TORONTO, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Class 1 Nickel and Technologies Ltd. (CSE: NICO | OTCQB: NICLF) ("Class 1 Nickel" or the "Company") is pleased to announce an updated mineral resource estimate (the "MRE”) for the Dundonald South Nickel Deposit (the "D-S Deposit”) (Table 1 and Table 2). The D-S Deposit is one of 4 nickel deposits within the sizeable Alexo-Dundonald Nickel Sulphide Project (the "Project” or "A-D Project”) (Figure 1), located about 45 km northeast of the City of Timmins, Ontario, and covering about 1,895 hectares (18.95 km2).
- Indicated Resources (Pit-Constrained*) of 2.54 Mt at 0.49% Ni (27.4 Mlbs Ni) - 781% increase in Indicated tonnes and 474% increase in nickel pounds.
- Dundonald South Deposit contains 776,000 t at 1.0% Ni using a 0.67% Ni cut-off (17.1 Mlbs nickel).
- Total Mineral Resources within 4 deposits: 3.4 Mt at 0.54% Ni Indicated and 5.9 Mt at 0.61% Ni Inferred.
- 87% of the nickel pounds and 41% of the tonnes (Pit-Constrained + Out-of-Pit) in the Dundonald South Deposit are in the Indicated category with drilling planned to update to Measured.
- With 59% of the Dundonald South Deposit tonnes in the Inferred category there is excellent exploration upside to expand and upgrade resources through additional drilling.
- Like the other 3 nickel deposits within the Project, the Dundonald South Deposit is open along strike and at depth, with new geological modelling and interpretation providing ample targets for next-stage drilling.
David Fitch, CEO of Class 1 Nickel, commented: "These new results from the updated mineral resource estimate for Dundonald South are extremely positive and the re-interpreted model shows off the high-grade nickel sulphide potential of this deposit and gives us several new areas to target in future drilling programs. Dundonald South contains some very high-grade nickel assays over significant intervals, demonstrating the capability of these Komatiite-hosted nickel sulphide deposits to contain potentially economic nickel without considering as yet the precious metal contents such as platinum and palladium. Having 3 of the 4 nickel deposits' mineral resources updated gets us closer to developing a comprehensive Phase 2 drilling program and helps guide us toward the ensuing goal of completing our first Preliminary Economic Assessment.”
The updated MRE for the D-S Deposit was completed by Atticus Geoscience Consulting Ltd. ("Atticus”) and their strategic partner Caracle Creek Chile SpA ("Caracle”) (together the "Consultants”). This MRE replaces the 2020 mineral resource estimate completed by P&E Mining Consultants Inc. (Stone et al., 2020) which is filed on SEDAR+.
The current MRE for the D-S Deposit was completed in accordance with National Instrument 43-101 ("NI-43-101”), and a technical report in support of the MRE will be filed on SEDAR+ within 45 days from the date of this news release.
Table 1. 2024 Mineral Resource Statement for the Dundonald South Nickel Sulphide Deposit using C$/t NSR cut-offs.
| Dundonald South - Resources | Tonnage (t)
| Grade | Contained Metal | ||||||
| Ni (%) | Cu (%) | Co (%) | NiEq (%) | NSR
(C$/t) | Ni (klbs) | Cu (klbs) | Co (klbs) | ||
| Pit-Constrained (C$52.5/t NSR COG) | |||||||||
| Indicated | 2,540,000 | 0.49 | 0.02 | 0.01 | 0.52 | 103 | 27,400 | 911 | 755 |
| Inferred | 3,600,000 | 0.42 | 0.01 | 0.01 | 0.44 | 88 | 33,000 | 1,100 | 1,060 |
| Out-of-Pit (C$96.0/t NSR COG) | |||||||||
| Indicated | 200,000 | 0.95 | 0.03 | 0.02 | 0.99 | 198 | 4,210 | 145 | 80 |
| Inferred | 390,000 | 0.57 | 0.02 | 0.01 | 0.60 | 120 | 4,900 | 160 | 120 |
| Total Pit-Constrained + Out-of-Pit | |||||||||
| Indicated | 2,740,000 | 0.52 | 0.02 | 0.01 | 0.55 | 110 | 31,600 | 1,060 | 834 |
| Inferred | 3,900,000 | 0.43 | 0.01 | 0.01 | 0.46 | 91 | 37,600 | 1,270 | 1,200 |
(1) The independent Qualified Person for the MRE, as defined by NI 43-101, is Mr. Simon Mortimer (FAIG #4083) of Atticus Geoscience Consulting Ltd., working with Caracle Creek Chile SpA. The effective date of the MRE is 1 October 2024.
(2) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
(3) The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(4) 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.
(5) The Mineral Resources were estimated following the 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines prepared by the CIM Mineral Resource & Mineral Reserve Committee and the 2014 CIM Definition Standards for Mineral Resources & Mineral Reserves prepared by the CIM Standing Committee on Reserve Definitions.
