Class 1 Nickel and Technologies Ltd. (CSE: NICO | OTCQB: NICLF)
("Class 1 Nickel" or the "Company") is pleased to announce an
updated mineral resource estimate (“MRE”) for the Alexo North
Nickel Deposit (“A-N Deposit”) (Table 1). The A-N Deposit, located
about 45 km northeast of the City of Timmins, Ontario, is one of 4
high-grade nickel deposits within the extensive Alexo-Dundonald
Nickel Project (the “Project”) (Figure 1), which covers
approximately 1,895 hectares (18.95 km2).
An update to the Alexo South Deposit was
announced 24 April 2024 (Table 2) and updates to the remaining 2
nickel deposits contained within the Project (Dundonald South and
North) will be completed over the coming months.
David Fitch, CEO of Class 1 Nickel, commented:
“We are very encouraged to have two updated and comprehensive
mineral deposit models and mineral resource estimates for the Alexo
North and Alexo South nickel sulphide deposits. We now look forward
to future drilling programs, using the most optimal information
available with the ultimate goal of expanding our high-grade
mineral resources at Alexo-Dundonald and moving into economic
studies such as our first Preliminary Economic Assessment which is
planned for 2024.”
Mr. Fitch added, “In addition to advancing our
existing high-grade nickel sulphide deposits at Alexo-Dundonald,
the Company also sees immense potential to target and develop
large-tonnage, low-grade, ultramafic-hosted nickel deposits such as
those being developed in the Timmins area by Canada Nickel Company
(Crawford Project), EV Nickel Inc. (CarLang A Deposit) and Aston
Minerals Limited (Boomerang Project).”
Table 1. Mineral Resource Statement for the 2024
Alexo North Indicated and Inferred Resource Estimate.
Alexo NorthResource Category |
Tonnage(t) |
Grade |
Contained Metal |
Ni(%) |
Cu(%) |
Co(%) |
NiEq(%) |
NSR(C$/t) |
Ni(klbs) |
Cu(klbs) |
Co(klbs) |
Open Pit ($52.5/t NSR COG) |
Indicated |
35,100 |
0.98 |
0.11 |
0.04 |
1.08 |
205.87 |
759 |
83 |
33 |
Inferred |
500 |
0.32 |
0.04 |
0.02 |
0.36 |
68.04 |
3 |
0 |
0 |
|
Underground (C$96/t NSR COG) |
Indicated |
7,500 |
0.63 |
0.08 |
0.03 |
0.70 |
133.71 |
105 |
12 |
5 |
|
Total Open Pit and Underground |
Indicated |
42,600 |
0.92 |
0.10 |
0.04 |
1.02 |
193.09 |
864 |
95 |
38 |
Inferred |
500 |
0.32 |
0.04 |
0.02 |
0.36 |
68.04 |
3 |
0 |
0 |
|
|
|
|
|
|
|
|
|
|
Notes to Table 1:(1) The
independent Qualified Person for the MRE, as defined by NI 43-101,
is Mr. Simon Mortimer (FAIG #4083) of Atticus Geoscience Consulting
S.A.C., working with Caracle Creek International Consulting Inc.
The effective date of the MRE is 21 May 2024.(2) Mineral Resources
are not Mineral Reserves and do not have demonstrated economic
viability.(3) The estimate of Mineral Resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues.(4) The
Inferred Mineral Resource in this estimate has a lower level of
confidence than that applied to an Indicated Mineral Resource and
must not be converted to a Mineral Reserve. It is reasonably
expected that the majority of the Inferred Mineral Resource could
be upgraded to an Indicated Mineral Resource with continued
exploration.(5) The Mineral Resources were estimated following the
2019 CIM Estimation of Mineral Resources & Mineral Reserves
Best Practice Guidelines prepared by the CIM Mineral Resource &
Mineral Reserve Committee and the 2014 CIM Definition Standards for
Mineral Resources & Mineral Reserves prepared by the CIM
Standing Committee on Reserve Definitions.(6) Geological and block
models for the MRE used core assays (559 samples from 2021
drilling) and data and information from 181 surface diamond drill
holes (29 from Class 1 Nickel and 152 historical). The drill hole
database was validated prior to resource estimation and QA/QC
checks were made using industry-standard control charts for blanks,
core duplicates and commercial certified reference material
inserted into assay batches by Class 1 Nickel.(7) The block model
was prepared using Micromine 2020. A 6 m x 6 m x 6 m block model
was created, with sub blocks to 0.5 m x 0.5 m x 0.5 m. Drill
composites of 1.0 m intervals were generated within the estimation
domains, and subsequent grade estimation was carried out for Ni, Cu
