SPC Nickel Announces Filing of NI 43-101 Technical Report for the Previously Announced West Graham Maiden Mineral Resource and the Adjacent Updated LKE Resource
SPC Nickel Announces Filing of NI 43-101
Technical Report for the Previously
Announced West Graham Maiden Mineral
Resource and the Adjacent Updated LKE
Resource
SUDBURY, ON
,
March 4, 2024
/CNW/ -
SPC Nickel Corp.
(TSXV: SPC)
("SPC Nickel" or the
"Company")
, is pleased to announce that the Company has filed an independent technical report
prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") supporting the previously announced West Graham Mineral Resource
Estimate ("MRE") (reported in the Company's
news release
dated
January 17, 2024
) and the
adjacent updated MRE for the LKE Deposit ("LKE").
The technical report, titled "Mineral Resource Estimates for the West Graham and LKE Deposits,
Lockerby East Ni-Cu-PGM Sulphide Property,
Sudbury, Ontario Canada
" can be found on the
Company's website at
www.spcnickel.com
and under the Company's issuer profile at
www.sedarplus.ca
. The MRE, in accordance with National Instrument 43-101, is effective as of
December 4, 2023
.
Highlights:
LKE: Resource at a 0.9% NiEq
1
Cutoff Grade
Indicated Resource of 0.67 Mt at 1.17% Ni, 0.54% Cu (1.59% NiEq
2
)
Inferred Resource of 0.12 Mt at 0.99% Ni, 0.42% Cu (1.39% NiEq
2
)
The LKE Resource is strategically located immediately below the existing mining working
developed by
Falconbridge
in the 1990's.
Exploration Potential: Significant potential to expand the LKE Resource down-dip over a
distance of 1,000 metres.
West Graham: In-Pit Resource at a 0.3% NiEq
1
Cutoff Grade (previously released)
Indicated Resource of 19.3 Mt at 0.42% Ni, 0.28% Cu (0.57% NiEq
2
)
Inferred Resource of 3.2 Mt at 0.37% Ni, 0.28% Cu (0.53% NiEq
2
)
West Graham: Out-of-Pit Resource at a 0.7% NiEq
1
Cutoff Grade (previously released)
Indicated Resource of 3.2 Mt at 0.63% Ni, 0.47% Cu (0.92% NiEq
2
)
Inferred Resource of 3.8 Mt at 0.69% Ni, 0.43% Cu (0.97% NiEq
2
)
*Please see LKE Mineral Resource Estimate Notes at the end of this release. Refer to the
Company's news release dated
January 17, 2024
for Notes on the West Graham MRE.
Grant Mourre
, CEO and President of SPC Nickel commented,
"SPC Nickel is very pleased to
deliver this NI43-101 Technical Report representing yet another major milestone for the Company.
We believe the combined West Graham and LKE Mineral Resource Estimates along with our
positioning at the heart of the
Sudbury
mining camp, one of the most developed and prolific nickel
jurisdictions globally, establishes the Company as one of the best nickel investment opportunities
anywhere. In addition to the Company's impressive progress at West Graham, the announcement
of an updated resource at LKE combined with the down-dip potential further highlights the vast
exploration potential that exists on the Property."
LKE Deposit Mineral Resource
The Mineral Resources at the LKE Project were estimated by SGS Geological Services and are
summarized in
Table 1
. Sensitivity to cut-off grade is summarized in
Table 2
, and contained metal
summarized in
Table 3
. The LKE MRE was based on a validated historical database containing drill
holes completed by both Falconbridge Limited (
Falconbridge
) and First Nickel Inc (FNI). A revised
resource model, economic parameters and cutoff grade were used in the LKE MRE. Since acquiring
the property in 2016, the Company has not completed any exploration drilling on the LKE Deposit.
Table 1: LKE and West Graham Maiden Mineral Resource Estimate effective
December 4,
2023
*Please see LKE Mineral Resource Estimate Notes at the end of this release. Refer to Company's
news release dated
January 17, 2024
for Notes on the West Graham MRE.