6) Geological and block models for the MRE used core assays (497 samples from 2021 drilling) and data and information from 273 surface diamond drill holes (16 from Class 1 Nickel and 257 historical). The drill hole database was validated prior to resource estimation and QA/QC checks were made using industry-standard control charts for blanks, core duplicates and commercial certified reference material inserted into assay batches by Class 1 Nickel.
7) The block model was prepared using Micromine 2020. A 6 m x 6 m x 6 m block model was created, with sub blocks to 0.5 m x 0.5 m x 0.5 m. Drill composites of 1.0 m intervals were generated within the estimation domains, and subsequent grade estimation was carried out for Ni, Cu and Co using Inverse of distance Weighting interpolation method.
8) Grade estimation was validated by comparison of input and output statistics (Nearest Neighbour), swath plot analysis, and by visual inspection of the assay data, block model, and grade shells in cross-sections.
9) As a reference, the average estimated density value (specific gravity) within the mineralised domain is 2.90 g/cm3 (t/m3).
(10) Estimates have been rounded to 3 significant figures for Indicated resources and 2 significant figures for Inferred resources.
(11) The MRE considers a geological dilution of 5% and a mining recovery of 95%.
(12) US$ metal prices of $8.00/lb Ni, $3.25/lb Cu, $13.00/lb Co were used in the NSR calculation with respective process recoveries of 85%, 70%, and 80%; gold, platinum and palladium are not considered in the current NSR calculation.
(13) Pit-constrained Mineral Resource NSR cut-off considers processing, and G&A costs, applying a factor of 5% for mining dilution, that respectively combine for a total of (($45.00 + $5.00) * (1 + 5%)) = C$52.5/tonne processed.
(14) Out-of-pit Mineral Resource (underground) NSR cut-off considers ore mining, processing, and G&A costs that respectively combine for a total of ($46.00 + $45.00 + $5.00) = C$96.0/tonne processed.
(15) The Out-of-Pit Mineral Resource grade blocks were quantified above the $96.0/t cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Additionally, only groups of blocks that exhibited continuity and reasonable potential stope geometry were included. All orphaned blocks and narrow strings of blocks were excluded. The long-hole stoping with backfill mining method was assumed for the Out-of-Pit (underground) MRE calculation.
(16) The NSR calculation is as follows: NSR C$/t = ((Ni% x 199.89) + (Cu% x 66.87) +(Co% x 305.71)) x 95%.
(17) The NiEq% calculation is as follows: NiEq% = (Ni% x 1) + (Cu% x 0.33) + (Co% x 1.53).
Table 2. 2024 Mineral Resource Statement, Dundonald South Nickel Sulphide Deposit using %Ni cut-offs.
| Dundonald South - Resources | Tonnage (t) | Grade | Contained Metal | ||||||
| Ni (%) | Cu (%) | Co (%) | NiEq (%) | NSR (C$/t) | Ni (klbs) | Cu (klbs) | Co (klbs) | ||
| Pit-Constrained (0.24% Ni COG) | |||||||||
| Indicated | 2,640,000 | 0.48 | 0.02 | 0.01 | 0.51 | 101 | 28,000 | 886 | 774 |
| Inferred | 3,800,000 | 0.41 | 0.01 | 0.01 | 0.43 | 86 | 39,000 | 980 | 1,100 |
| Out-of-Pit (0.45% Ni COG) | |||||||||
| Indicated | 198,000 | 0.95 | 0.03 | 0.02 | 0.99 | 199 | 4,190 | 144 | 77 |
| Inferred | 400,000 | 0.57 | 0.02 | 0.01 | 0.60 | 119 | 5,000 | 160 | 130 |
| Total Pit-Constrained + Out-of-Pit | |||||||||
| Indicated | 2,840,000 | 0.51 | 0.02 | 0.01 | 0.54 | 108 | 32,200 | 1,030 | 851 |
| Inferred | 4,200,000 | 0.43 | 0.01 | 0.01 | 0.45 | 89 | 39,000 | 1,100 | 1,200 |
(1) The independent Qualified Person for the MRE, as defined by NI 43-101, is Mr. Simon Mortimer (FAIG #4083) of Atticus Geoscience Consulting Ltd., working with Caracle Creek Chile SpA. The effective date of the MRE is 1 October 2024.
(2), (3), (4) and (5) refer to Notes to Table 1.
6) Geological and block models for the MRE used core assays (497 samples from 2021 drilling) and data and information from 273 surface diamond drill holes (16 from Class 1 Nickel and 257 historical). The drill hole database was validated prior to resource estimation and QA/QC checks were made using industry-standard control charts for blanks, core duplicates and commercial certified reference material inserted into assay batches by Class 1 Nickel.
7) The block model was prepared using Micromine 2020. A 6 m x 6 m x 6 m block model was created, with sub blocks to 0.5 m x 0.5 m x 0.5 m. Drill composites of 1.0 m intervals were generated within the estimation domains, and subsequent grade estimation was carried out for Ni, Cu and Co using Inverse of distance Weighting interpolation method.
(8) refer to Notes to Table 1.
(9) As a reference, the average estimated density value (specific gravity) within the mineralised domain is 2.90 g/cm3 (t/m3).
