Class 1 Nickel Reports Updated Ni 43-101 Mineral Resource Estimate ON Its Alexo-Dundonald Ni-Cu-Co Deposits, Timmins, Ontario
CLASS 1 NICKEL REPORTS UPDATED NI 43-101 MINERAL RESOURCE ESTIMATE
ON ITS ALEXO-DUNDONALD NI-CU-CO DEPOSITS, TIMMINS, ONTARIO
1.25 M Indicated Tonnes at 1.0% Ni and 1.01 M Inferred Tonnes at 1.1% Ni
Toronto, Ontario (November 2, 2020) – Class 1 Nickel and Technologies Ltd. (CSE:NICO) ("Class
1" or the "Company") is pleased to report an updated National Instrument 43-101 Mineral Resource
Estimate on its 100% owned Alexo-Dundonald Nickel Project (the “Project” or the “Property”) located
about 45 km northeast of Timmins, Ontario.
The Project comprises four foundation resources; Alexo North, Alexo South, Dundonald North and
Dundonald South which are situated within a regionally folded package of mafic to ultramafic (basalt
and komatiite flows) rocks that trend through the approximately 20 square km land package (Figure 1).
A large portion of the Property remains untested by drilling and modern geophysics.
Following the completion of a modern Mineral Resource validation program and a Technical Report of
the Mineral Resources contained within the newly amalgamated Alexo and Dundonald deposit models,
Class 1 is reporting an updated total estimated Indicated Mineral Resource of 1.25 Million tonnes (Mt)
with an average grade of 0.99% Ni and a total estimated Inferred Mineral Resource of 1.01 Mt with an
average grade of 1.08% Nickel (Table 1). The total estimated Indicated Mineral Resource has increased
by 119% and the Inferred Mineral Resource has increased by 1,400% since the previously reported
Mineral Resource Estimate contained in the NI 43-101 compliant Technical Report dated June 30, 2020.
Details of the current pit-constrained and out-of-pit Mineral Resources are provided in Table 2.
Table 1: Alexo-Dundonald Updated Mineral Resource Estimate Summary
UPDATED ALEXO-DUNDONALD MINERAL RESOURCE ESTIMATE (1-9)
Classification Tonnes(M) Ni % Cu
%
Co
%
Contained
Ni lbs M
Contained
Cu lbs M
Contained
Co lbs M
Indicated 1.25 0.99 0.04 0.02 27.35 1.00 0.66
Out-of-Pit
Inferred 1.01 1.08 0.03 0.02 23.90 0.63 0.45
NI 43-101 disclosure:
(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
(2) The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues.
(3) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an
Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that
the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with
continued exploration.
(4) The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by
the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
(5) The historical open pit mined areas were removed from the MRE.
(6) US$ metal prices of $7.35/lb NI, $3/lb Cu, $20/lb Co, $1,500/oz Au, $900/oz Pt and $1,650/oz Pd were used
in the NSR calculation with respective process recoveries of 89%, 90%, 40%, 50%, 50% and 50%
(7) Pit constrained Mineral Resource NSR cut-off considers ore crushing, transport, processing and general and
administration (G&A) costs that respectively combine for a total of ($2 + $6 + $20 + $2) = CAD$30/tonne
processed.
(8) Out-of-pit Mineral Resource NSR cut-off considers ore mining, crushing, transport, processing and G&A costs
that respectively combine for a total of ($58 + $2 + $6 + $20 + $4) = CAD$90/tonne processed.
(9) The out-of-pit Mineral Resource grade blocks were quantified above the $90/t cut-off, below the constraining
pit shell and within the constraining mineralized wireframes. Additionally, only groups of blocks that exhibited
continuity and reasonable potential stope geometry were included. All orphaned blocks and narrow strings of
blocks were excluded. The longhole stoping with backfill mining method was assumed for the out-of-pit
Mineral Resource Estimate calculation.
