Updated resource estimate increases Measured plus Indicated resources at Turnagain by 24% to 1.07 billion tonnes, while contained nickel increases by 28.3% to 5.2 billion pounds (Vancouver, B.C., Canada) – Mark Jarvis, CEO of Giga Metals Corp .
September 19, 2019 TSX.V - GIGA
Updated resource estimate increases Measured plus Indicated resources
at Turnagain by 24% to 1.07 billion tonnes, while contained nickel
increases by 28.3% to 5.2 billion pounds
(Vancouver, B.C., Canada) – Mark Jarvis, CEO of Giga Metals Corp . (TSX.V – GIGA),
announced today that the Company has updated its NI 43 -101 mineral resource estimate
based on an additional 36 infill drill holes totaling 8,940 metres drilled in 2018 in the areas
of the conceptual open pit described in a Preliminary Economic Assessment dated
December, 2011 by AMC Consultants of Vancouver, B.C., and by updated geological
modeling supported by core logs, rock geochemistry, mapping, alteration modeling and
other information.
Table 1: Mineral Resource Statement(1,2,3,4,5) for the Turnagain Project
Open Pit Mineral Resources – Base Case Estimate
Classification
Tonnage Ni Contained Co Contained
(000s) Grade Ni Grade Co
(%) (000s lbs) (%) (000s lbs)
Measured 360,913 0.230 1,832,440 0.014 109,803
Indicated 712,406 0.215 3,373,616 0.013 202,605
Measured
and
Indicated
1,073,319 0.220 5,206,056 0.013 312,409
Inferred(4) 1,142,101 0.217 5,473,909 0.013 327,327
(1) All mineral resources have been estimated in accordance with Canadian Institute of Mining and Metallurgy and
Petroleum (“CIM”) definitions, as required under National Instrument 43-101 (“NI 43-101”).
(2) Mineral resources are reported in relation to a conceptual pit shell in order to demonstrate reasonable expectation
of eventual economic extraction, as required under NI 43-101; mineralization lying outside of these pit shells is not
reported as a mineral resource. Mineral resources are not mineral reserves and do not have demonstrated
economic viability.
(3) Mineral resources are reported at a cut -off grade of 0.1% Ni. Cut-off grades are based on a price of US $8.50 per
pound and a number of operating cost and recovery assumptions, plus a contingency as reported in the December
2011 PEA authored by AMC Consulting.
(4) Inferred mineral resources are considered too speculative geologically to have economic considerations applied to
them that would enable them to be categorized as mineral reserves. However, it is reasonably expected that the
majority of Inferred mineral resources could be upgraded to Indicated.
(5) Due to rounding, numbers presented may not add up precisely to the totals provided and percentages my not
precisely reflect absolute figures.
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“The updated mineral resource estimate for the Turnagain Project represents an important
milestone in the path towards advancing the engineering studies of this project,” said Mark
Jarvis, President and CEO of Giga Metals Corp, “The successful execution of a focused
drilling campaign combined with updated geological modeling has resulted in a refined
and e nhanced mineral resource estimate that , within the first three phases of mining
outlined in the 2011 PEA, has confidence levels sufficient to support a Pre-Feasibility study
and ultimately a Feasibility study if that is justified.”
2019 Updated Mineral Resources comparison to 2011 Mineral Resource
Since the 2011 mineral resource update, Giga Metals has performed infill drilling and
also updated its geological modeling. As a result, the Measured plus Indicated resources
have grown due to infill drilling, but the Inferred resources have also grown because the
volumes of the ultimate conceptual pit have grown. This comparison is provided for
information purposes only. This comparison should not be interpreted as a statement
of mineral reserves; mineral reserves can only be defined in a Pre-Feasibility or
Feasibility study.
Table 2: Comparison of 2019 and 2011 Consolidated Mineral Resource Statement(1,2,3,4,5)
for the Turnagain Project
Classification
Tonnage Ni Contained Co Contained
(000s) Grade Ni Grade Co
(%) (000s lbs) (%) (000s lbs)
2019 Update
Measured and
Indicated 1,073,319 0.220 5,206,056 0.013 312,409
Inferred(4) 1,142,101 0.217 5,473,909 0.013 327,327
2011 Estimate
Measured and
Indicated 865,482 0.213 4,057,052 0.013 253,061
Inferred(4) 976,295 0.200 4,304,719 0.013 279,807
2011-2019 Change
Measured and
Indicated + 207,837 + 0.007 1,149,004 unchanged 59,348
Inferred(4) + 165,806 + 0.017 1,169,190 unchanged 47,520
Percentage
Change
Measured and
Indicated + 24.0% + 3.5% + 28.3% unchanged + 23.5%
Inferred + 16.9% + 8.7% +27.2% unchanged + 16.9%
For footnotes 1-5, see Table 1.
