FPX Nickel Delivers Updated Mineral Resource Estimate for Baptiste Nickel Project, Reporting Significant Improvement in DTR Nickel Grade and First Inclusion of Total Nickel, DTR Cobalt and DTR Iron Grades
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Vancouver, BC Canada V6E 2P4
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FPX Nickel Delivers Updated Mineral Resource Estimate for
Baptiste Nickel Project, Reporting Significant Improvement in DTR
Nickel Grade and First Inclusion of Total Nickel, DTR Cobalt and
DTR Iron Grades
Vancouver, November 14, 2022 – FPX Nickel Corp. (TSX-V: FPX, OTCQB: FPOCF) (“FPX” or the
“Company”) is pleased to report an updated mineral resource estimate for the Baptiste Nickel Project
(“Baptiste” or the “Project”) at the Decar Nickel District (“Decar”) in central British Columbia. The 2022
mineral resource estimate incorporates results from 2021’s in -fill drilling program and is based on a new
geological modelling approach and newly improved dike model , all of which contribute to significantly
improved Davis Tube Recoverable (“DTR”) nickel grades. The 2022 mineral resource estimate also
reports, for the first time, the content of total nickel and potential by-product elements, cobalt and iron.
Highlights
• Significant improvement in DTR nickel grade, with a 6% DTR nickel grade i ncrease in the
indicated category and a 15% increase in the inferred category
• First-time reporting of total nickel content facilitates more accurate benchmarking to other large -
scale nickel projects and highlights the potential for recovery of non-DTR nickel in the Baptiste
deposit
• First-time reporting of DTR cobalt and DTR iron contents highlights potential new byproduct value
sources for Baptiste
• Improved mineral resource modelling approach and estimate basis developed in collaboration with
Equity Exploration Consultants Ltd. (“Equity”) and Next Mine Consulting Ltd. (“NMC”)
• An independent third -party review of the new modelling and estimation approach by SLR
Consulting Ltd. (“SLR”, formerly Roscoe Postle Associates)
• 2022 mineral resource estimate will serve as the basis for the upcoming Baptiste Preliminary
Feasibility Study (“PFS”), which is forecast for completion in the second half of 2023
“The new mineral resource estimate highlights the potential for improved projec t economics owing to a
material increase in DTR nickel grade and new opportunities for recovery of cobalt and non-DTR nickel
contained in the Baptiste deposit,” noted Martin Turenne, FPX’s President and CEO. “ This marks an
important de-risking step in the ongoing development of Baptiste as a large-scale, low-cost and low-carbon
nickel project, setting the stage for the completion of our current metallurgical program which will
culminate with the production of battery-grade nickel sulphate in the first quarter of 2023.”
Approach
The new Baptiste Mineral Resource estimate incorporates results from 2021’s successful in -fill drilling
program (see the Company’s news release dated March 14, 2022). The 2021 program included 17 holes
totaling 2,856 metres, bringing total resource drilling to-date to 99 holes, totaling 33,695 metres. As
previously reported, the 2021 Baptiste resource drilling program targeted the conversion of near-surface,
higher-grade inferred resources to the indicated category.
The new modelling approach includes defined geological sub-domaining, grade shell modelling and more
accurate modelling of dilutive dikes ; collectively better representing the scale and characteristics of the
Baptiste deposit. This compares to the previous approach applied in the 2020 Preliminary Economic
Assessment (“PEA”) which solely used lithology domains and an assumed 3% removal of rock mass to
account for waste or dike sections within the deposit.
Summary of Results
As seen in Table 1, along with updated tonnage and DTR nickel grades, the 2022 mineral resource estimate
now includes total nickel, DTR cobalt, and DTR iron that all provide new potential value sources for
Baptiste. In addition, the reporting of total nickel grade facilitates more accurate benchmarking with other
large-scale nickel projects.
