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 South
Nickel Deposit (“A-S Deposit”) (Table 1). The A-S 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). Updates to the other 3
nickel mineral resources contained within the Project will be
completed over the coming months.
Table 1. Mineral Resource Statement for the 2024
Alexo South Indicated and Inferred Resources 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 |
275,047 |
0.58 |
0.02 |
0.02 |
0.62 |
123.38 |
3,493 |
133 |
133 |
Inferred |
0 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0 |
0 |
0 |
Total Pit Constrained |
275,047 |
0.58 |
0.02 |
0.02 |
0.617 |
123.38 |
3,493 |
133 |
133 |
|
Underground (C$96.0/t NSR COG) |
Indicated |
296,799 |
0.65 |
0.03 |
0.02 |
0.69 |
138.66 |
4,240 |
190 |
157 |
Inferred |
125,226 |
0.54 |
0.03 |
0.02 |
0.58 |
116.11 |
1,502 |
75 |
52 |
Total Out-of-Pit |
422,025 |
0.62 |
0.03 |
0.02 |
0.66 |
131.97 |
5,742 |
264 |
209 |
|
Total Open Pit and Underground Resources |
Indicated |
571,846 |
0.61 |
0.03 |
0.02 |
0.66 |
131.31 |
7,733 |
323 |
290 |
Inferred |
125,226 |
0.54 |
0.03 |
0.02 |
0.58 |
116.11 |
1,502 |
75 |
52 |
Total Resources |
697,072 |
0.60 |
0.03 |
0.02 |
0.64 |
128.58 |
9,235 |
398 |
343 |
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 19 April 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 (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) 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 2.89
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).
David Fitch, CEO of Class 1 Nickel, commented:
“After several months of detailed data compilation, geological
modelling and interpretation, we finally have what we consider to
be the first comprehensive mineral deposit model for Alexo South.
This work allows to now target for future drilling programs using
the most optimal information available with the ultimate goal of
expanding mineral resources and moving into economic studies such
as a Preliminary Economic Assessment which is planned for
2024.”
Class 1 Nickel completed diamond drilling on the
Alexo-Dundonald Nickel Project (“A-D Project”) in 2021 with 9,222 m
in 37 holes (869 samples) completed at Alexo South. The updated
mineral resource estimate combines the new drill hole data with
historical drilling (24,237 m in 184 holes) completed on the A-S
Deposit by previous operators including the most recent drilling by
Canadian Arrow (10,128 m in 105 drill holes, 2004 to 2005) and
First Nickel (985 m in 10 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 South 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.
The updated MRE was completed by Caracle Creek
Chile SpA (“Caracle”) and their strategic partner Atticus
Geoscience Consulting Ltd. (“Atticus”) (together the “Consultants”)
and this resource 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 release
dated 18 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 South Deposit showing the C$/t NSR
value distribution in each block and the trace of the optimized
open pit shell.
Figure 3. Grade-tonnage curve (C$/t NSR cut-off
grade) for the pit constrained mineral resources that define the
Alexo South nickel sulphide deposit.
Figure 4. Grade-tonnage curve (C$/t NSR cut-off
grade) for the out-of-pit (underground) mineral resources that
define the Alexo South nickel sulphide deposit.
Figure 5. Plan map of the Alexo South MRE
showing historical drill holes (red), 2021 Class 1 drill holes
(blue), the pit optimized shell (grey), and Indicated (IND) and
Inferred (INF) mineralized blocks.
Figure 6. Plan map of the Alexo South MRE
showing historical drill holes (red), 2021 Class 1 drill holes
(blue), the pit optimized shell (grey), and C$/t NSR categorized
mineralized blocks.
Figure 7. Cross-section of the Alexo South MRE
(looking northeast) showing historical drill holes (red), 2021
Class 1 drill holes (blue), the pit optimized shell (grey), and
Indicated (IND) and Inferred (INF) mineralized blocks.
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 South
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. In-fill sampling of
drill core, completed in early 2024, was assayed at ALS. These and
future assay results may vary from time to time due to re‒analysis
for quality assurance and quality control purposes.
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 release dated 18
April 2024).
Qualified Persons
The Qualified Person for the Alexo South 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 advance the A-D
Project back into production and at the same time continue
brownfield and greenfield exploration on its large property package
to aggregate additional nickel resources. 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
13 December 2023 new release 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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