Area
Category
NiEq
Cuttoff
1
Tonnes
Ni
%
Cu
%
Co
%
Pt
g/t
Pd
g/t
Au
g/t
Ag
g/t
NiEq
%
2
LKE Mineral Resource
LKE
Indicated
0.9
66,000
1.17
0.54
0.02
0.49
0.24
0.09
2.99
1.59
LKE
Inferred
0.9
124,000
0.99
0.42
0.02
0.57
0.36
0.07
2.30
1.39
West Graham In-Pit Resource
In-Pit
Indicated
0.3
19,326,000
0.42
0.28
0.01
0.06
0.02
0.02
1.47
0.57
In-Pit
Inferred
0.3
3,283,000
0.37
0.28
0.01
0.10
0.03
0.03
1.24
0.53
West Graham Out-of-Pit Resource
Out-of-Pit
Indicated
0.7
3,238,000
0.63
0.47
0.02
0.24
0.06
0.07
2.64
0.92
Out-of-Pit
Inferred
0.7
3,867,000
0.69
0.43
0.03
0.22
0.06
0.06
2.20
0.97
(1)
NiEq cutoff grades consider metal prices of $9.50/lb Ni, $3.50/lb Cu, $22.00/lb Co, $1000/oz Pt, $1,800/oz Pd and $1,700/oz Au and consider metal recoveries of 90% for Ni,
90% for Cu, 56% for Co, 69% for Pt, 68% for Pd and 68% for Au. Ag is not used.
(2)
NiEq grades are calculated using this formula: Ni (%) + [Cu (%) * 0.369] + [Co (%) * 2.318] + [Pt / 31.1 * 4.779] + [Pd / 31.1 * 8.602] + [Au / 31.1 * 8.124] with price
assumptions of $9.50/lb Ni, $3.50/lb Cu, $22.00/lb Co, $1000/oz Pt, $1,800/oz Pd and $1,700/oz Au. Ag is not used.
LKE Deposit – Geology
Discovered in 1968 by
Falconbridge
, the LKE Resource is located approximately 1,500 metres east
of the former Lockerby Mine and 200 metres down-dip of the West Graham Resource
(Figure 2).
Mineralization is predominately contact style, with narrow (less than 5 metres thick) high-grade
semi-massive to nearly massive breccia sulphide veins anastomosing proximal to the folded granite
footwall contact. LKE sulphide mineralization is characterized by a high pentlandite to pyrrhotite ratio
with the overall grade, tenor and PGM content of the mineralization increasing with depth. Historical
drilling completed by FNI returned values as high as 5.60% Ni and 1.26% Cu over a core length of
10.0 metres
(see reference section below)
.
LKE Deposit – Exploration Opportunity
In 2016, the Company completed a borehole geophysical program (reported in the Company's news
release dated
November 21, 2016
) on seven historic holes completed by
Falconbridge
and FNI
down-dip of the LKE Resource. The results from the surveys identified a trend of very strong
geophysical conductors (2,000-20,000 siemens) over a combined distance of 1,100 metres
extending down-dip from the LKE Resource
(Figure 3)
. Of particular interest, is a 200 metre by 700
metre area with several >10,000 siemen conductors that remain virtually untested by drilling.
Historical hole GRA-21DE, drilling by
Falconbridge
in 1988, encountered a thick zone of Ni-Cu-PGM
mineralization include several high-grade massive sulphide stringers with extremely high nickel tenors
(9.5% -12.3%) along the fringes of the modelled EM conductors.
Table 2: LKE Resource, Sensitivity to cut-off grade.
NiEq
Cutoff
1
Tonnes
Ni %
Cu
%
Co
%
Pt
g/t
Pd
g/t
Au
g/t
Ag
g/t
NiEq
%
2
LKE Indicated Resource
0.8
801,000
1.07
0.51
0.02
0.48
0.22
0.09
2.91
1.47
0.9
665,000
1.17
0.54
0.02
0.49
0.24
0.09
2.99
1.59
1.0
559,000
1.28
0.56
0.02
0.51
0.25
0.09
3.02
1.71
1.1
453,000
1.42
0.58
0.03
0.51
0.27
0.08
3.07
1.87
1.2
369,000
1.57
0.60
0.03
0.52
0.28
0.08
3.13
2.03
1.5
244,000
1.90
0.66
0.03
0.50
0.30
0.08
3.19
2.39
LKE Inferred Resource
0.8
142,000
0.94
0.41
0.02
0.55
0.33
0.07
2.19
1.32
0.9
124,000
0.99
0.42
0.02
0.57
0.36
0.07
2.30
1.39
1.0
111,000
1.03
0.43
0.02
0.58
0.38
0.07
2.36
1.44
1.1
85,000
1.14
0.43
0.02
0.59
0.41
0.07
2.38
1.57
1.2
66,000
1.23
0.45
0.02
0.62
0.44
0.07
2.43
1.68
1.5
33,000
1.58
0.45
0.03
0.53
0.46
0.05
2.44
2.03
(1)
NiEq cutoff grades consider metal prices of $9.50/lb Ni, $3.50/lb Cu, $22.00/lb Co, $1000/oz Pt, $1,800/oz Pd and $1,700/oz Au and consider metal recoveries of 90% for Ni,
90% for Cu, 56% for Co, 69% for Pt, 68% for Pd and 68% for Au. Ag is not used.