Table 1: 2022 Baptiste Deposit Pit-constrained Mineral Resource Estimate*
Category Tonnes
(Mt)
Grade Contained Metal
DTR
Ni
(%)
Total
Ni
(%)
DTR
Co
(%)
DTR
Fe
(%)
DTR
Ni
(kt)
Total
Ni
(kt)
DTR
Co
(kt)
DTR
Fe
(Mt)
Indicated 1,815 0.129 0.211 0.0035 2.40 2,435 3,828 64.4 43.5
Inferred 339 0.131 0.212 0.0037 2.55 444 720 12.5 8.6
*Notes for Tables 1 and 2:
1. Mineral Resource estimate prepared by Richard Flynn, P.Geo of NMC using ordinary kriging within
grade shell domains and inverse distance squared in dike domains.
2. Resources are reported using the 2014 CIM Definition Standards and were estimated in accordance
with the CIM 2019 Best Practices Guidelines.
3. Davis Tube magnetically-recovered (“DTR”) nickel is the nickel content recovered by magnetic
separation using a Davis Tube, followed by fusion XRF to determine the nickel content of the
magnetic fraction; in effect a mini-scale metallurgical test. The Davis Tube method is the global,
industry standard metallurgical testing apparatus for recovery of magnetic minerals.
4. Indicated resources are drilled on approximate 200 x 200 metre drill spacing and confined to
mineralized lithologic domains. Inferred resources are drilled on approximate 300 x 300 metre drill
spacing.
5. A cut-off grade of 0.06% DTR Ni was applied.
6. An optimized pit shell was generated using the following assumptions: US $8.50 per pound nickel price;
pit slopes between 42-44°; nickel payability of 96%; mining recovery of 97% DTR Ni; process recovery
of 85% DTR Ni; exchange rate of US$1.00 = C$0.77; and total operating cost and minimum profit of
US$9.37 per tonne.
7. Totals may not sum due to rounding.
8. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
As seen in Table 2, contained DTR nickel metal in the indicated category remains unchanged at 2 .435
million tonnes, with an approximate 9% reduction in tonnage offset by an approximate 6% increase in DTR
nickel grade. The indicated grade increase is primarily due to (a) the introduction of grade shell modeling;
and (b) the exclusion of near or below cut -off grade material within the mineralized zone through the
improved dike model; and (c) the conversion of previously inferred higher -grade material through the
inclusion of 2021 in-fill drilling data.
In the inferred category, tonnage is down by 42%; however, the average DTR nickel grade has increased
by 15% which mutes the reduction in contained DTR nickel metal to 34%. The reduction of inferred
tonnage is due to (a) conversion of inferred to the indicated category; and (b) the exclusion of near or below
cut-off grade material at the periphery of the mineralized zone through the new geological modelling
approach.
Table 2: Updated Baptiste Resource Estimate vs. 2020 PEA Resource Estimate
Category
Tonnes
(MT)
Grade
(DTR Nickel)
Contained Metal
(DTR Nickel, kt)
2020
PEA
2022
Resource
Estimate
Change
(%)
2020
PEA
2022
Resource
Estimate
Change
(%)
2020
PEA
2022
Resource
Estimate
Change
(%)
Indicated 1,996 1,815 -9% 0.122 0.129 +6% 2,435 2,435 -
Inferred 593 339 -42% 0.114 0.131 +15% 675 444 -34%
Geological Model Update
The new modelling approach includes defined geological sub-domaining, new grade shell modelling and
an improved dike model to provide a n improved basis for the exclusion of near or below cut -off grade
material for mine design purposes. This compares to the previous approach , applied in the 2020 PEA,
which solely used lithology domains and an assumed 3% removal of rock mass to account for waste or dike
sections within the deposit.
The new grade shell modelling methodology includes grouping of DTR nickel intercepts into high -,
medium-, and low-grade domains. As seen in Figure 1, this approach defines two high-grade DTR nickel
domains (>0.10% DTR nickel), each surrounded by a medium-grade domain (0.08-0.10% DTR nickel) and
collectively bound by a low -grade halo (0.06-0.08% DTR nickel). This grade shell domaining has been
used in conjunction with geological sub -domaining to further refine and accurately model the internal
deposit variability.
