SPC Nickel Announces Strategic Consolidation of the Highly Prospective Muskox Nickel-Copper-Platinum Group Metal Property in Nunavut
SPC Nickel Announces Strategic Consolidation of the
Highly Prospective Muskox Nickel-Copper-Platinum
Group Metal Property in Nunavut
SUDBURY, ON
,
March 28, 2023
/CNW/ -
SPC Nickel Corp.
(TSX-V: SPC) (
"SPC Nickel"
) is pleased to announce
that it has entered into an option agreement (the "Option Agreement") with Bathurst Metals Corp. ("Bathurst") giving
SPC Nickel the right to acquire a 100% interest in the McGregor Lake and Speers Lake properties located within
the Kitikmeot Region of western
Nunavut
. Following this transaction, SPC Nickel will control nearly 650 square
kilometres ("km
2
") of the highly prospective Muskox Intrusion (Refer to Figure 1), representing one of the last
remaining camp scale nickel-copper-platinum group metal ("PGM") opportunities in
North America
.
Highlights
A unique camp style opportunity for the potential discovery and development of a new world-class Tier 1 Ni-Cu-
PGM district.
Highly prospective geological setting with numerous similarities to many of the world's largest nickel mining
camps.
Strategic consolidation of a 650 km
2
property package containing all of the most prospective zones and the
best known mineralized Ni-Cu-PGM occurrences within the Muskox Intrusion (Refer to Figure 1).
The
McGregor
and Speers Lake properties host many of the highest-grade drill intersections and surface
sample results reported historically on the Muskox Intrusion.
Drill Highlights include:
2.21% Ni, 5.04% Cu over 13.74 metres
from 98.12 metres depth in hole
EQNX87-05
and
2.11% Ni, 3.91% Cu, 6.71 g/t PGM
over 9.30 metres
from 99.70 metres depth in hole
00-MU003)
(Refer
to Figure 2 and Table 1).
Extensive proprietary geological and geophysical data covering the
McGregor
and Speers Lake Properties is
contained within SPC Nickel's Muskox database.
Grant Mourre
, CEO and President of SPC Nickel Corp. commented
, "This strategic transaction provides SPC
Nickel with a path to consolidate the highly prospective Muskox Intrusion. We believe that the Muskox Property
represents one of the last true camp-scale Nickel-Copper opportunities in
North America
. The Muskox Intrusion is
comparable in size, composition and interpreted geological environment to many of the world's largest Ni-Cu-
PGM deposits such as Norilsk in
Siberia
and Voisey's Bay, in
Newfoundland
and
Labrador
. This fact, coupled with
the numerous high-grade sulphide showings indicate the intrusion has excellent potential to host a world class
deposit,
Our focus and commitment to our
Sudbury
based assets, specifically our recently consolidated West Graham
Property, remains our top priority with our Phase 1 drill campaign progressing well. By using our proprietary
database, the technical team will continue to advance our understanding of the Muskox Intrusion while also
generating exciting new base and precious metals targets as SPC Nickel develops a strategy to advance this
Project towards a significant discovery.
"
Figure 1: General location and property map of the Muskox Project, the McGregor and Speers Lake Properties
highlighted. (CNW Group/SPC Nickel Corp.)
Figure 2: Plan map of the northern portion of the Muskox Property showing selective historic grab samples and
historic drill hole with assay results. Samples are scaled and colored based on Ni+Cu% grade. Drill hole intervals
are downhole length. True thicknesses cannot be estimated with available information. (CNW Group/SPC Nickel
Corp.)
Description of the Property
The McGregor Lake and Speers Lake properties cover approximately 178.4 km
2
of the southern exposure of the
Proterozoic aged, Muskox Intrusive in western
Nunavut
. The Muskox Intrusion has the form of an elongated funnel
shaped body with an axial keel dyke. Northward tilting of all the stratigraphic units in the area has exposed the
intrusion in an oblique cross-section that is approximately 150 km in length and up to 11 km wide. Previous
exploration activity has primarily focused on the marginal rocks of the funnel shaped Muskox Intrusion, where high-
grade semi-massive to massive sulphides occurs in close association to the contact and commonly extend into the
adjacent country rock. The McGregor Lake and Speers Lake properties cover over 45 km (40 km and 5 km
respectively) of the highly prospective marginal environment, where previous exploration programs have reported
some of the highest-grade surface grab samples as well as drill hole intersections (Refer to Table 1).
Table 1: Selected drill holes assay results from the Muskox Property. Refer to Figure 2 for drill hole locations.
(CNW Group/SPC Nickel Corp.)
Note: The reader is cautioned that the drill hole results presenting in Table 1 are selective in nature and may not be representative of mineralization across the entire Muskox Property. Drilling intervals are
downhole lengths. True thicknesses cannot be estimated with available information. NR means not reported.
