Nickel Rock Resources Completes Expansion of the Hard Nickel Project West of the Decar Nickel Project of FPX Nickel Corp.
Nickel Rock Resources Completes Expansion of the Hard Nickel Project
West of the Decar Nickel Project of FPX Nickel Corp.
February 2, 2021: Vancouver, BC, Canada; Nickel Rock Resources Inc. (“the Company”) TSXV:
NICL, OTCQB: NICKLF is pleased to announce it has entered into an Option Agreement with arms-
length vendor 802213 AB Ltd (Kelly Funk) for the purchase of a 100% interest, subject to a 2% NSR,
in 6 mineral claims located approximately 15 km west of Mt Sydney Williams near Fort St James, BC.
Additionally, the Company located two adjoining claims by title selection. Combined, the acquisition
of 8 additional claims has increased the Company’s prospective land position west of the Decar nickel
deposit owned by FPX Nickel Corp from 1,151 to 4,146 hectares. The Company will control a 100%
interest in over 13,704 hectares in the district.
Importantly, the additional claims overlie a 15 km long magnetic high trend underlain by similar
geology as the Decar nickel deposit. In 2011-2012, an airborne magnetic and EM survey with
accompanying geophysical modeling was completed over the property. A 2012 field program
confirmed the presence of serpentinized ultramafic rocks within the area of the additional claims.
Eight rock samples taken from this area yielded highly elevated values of nickel, cobalt, and
chromium. Seven of these eight rock samples yielded elevated values of nickel in the magnetic
fractions of these samples indicated by Davis Tube analyses, suggesting the presence of the nickel-
iron alloy mineral awaruite. However, no mineralogy was completed on the samples to confirm the
presence of awaruite. (source: BC ARIS report - 33690Geochemical and Physical Work Report on the
MAC Property -2012 for Stratton Resources Inc.). Field work programs including prospecting and
rock sampling on the additional claims are planned as part of the 2021 field program on the Hard
Nickel Project. See location map (Nickel Rock Expansion).
Terms of the Acquisition
Date Cash
Payments
Dollar Value of
Shares to be Issued
Mining Work
Upon signing the
agreement
$50,000 N/A N/A
Upon Exchange
approval
N/A $225,000 N/A
1st Anniversary date of
the effective date
$75,000 $225,000 Completion of $100,000 in
year 1
2nd Anniversary date
of the effective date
$100,000 $250,000 Completion of $150,000 in
year 2
3rd Anniversary date of
the effective date
$150,000 $300,000 Completion of $300,000 in
year 3
4th Anniversary date of
the effective date
$200,000 $500,000 Completion of $500,000 in
year 4
Upon conversion of the
claims to a mining lease
$500,000 $1,500,000 N/A
Nickel Rock Resources Inc.
1220 – 789 West Pender Street
Vancouver, BC, Canada V6C 1H2
604- 428-5690
www.nickelrockresources.com
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On commencement of commercial production, a 2% NSR Royalty will be payable to the Optionor.
Nickel Rock retains the option to purchase one-half of the NSR (being one-half of the 2%) for the sum
of $3 million dollars.
The Agreement is subject to TSX Venture Exchange (“Exchange”) approval and all securities issued
in connection with transaction will be subject to a four month and a day hold period in accordance
with applicable securities laws.
About the Hard Nickel Project
The subject claims are partially underlain by rocks like those hosting the Decar project of FPX Nickel
where mineralization includes nickel, cobalt, and chromium. Previous exploration suggests that at
least some of the nickel mineralization occurs as awaruite which is a naturally occurring nickel-iron
alloy important in the manufacture of environmentally efficient batteries for the electric vehicle
markets globally. The mineral awaruite is both highly magnetic and very dense and is therefore
amenable to concentration by mechanical processes including magnetic and gravity separation. This
style of deposit is unique and presents considerable metallurgical and processing cost saving
advantages.
