First Atlantic Nickel Drills Wide Interval of Visible Disseminated Awaruite Nickel at Super Gulp Target, New Discovery 16 km South of Historical Drilling at Atlantic Lake
First Atlantic Nickel Drills Wide Interval of Visible Disseminated Awaruite Nickel at Super Gulp
Target, New Discovery 16 km South of Historical Drilling at Atlantic Lake
Vancouver, British Columbia – (GlobeNewsWire - October 29, 2024) - First Atlantic Nickel Corp.
(TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to
provide an update on the ongoing drilling at its 100% owned, multi -zone, district-scale Atlantic
Nickel Project in central Newfoundland, Canada (“Atlantic Nickel Project” or the “Project”). Initial
drilling has confirmed visible awaruite, disseminated from the surface throughout the first 297-
meter first hole in the newly discovered Super Gulp zone, located 16 km south of historical drilling
at Atlantic Lake. This follows the recent discovery of multiple new zones containing visible
awaruite across the project's 30 km nickel trend during the summer sampling program.
Highlights
● First Drill Hole Intersects Visible Awaruite from Surface: The first hole at Super Gulp
was drilled to a final depth of 297 meters, intersecting visible, disseminated awaruite
mineralization starting from the surface throughout the drill hole.
● Large 16km Step-Out from Historical Drilling: The Super Gulp discovery, located 16
km south of historical drilling at Atlantic Lake, confirms the project’s significant scale
potential.
● Large awaruite grain size: Disseminated awaruite visible to the naked eye indicates
grains exceeding 25 microns, with microscopic analysis confirming grains up to 250
microns- well above the 10 micron threshold for effective magnetic separation1.
● Ongoing Drilling at Multiple High-Priority Targets: The drill program continues to test
priority targets at RPM, Chrome Pond and Big Gulp, where the largest visible awaruite
grains were discovered during the summer 2024 surface sampling program.
● Potential for Low -Cost Mining: Drilling has revealed heavily fractured, broken and
sheared serpentinized nickel host rock, which could enable low-cost mining methods such
as ripping instead of drilling and blasting.
● Smelter-Free Nickel: Awaruite (Ni3Fe), a sulfur -free natural nickel-iron alloy containing
~75% nickel, enables magnetic processing without the requirement of a smelter,
potentially helping to create a more resilient North American nickel supply chain. The US
IRA $7,500 EV tax credit requirements stipulate that, beginning in 2025, eligible clean
vehicles may not contain any critical minerals processed by foreign entities of concern,
which currently control a large portion of global nickel smelting capacity.
1 Regional Metallogeny and Genesis of a New Deposit Type—Disseminated Awaruite (Ni3Fe) Mineralization Hosted in the Cache
Creek Terrane, Ron Britten 2017
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]
Super Gulp Drill Hole 001 (AN-24-001)
The first hole at Super Gulp was drilled westward at a -60° dip to 297 meters, intersecting light to
dark green serpentinized ultramafic rock with visible disseminated awaruite throughout the drill
hole. The ultramafic unit shows pseudo to crackle breccia textures, with magnetite -serpentine
fracture fillings and veinlets. Initial observations using a microscope revealed awaruite grain sizes
of up to 250 microns, while smaller particles estimated to be greater than ~25 microns were visible
to the naked eye ( see Figure 2). The majority of observed nickel -alloy (awaruite) grains are
expected to be recoverable using simple magnetic separation due to their grain size and strong
magnetic properties2. The bedrock is heavily fractured, with evidence of major north-south and
secondary east-west faulting. The intense serpentinization and broken nature of the rock suggest
that the material may be rippable, potentially lowering mining costs compared to conventional
drilling and blasting. The hole was terminated at 297 meters due to heavily faulted ground
conditions. Follow-up holes will be drilled in the opposite direction to assess width and size,
targeting 450-meter depths across the wide ultramafic unit at the Super Gulp Zone. Core samples
from the drill program are currently being processed and prepared for shipment, where they will
undergo whole rock analysis followed by preliminary magnetic recovery testing.
2 Regional Metallogeny and Genesis of a New Deposit Type—Disseminated Awaruite (Ni3Fe) Mineralization Hosted in the Cache
Creek Terrane, Ron Britten 2017
Figure 1: Super Gulp 2024 Drill hole 01 at the Atlantic Nickel Project showing commonly
disseminated sulfur-free-nickel (awaruite) in serpentinized ultramafic with serpentine -magnetite
fracture filling and veinlets shown at 43 meters and 87 meters downhole.
Figure 2: Microscope photo images showing individual grains of awaruite grains ranging from
~200 to 250 microns in size from Super Gulp DH001.
Super Gulp Zone
The Super Gulp Zone is a new discovery located approximately 4 km south of the Gulp Pond
Zone and 20 km south of historic hole 78-AL-01 in the Atlantic Lake Zone. This discovery extends
the potential mineralized zone from the Big Gulp showing (Gulp Pond) target area approximately
4 km to the south. Abundant visible disseminated awaruite grains were observed, making it a
promising target for further exploration and initial drilling.
