGE 4
Transcript
December 2019PUC Monthly Report
Gold & Battery Metals Insights• Month over month commodity prices• Year to date commodity prices
Industry News • Pancon Intersects 1.3% Nickel, 0.47%
Copper and 5.6% Sulphur over 4.2 Me-tres at the St. Laurent Project
• Pallinghurst and Traxys to invest $2bn in battery materials
• Barrick Gold Chief Eyes Growth In ‘Stra-tegic’ Copper: “It Is More Strategic Than Cobalt, More Strategic Than Lithium. You Can’t Replace Copper On Conductivity. It Is A Modern Metal.”
• Nornickel: 2020 a ‘transitional year’ for nickel market balance, EV uptake
• Australians make a $475-million splash in Red Lake
• Kirkland Lake buying Detour Gold in all-stock deal
• Mongolia seeks better terms for its vast mining project
• Lundin Mining Expects Higher Copper, Zinc Production for 2020
• Chile’s Codelco to cut spending by $8bn through 2028 as profit halves
Supply & Demand News• Average Nickel Use per EV Battery Up
20% Year-over-Year in September 2019• Global gold demand grows 3% in Q3• Why is nobody buying the copper need-
ed for a greener world?• Funds are starting to turn more bullish
on copper• Australia overtakes Canada in explora-
tion stakes as global funding declines• How Much Gold is Left in the World?• EU to witness fastest growth in indirect
demand for battery metals• China Oct. nickel ore imports from Indo-
nesia jump 23.4% as ban nears• “Copper demand is going to be psyche-
delic!”
Electric Vehicle News• Caterpillar unveils two new electric-drive
mining trucks• GM President: Electric cars won’t go
mainstream until we fix these problems• Every Electric Vehicle That’s Expected in
the Next Two Years
+++ lots more news inside
Gold (Au)
Nickel (Ni)
Copper (Cu)
Cobalt (Co)
October 31, 2019 $1,512.20 $16,830.00 $5,823.00 $35,000.00
November 30, 2019 $1,463.80 $13,805.00 $5,853.50 $35,000.00
Change (+/-) $48.40
$3,025.00
$30.50 No change
MoM Change (%) -3.20% -17.97% +0.52% 0%
Source: The London Metal Exchange* Gold price per ounce
COMMODITY PRICES (in US$ per tonne)INCLUDED IN THIS REPORT
PANCON INTERSECTS 1.3% NICKEL, 0.47% COPPER AND 5.6% SULPHUR OVER 4.2METRES, DEMONSTRATING NI-CU SULPHIDE POTENTIAL AT ST. LAURENT
Pancontinental Resources Corporation (TSXV: PUC) (“Pancon” or the “Company”) provides exploration results from a recently completed program at the Company’s St. Laurent Nickel-Copper-Cobalt Project. The program was planned to evaluate an histor-ical Ni-Cu showing coincident with a pronounced 600-metre-long unexplained airborne electromagnetic anomaly. Recent drilling and downhole geophysical results confirm and expand upon the exploration potential of this new magmatic nickel sulphide target. The St. Laurent Project is located in northeastern Ontario, 50 kilometres south of the produc-ing Detour Lake Mine and 20 kilometres southwest of the producing Casa Berardi Mine.
Pancontinental Resources Corporation (“Pancon” or the “Company”) (TSXV: PUC) is a Canadian junior mining company focused on North American gold and battery metals projects in proven mining districts and near or surrounding produc-ing or former mines.
Gold Project in South Carolina:
• Pancon’s 100%-owned Jefferson Gold Project is 15 km along-trend from the Haile Gold Mine and surrounds the former Brewer Gold Mine property, on the prolific and underexplored Carolina Slate Belt in South Carolina, USA.
Battery Metals Projects in Northern Ontario:
Pancon has 5 nickel-copper-cobalt projects in Northern Ontario:• The Montcalm, Nova, Gambler and
Strachan projects are adjacent to and near the former Montcalm Ni-Cu-Co Mine located 65 km northwest of Timmins, ON, Canada
• The St. Laurent Project has an advanced Ni-Cu-Co-Au-Pt-Pd target and is located 50 km south of Detour Lake Mine and 20 km southwest of Casa Berardi Mine in northern Ontario, Canada
PANCON RESOURCES (TSXV: PUC)
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The Montcalm Project (3,780 hectares) is located within the prospective Montcalm Gabbro Complex, 65 km northwest of Timmins, Ontario.