Significantly, the awaruite found is found in a serpentinized ultramafic rock. In 2018, G. Dipple at the
University of British Columbia began the Geoscience BC funded research project “Carbon
Mineralization Potential Assessment for BC” scheduled for completion in early 2021. In late 2020 a
preliminary assessment report was published. One of the key items from the report was “The use of
reactive serpentinite tailings from nickel mining as a carbon sink has the potential to make nickel
mining carbon neutral or a net carbon sink.” The presence of serpentinized ultramafic rocks has been
repeatedly documented in the areas covered by the claims of the Nickel Rock Projects, as well as at
FPX Nickel Corp.’s Decar Project (Dipple, G. et.al., Geoscience BC Report 2020-15). The funds to be
received from our flow through financing are earmarked for detailed exploration programs on our
two very prospective nickel projects in British Columbia and will start as soon as weather permits.
The Company has seen the commodity spot price for nickel to be in a steady uptrend while world
stockpiles have been on the decline and EV manufacturers are calling for more supply of nickel
because nickel quantities are increasing in batteries as they increase the amount of charge a battery
can hold, thus allowing the EV’s to travel greater distances. One such company is Tesla Inc. (NASDAQ:
TSLA), the world’s leading EV manufacturer. Tesla’s Founder, Elon Musk, stated that a large
contract would be signed if a company could produce nickel with a lowered carbon footprint
by using more environmentally friendly ways of mining. His comments made waves in the nickel
space and several juniors have benefited from his comments and surged 2 to 3 times their value.
Clayton Valley Project, Silver Peak, Nevada
The Company is exploring for lithium clays and brines within its project area of 118 claims covering
over 930 hectares (2,300 acres). The property stretches in a northwest direction from the
evaporation ponds of Albemarle Corporation NYSE: ALB. It has been widely reported that Albemarle
is planning to double its lithium production by 2025 by committing between US$30 million and
US$50 million in additional investment on the property. In 2021, Albemarle plans to commence
exploration of clay and evaluate technology that could accelerate the viability of lithium production
from clay resources in the region.
Clayton Valley lithium mineralization occurs both in brine and in montmorillonite clays within
sediments to a depth of over 150 meters. Recent metallurgical testing indicates low-cost processing
can be achieved by leaching with low acid consumption (125 kg/t) resulting in lithium recoveries of
over 85%. These high extractions prove the dominant lithium-bearing minerals present are not
hectorite, a refractory clay mineral which requires roasting and/or high acid consumption to liberate
the lithium. Testing by other companies on their lithium clay properties, including Lithium Americas
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(Thacker Pass Project, Nevada), Bacanora Minerals (Sonora Project, Mexico), Ioneer (Rhyolite Ridge
Project) and Cypress Development (Clayton Valley Project) have all indicated that economic
extraction of the lithium may well be possible.
Qualified Person
Jacques Houle, P.Eng., a qualified person as defined by NI 43 - 101, is responsible for the technical
information contained in this release. Readers are cautioned that the information in this press release
regarding the property of FPX Nickel Corp is not necessarily indicative of the mineralization on the
property of interest.
About Nickel Rock Resources Inc. www.nickelrockresources.com
The Company is a Canadian-based mineral exploration company active in the exploration for the
nickel-iron alloy awaruite in British Columbia and lithium in Nevada. Nickel Rock Resources Inc. is a
Canadian based exploration company whose primary listing is on the TSX Venture Exchange. The
Company’s maintains a focus on exploration for high value battery metals required for the electric
vehicle (EV) market.
On Behalf of the Board of Directors
“Robert Setter”
Robert Setter, President & CEO
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. This news release
may contain forward-looking statements which include, but are not limited to, comments that involve future
events and conditions, which are subject to various risks and uncertainties. Except for statements of historical
facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and
security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking
statements are not guarantees of future performance and actual results may vary materially from those
statements. General business conditions are factors that could cause actual results to vary materially from
forward-looking statements.