EV Nickel Announces Completion of NI 43-101 Technical Report for Previously Announced Updated Resource Estimate on the High- Grade W4 Deposit
EV Nickel Announces Completion of NI 43-101 Technical Report
for Previously Announced Updated Resource Estimate on the High-
Grade W4 Deposit
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA OR TO US WIRE
SERVICES
• Measured + Indicated Resources of 31.3M pounds at 0.98% Ni (2.1x the 2010
historical estimate).
• Inferred Resources of 12.1M pounds at 0.98% Ni (3.6x the 2010 historical estimate).
• 72% of the W4 Deposit Mineral Resource Estimate Ni lbs are in the Measured and
Indicated categories.
• Significant resource expansion potential exists at the W4 Deposit as it is open at depth
and along plunge.
TORONTO, ON / July 26, 2023 / EV NICKEL INC. (TSXV:EVNI) ("EVNi" or the
"Company") today announced the completion of a National Instrument 43-101 technical report
("Technical Report") supporting the updated mineral resource estimate ("MRE") for the W4
Nickel Deposit ("W4 Deposit"), a High-Grade nickel deposit in the southeast of its Shaw Dome
Project (Figure 1).
The Technical Report was prepared in accordance with Canadian Securities Administrators' NI
43-101 Standards of Disclosure for Mineral Projects and Form 43-101F1 (together "NI 43-101")
and is now available on the Company's website (evnickel.com) for review and will soon be
posted to SEDAR (sedar.com), once today's SEDAR+ rollout is completed.
"The completion of this Updated Mineral Resource for our High-Grade W4 Deposit is another
major milestone for EV Nickel," said Sean Samson, President & CEO. "More than doubling W4's
total Measured, Indicated, and Inferred resources to over 43M pounds of nickel sets up our two-
track strategy of defining near surface, High-Grade nickel resources and combining them with
the Large-Scale projects in the Shaw Dome."
"The W4 Nickel Deposit is an excellent example of the High-Grade nickel potential of the Shaw
Dome Project," said Paul Davis, Vice President Exploration. "The Shaw Dome has many
analogies with the Kambalda District of Western Australia including the host rocks, sulphur
sources and the clustering of High-Grade nickel deposits along defined stratigraphic horizons.
The Shaw Dome has to be considered one of the top prospects in the world to host additional
High-Grade nickel as demonstrated by the current and historical exploration success. I am
confident with additional exploration, that more High-Grade nickel deposits will be defined
within the EVNI property."
EVNi completed diamond drilling on the W4 Nickel Deposit between 2021 and 2023, combing
this new data with historical drilling completed on the Langmuir W4 Zone by Golden Chalice
Resources (see Technical Report filed on SEDAR dated April 12, 2021) to complete an updated
MRE in accordance with NI 43-101. The updated MRE reports Measured Resources of 0.49Mt
or 11.5M pounds of contained nickel, Indicated Resources of 0.96Mt or 19.7M pounds of
contained nickel, and Inferred Resources of 0.56Mt or 12.1M pounds of contained nickel (Table
1). This Updated MRE was modeled to ~500 m from surface while the 2010 historical resource
estimate was to ~400 m from surface. The W4 Nickel Deposit remains open at depth and along
plunge.
Table 1 - Current Mineral Resource Estimate for the W4 Nickel Deposit, Shaw Dome
Project, Ontario.
Notes to Table 1:
1. The independent Qualified Person for the MRE, as defined by NI 43-101, is Mr. Simon
Mortimer, (FAIG #7795) of Atticus Geoscience Consulting S.A.C., working with Caracle
Creek International Consulting Inc. The effective date of the MRE is June 9, 2023.
2. These Mineral Resources are not Mineral Reserves as they do not have demonstrated
economic viability. The quantity and grade of reported Inferred Resources in this MRE
are uncertain in nature and there has been insufficient exploration to define these Inferred
Resources as Indicated. However, it is reasonably expected that the majority of Inferred
Mineral Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
3. The MRE was prepared following the CIM Estimation of Mineral Resources & Mineral
Reserves Best Practice Guidelines (November 29, 2019).
4. 3D geological modelling revealed that the mineralization exists as a single steeply
dipping continuous unit that have been faulted, thickened, and displaced along five fault
surfaces. The estimation has been carried out using "un-faulting" techniques, restoring the
mineralization within each fault block to its pre-faulted position, estimating and then
returning each block to its present location.
5. Mineralized domains were based on a combination of lithological and structural contacts
with internal boundaries based on the distribution of nickel mineralization, utilizing
thresholds of 0.2% Ni to define the Low-grade Nickel Domain and 0.5% Ni to define the
High-grade Nickel Domain.
