First Atlantic Nickel Starts Phase 2 Drilling to Expand New Nickel Discovery at RPM Zone in District-Scale Atlantic Nickel Project
First Atlantic Nickel Starts Phase 2 Drilling to Expand New Nickel Discovery at RPM
Zone in District-Scale Atlantic Nickel Project
Vancouver, British Columbia – May 7, 2025 – First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB:
FANCF) (FSE: P21) (“First Atlantic” or the “Company”) is excited to announce the commencement of
Phase 2 drilling at the RPM Zone on its 100% -owned Atlantic Nickel Project in Newfoundland. The
upcoming drilling will build on the significant awaruite discovery at the RPM Zone, where all four initial
drill holes intersected visibly disseminated awaruite throughout their entire lengths, terminating in
mineralization and remaining open in all directions. Phase 2 is designed to expand the RPM Zone
through targeted step-out drilling, aiming to extend the mineralized strike length beyond the 400 meters
(north-south) and the lateral width beyond 500 meters (east-west). Assay results for the fourth RPM drill
hole from Phase 1 (AN -24-05) are pending. Davis Tube Recoverable (DTR) metallurgical test results
for RPM holes three and four (AN-24-04 and AN-24-05) are also anticipated soon. In addition to drilling
at the RPM Zone, the Phase 2 program will include prospecting ac ross the Company’s district -scale,
30-kilometer-long ultramafic ophiolite trend. These efforts are intended to identify new awaruite nickel
targets and further unlock the district potential of the Atlantic Nickel Project.
Awaruite (Ni₃Fe), composed of 75% nickel and 25% iron, is a naturally occurring sulfur-free nickel-iron
alloy mineral with unique metallurgical properties that provides substantial processing advantages.
Unlike conventional nickel laterite and sulfide minerals, awaruite occurs in a native metallic state
eliminating the need for secondary processing techniques such as energy-intensive smelting, roasting,
or high-pressure acid leaching which is typically required for reduction and sulfur removal. This
substantially lowers electricity demand during processing. As a result, awaruite enables a lower carbon
footprint and represents a strategic, large-scale nickel source suitable for simple domestic processing.
Highlights:
● Phase 2 - RPM Drilling Underway: Step -out drilling has begun in order to expand the 400 x
500 meter mineralized footprint of the RPM Zone. The program targets high priority areas to the
north (Pipestone Pond), east (Chrome Pond), and west (adjacent fault zone), with the objective
of outlining an area that could contain over one billion tonnes of mineralization.
● Significant RPM Zone Discovery: Phase 1 drilling intersected large-grain, visibly disseminated
awaruite, yielding consistent grades averaging ~0.24% nickel. Davis Tube Recovery (DTR)
metallurgical testing produced a magnetic concentrate yielding an average grade of ~1.35%
nickel with an average ~9.5% mass pull. The average magnetically recoverable nickel grade was
~0.12%, ranging from 0.10% to 0.16%.
● Phase 2 - District Exploration: The Phase 2 program also includes regional prospecting across
the Company’s 30 -kilometer-long ultramafic ophiolite complex, targeting additional awaruite
outcrops to identify new high-priority drill targets within the 30 km nickel trend.
● Increased Drilling Capabilities: New road access and the deployment of a more powerful drill
rig equipped for HQ/NQ core sizes will significantly enhance drilling speed, depth capacity, and
cost efficiency, enabling deeper and faster exploration across priority targets.
For further information, questions, or investor inquiries, please contact Rob Guzman at First
Atlantic Nickel by phone at +1-844-592-6337 or via email at [email protected]
"We are thrilled to launch Phase 2 drilling at the RPM Zone, where Phase 1 results confirmed a
substantial awaruite-hosted nickel discovery with excellent metallurgical characteristics," said Adrian
Smith, CEO of First Atlantic. "The DTR metallurgical results returned high grade nickel concentrates
and strong magnetically recoverable nickel values. Combined with consistent nickel grades and large
grain size, these results highlight the RPM Zone as an exciting new nickel discovery that would avoid
energy-intensive smelting or roasting in its processing. With improved project infrastructure and a more
powerful drill rig now in place, we are well positioned to rapidly expand this zone and explore new targets
across our 30 -kilometer ophiolite trend. This marks an important step toward realizing our vision of
establishing a world-class, environmentally sustainable nickel district."