Terms of the Agreement
To earn a 100% interest in and to the Property, SPC Nickel will be required to issue 7,500,000 common shares and
pay
$1,350,000
cash over three years with the following payment schedule:
Payment Date
Cash payments
Share Issuances
Upon Receipt of TSX-V Approval
$300,000
2,500,000
On or before 1st Anniversary
$300,000
2,250,000
On or before 2
nd
Anniversary
$350,000
750,000
On or before 3
rd
Anniversary
$400,000
2,000,000
TOTAL
$1,350,000
7,500,000
SPC Nickel will have the option to accelerate all or any cash and/or share payments to
Bathurst
as well as the
option to pay cash in lieu of shares.
If SPC Nickel vests a 100% interest,
Bathurst
will retain a 1% Net Smelter Return Royalty (the "NSR") on the
property with SPC Nickel retaining the right to buy back 0.5% NSR for
$5,000,000
up to the time of commercial
production.
If SPC Nickel exercises its Option and earns a 100% undivided legal and beneficial interest in the Property (subject
to the NSR), SPC Nickel shall pay
Bathurst
$5,000,000
within twelve months of the commencement of Commercial
Production on the Property.
For a period of 24 months following the Effective Date of the Agreement, if
Bathurst
wishes to sell more than ten
percent (10%) of any shares issued to them, they must first notify SPC Nickel and SPC Nickel will have 10 business
days to purchase or arrange a purchase of the shares at a price no higher than the 10-day VWAP.
All securities issued in connection with the Option Agreement will be subject to a statutory hold period of four
months and one day from issuance pursuant to applicable securities laws.
The Option Agreement remains subject to approval by the TSX Venture Exchange.
Reference
1.
Findlay, J and Kovacs, A. 1998, Geological, Geophysical and Geochemical Report on the Muskox Project, unpublished Inco drill hole data. Prepared for Muskox Holding Ltd.
2.
Page, J.W., Culbert, R.R., and Martin, L.S. 1988. Geochemical, geophysical and diamond drill reports on the Muskox property, NWT. Equinox Resources Ltd., DIAND Assessment Report 082562,56 p., 8
data Appendices.
3.
2001, Muskox Project Summary and Exploration Program Proposal prepared by Muskox Minerals Corp December 2001.
4.
Vivian, G. 2007, Muskox Project Nunavut 2007 Drill and Geological Survey Program Annual Report for Prize Mining prepared by Aurora Geoscience Ltd.
5.
Press Release, Adriana Intersections 14 metres of Disseminated Nickel-Copper Mineralization in the Muskox Intrusion and Expands MIE Drilling Program, Adriana Resources inc., June 17, 2007.
About the Muskox Intrusion
The Muskox Intrusion is one of the last undeveloped camp-scale Ni-Cu-PGM prospects in the world. Originally
discovered by INCO in the late 1950s during an aerial survey that discovered visible surface indications of
mineralization (gossans) extending over tens of kilometres across the tundra. INCO drilled and sampled 117 shallow
holes to test the gossans between 1957 and 1959 resulting in intersections of up to 7.6% Cu, 3.2% Ni and 16 g/t
PGM
2
over 5.48 metres. Over the next 60 years, companies including Equinox Resources Ltd (1980s), Muskox
Minerals Corp. (1995), Anglo American Exploration (2003) and Silvermet Inc. (2007) completed limited exploration
programs on the Muskox Intrusion.
The Muskox Intrusion is one of the largest and least deformed layered mafic to ultramafic bodies in the world. It
was emplaced during a large magmatic event (Mackenzie Magmatic Event) in the Proterozoic by mantle plume
volcanism related to the widespread Coppermine River Group flood basalts. The intrusion is broadly composed of
two distinct, but related, components called the Main Intrusive Body and the Feeder Dyke, which combined are
exposed over a length of 125 km, and range in width from 200-600 metres in the Feeder Dyke to 11 km in the Main
Body of the intrusion.
The Muskox Intrusion is comparable in size, composition, and interpreted tectonic environment to other
mafic/ultramafic intrusions which host major Ni-Cu-PGM deposits (e.g. Norilsk,
Russia
; Voisey's Bay,
Labrador
;
Jinchuan,
China
). The presence of numerous high grade sulphide showings in the margin zones of the Muskox
Intrusion indicate that ore forming processes occurred during crystallization. This fact, coupled with the favourable
geological environment, indicates that the complex has excellent potential to host a world class deposit. Recent
developments in ore deposit models and geophysical interpretative techniques have led to the realization that the
Muskox Intrusion is significantly under-explored.
Qualified Person
The 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. The historical information
shown in this news release was obtained from historical work reports filed by Inco, Equinox Resources Ltd.,
Silvermet, Adriana Resources and Muskox Minerals and have not been independently verified by a Qualified Person
as defined by NI 43 101. Note that grab samples and drill hole values shown in this news release are selective by
nature and values reported may not be representative of mineralized zones.
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.
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 Graham West Resource and the Crean
Hill 3 property under option from Vale. The Company 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.
SOURCE
SPC Nickel Corp.
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For further information:
available at www.spcnickel.com by contacting: Grant Mourre, Chief Executive Officer,
SPC Nickel Corp., Tel: (705) 669-1777, Email: [email protected]
CO: SPC Nickel Corp.
CNW 08:06e 28-MAR-23