Table 2 – Pit Constrained and Out-of-Pit Estimated Mineral Resources
UPDATED ALEXO-DUNDONALD MINERAL RESOURCE ESTIMATE (1-9)
Scenario Classificat
ion
Cut-off
NSR
C$/t
Tonnes
(kt)
Ni
(%)
Ni
(Mlb)
Cu
(%)
Cu
(Mlb)
Co
(%)
Co
(Mlb)
Pit
Constrained Indicated 30 593.4 0.78 10.22 0.04 0.53 0.03 0.34
Out-of-pit
Indicated 90 661.0 1.18 17.13 0.03 0.47 0.02 0.32
Inferred 90 1,008.5 1.08 23.90 0.03 0.63 0.02 0.45
Total Indicated 30+90 1,254.4 0.99 27.35 0.04 1.00 0.02 0.66
Inferred 90 1,008.5 1.08 23.90 0.03 0.63 0.02 0.45
The October 24, 2020 NI 43-101 compliant Updated Mineral Resource Estimate was prepared by
Yungang Wu, P.Geo. and Eugene Puritch, P.Eng, FEC, CET of P&E Mining Consultants Inc, both
Independent Qualified Persons as defined by NI 43-101 - Standards of Disclosure for Mineral Projects.
The Updated Mineral Resource Estimate was done for pit constrained and out-of-pit nickel, copper, and
cobalt Mineral Resources. The total Indicated Mineral Resource Estimate based on NSR cut-off values of
CDN$30 per tonne for the pit constrained Mineral Resource and CDN$90 per tonne for the out-of-pit
Mineral Resource. The total Indicated Mineral Resource based on a Net Smelter Return (NSR) for the
out-of-pit Mineral Resource is 1.25 Mt at 0.99%, 0.04% Cu and 0.02% Co for a total of 27.35 Mlbs of
contained nickel. An additional 1.0 Mt at 1.08% Ni, 0.03% Cu and 0.02 Co (23.90 Mlbs contained nickel)
were calculated as the Inferred Mineral Resource.
In addition, Class 1 recently completed a modern VTEM™ plus time-domain airborne electromagnetic
survey over the 20 km2 square land package, the first modern geophysical survey of this kind over the
Property. The Company looks forward to updating the market with the results of this survey when expert
analysis and targeting is completed, and recommendations have been made.
The Company is in the process of planning its near-term surface exploration program to include a
diamond drilling program aimed at testing priority mag-EM targets generated from the recently
completed VTEM survey. In addition, the Company will be planning step-out and expansion drilling
programs to potentially increase the size and grade of the current Mineral Resource, moving the project
toward an eventual Preliminary Economic Assessment (“PEA”) in order to examine the possibility of direct
shipping nickel production.
Figure 1: Alexo-Dundonald Project Map
The Alexo-Dundonald Class 1 Nickel Project sits on a 14 km strike-length, folded komatiite unit containing
several nickel-copper-cobalt and platinum-group element Mineral Resources. Decades of successful
capital expenditure and investment into the Project by previous owners has resulted in the discovery
and delineation of four main nickel Mineral Resources that occur along the folded komatiite unit. A total
of 102,883 metres of drilling has been conducted on and around the komatiite fold and a valuable data
set has been assembled, which confirms the existence of numerous other smaller high-grade deposits
and mineralized lenses that occur between and alongside the four main Updated Mineral Resources
reported herein.
Eugene Puritch, P.Eng, FEC, CET, President of P&E, heads a specialist Mineral Resource and Mine
Engineering consulting firm that has successfully built mine plans for several Canadian mining companies
stated “The Alexo-Dundonald Project was previously mined via a direct shipping model, and the
Preliminary Economic Assessment that P&E will soon commence is being designed around similar
principles.”
Small-scale open pit mining of Nickel and direct shipping mineralized material production at Alexo-
Dundonald last occurred in 2004-2005. Subsequently in 2011, more mining and stockpiling of mineralized
material occurred in conjunction with the signing of a custom processing agreement with Glencore’s
Strathcona process facility near Sudbury.
This analysis will be used to couple with deeper penetrating ground geophysics prior to commencing
step-out and expansion drilling aimed at adding more tonnage to the overall Mineral Resource. After the
completion of the diamond drilling campaign, the Company will produce a PEA inclusive of a mine and
production plan with a view to re-initiating the direct shipping operation.