(2)
NiEq grades are calculated using this formula: Ni (%) + [Cu (%) * 0.369] + [Co (%) * 2.318] + [Pt / 31.1 * 4.779] + [Pd / 31.1 * 8.602] + [Au / 31.1 * 8.124] with price
assumptions of $9.50/lb Ni, $3.50/lb Cu, $22.00/lb Co, $1000/oz Pt, $1,800/oz Pd and $1,700/oz Au. Ag is not used.
Table 3: LKE Resource, Contained Metal.
NiEq
Cutoff
1
Category
Tonnes
Ni lbs
(Millions)
Cu lbs
(Millions)
Co lbs
(Millions)
Pt
(ozs)
Pd
(ozs)
Au
(ozs)
Ag
(ozs)
LKE MRE Contained Metals
0.9
Indicated
665,000
17.2
7.9
0.33
11,000
5,000
2,000
64,000
0.9
Inferred
124,000
2.7
1.2
0.05
2,000
1,000
300
9,000
(1)
NiEq cutoff grades consider metal prices of $9.50/lb Ni, $3.50/lb Cu, $22.00/lb Co, $1000/oz Pt, $1,800/oz Pd and $1,700/oz Au and consider metal recoveries of 90% for Ni,
90% for Cu, 56% for Co, 69% for Pt, 68% for Pd and 68% for Au. Ag is not used.
Figure 1: Aerial plan map of the Lockerby East Property showing the location of the LKE block
model projected to surface and the footprint of the West Graham block model in grey. Location of
the past producing Ellen Pit and Lockerby Mine are also shown. (CNW Group/SPC Nickel Corp.)
Figure 2: Oblique long section of the Lockerby East Property showing the location of the West
Graham (In-Pit and Out-of-Pit) Resources the LKE Resource and well as the down-dip EM
conductors. Section is orientated at 060 degrees looking to the southwest. Location of figure 3 is
also highlighted on the image. (CNW Group/SPC Nickel Corp.)
Figure 3: Zoom in oblique long section of the down-dip LKE area showing distribution, size and
strength of the modelled EM conductors. Refer to figure 2 for the location of figure 3. Intervals are
reported as downhole lengths and are not representative of true width. Refer to MRE Note 13 for
NiEq calculation. (CNW Group/SPC Nickel Corp.)
Mineral Resource Estimate Notes:
(1)
The classification of the current Mineral Resource Estimates for the LKE Deposit into Indicated and Inferred is consistent with current 2014 CIM Definition Standards - For
Mineral Resources and Mineral Reserves.
(2)
All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
(3)
All mineral resources are presented undiluted and in situ, constrained by continuous 3D wireframe models (the constraining volumes), and are considered to have
reasonable prospects for eventual economic extraction.
(4)
Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that most of the Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continued exploration.
(5)
The validated database provided by SPC for the MREs includes data for 560 surface and underground diamond drill holes and 26 surface channels totalling 182,936
metres. The database totals 20,294 assay intervals representing 27,388 metres of drilling and channeling. The average assay sample length is 1.35 metres.
(6)
The mineral resource estimate is based on a three-dimensional ("3D") resource domains, constructed in GEOVIA GEMS version 6.8.3 software ("GEMS").
(7)
Nickel, copper, cobalt, platinum, palladium, gold and silver were estimated for each mineralization domain. Blocks within each mineralized domain were interpolated using
1.5 metre capped composites assigned to that model. To generate grade within the blocks, the inverse distance squared (ID2) interpolation method was used for all
domains. All estimates are based on variable block dimensions (by deposit area) and estimation search parameters (by domain), which are based on drill hole spacing,
and size, shape and orientation of the resource domains. The classification of resources into Inferred and Indicated is based primarily on drill hole spacing.
(8)
An average density value for the LKE Deposit was assigned based on a database of 7,406 mineralized samples. A value of 3.04 for the LKE Deposit. Values ranging from
2.85 to 3.00 are used for waste. Waste densities are based on a database of 7,039 samples.
(9)
The LKE Deposit is considered amenable to underground extraction.
(10)
As the LKE Deposit is deeper and narrower, a selected base case cut-off grade of 0.9 % NiEq is used to determine the underground MRE for the LKE Deposit. The LKE
underground resource grade blocks were quantified above the base case cut-off grade and within the constraining mineralized domain (the constraining volume).