and Co using Ordinary Kriging interpolation method.(8) Grade
estimation was validated by comparison of input and output
statistics (Nearest Neighbour and Inverse Interpolation methods),
swath plot analysis, and by visual inspection of the assay data,
block model, and grade shells in cross-sections.(9) As a reference,
the average estimated density value (specific gravity) within the
mineralised domain is 2.91 g/cm3 (t/m3).(10) Estimates have been
rounded to 3 significant figures for Indicated resources and 2
significant figures for Inferred resources.(11) The historical open
pit mined areas were removed from the MRE and the MRE considers a
geological dilution of 5% and a mining recovery of 95%.(12) US$
metal prices of $8.00/lb Ni, $3.25/lb Cu, $13.00/lb Co were used in
the NSR calculation with respective process recoveries of 85%, 70%,
and 80%; gold, platinum and palladium are not considered in the
current NSR calculation.(13) Pit constrained Mineral Resource NSR
cut-off considers processing, and G&A costs, applying a factor
of 5% for mining dilution, that respectively combine for a total of
(($45.00 + $5.00) * (1 + 5%)) = C$52.5/tonne processed.(14)
Out-of-pit Mineral Resource (underground) NSR cut-off considers ore
mining, processing, and G&A costs that respectively combine for
a total of ($46.00 + $45.00 + $5.00) = C$96.0/tonne processed.(15)
The out-of-pit Mineral Resource grade blocks were quantified above
the $96.0/t cut-off, below the constraining pit shell and within
the constraining mineralized wireframes. Additionally, only groups
of blocks that exhibited continuity and reasonable potential stope
geometry were included. All orphaned blocks and narrow strings of
blocks were excluded. The long-hole stoping with backfill mining
method was assumed for the out-of-pit (underground) MRE
calculation.(16) The NSR calculation is as follows: NSR C$/t =
((Ni% x 199.89) + (Cu% x 66.87) +(Co% x 305.71)) x 95%.(17) The
NiEq% calculation is as follows: NiEq% = (Ni% x 1) + (Cu% x 0.33) +
(Co% x 1.53).
Table 2. Mineral Resource Statement for the 2024
Alexo South Indicated and Inferred Resource Estimate.
Alexo SouthResource Category |
Tonnage(t) |
Grade |
Contained Metal |
Ni(%) |
Cu(%) |
Co(%) |
NiEq(%) |
NSR(C$/t) |
Ni(klbs) |
Cu(klbs) |
Co(klbs) |
Open Pit ($52.5/t NSR COG) |
Indicated |
275,000 |
0.58 |
0.02 |
0.02 |
0.62 |
123 |
3,490 |
133 |
133 |
|
Underground (C$96.0/t NSR COG) |
Indicated |
297,000 |
0.65 |
0.03 |
0.02 |
0.69 |
139 |
4,240 |
190 |
157 |
Inferred |
130,000 |
0.54 |
0.03 |
0.02 |
0.58 |
116 |
1,500 |
75 |
52 |
|
Total Open Pit and Underground |
Indicated |
572,000 |
0.61 |
0.03 |
0.02 |
0.66 |
131 |
7,730 |
323 |
290 |
Inferred |
130,000 |
0.54 |
0.03 |
0.02 |
0.58 |
116 |
1,500 |
75 |
52 |
|
|
|
|
|
|
|
|
|
|
Notes to Table 2:(1) The
independent Qualified Person for the MRE, as defined by NI 43-101,
is Mr. Simon Mortimer (FAIG #4083) of Atticus Geoscience Consulting
S.A.C., working with Caracle Creek International Consulting Inc.
The effective date of the MRE is 19 April 2024.(2), (3), (4) and
(5) refer to Notes to Table 1.(6) Geological and
block models for the MRE used core assays (2,254 samples from 2021
drilling and 178 samples from 2024 in-fill core sampling) and data
and information from 181 surface diamond drill holes (29 from Class
1 Nickel and 152 historical). The drill hole database was validated
prior to resource estimation and QA/QC checks were made using
industry-standard control charts for blanks, core duplicates and
commercial certified reference material inserted into assay batches
by Class 1 Nickel.(7) The block model was prepared using Micromine
2020. A 6 m x 6 m x 6 m block model was created, with sub blocks to
0.5 m x 0.5 m x 0.5 m. Drill composites of 1.0 m intervals were
generated within the estimation domains, and subsequent grade
estimation was carried out for Ni, Cu and Co using Ordinary Kriging
interpolation method.(8) refer to Notes to Table
1.(9) As a reference, the average estimated density value
(specific gravity) within the mineralised domain is 2.89 g/cm3
(t/m3).(10), (11), (12), (13), (14), (15), (16), and (17) refer to
Notes to Table 1.