The project is contiguous to and surrounds the western, northwestern and southwest-ern portion of the former Montcalm Mine, currently owned by Glencore plc.
The former Montcalm Mine was discov-ered and developed based on a single airborne electromagnetic anomaly identified in 1970s and previously mined 3,931,610 tonnes of ore grading 1.25% nickel, 0.67% copper and 0.051% cobalt, producing in excess of 4 million pounds of cobalt (Ontario Geological Survey, Atkin-son, 2011).
St. Laurent Project (4,170 hectares) is located in St. Laurent Township, 160 km northeast of Timmins, 50 km south of Detour Lake Mine and 20 km southwest of Casa Berardi Mine.
Past shallow drilling at the St. Laurent Project identified disseminated multi-element sulphide mineralization across notable widths trending towards a large gabbro-hosted magnetic feature.
The Ni-Cu-Co-Au-Pt-Pd zone is open along strike and at depth. This mineralized zone, importantly, is coincident with a strong 600-metre long EM anomaly.
The Nova Project (2,080 hectares) is located in the Montcalm Greenstone Belt,19 km southwest of Glencore’s former Montcalm Mine.
The Strachan Project (2,280 hectares) is lo-cated 15 km south of the former Montcalm Mine, in the Strachan Gabbro Complex.
The Gambler Project (7,630 hectares) is a camp-size project situated in the Mont-calm Gabbro Complex surrounding the Montcalm Project and adjacent to the former Montcalm Mine.
MONTCALM NI-CU-CO PROJECT
GAMBLER NI-CU-CO PROJECT
STRACHAN NI-CU-CO PROJECT
ST. LAURENT NI-CU-CO-PGE PROJECT
NOVA CU-CO-AU PROJECT
SOUTH CAROLINA PROJECT
The Jefferson Gold Project is located in Chesterfield County, South Carolina, on one of the most significant gold trends in the United States: the Carolina Gold Belt.
The Jefferson Gold Project is adjacent to the former Brewer gold mine (which produced 178,000 oz Au from 1985-1991), and 15 km up trend from OceanaGold’s producing Haile gold mine.
The former Ridgeway gold mine, located 50 miles along trend southwest of the Jef-ferson Gold Project, was a 15,000-tonnes per day open pit operated by Kennecott Minerals from 1988-1999.
The Haile gold mine, first discovered in 1827, is today a new open pit operation with a multi-million ounce resource that commissioned in December 2016. Haile is owned and operated by OceanaGold (TSX: OCG), which reports ongoing exploration and the potential for an expansion phase to an underground mine at Haile.
Pathway conduits of mineralization discov-ered at Jefferson mimic the same initial exploration successes at Haile.
Battery Metals Panel at Progressive Mine Forum 2019November 1, 2019
Pancon Intersects 1.3% Nickel, 0.47% Copper and 5.6% Sulphur over 4.2 Metres, Demostrating Ni-Cu Sulphide Potential at the St. Laurent ProjectNovember 7, 2019
Pallinghurst and Traxys to invest $2bn in battery materialsNovember 12, 2019
Barrick Gold Chief Eyes Growth In ‘Stra-tegic’ Copper: “It Is More Strategic Than Cobalt, More Strategic Than Lithium. You Can’t Replace Copper On Conductivity. It Is A Modern Metal.”November 12, 2019
Nornickel: 2020 a ‘transitional year’ for nickel market balance, EV uptakeNovember 19, 2019
Australians make a $475-million splash in Red LakeNovember 25, 2019
Kirkland Lake buying Detour Gold in all-stock dealNovember 25, 2019
Mongolia seeks better terms for its vast mining projectNovember 26, 2019
Lundin Mining Expects Higher Copper, Zinc Production for 2020November 27, 2019
Chile’s Codelco to cut spending by $8bn through 2028 as profit halvesNovember 29, 2019
SUPPLY & DEMAND NEWS
Average Nickel Use per EV Battery Up 20% Year-over-Year in September 2019November 9, 2019
Global gold demand grows 3% in Q3November 5, 2019
Why is nobody buying the copper needed for a greener world?November 9, 2019
Funds are starting to turn more bullish on copperNovember 11, 2019 CONTINUE ON PAGE 5
Pancon President and CEO Layton Croft stated: “Our initial drill program produced assay results with considerably higher grade mineralization than previous programs (see Tables 1 and 2 below). The intersection of greater than 1% nickel within sulphide disseminations and sulphide stringers is encouraging (see Figures 1 and 2 below). The most significant result is the low associated Sulphur (S) content of these intersections (5-8% S). The Ni:S ra-tios predict a grade of 3-5% Ni for massive sulphides (25-35% S) within this system, which is our exploration goal. Drilling has extended the mineralization a considerable distance along strike and at depth, providing indications of a much larger system then previously known. The bore hole electromagnetic survey (BHEM) has identified a series of significant conductors associated with the mineralized trend and remains open and unexplained in the down plunge direction. The results of this program allow us to confidently develop a larger exploration program to follow-up on these significant new conductors.”