(10), (11), (12), (13), (14), (15), (16), and (17) refer to Notes to Table 1.
Class 1 Nickel completed its Phase 1 diamond drilling program on the A-D Project in 2021, with 4,382 m in 16 holes (497 core samples) completed at Dundonald South. The updated MRE combines the 2021 drill hole data with historical drilling (45,636.40 m in 257 holes) completed on the D-S Deposit by previous operators including the most recent drilling by Avion Resources (1,352 m in 4 holes, 2007).
A summary of selected drill core assay intervals from within the medium- and high-grade nickel domains is provided in Table 3, plan view and cross-section views of the current MRE with optimized pit shells are provided in Figure 2 and an isometric view of the categorized mineral resources is shown in Figure 3.
Grade-Tonnage curves for the Pit-Constrained (open pit) mineral resources are provided in Figure 4 (C$/t NSR) and Figure 5 (%Ni) and various views of the Dundonald South Deposit are shown in Figures 6 and 7.
Updates to the mineral resources of the Alexo South and Alexo North deposits were announced 24 April 2024 and 22 May 2024, respectively. Details regarding the new 3D model and re-interpreted Dundonald South Deposit was announced on 23 September 2024. An update to the mineral resource estimate for the Dundonald North Nickel Sulphide Deposit is planned.
Figure 1. Alexo-Dundonald Nickel Sulphide Project showing the location of the 4 nickel deposits and the optimized pit shell outlines for Alexo North and South and Dundonald South deposits, overlain on the generalized geology within the Project. The yellow oval at the Dundonald North Deposit is not an optimized pit shell but rather outlines the approximate area of the 2020 mineral resource estimate reported by Stone et al. (2020).
Figure 2. Plan view (left) and cross-sectional views looking east (right) through the Dundonald South Deposit showing the optimized open pit shells (3D and traces), and the categorized Indicated (yellow) and Inferred (green) mineral resources.
Figure 3. Isometric view (looking northeast) of the Dundonald South Nickel Sulphide Deposit showing the 3D optimized pit shells (1 and 2 in grey) and the Pit-Constrained and Out-of-Pit Indicated (yellow) and Inferred (green) resources.
Figure 4. Grade-tonnage curve for the PIT-CONSTRAINED (open pit) resources (C$/t NSR cut-offs) in the Dundonald South Nickel Deposit. The C$52.50/tonne NSR is highlighted.
Figure 5. Grade-tonnage curve for the PIT-CONSTRAINED (open pit) resources (%Ni cut-offs) in the Dundonald South Nickel Deposit. The 0.24% Ni cut-off grade is highlighted.
Table 3. Selected drill core assay results (>3.0 m length and >1.0% Ni) from historical and Class 1 (2021) diamond drilling at Dundonald South (within medium- and high-grade nickel domains).
| Drill Hole | From (m) | To (m) | Interval (m) | Ni (%) | Drill Hole | From (m) | To (m) | Interval (m) | Ni (%) | |
| 64-10 | 55.78 | 59.13 | 3.35 | 2.59 | FND04-31 | 49.73 | 52.80 | 3.07 | 1.38 | |
| 64-12 | 84.43 | 89.92 | 5.49 | 1.33 | FND04-32 | 57.10 | 60.50 | 3.40 | 1.13 | |
| 65-07 | 75.29 | 79.03 | 3.74 | 1.78 | FND04-33 | 245.90 | 250.90 | 5.00 | 1.15 | |
| and | 125.88 | 132.89 | 7.01 | 1.57 | FND05-39 | 247.21 | 250.40 | 3.19 | 2.65 | |
| 65-08 | 71.63 | 75.22 | 3.59 | 1.84 | FND05-46 | 18.00 | 21.00 | 3.00 | 1.66 | |
| 65-09 | 64.01 | 67.67 | 3.66 | 1.47 | FND05-49 | 109.40 | 114.50 | 5.10 | 1.53 | |
| and | 93.45 | 97.54 | 4.09 | 1.01 | FNS04-06 | 110.70 | 113.70 | 3.00 | 1.26 | |
| and | 103.33 | 108.20 | 4.87 | 1.49 | and | 120.30 | 123.30 | 3.00 | 1.50 | |
| 65-10 | 117.50 | 122.83 | 5.33 | 1.45 | FNS04-08 | 145.60 | 150.90 | 5.30 | 1.76 | |
| 65-29 | 190.20 | 199.03 | 8.83 | 5.74 | FNS04-11 | 77.70 | 83.00 | 5.30 | 1.12 | |
| 65-30 | 140.82 | 147.52 | 6.70 | 1.13 | FNS04-17 | 155.80 | 159.00 | 3.20 | 3.54 | |
| 69-02 | 142.13 | 146.87 | 4.74 | 1.72 | FNS04-21 | 128.00 | 133.00 | 5.00 | 1.43 | |
| 73-04 | 35.97 | 42.67 | 6.70 | 1.24 | and | 168.50 | 173.50 | 5.00 | 1.83 | |
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