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For the purpose of advancing engineering studies, the confidence level in enough of the
resource has been increased to the Measured plus Indicated categories to support advancing
studies to the Pre-Feasibility and Feasibility levels. While the Company believes certain
elements of the PEA dated December 2011, authored by AMC Consulting (i.e. the “PEA”),
are consistent with the Company’s current approach and ongoing evaluation of the project,
the PEA can no longer be considered current. The PEA included inferred mineral resources
that are considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves and here is
no certainty that PEA will be realized.
2019 Mineral Resource Classification Methodology
The mineral resource estimates for Turnagain were prepared to industry standards and best
practices using commercial mine -modeling and geostatistical software. Garth Kirkham,
P.Geo. is the Qualified Person responsible for the Turnagain mineral resource estimates for
the purposes of NI 43-101.
Mineral Resources are classified under the categories of Measured, Indicated and Inferred
according to Canadian Institute of Mining, Metallurgy and Petroleum (CIM) guidelines .
Mineral resource classification was based primarily on drill hole spacing and on continuity
of mineralization. Measured resources were defined at Turnagain as blocks with a distance
to three drill holes of less than ~40 m to nearest composite and an aver age of 60 m and
occurring within the estimation domains. Indicated resources were defined as those with a
distance to three drill holes of less than ~60 m and an average distance of 80 m. Inferred
resources were defined as those with an average drill hole spacing of less than ~150 m and
meeting additional requirements. Final resource classification shells were manually
constructed on sections.
Greg Ross, P.Geo., a Qualified Person as defined by National Instrument 43 -101, is
responsible for the implementa tion and supervision of the Turnagain Project QA/QC
program. Among other measures, prepared standards and blanks were inserted at the
project site, and lab-reported results reviewed, to monitor the quality of the assay data. See
reports dated December 5, 2011, titled “Turnagain Project Hard Creek Nickel Corporation
Preliminary Economic Assessment”; and dated February 25, 2019, titled “Giga Metals
Releases Final Drill Results from 2018 Program” filed on SEDAR for details on geology,
mineralization, data verification, sampling procedures, and lab information.
Garth Kirkham, P.Geo. and Greg Ross, P.Geo., Qualified Persons as defined by NI 43-101,
have reviewed and approved the contents of this news release.
About Giga Metals
Giga Metals Corporation is focused on metals critical to modern batteries, especially those
used in Electric Vehicles and Energy Storage. The Company’s core asset is the Turnagain
Project, located in northern British Columbia, which contains one of the few significant
undeveloped sulphide nickel and cobalt resources in the world.
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Disclaimer for Forward-Looking Information
Certain statements in this news release are forward -looking statements, which reflect the expectations of
management regarding the Turnagain Project. Forward-looking statements consist of statements that are
not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding
the future. Such statements include, but are not limited to, stateme nts with respect to the future financial or
operating performance of the Company and its mineral projects, the estimation of mineral resources, steps
to be taken towards commercialization of the resource, the timing and amount of estimated future production
and capital, operating and exploration expenditures. Such statements are subject to risks and uncertainties
that may cause actual results, performance or developments to differ materially from those contained in the
statements. No assurance can be given that any of the events anticipated by the forward -looking statements
will occur or, if they do occur, what benefits the Company will obtain from them. These forward -looking
statements reflect management's current views and are based on certain expectations , estimates and
assumptions which may prove to be incorrect, including that Giga has created confidence levels sufficient in
Turnagain to support a Pre -feasibility study and ultimately a Feasibility study, and statements relating to
future exploration and development of the Project and mineral resource and mineral reserve estimations
relating to the Project. A number of risks and uncertainties could cause our actual results to differ materially
from those expressed or implied by the forward -looking statemen ts, including: (1) the mineral resource
estimates relating to the Project could prove to be inaccurate for any reason whatsoever, (2) Giga is unable
to finance the Project, (3) prices for nickel and cobalt or project costs make any commercialization
uneconomic, (4) indicated resources may not materialize, (5) permits, environmental opposition, government
regulation or any of many other factors may prevent the Company from commercializing the Turnagain, and
(6) even if the Project goes into production, there is no assurance that operations will be profitable . These
forward-looking statements are made as of the date of this news release and, except as required by applicable
securities laws, the Company assumes no obligation to update these forward-looking statements, or to update
the reasons why actual results differed from those projected in the forward -looking statements. Additional
information about these and other assumptions, risks and uncertainties are set out in the "Risks and
Uncertainties" section in the Company's most recent MD&A filed with Canadian security regulators.
On behalf of the Board of Directors,
“Mark Jarvis”
MARK JARVIS, President
GIGA METALS CORPORATION
604-681-2300
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Suite 203 – 700 West Pender St., Vancouver, BC, Canada V6C 1G8
T: 604-681-2300 E: [email protected] W: www.gigametals.com