Highlights:• Three mineralized intervals in SL-19-01 returned Nickel (Ni) assays averaging greater
than 1% Ni.• SL-19-03 intersected 113 metres of a wide continuous section of disseminated sulphi-
des and sulphide stringers, extending the mineralized system to approximately 500 metres.
• The Ni-S ratios predict a grade of 3-5% Ni in a massive sulphide.• BHEM surveys have identified a complex series of conductors plunging to the north-
east within and proximal to the interpreted mineralized trend.
SL-19-01 intersected a broad section of mineralized gabbro, interrupted by several barren
Figure 2: SL-19-01: 259.5m sulphide stringers at 0.6% Ni, 0 .06% Cu, 7.0% S
dikes. Three mineralized intervals all returned Ni assays greater than 1% Ni. This mineral-ization is located 90 metres down dip from the nearest drill intersection, demonstrating higher grade portions to the mineralized system.
SL-19-03 intersected a 113 metre-wide continuous section of disseminated sulphides and sulphide stringers. The intersection is located 250 metres northeast of the nearest drill intersection, thus demonstrating the size potential and continuity of the target area (see Table 3 and Figure 3 below). Limited drilling on the Project does not provide sufficient information to accurately determine the geometry of the mineralization or the true thick-ness of reported intersections.
Borehole TDEM geophysical surveys indicate a complex series of conductive features
PANCON INTERSECTS 1.3% NICKEL, 0.47% COPPER AND 5.6% SULPHUR OVER 4.2METRES, DEMONSTRATING NI-CU SULPHIDE POTENTIAL AT ST. LAURENT
plunging to the northeast. The Maxwell Plate interpretation indicates conductive anoma-lies along a down plunge distance of 550 metres, greatly extending the exploration target area. Additional geophysical modelling is being considered to assist in selecting drill targets. As massive sulphides are generally strong conductors, Pancon is confident that the interpretation of the geology and the geophysical results at the St. Laurent Project support additional exploration drilling to discover massive sulphide mineralization.
Table 1: St. Laurent 2019 Drill Results from Pancon
DDH FROM TO WIDTH Ni(%) Cu (%) Co (ppm) Au+Pt+Pd (ppb) S (%)
Tesla secures battery cell supply deal with CATL, report saysNovember 6, 2019
Caterpillar unveils two new electric-drive mining trucksNovember 12, 2019
Volkswagen Group to invest in further electrification expansionNovember 15, 2019
Tesla Cybertruck will have solar roof option to add 15 miles of range per dayNovember 22, 2019
Pakistan steps on the pedal to boost pro-duction, sales of e-vehiclesNovember 24, 2019
GM President: Electric cars won’t go main-stream until we fix these problemsNovember 25, 2019
Renault scraps battery leasing option on new ZOE and offers 0% PCPNovember 25, 2019
Europe Looks at Accelerating Clean Ener-gy TransitionNovember 25, 2019
The moment we unveiled the Morris JE at London’s Design MuseumNovember 26, 2019
Squad’s tiny $6,300 solar EV shares and shuttles through the cityNovember 27, 2019
Every Electric Vehicle That’s Expected in the Next Two YearsNovember 27, 2019
Centrica and NCP to trial EV ‘charge park’ for professional driversNovember 27, 2019
PANCON DRILLING CAMPAIGN AT ST. LAURENT NICKEL-COPPER-COBALT PROJECT IN NORTHERN ONTARIO
Figure 3: St. Laurent Drill Hole Locations
Technical Disclosure
The sampling of, and assay data, from drill core is monitored through the implementation of a quality assurance - quality control (QA-QC) program designed to follow industry best practice. Samples are transported in sealed bags to ALS Laboratories in Timmins Ontario for preparation. Pulps are transported to Vancouver, British Columbia for 35 element ME-ICP41 Aqua regia ICP AES analysis, PGM ICP23 for Au-Pt-Pd analysis, S-IR08 for Sulphur analysis, Cu OG46 analysis for >10000 ppm Cu and NiOG46 analysis for >10000 ppm Ni. The technical content of this release has been compiled, reviewed and approved by Todd Keast, P.Geo., a “Qualified Person” as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.●
Layton Croft, President & CEO: More than 25 years of leadership and management experience in North America, Asia, Europe, Africa and Latin America, including executive and strategic advisory roles with Ivanhoe Mines, Rio Tinto, Peabody Energy and Duke Energy. He also serves as the Chairman of Erdene Resource Development (TSX: ERD).