PHASE 2 DRILLING PROGRAM
The Phase 2 drilling program at the RPM Zone is designed to expand upon the 400 x 500 meter
mineralized area defined by the first four holes from the Phase 1 campaign. Step-out drilling will target
extensions to the north towards the Pipestone Pond target, where abundant visible awaruite was
observed during the Fall 2024 program, to the east towards the Chrome Pond target, and west into the
fault zone. Notably, Phase 1 drilling in this western area intersected 0.27% nickel with 0.15%
magnetically recoverable nickel (DTR Ni%) over the final 21 meters of hole AN -24-03. The program’s
objective is to delineate a large- scale nickel system with the potential to host in excess of one billion
tonnes of mineralized material. The onset of unseasonably wet conditions during the transition from
winter to spring at the Atlantic Nickel Project delayed the start of Phase 2 drilling. With the spring melt-
thaw now complete, site conditions have improved and support full vehicular and drilling operations. The
deployment of a m ore powerful drill rig, equipped with combined HQ and NQ core sizes, will enable
deeper drilling, improve operational efficiency, accelerate progress and reduce overall operational costs.
In parallel, the Company is conducting systematic prospecting across its 30-kilometer-long ultramafic
ophiolite trend. This effort is focused on identifying additional awaruite outcrops and potentially
generating new high-priority drill targets that could expand the regional exploration potential.
Figure 1: Images from the Phase 2 Drilling program start-up at the Atlantic Nickel Project, showing the
drill being set up at a new drill site location near the RPM Zone for step-out hole drilling.
Figure 2: Phase 2 drilling plan map highlighting the RPM drilling zone area (circled in green), showing
the Phase 1 discovery hole locations, which defined mineralization over at least a 400- meter by 500-
meter area and remains open for expansion in multiple directions.
PHASE 1 RESULTS
Phase 1 drilling at the RPM Zone of the Atlantic Nickel Project confirmed a significant awaruite -hosted
nickel discovery. Four drill holes defined a mineralized zone measuring approximately 400 meters in
strike length (north-south) and 500 meters in width (east -west). Drilling intersected large-grain, visibly
disseminated awaruite with consistent nickel grades and strong metallurgical results. DTR results
demonstrated the potential for magnetic separation as a low energy and environmentally responsible
processing method for awaruite mineralization. Assay results for the fourth RPM Zone drill hole from
Phase 1 (AN-24-05) are pending. DTR metallurgical test results for holes three and four (AN-24-04 and
AN-24-05) are also anticipated soon.
Below is a summary of the assay and DTR metallurgical results from the Phase 1 drill holes at the RPM
Zone:
RPM Hole From
(m)
To
(m)
Intersection
Width (m)
Nickel Grade
(% Ni)
Magnetic
Concentrate
Grade (% Ni)
Mass Pull
(%)
Magnetically
Recoverable
Nickel
(DTR % Ni)
AN-24-02 11 394 383.1 0.24 1.37 9.5 0.13
AN-24-03 18 234 216 0.25 1.32 9.12 0.11
AN-24-04 0 366 366 0.23 Pending Pending Pending
AN-24-05 0 402 402 Pending Pending Pending Pending
Table 1: Summary of the assay and DTR metallurgical results from the Phase 1 drill holes at the RPM
Zone. Note DTR results for AN-24-04 and AN-24-05 are still pending.
Figure 3: DTR results from Phase 2 drilling, illustrating average magnetic concentrate grades over the
entire length of each drill hole.