Class 1 Nickel completed its Phase 1 diamond
drilling program on the Alexo-Dundonald Nickel Project (“A-D
Project”) in 2021, with 6,396 m in 33 holes (683 core samples)
completed at Alexo North. The updated MRE combines the new drill
hole data with historical drilling (3,942.20 m in 29 holes)
completed on the A-N Deposit by previous operators including the
most recent drilling by Canadian Arrow (2,581.40 m in 27 drill
holes, 2004).
A cross-section view of the current MRE and
optimized pit shell is provided in Figure 2. Grade-Tonnage Curves
for the open pit and out-of-pit resources are provided in Figure 3
and Figure 4, respectively. Various views of the Alexo North MRE
are also shown in Figures 5, 6 and 7.
Figure 1. Location of the Alexo-Dundonald Nickel
Project in the Timmins Mining Camp, Ontario and the location of the
4 nickel sulphide deposits including the Alexo North and Alexo
South nickel deposits.
The updated MRE for the A-N Deposit was
completed by Caracle Creek Chile SpA (“Caracle”) and their
strategic partner Atticus Geoscience Consulting Ltd. (“Atticus”)
(together the “Consultants”). This MRE replaces the 2020 mineral
resource estimate completed by P&E Mining Consultants Inc.
(Stone et al., 2020) which is filed on SEDAR+. The current MRE has
been completed in accordance with National Instrument 43-10
(“NI-43-101”), and a technical report in support the MRE will be
filed on SEDAR+ within 45 days from the date of this news
release.
As stated in the Company’s recent news releases
dated 18 April and 24 April 2024, the primary objectives of the
Company are to expand known mineralization and resources at its 4
existing magmatic nickel sulphide deposits within the
Alexo-Dundonald Nickel Project.
Furthermore, the Company will be launching an
exploration program to examine the as yet underexplored areas of
the Project including the numerous nickel sulphide occurrences that
exist outside of the known deposit areas. Much of this exploration
will be guided by recently completed airborne geophysics and
historical drilling, with new ground geophysics and remote sensing
surveys being planned.
Figure 2. Cross-sectional view (looking
northwest) through the Alexo North Deposit showing the C$/t NSR
value distribution in each block and the trace of the optimized
open pit shell with the Indicated in-pit resources.
Figure 3. Grade-tonnage curve (C$/t NSR cut-off
grade) for the pit constrained mineral resources
that define the Alexo North nickel sulphide deposit.
Figure 4. Grade-tonnage curve (C$/t NSR cut-off
grade) for the out-of-pit (underground) mineral
resources that define the Alexo North nickel sulphide
deposit.
Figure 5. Plan map of the Alexo North MRE
showing historical drill hole traces (red), 2021 Class 1 drill hole
traces (blue), the pit optimized shell (grey), and Indicated (IND)
and Inferred (INF) mineralized blocks.
Figure 6. Plan map of the Alexo North MRE
showing historical drill hole traces (red), 2021 Class 1 drill hole
traces (blue), the pit optimized shell (grey), and C$/t NSR
categorized mineralized blocks.
Figure 7. Cross-section of the Alexo North MRE
(looking northeast) showing historical drill hole traces (red),
2021 Class 1 drill hole traces (blue), the pit optimized shell
(grey), and Indicated (IND) and Inferred (INF) mineralized blocks
with the Indicated in-pit resources.
Deposit Types and Project
Potential
In addition to the high-grade nickel sulphide
(>1.0% Ni) potential we see at Alexo-Dundonald, immense
potential exists to target and develop large tonnage, low-grade
komatiite-hosted deposits such as those being developed in the
Timmins area by Canada Nickel Company (Crawford Project), EV Nickel
Inc. (CarLang A Deposit) and Aston Minerals Limited (Boomerang
Project). The Company is currently planning a targeted diamond
drilling program to outline this deposit type within the
Alexo-Dundonald Project.
This two-pronged approach – develop
“traditional” high-grade nickel sulphide resources and in parallel
large-tonnage, low grade nickel deposits – brings together the best
of both nickel deposit types which are actively and aggressively
being explored for and developed within the Timmins Mining
Camp.
Core Handling, Assay and QA/QC
Procedures
After visually logging the NQ-size drill core
from the 2021 Class 1 Nickel diamond drilling program (Alexo North
Deposit), drill core was cut in half at the core logging and
cutting facility with one half of the core bagged and the other
half saved in the core tray and put into secure storage. The core
samples were transported to either AGAT Laboratories of
Mississauga, Ontario (“AGAT”) or ALS Laboratory in Timmins, Ontario
(“ALS”). Samples, along with certified standards and blanks,
included by the Company for quality assurance and quality control,
were prepared and analyzed at AGAT and ALS. Samples were prepped
using industry standard procedures and analyzed for nickel, copper,
cobalt and sulphur. Analytical methods employed consisted of
four-acid digest followed by sodium peroxide fusion and ICP-OES
finish for multi-element analysis (including Ni, Cu, Co and S);
fire-assay collection and ICP-OES finish for palladium, platinum
and gold; and nickel collection fire assay and ICP-MS finish for
the platinum-group elements, including rhodium.