Todd Keast, P.Geo, QP - Northern Ontario Project Manager: Exploration and project geologist with nearly 30 years of experience in a diverse field of commodities. With an active approach to exploration, has advanced projects from grassroots target generation and evaluation through to deposit discovery, delineation, environmental permitting and PEA.
Kevin Filo, P.Geo., QP - Northern Ontario Project Advisor: Exploration geologist, mining geologist and project generator with nearly 40 years of experience, including 30 years in the Abitibi Greenstone Belt region, Ontario. Former VP Exploration for acqui-sition team which acquired the Detour Gold Mine from Placer Dome, now one of the largest gold mines in Canada.
Margaret Venable, PHD, CPG, QP - South Carolina Project Coordinator and Senior Geologist: Specializing in property evaluation and three dimensional analyses and inte-gration of data sets in order to enhance understanding of mineralization and plan future work, Margaret has 35+ years of experience, from early exploration to mine feasibility. Originally from North Carolina, she has been studying the geology and geophysics of the Brewer-Jefferson area since 2016.
Richard “Criss” Capps, PhD, CPG, QP - South Carolina Project Consultant and Se-nior Geologist: 40+ years of experience in minerals exploration and economic geology. Mr. Capps was part of the team that discovered six gold deposits that became the Castle Mountain Gold Mine in California. Originally from North Carolina, Mr. Capps has been working in the Brewer-Jefferson area since 2016.
Christopher Cherrywell, CPG, QP - South Carolina Principal Geological Advisor: 40+ years of experience, from early exploration to mine feasibility and spent over a decade on the Carolina Gold Belt, including working at Brewer, Haile and Barite Hill in South Carolina. Chris was the lead geologist responsible for discovering the Brewer Gold Mine in 1983-84 and provided project development engineering solutions to support project economics and local socio-economic benefits to the mine.
Mark McMurdie, CFO: Chartered Professional Accountant with more than 30 years of senior leadership experience in public and private companies. Currently serving as CFO for Roscan Minerals (TSX-V: ROS), as well as Director of Finance for franchisor H&S Mas-sage Spa Canada.
Jeanny So, External Relations Manager: More than 20 years of investor relations, public relations, corporate affairs, corporate development and communications experi-ence in the natural resource sector. She also serves as a consultant to Purepoint Uranium Group (TSXV: PTU) and is a member of Prospector and Developers Association of Canada (PDAC) and Women In Mining.
BOARD OF DIRECTORS
Donald Whalen (Chairman)Layton Croft
Rick Mark David MosherDavid Petroff
David Mosher (Chairman) Jay FreemanJeanny So
CAPITAL STRUCTURE
Shares Outstanding 177.6 million
Share Price (Nov 30, 2019) $0.025
52 Week Range $0.08/$0.02
365-Day Avg Volume 176,607
Options 15.35 million
Warrants 28.62 million
Fully Diluted 221.67 million
Insider Ownership 35%
MANAGEMENT TEAM
Disclaimer: All information provided in this newsletter is based upon sources that Pancontinental Resources Corporation ("Pancon") believes to be reliable. Pancon does not guarantee their accuracy or completeness. Any and all statements as of the date of this newsletter are subject to change without notice. All information provided on this newsletter must be understood as information presented for discussion only and not investment advice. Pancon advises all readers and subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured on this newsletter or any stocks for that matter. All statements and expressions of the companies featured are not meant to be a solicitation or recommendation to buy, sell, or hold securities. Pancon expressly disclaims any obligation to update or revise any such forward-looking statements.
Qualified Person: The technical information in this newsletter has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and reviewed and approved by Todd Keast, PGeo, a Qualified Person as defined by NI 43-101, a member of Pancon's Technical Advisory Committee and Pancon's Project Manager. Cer-tain technical information within this newsletter is historical in nature and pre-dates NI 43-101 standards, this information is believed to be reliable however the Company has not verified this material.