The newly improved dike model incorporates data from 2021’s in -fill drilling program, previously
unincorporated oriented core drilling, surface geophysics, and lithological logging. Within the deposit, two
dike swarms are interpreted to strike northwest to southeast and wrap around the intrusion to the east of the
deposit. The updated interpretation now has a 95% coincidence between wireframes and assays. The
previous explicit model had a much lower coincidence at less than 65% , which means dike grades in the
2020 mineral resource estimate were associated with serpentinized peridotite and vice versa.
Dikes are non-mineralized, steeply dipping, and have widths ranging from an average of 2 to 3 metres up
to 15 metres. Separation of dike and mineralized material during mining is considered feasible due to the
consistency of dike orientation and visual distinction between the respective rock types. Figure 1 presents
a plan view of the grade she ll model within the mineralized peridotite and the orientation of the dike
swarms. Figure 2 presents a cross section through the thickest part of the deposit (Section A-A’ from Figure
1).
Figure 1: Baptiste Deposit Plan View Grade Shells and Dike Swarms Within the Mineralized
Peridotite
Figure 2: Cross Section A–A’ of Grade Shells and Dike Swarms Within the Mineralized Peridotite
The Company expects to publish the results of the updated Baptiste Mineral Resource estimate with a NI-
43-101 compliant PFS report in the second half of 2023.
Data Verification
The data used in this Mineral Resource estimate is supported by industry standard Quality Assurance and
Quality Control (“QA/QC”) procedures, such as the insertion of certified standards and blanks into the
sample stream and the utilization of certified independent analytical laboratories for all assays. Historical
QA/QC data and methodology on the project were reviewed and will be presented in detail in the upcoming
PFS technical report. No significant QA/QC issues were discovered during review of the data.
All geological data used in the Mineral Resource estimate was reviewed and verified by Ron Voordouw,
PhD, P.Geo. (Director of Geoscience at Equity) and Richard Flynn, P.Geo. (Principal Consultant at NMC).
Mr. Voordouw and Mr. Flynn visited the Baptiste project from July 3rd to 5th, 2022. The site visit included
a review of historical and recent drill core; a review of procedures used to collect, record, store and analyze
project exploration data; independent sampling of ten duplicate assays sent for analysis; observation of drill
hole locations; and an overview of claim/property boundaries.
NMC compared a portion of t he original laboratory data certificates, geological logs, and downhole
deviation in surveys within the drillhole database. The database subset was compared line -by-line to the
fundamental data and no material errors were observed during the review. The verification data represents
approximately 5% of total drilling.
Assays were composited at 5 metres to match the block size in the z -direction. DTR nickel composite
grades within the updated grade shell sub-domains of the mineralized peridotite and the dikes illustrate
adequate stationarity.
Specific gravity was assigned based on lithology with only minor changes from the 2018 values; updating
was based on an additional 224 measurements to bring the total number of measurements to 1,202.
Estimation
Kriging parameters, search parameters and anisotropy were determined with semi -variograms for DTR
nickel content using composites falling within the mineralized domains. As presented in Figure 3, models
showed a maximum range of 1,500 metres. The resulting search ellipsoid has a major axis trending at an
azimuth of 110° with a near vertical semi-major axis.
Figure 3: DTR Ni Variogram Models for Major, Semi-Major and Minor Directions; Downhole
Variogram
The block model was created in Leapfrog Edge using a block size of 10 met res x 10 metr es x 5 metr es,
while the previous block model was created in Surpac using a block size of 10 metres x 10 metr es x 10
metres.