RPM Zone
The RPM Zone is currently being targeted as the highest -priority target, representing a new
surface outcrop discovery in the southern portion of the 30 km trend, potentially connecting with
the Chrome Pond area. This zone has become the main focus of current drilling operations due
to having the largest distribution of coarse -grained awaruite (nickel-iron alloy) observed across
the entire Atlantic Nickel Project. Numerous outcrops in the RPM Zone contain large, visible
disseminated awaruite grains exceeding 100 microns in size, with some grains reaching sizes of
300 to 500 microns, making it an exceptional target for potentially significant nickel mineralization.
These outcrops are located in areas with extensive surficial cover and near elevated nickel-in-soil
anomalies, suggesting the potential for large volumes of concealed mineralized material. The
RPM target zone spans approximately 2.6 kilometers in length and is estimated to be 400 to 600
meters wide. Outcrops in the area are heavily weathered and consist of serpentinized ultramafics
intersected by serpentine- magnetite veins, microfractures, and disseminated magnetite. The
remarkable size and widespread distribution of coarse awaruite grains in this zone make it a top
priority for drilling, aimed at unlocking the immense potential for a major nickel discovery.
Figure 3: A) & B) Cut rock samples from separate areas within the new RPM Zone showing
abundant grains of disseminated awaruite (nickel -alloy ~75% Ni) (no sulfur of sulfides present)
within serpentinized ultramafic; C) Magnified grain of awaruite (Ni3Fe) in plane light; D) Magnified
grain of awaruite (Ni3Fe) in negative color.
Adrian Smith CEO Quote
"We are thrilled with the early success at the Atlantic Nickel Project, as we have visually confirmed
nickel-alloy in the first-ever drillhole at the Super Gulp zone," commented Adrian Smith, CEO of
First Atlantic. "This discovery extends known mineralizat ion 16 km from the Atlantic Lake area,
with visible awaruite disseminated within the ultramafic rock unit, which is part of the large scale
ophiolite located on the property.”
Mr. Smith continues, “Our strategy aims to identify and establish potential areas with large
volumes of mineralized rocks. We're particularly excited about moving to the RPM Zone, where
we've identified disseminated nickel alloy grain sizes well into the hundreds of microns. This could
represent an even more significant discovery. The ongoing drilling plans to test the southern RPM,
Chrome Pond, and Big Gulp areas, representing a further 10 -kilometer step-out from the Super
Gulp zone, extending drilling coverage to approximately 25 km from the historic drilling at the
Atlantic Lake area. Our goal is to uncover a district -scale nickel project and we look forward to
providing additional updates as our exploration progresses."
District-Scale Nickel Potential
The ongoing drilling program is testing multiple large- scale targets along the 30 km trend of
ultramafic rocks, with the potential to host several mineralized systems, potentially containing
volumes of material ranging from hundreds of millions to over one billion tonnes. The drill program
is focused on areas with high surface geochemical nickel concentrations and confirmed visual
occurrences of awaruite within the extensive ultramafic (ophiolite) sequence.
The 2024 sampling program successfully expanded multiple visible awaruite nickel -alloy targets
across several zones, efficiently confirming and prioritizing targets for the current drilling. High-
priority awaruite-bearing nickel zones identified include At lantic Lake, Gulp Pond, Super Gulp
(new discovery), Pipestone, Chrome Pond, and RPM Zone (another new discovery).
The scale and continuity of the mineralized trend, coupled with the presence of coarse -grained
awaruite in multiple zones, indicate the potential for a significant nickel deposit. Ongoing drilling
is focused on defining the extent and grade of mineralization across these promising targets.
Figure 4: Atlantic Nickel target zones showing 2024 sampling with visible awaruite (nickel -alloy)
locations over the 30 km nickel ultramafic magnetic trend (background TMI magnetics).
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 safer 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 without the need for smelting.
Beginning in 2025, the US Inflation Reduction Act's (I RA) $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)3. 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 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
concentrate. Awaruite, a natural iron-nickel alloy, is much easier to concentrate than pentlandite,
the principal sulfide of nickel"4. Awaruite's unique properties enable cleaner and safer processing
compared to conventional sulfide and laterite nickel sources, which often involve smelting 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, 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.
The development of awaruite resources is crucial, given China's dominance in the global nickel
market. Chinese companies refine and smelt 68% to 80% of the world's nickel 5 and control an
estimated 84% of Indonesia's nickel output, the largest worldwide supply 6. Awaruite offers an
environmentally safer, more sustainable, and domestically processable nickel source to meet the
growing demand in stainless steel and electric vehicles while reducing reliance on foreign refining
and smelting dominated by China. By developing awaruite resources, North America can
strengthen the resilience and security of its critical nickel supply chain.
Investor Information
The Company's common shares trade on the TSX Venture Exchange under the symbol " FAN",
the American OTCQB Exchange under the symbol “FANCF” and on several German exchanges,
including Frankfurt and Tradegate, under the symbol "P21".
3 https://home.treasury.gov/news/press-releases/jy1939
4 https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf
5 https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf
6 https://www.airuniversity.af.edu/JIPA/Display/Article/3703867/the-rise-of-great-mineral-powers/