Class 1 President Mr. Benjamin H Cooper stated “This Project has indicated the viability of a direct
shipping model on several occasions in the past. This time we are operating in a rising class 1 nickel
market with truly global demand and our Company is envisioning a much bolder, larger, stronger
approach utilizing greater financial backing and capacity with a plan to ship more mineralized material,
faster and more efficiently than previously possible. This approach is anticipated to fund deeper drilling
and a systematic Mineral Resource expansion to scale-up production.
Tony Donaghy, Class 1 adviser and consultant for CSA Global confirmed “The Alexo-Dundonald Project
has the potential of a rapid turnaround to production turnkey operation that has the ability to increase
more new nearby nickel sulphide discoveries and grow the Mineral Resource base to allow for a
diversified restart.”
The advanced permitting status, close to surface high grade mineralization, and direct shipping mining
model fits nicely into the local infrastructure of Sudbury-Timmins thus allowing Class 1 to avoid any need
for high start-up capital costs. Additionally, there is also untested potential at depth.
“International exploration for similar komatiite-hosted nickel sulphide systems in Australia, as well as
within systems such as Thompson and Raglan in Canada, has demonstrated that there is good potential
for exploration and discovery of continued and/or additional sulphide mineralization along strike/plunge
within mineralized channelized flow. The shallow nature of previous exploration and the tight focus on
the near-surface known mineralization at Alexo-Dundonald means these possibilities have not yet been
tested on the Project.”, Mr Donaghy said.
P&E’s Senior Associate Geologist, William Stone, Ph.D, P,Geo. Stated “The Alexo-Dundonald host rocks
are part of a regional geophysical trend that extends tens of kilometres westward and includes the giant
Kidd-Creek base metal VMS mine and even the Montcalm nickel mine, 100 km away. This regional trend
corresponds to the komatiite-bearing Kidd-Munro assemblage, which has been subject to very little
modern airborne electromagnetic surveys and systematic mineral exploration for nickel sulphide
deposits. Consequently, the potential for discovery of additional nickel sulphide deposits under cover
along this favourable trend remains high”.
Figure 2: Alexo-Dundonald is on Trend with Montcalm and Kidd Creek as part of
the Kidd Munro Assemblage Geology
Most Recent 2011 Metallurgical Testwork
In 2011, Xstrata Process Support (Xstrata) – formerly Falconbridge, now Glencore Nickel –
at its laboratories in Falconbridge near Sudbury, Ontario, performed scoping level
metallurgical testing and quantitative mineralogy for the Alexo South project. The scope
included a custom flowsheet assessment and quantitative mineralogy using EPMA
microprobe assessment.
Table 3: Composite Head Analyses, Alexo South Deposit (formerly Kelex)
Ni % Cu % S % Co % MgO % Pt ppm Pd ppm
2.13 0.09 14.54 0.08 11.96 0.05 0.12
Source: NI 43-101 CSA Global & Puritch et al (2012)
Figure 3: 3D Image of Alexo North Deposit (Red) and Alexo South Deposit (Green)
The Alexo North and Alexo South Mineral Resources extend along strike and
depth and down plunge and will be extension drilled to add more tonnage to
the current NI 43-101 Mineral Resource Estimate. The majority of drilling and
mining in the past 30 years has been shallow work (less than 100 m vertical
depth below surface.