DTR nickel grades within the corresponding domains were estimated in two passes using ordinary kriging
(“OK”) for grade shells and inverse distance squared (“ID2”) for the dikes. A single pass nearest-neighbour
(“NN”) estimate was used to decluster composites for use in model validation swath plots. The anisotropy
conforms to the search ellipsoids derived from the variogram models. Locally varying anisotropy was used
for all grade shell and dike domains. The grade shells utilized concentric patterns that honoured the shape
of their “nested” contacts and samples should be paired as such for estimation. The high -grade shell also
used the major axis of the variogram model.
Resource classifications used in this study conform to the CIM Definition Standards for Mineral Resources
and Mineral Reserves (CIM, 2014). To be classified as Indicated material, a block had to be:
1. Estimated using composites from three separate holes and restricted to the one of the four
mineralized sub-domains (high-, medium-, and low-grade shells or in the dike domain); and
Downhole
Variogram
2. Within a 200-metre drill spacing
Blocks not classified as indicated were assigned to the inferred category if they fell within a 300-metre drill
spacing and used a minimum of two holes.
Qualified Persons
The scientific and technical information contained in this news release pertaining to the Baptiste deposit
has been reviewed and approved by the following qualified persons under NI 43-101:
• Mineral Resource estimate: Richard Flynn, P.Geo., Principal Consultant at Next Mine Consulting
Ltd.
• Data QA/QC : Ron Voordouw, PhD, P .Geo., Director of Geoscience at Equity Exploration
Consultants Ltd.
• Geology: Erin Wilson, P.Geo., Principal Geologist at FPX Nickel Corp, and Richard Flynn, P.Geo.,
The qualified persons have verified the information disclosed herein and are not aware of any significant
risks and uncertainties that could be expected to affect the reliability or confidence in the information
discussed herein.
Additionally, an independent third-party review by SLR Consulting (formerly Rosco e Postle Associates)
was undertaken of the new modelling and estimation approach.
About the Decar Nickel District
The Company’s Decar Nickel District claims cover 245 km2 of the Mount Sidney Williams
ultramafic/ophiolite complex, 90 km northwest of Fort St. James in central British Columbia . The district
is a two-hour drive from Fort St. James on a high-speed logging road.
Decar hosts a greenfield discovery of nickel mineralization in the form of a naturally occurring nickel-iron
alloy called awaruite (Ni3Fe), which is amenable to bulk-tonnage, open-pit mining. Awaruite mineralization
has been identified in four target areas within this ophiolite complex, being the Baptiste deposit, and the B,
Sid and Van targets, as confirmed by drilling, petrographic examination, electron probe analyses an d
outcrop sampling on all four targets. Since 2010, approximately US$28 million has been spent on the
exploration and development of Decar.
Of the four targets in the Decar Nickel District, the Baptiste deposit, which is the most accessible and has
the biggest surface footprint, has been the focus of diamond drilling since 2010 with a total of 99 holes and
33,695 m of drilling completed. The Sid target was tested with two holes in 2010 and the B target had a
single hole drilled in 2011; all three holes i ntersected nickel-iron alloy mineralization over wide intervals
with DTR nickel grades comparable to the Baptiste deposit. At the Van target, the Company followed up
2021’s highly successful maiden drilling program with an aggressive step -out program in t he summer of
2022, with results forecast for sequential release in the fourth quarter of 2022 and first quarter of 2023.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development of the Decar Nickel District, located in
central British Columbia, and other occurrences of the same unique style of naturally occurring nickel-iron
alloy mineralization known as awaruite. For more information, please view the Company’s website
at www.fpxnickel.com or contact Martin Turenne, President and CEO, at (604) 681 -8600
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and Director
Forward-Looking Statements
Certain of the statements made and information contained herein is considered “forward -looking
information” within the meaning of applicable Canadian securities laws. These statements address future
events and cond itions and so involve inherent risks and uncertainties, as disclosed in the Company's
periodic filings with Canadian securities regulators. Actual results could differ from those currently
projected. The Company does not assume the obligation to update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.