Corporate Update
The Company is pleased to announce that it has entered into a definitive agreement dated May 6, 2025
(the “Purchase Agreement”) with a group of arm’s length parties (the “Vendors”) to acquire a 100%
interest in eight mineral licenses (the “Licenses”) totaling approximately 3,350 hectares, strategically
located around the Company’s Atlantic Nickel Project in central Newfoundland in the Cold Spring Pod
and Coy Pond areas. Exploration conducted by Altius Minerals (NFLD/3236.pdf) in these areas returned
elevated magnetically recoverable nickel values (DTR Ni%). As consideration, the Company will issue
an aggregate of 1,000,000 common shares to the Vendors at a deemed price of $0.205 per share (the
“Consideration Shares”). The Licenses are subject to a 2% net smelter return (“NSR”) royalty. The
Company retains the right to repurchase 1% of the NSR royalty ( i.e., half of the total royalty) for $1
million at any time prior to the commencement of commercial production from the property.
The Company also announces that it has entered into a settlement agreement with a former consultant
(the “Creditor”) to resolve outstanding obligations totaling $202,950, related to accounting services
provided under a consulting agreement dating back to 2017. Pursuant to the terms of the settlement,
the Company has agreed to make a cash payment of $50,000 and issue 312,500 common shares to
the Creditor at a deemed price of $0.32 per share (the “Settlement Shares”) in full satisfaction of the
debt. The Sett lement Shares will be released in three equal tranches over a 12 -month period. The
completion of the acquisition and the issuance of the Consideration Shares and Settlement Shares are
subject to approval by the TSX Venture Exchange. All securities issued will be subject to a statutory
hold period of four months and one day from the date of issuance, in accordance with applicable
Canadian securities laws. No finders’ fees are payable in connection with the Purchase Agreement.
Awaruite (Nickel-iron alloy Ni₂Fe, Ni₃Fe)
Awaruite, a naturally occurring sulfur -free nickel -iron alloy composed of Ni ₃Fe or Ni ₂Fe with
approximately ~75% nickel content, offers a proven and environmentally safe solution to enhance the
resilience and security of North America's domestic critical minerals supply chain. Unlike conventional
nickel sources, awaruite can be processed into high-grade concentrates exceeding 60% nickel content
through magnetic processing and simple floatation without the need for smelting, roasting, or high-
pressure acid l eaching1. Beginning in 2025, the US Inflation Reduction Act's (IRA) $7,500 electric
vehicle (EV) tax credit mandates that eligible clean vehicles must not contain any critical minerals
processed by foreign entities of concern (FEOC) 2. These entities include Russia and China, which
currently dominate the global nickel smelting industry. Awaruite's smelter -free processing approach
could potentially help North American electric vehicle manufacturers meet the IRA's stringent critical
mineral requirements and reduce dependence on FEOCs for nickel processing.
The U.S. Geological Survey (USGS) highlighted awaruite's potential, stating, "The development of
awaruite deposits in other parts of Canada may help alleviate any prolonged shortage of nickel
1 https://fpxnickel.com/projects-overview/what-is-awaruite/
2 https://home.treasury.gov/news/press-releases/jy1939
concentrate. Awaruite, a natural iron- nickel alloy, is much easier to concentrate than pentlandite, the
principal sulfide of nickel"3. Awaruite's unique properties enable cleaner and safer processing compared
to conventional sulfide and laterite nickel sources, which often involve smelting, roasting, or high-
pressure acid leaching that can release toxic sulfur dioxide, generate hazardous waste, and lead to acid
mine drainage. Awaruite's simpler processing, facilitated by its amenability to magnetic processing and
lack of sulfur, eliminates these harmful methods, reducing greenhouse gas emissions and risks
associated with toxic chemical release, addressing concerns about the large carbon footprint and toxic
emissions linked to nickel refining.
Figure 4: Quote from USGS on Awaruite Deposits in Canada
The development of awaruite resources is crucial, given China's control in the global nickel market.
Chinese companies refine and smelt 68% to 80% of the world's nickel 4 and control an estimated 84%
of Indonesia's nickel output, the largest worldwide supply 5. Awaruite is a cleaner source of nickel that
reduces dependence on foreign processing controlled by China, leading to a more secure and reliable
supply for North America's stainless steel and electric vehicle industries.
3 https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf
4 https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf
5 https://web.archive.org/web/20250417033842/https://www.airuniversity.af.edu/JIPA/Display/Article/3703867/the-rise-of-great-mineral-powers/