Table 4: Nickel Intersections from Previous Drilling – Alexo North And South
Hole ID From (m) To (m) Downhole width (m) Ni (%) Zone
LAX-01-04 40.4 42.8 2.4 1.70 Alexo North
LAX-05-04 64.6 69.5 4.9 2.30 Alexo North
Including 64.6 65.5 0.9 6.50
LAX-08-04 75.9 77.5 1.6 1.00 Alexo North
LAX-09-04 82.9 84.7 1.8 1.70 Alexo North
LAX-13-04 62.2 66.7 4.5 2.20 Alexo North
Including 62.8 64.1 1.3 4.70
LAX-24-04 72.6 72.8 0.2 2.13 Alexo North (East)
LAX-26-04 130.5 131.0 0.5 3.79 Alexo North (East)
LOX-01-04 34.0 35.9 1.9 4.10 Alexo South (West)
LOX-03-04 31.2 32.2 1.0 2.74 Alexo South (West)
LOX-08-04 38.7 40.6 1.9 2.79 Alexo South (West)
Including 39.9 40.6 0.7 7.80
LOX-47-04 58.9 80.0 21.1 1.30 Alexo South (West)
Including 58.9 61.9 3.0 5.67
LOX-48-04 72.3 83.2 10.9 0.50 Alexo South (West)
LOX-49-04 74.2 92.4 18.2 1.40 Alexo South (West)
Including 74.2 78.9 4.7 3.60
LOX-52-04 82.9 87.9 5.0 1.00 Alexo South (West)
Including 82.9 83.5 0.6 5.30
LOX-53-04 125.7 144.0 18.3 0.80 Alexo South (West)
Including 127.0 135.5 8.5 1.10
LOX-56-04 133.3 158.0 24.7 0.90 Alexo South (West)
Including 135.3 138.5 3.2 1.20
And 149.6 157.1 7.5 1.10
LOX-56-04 164.4 165.5 1.1 1.10 Alexo South (West)
2010-01 78.0 91.0 13.0 0.55 Alexo South (West)
Including 79.3 81.0 1.7 1.34
2010-02 95.0 119.5 24.5 2.79 Alexo South (West)
Including 97.3 102.0 4.7 1.22
2010-03 134.3 151.0 32.3 0.45 Alexo South (West)
Including 137.0 141.0 4.0 0.63
2010-10 218.0 221.0 3.0 0.48 Alexo South (West)
2010-11 249.0 252.7 3.7 1.37 Alexo South (West)
Including 249.0 249.3 0.3 2.51
And 252.1 252.7 0.6 5.89
2010-12 247.2 256.0 1.3 0.48 Alexo South (West)
2011-13 225.0 228.0 3.0 0.61 Alexo South (West)
2011-15 155.3 182.2 26.9 1.91 Alexo South (West)
LOX-12-04 28.6 29.8 1.2 2.56 Alexo South (Central West)
LOX-13-04 32.2 33.0 0.8 3.59 Alexo South (Central West)
LOX-14-04 31.9 41.5 9.6 Alexo South (Central West)
Including 38.0 41.5 3.5 5.35
Including 39.5 40.5 1.0 7.97
LOX-15-04 44.4 45.5 1.1 2.47 Alexo South (Central West)
LOX-16-04 47.2 48.9 1.7 1.90 Alexo South (Central West)
LOX-17-04 41.2 46.2 5.0 2.00 Alexo South (Central West)
Including 44.1 46.2 2.1 3.40
LOX-18-04 33.6 37.7 4.1 3.70 Alexo South (Central West)
Including 34.6 37.7 3.1 4.50
LOX-19-04 31.1 32.8 1.7 3.30 Alexo South (Central West)
LOX-22-04 56.4 69.1 12.7 1.10 Alexo South (Central West)
Including 66.1 69.1 3.0 3.10
LOX-23-04 62.0 65.0 3.0 0.66 Alexo South (Central West)
And 69.8 72.1 2.3 1.70
LOX-24-04 77.4 81.4 4.0 1.00 Alexo South (Central West)
LOX-25-04 32.4 33.8 1.4 4.30 Alexo South (Central West)
LOX-26-04 63.1 65.0 1.9 1.60 Alexo South (Central West)
LOX-27-04 65.0 66.3 1.3 1.80 Alexo South (Central West)
LOX-30-04 50.6 51.0 0.4 3.20 Alexo South (Central West)
LOX-31-04 103.5 109.7 6.2 1.10 Alexo South (Central West)
Including 108.5 109.7 1.2 3.00
2010-04 68.3 70.1 1.8 0.62 Alexo South (Central West)
2010-05 85.9 86.3 0.4 2.21 Alexo South (Central West)
2010-07 80.3 81.5 1.2 0.61 Alexo South (Central West)
Including 81.3 81.5 0.2 2.50