(11)
Based on the size, shape and orientation of the deposits, it is envisioned that the LKE Deposit underground resource may be mined using the longhole open stoping mining
method (a bulk mining method that has long been utilized in the Sudbury region).
(12)
NiEq cut-off grades are based on metal prices of $9.50/lb Ni, $3.50/lb Cu, $22.00/lb Co, $1000/oz Pt, $1,800/oz Pd and $1,700/oz Au and metal recoveries of 90% for Ni,
90% for copper, 56% for Co, 69% for Pt, 68% for Pd and 68% for Au. Silver is not used.
(13)
NiEq grades are calculated using this formula: Ni (%) + [Cu (%) * 0.369] + [Co (%) * 2.318] + [Pt / 31.1 * 4.779] + [Pd / 31.1 * 8.602] + [Au / 31.1 * 8.124] with price
assumptions of $9.50/lb Ni, $3.50/lb Cu, $22.00/lb Co, $1000/oz Pt, $1,800/oz Pd and $1,700/oz Au. Ag is not used.
(14)
For the Lockerby East Deposit, underground base case cut-off grade of 0.9 % NiEq considers a mining cost of US$85.00/t rock and processing, treatment and refining,
transportation, and G&A cost of US$38/t mineralized material.
(15)
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
Reference
News Release, First Nickel Reports: 10 Metres Of 5.60% Ni and 1.26% Cu Hosted in Footwall
from Lockerby East Zone,
February 7
th
, 2006.
Quality Assurance, Quality Control and Qualified Persons
The technical report is authored by
Allan Armitage
, Ph.D., P. Geo., ("Armitage") and
Ben Eggers
,
B.Sc. (Hons), MAIG, P.Geo. ("Eggers") of SGS Geological Services. The Authors are independent
Qualified Persons as defined by NI 43-101 and are responsible for all sections of the report. The
updated MREs presented in the report were estimated by Dr. Armitage and Dr. Armitage conducted
a site visit to the Lockerby East Property on
July 24, 2023
.
Technical elements of this news release have been approved by Mr.
Grant Mourre
, P.Geo. (PGO),
CEO and President of SPC Nickel Corp. and a Qualified Person under National Instrument 43-101.
About the Lockerby East Property
The Lockerby East Property is located in the heart of the Sudbury Mining District where nine mines
are currently in operation and two more are in the development phase. The region benefits from its
proximity to well-developed transportation infrastructure including roads, railways, and electrical grid.
In addition, the Property is situated close to processing, smelting and refining assets which include
two mills, two smelters and one nickel refinery. Local operators include global mining corporations
Vale, Glencore and KGHM.
About SPC Nickel Corp.
SPC Nickel Corp. is a Canadian public corporation focused on exploring for Ni-Cu-PGMs within the
world class Sudbury Mining Camp. SPC Nickel is currently exploring its key 100% owned exploration
project Lockerby East located in the heart of the historic Sudbury Mining Camp that includes the
West Graham Resource and the LKE Resource. SPC Nickel also holds three additional projects
across
Canada
including the large camp-scale Muskox Project (located in
Nunavut
), the past
producing Aer-Kidd Project (located in the Sudbury Mining Camp) and the Janes Project (located 50
km northwest of
Sudbury
). The corporate focus is on
Sudbury
, and SPC Nickel continues to look for
new opportunities to add shareholder value. Additional information regarding SPC Nickel and its
projects can be found at
www.spcnickel.com
.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this news release
constitutes "forward-looking information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as "plans", "proposes", "estimates",
"intends", "expects", "believes", "may", "will" and include without limitation, statements regarding
estimated capital and operating costs, expected production timeline, benefits of updated
development plans, foreign exchange assumptions and regulatory approvals. There can be no
assurance that such statements will prove to be accurate; actual results and future events could
differ materially from such statements. Factors that could cause actual results to differ materially
include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory
risks. Most of these factors are outside the control of SPC Nickel. Investors are cautioned not to put
undue reliance on forward-looking information. Except as otherwise required by applicable securities
statutes or regulation, SPC Nickel expressly disclaims any intent or obligation to update publicly
forward-looking information, whether as a result of new information, future events or otherwise.
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.
SOURCE
SPC Nickel Corp.
View original content to download multimedia:
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%SEDAR: 00050374E
For further information:
is available at www.spcnickel.com and/or by contacting: Grant Mourre
P.Geo., Chief Executive Officer, SPC Nickel Corp., Tel: (705) 669-1777, Email: [email protected]
CO: SPC Nickel Corp.
CNW 07:00e 04-MAR-24