6. Geological and block models for the MRE used core assays (1,977 samples), data and
information from 70 surface diamond drill holes (23 from EVNi and 47 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 EV Nickel Inc.
7. Estimates have been rounded to three significant figures for Measured and Indicated
categories, and two significant figures for the Inferred classification.
8. The resource estimates have been constrained by a conceptual open pit using the
following optimization parameters, as reviewed and agreed to by the QP. Metal prices
used were (US$) $8.00/lb nickel, $3.25/lb copper, $13.00/lb cobalt, $900/oz for platinum
and $1,200/oz for palladium. An overall pit slope of 50 degrees was used. Mining and
processing costs (US$) were based on benchmarking from similar deposit types in the
area, utilizing a mining cost of $3.80/t, a processing cost of $45.00/t, a G&A cost of
$5.00/t, and a selling cost of $8/lb. All resources below the conceptual pit are considered
extractable via underground mining scenarios. A cut-off grade of 0.30% Ni was applied
to the resource block model for the portion that could be extracted via open pit mining
method and a cut off grade of 0.5% Ni applied to the portion of the block model below
the optimized conceptual pit.
9. The MRE comprises nickel, cobalt, copper, platinum and palladium and considers a
calculation of nickel equivalent ("NiEq"), calculated using the metal prices (US$)
$8.00/lb nickel, $3.25/lb copper, $13.00/lb cobalt, $900/oz for platinum and $1,200/oz
for palladium, and considering recoveries of 85% for nickel, 80% for cobalt, 70% for
copper, 50% for platinum, and 50% for palladium.
10. The block model was prepared using Micromine 2020. A 3 m x 3 m x 3 m block model
was created, with sub-blocks to 1 m x 1 m x 1 m. Drill composites of 1.5 m intervals
were generated within the estimation domains, and subsequent grade estimation was
carried out for Ni, Cu, Co, Pt and Pd using Ordinary Kriging interpolation method.
11. 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.
12. Density estimation was carried out for the mineralized domains using the Ordinary
Kriging interpolation method, on the basis of 228 specific gravity measurements
collected by EVNi during the core logging process and 90 from historical reporting, using
the same block model parameters of the grade estimation. As a reference, the average
estimated density value within the mineralised domain is 2.82 g/cm3 (t/m3).
For context - equivalent number of EVs in the Resource's contained nickel
It is estimated that the average electric vehicle battery requires ~145 pounds of nickel
(Bloomberg New Energy Finance ("BNEF") estimate, for 100kWh battery1) and based on this,
the Contained Nickel in this Updated Mineral Resource Estimate represents the equivalent nickel
which would be used in roughly 300K electric vehicles.
On a Nickel Equivalent basis, the Measured & Indicated Resources of 31.3M pounds at 0.98%
Ni, works out to 33.0M NiEq pounds (2.16x the 2010 historical estimate) and the Inferred
Resources of 12.1M pounds at 0.98% Ni works out to 12.7M pounds (3.71x the 2010 historical
estimate).
Core Handling and Assay-QA/QC Procedures
Drill core samples from EVNi drilling at the W4 Nickel Deposit were cut or whole core sampled
and bagged at the core logging facility located near the Shaw Dome Project and transported to
ALS Canada Ltd. ("ALS") for analysis. Samples, along with certified standards and blanks,
included by the Company for quality assurance and quality control, were prepared and analyzed
at ALS. Samples were crushed at ALS to 70% less than 2 millimetres. A riffle split was
pulverized to 85% passing 75 microns. Nickel, copper, cobalt and sulphur are analyzed by
sodium peroxide fusion with an ICP finish and platinum, palladium and gold by fire assay and an
ICP-AES finish. These and future assay results may vary from time to time due to re‒analysis for
quality assurance and quality control purposes.
Calculation of the New Resource Payment
As part of the original consideration paid to Rogue Resources (TSX-V: RRS, "Rogue") for
vending the Langmuir Project to EVNi in 2021, Rogue is owed a future payment based on the
size of an updated new mineral resource estimate (the "New Resource Payment"). This Updated
MRE now triggers this payment by EVNi and it is due within 60 days of this Technical Report
being filed. The payment has a calculation formula, and is capped at $5,000,000, to be paid in
cash, EVNi shares, or a combination thereof to be determined by EVNi. Originally due in 2021,
Rogue amended the Langmuir Asset Purchase Agreement, granting until the end of 2023 for
EVNi to complete the Updated MRE. In exchange for this amendment, EVNi agreed to provide
Rogue with access to an advance on the New Resource Payment, and as of July 31, 2023, that
will total $375,284, including the interest due. This advance will be subtracted from the New
Resource Payment amount due.