Alexo-Dundonald Nickel
Project
The Alexo-Dundonald Nickel Project (“A-D
Project”), is located about 45 km northeast of the City of Timmins,
Ontario, covers an area of approximately 1,895 hectares (18.95
km2), and was acquired by the Company in September 2018. The A-D
Project includes four foundation nickel deposits (Alexo North and
South and Dundonald North and South) of which the Alexo North and
Alexo South (aka Kelex) were small-scale past producers of
relatively high-grade nickel (i.e., 1957; 2004-2005). The deposits
are located on a near-continuous folded komatiite-ultramafic rock
sequence that extends for at least 14 km within the Property and
which has never been systematically explored. The four mineral
resources are open at depth and along strike and could increase in
size with additional drilling (see Company news releases dated 18
April and 24 April 2024).
Qualified Persons
The Qualified Person for the Alexo North Mineral
Resource Estimate reported herein and as defined by NI 43-101, is
Mr. Simon Mortimer (FAIG #4083), Principal Geoscientist at Atticus
Geoscience Consulting, working with Caracle Creek International
Consulting Inc. All other technical information and data in this
news release has been reviewed and approved by Dr. Scott
Jobin-Bevans (P.Geo., PGO #0183), a geological consultant to the
Company, and a Qualified Person under the definitions established
by NI 43-101.
About Class 1 Nickel
Class 1 Nickel and Technologies Limited (CSE:
NICO | OTCQB: NICLF) is a Mineral Resources Company focused on the
exploration and development of its 100% owned komatiite-hosted
nickel sulphide projects: the Alexo-Dundonald Project, neat
Timmins, Ontario (4 nickel sulphide deposits) and the Somanike
Project, near Val-d’Or, Quebec (includes the historical Marbridge
Ni-Cu Mine). Both projects comprise extensive property packages
covering past-producing nickel mines, offering near-term production
opportunity and excellent exploration upside.
Class 1’s current focus is to continue
brownfield and greenfield exploration on its large property
packages to aggregate additional nickel resources and in parallel
look to advance the A-D Project back into production. The A-D
Project sits on a 14+ km strike-length, folded komatiite unit
containing several nickel-copper-cobalt and PGE mineral resources
plus numerous underexplored sulphide occurrences. Decades of
successful capital expenditure and investment into the Project has
resulted in the discovery and delineation of four main nickel
Mineral Resources that occur along the folded komatiite unit. The
A-D Project was previously mined via a direct-shipping model, and
the Company will soon commence a Preliminary Economic Assessment
(PEA) study to determine the best path forward.
In addition, the Company also holds 100%
interest in its River Valley PGE Project located about 65 km
northeast of the City of Sudbury, the world’s largest and longest
operating nickel-copper-cobalt-PGE mining camp. See the Company’s
news release dated 13 December 2023 for additional information.
For more information, please contact:
Mr. David Fitch, President & CEOT: +61.400.631.608E:
info@class1nickel.com
For additional information please visit our website
at www.class1nickel.com and our Twitter
feed: @Class1Nickel.
Neither the Canadian Securities Exchange nor its
regulation services provider has reviewed or accepted
responsibility for the adequacy or accuracy of this press
release.
This news release contains forward-looking
information which is not comprised of historical facts.
Forward-looking information is characterized by words such as
“plan”, “expect”, “project”, “intend”, “believe”, “anticipate”,
“estimate” and other similar words, or statements that certain
events or conditions “may” or “will” occur. Forward-looking
information involves risks, uncertainties and other factors that
could cause actual events, results, and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to, changes in the state of equity and debt markets,
fluctuations in commodity prices, delays in obtaining required
regulatory or governmental approvals, and other risks involved in
the mineral exploration and development industry, including those
risks set out in the Company’s management’s discussion and analysis
as filed under the Company’s profile at www.sedarplus.ca.
Forward-looking information in this news release is based on the
opinions and assumptions of management considered reasonable as of
the date hereof, including that all necessary governmental and
regulatory approvals will be received as and when expected.
Although the Company believes that the assumptions and factors used
in preparing the forward-looking information in this news release
are reasonable, undue reliance should not be placed on such
information. The Company disclaims any intention or obligation to
update or revise any forward-looking information, other than as
required by applicable securities laws.
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