EVNi has indicated to Rogue that it plans to settle the remaining value of the New Resource
Payment completely in shares and independent directors of both companies will be in
communication about the specifics.
About EV Nickel Inc.
EV Nickel's mission is to accelerate the transition to clean energy. It is a Canadian nickel
exploration company, focussed on the Shaw Dome Project, south of Timmins, Ontario. EV
Nickel has over 30,000 hectares to explore across the Shaw Dome and has identified >100 km of
additional favourable strike length. The Shaw Dome includes the High-Grade W4 Deposit- with
a Resource which defined 2.0M tonnes @ 0.98% Ni for 43.3M lbs of Class 1 Nickel across
Measured, Indicated and Inferred and the Large-Scale CarLang Area with more than 10km of
mineralization and where the first 20% contains the A Zone- with a Resource which defined
1.0B tonnes @ 0.24% Ni for 5.3B lbs of Class 1 Nickel across Indicated and Inferred. EV Nickel
owns the trademark for Clean Nickel and plans to grow and advance a Clean Nickel™ business,
targeting the growing demand from the electric vehicle battery sector. The Company is focused
on a 2-track strategy: Track 1- to produce High-Grade Clean Nickel™ (starting with W4) and
Track 2- an integrated Carbon Capture & Storage project with Large-Scale Clean Nickel™
production (starting with CarLang).
The Company acknowledges the financial contributions being provided by the Province of
Ontario's Critical Minerals Innovation Fund ("CMIF) and the Government of Canada through the
Industrial Research Assistance Program ("IRAP") in assisting with the implementation of EVNi's
Clean Nickel™ Research and Development Program.
Qualified Person
The Qualified Person for the MRE reported herein and as defined by NI 43-101, is Mr. Simon
Mortimer, FAIG #7795, Principal Geoscientist at Atticus Geoscience Consulting S.A.C.,
working with Caracle Creek International Consulting Inc.
The Company's Projects are under the direct technical supervision of Paul Davis, P.Geo., and
Vice-President of the Company. Mr. Davis is a Qualified Person as defined by NI 43-101. He
has reviewed and approved the technical information in this press release. There are no known
factors that could materially affect the reliability of the information verified by Mr. Davis.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking information. Such forward-looking statements or
information are provided for the purpose of providing information about management's current
expectations and plans relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes. Any such forward-looking information
may be identified by words such as "anticipate", "proposed", "estimates", "would", "expects",
"intends", "plans", "may", "will", and similar expressions. Forward-looking statements or
information are based on a number of factors and assumptions which have been used to develop
such statements and information, but which may prove to be incorrect. Although EV Nickel
believes that the expectations reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward-looking statements because the
Company can give no assurance that such expectations will prove to be correct. Factors that
could cause actual results to differ materially from those described in such forward-looking
information include, but are not limited to, changes in business plans and strategies, market
conditions, share price, best use of available cash, the ability of the Company to raise sufficient
capital to fund its obligations under various contractual arrangements, to maintain its mineral
tenures and concessions in good standing, and to explore and develop its projects and for general
working capital purposes, changes in economic conditions or financial markets, the inherent
hazards associated with mineral exploration, future prices of metals and other commodities,
environmental challenges and risks, the Company's ability to obtain the necessary permits and
consents required to explore, drill and develop its projects and if obtained, to obtain such permits
and consents in a timely fashion relative to the Company's plans and business objectives,
changes in environmental and other laws or regulations that could have an impact on the
Company's operations, compliance with such laws and regulations, the Company's ability to
obtain required shareholder or regulatory approvals, dependence on key management personnel,
natural disasters and global pandemics, including COVID-19 and general competition in the
mining industry. These risks, as well as others, could cause actual results and events to vary
significantly. The forward-looking information in this press release reflects the current
expectations, assumptions and/or beliefs of EV Nickel based on information currently available
to the Company. Any forward-looking information speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, the Company disclaims any intent
or obligation to update any forward-looking information, whether as a result of new information,
future events or results or expressly qualified by this cautionary statement.
Contact Information
For further information, visit www.evnickel.com
Or contact: Sean Samson, President & CEO at [email protected].
EV Nickel Inc.
200 - 150 King St. W,
Toronto, ON M5H 1J9
www.evnickel.com
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 of this
release.
1 https://www.bloomberg.com/news/articles/2022-03-09/electric-vehicle-push-bumps-up-
against-chaos-in-nickel-market#xj4y7vzkg
SOURCE: EV Nickel Inc.