First Atlantic Nickel Releases Initial DTR Metallurgical Results: Magnetic Concentrate of 1.37% Nickel & 1.73% Chromium Over 383.1 Metres

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VANCOUVER, British Columbia, March 13, 2025 (GLOBE NEWSWIRE) -- First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to announce initial Davis Tube Recovery (DTR) metallurgical test results from drill hole AN-24-02, the first drill hole at the RPM Zone at its 100%-owned Atlantic Nickel Project in central Newfoundland. The DTR testing yielded a magnetic concentrate containing an average grade of 1.37% nickel and 1.73% chromium across the entire 383.1-meter length of the drill hole, which encompassed all 133 drill core samples. These initial metallurgical results confirm the potential for magnetic separation as a viable processing method for awaruite nickel mineralization previously identified at the RPM Zone.

The Company previously announced on March 4, 2025, that drill hole AN-24-02 returned assay results averaging 0.24% nickel and 0.32% chromium over its entire 383.1-meter length, with coarse-grained awaruite visibly disseminated throughout the drill core. This DTR testing has demonstrated that awaruite (Ni₃Fe) nickel can be effectively concentrated through magnetic separation, an important step toward establishing a potential smelter-free metallurgical process for the project.

HIGHLIGHTS

• High-Grade Magnetic Concentrate: An average magnetic concentrate grade of 1.37% nickel and 1.73% chromium across 383.1 meters of drill core, analyzed through 133 samples spanning the entire interval, with peak concentrate grades reaching 2.33% nickel and 8.17% chromium.
• Mass Pull: An average of 9.5% over 383.1 meters, yielding a magnetic concentrate that captures the recovered nickel, chromium, and cobalt within 9.5% of the original mass, reducing the total mass by 90.5% and producing an optimal concentrate for further processing.
• Strong Recovery Rates: Calculated recoveries of magnetically recoverable nickel averaging 52.4% (up to 63%) across the entire drill hole length.
• DTR Nickel: Average DTR nickel grade of 0.13% (up to 0.16%) over 383.1 meters.
• Chromium and Cobalt: Both chromium and cobalt were recovered in the magnetic concentrate, with significant chromium values meriting further evaluation, adding potential for valuable by-products.
• DTR Test Video: The Company has released a corporate video of the Davis Tube Recovery (DTR) Metallurgical test, viewable at https://www.youtube.com/watch?v=q3zsgDtLWns
• Phase 2 Drilling Program: Phase 2 drilling is set to begin soon, utilizing new road access and a higher-power NQ/HQ drill rig to target deeper mineralization and expand the 500m × 400m mineralized area at the RPM Zone. The program is fully funded by a recently closed, non-dilutive $3M strategic raise.
• Smelter-free nickel: Awaruite (Ni₃Fe), a natural nickel-iron alloy containing ~75% Ni, enables smelter-free magnetic separation, which could enhance the resilience and security of North America's critical minerals supply chain. Awaruite's clean and efficient North American processing potential aligns with new US Electric Vehicle IRA requirements, which stipulate that, beginning in 2025, eligible clean vehicles may not contain any critical minerals processed by a foreign entity of concern⁸.

RPM ZONE: 1.37% NICKEL MAGNETIC CONCENTRATE OVER 383.1 METERS

Table 1: DTR Metallurgical Test Results Summary from RPM Drill Hole 1 (AN-24-02)

The RPM Zone, located 10 km south of the Super Gulp Zone and 26 km south of Atlantic Lake within the Company's 30-kilometer awaruite nickel trend, has demonstrated significant metallurgical potential through recent Davis Tube Recovery (DTR) testing. Discovery drill hole AN-24-02 intersected visible, large-grained, disseminated awaruite nickel with grain sizes frequently exceeding 500 microns. The mineralization extended from near-surface, beginning after 11 meters of overburden, to a final depth of 394 meters. The magnetic concentrate averaged 1.37% nickel and 1.73% chromium across the entire 383.1-meter drill interval, with peak concentrate grades reaching 2.33% nickel. With an average mass pull of 9.5%, this magnetic concentrate process significantly reduced the initial rock mass by 90.5%. The testing highlights the potential of magnetic separation as an effective processing method for this project's awaruite nickel mineralization, creating a high grade nickel concentrate just 9.5% of the starting rock weight.

Phase 1 drilling has delineated a mineralized footprint of 500 meters by 400 meters across all four drill holes, with consistent high-grade magnetic concentrate recoveries at an average mass pull of 9.5%, reinforcing the zone's potential for commercial development. Previously reported assay results of 0.24% nickel and 0.32% chromium over 383.1 meters are now supported by these DTR test results, confirming the effectiveness of magnetic separation for this mineralization type. DTR nickel grades average 0.13% (up to 0.16%) throughout the interval, with nickel recoveries averaging 52.4%, and both chromium and cobalt in the magnetic concentrate show potential for valuable by-products. This significant discovery remains open at depth in all directions.

Table 2: DTR Metallurgical Test Results from RPM Drill Hole 1 (AN-24-02)

QUOTE FROM DR. RON BRITTEN, TECHNICAL ADVISOR

"The average grade of Discovery Drill Hole 1 at the RPM zone of the Atlantic Nickel Project, over its 383 m width, is comparable to that of FPX Nickel's large Baptiste Nickel Deposit in British Columbia,” says Dr. Ron Britten. "It is an enticing result that bodes well for future drill programs at the RPM and other targets at the Atlantic Nickel Project.”

Dr. Ron Britten, a respected geologist with over 40 years of experience, and technical advisor for First Atlantic Nickel, continues to contribute significantly to exploration and development. He is recognized for discovering the FPX Baptiste deposit in British Columbia, one of the largest undeveloped nickel deposits globally, which has solidified his reputation in the field. His research, published in the Journal of Economic Geology, has enhanced the industry's knowledge of nickel mineralization, establishing him as an expert in awaruite. Dr. Britten's skill in identifying and developing mineral resources highlights his position as a leading expert in the nickel mining sector.

Figure 1: Cross-sectional view of the RPM Zone's Discovery Drill Hole 1 (AN-24-02), showing the grade distribution of mineralization. The drill hole averages 1.37% nickel and 1.73% chromium in continuous metallurgical Davis Tube Recovery (DTR) magnetic concentrate across a 383.1-meter interval. These values are plotted alongside magnetically recoverable nickel grades (DTR). Assays from drill holes AN-24-03 and AN-24-04 are still pending.

QUOTE FROM CEO ADRIAN SMITH

"These metallurgical results mark a significant milestone for our Atlantic Nickel Project," said Adrian Smith, CEO of First Atlantic. "Not only have we confirmed extensive nickel mineralization at the RPM Zone, but we've now demonstrated that a substantial portion of this nickel can be efficiently recovered using simple, environmentally friendly magnetic separation techniques. Achieving a 91.5% mass reduction while producing a concentrate grading 1.37% nickel is a major step toward our goal of developing a North American nickel source that eliminates the need for roasting, high pressure acid leaching, and smelting."

SUPER GULP ZONE: 0.89% NICKEL MAGNETIC CONCENTRATE OVER 293.8 METERS

The Super Gulp Zone, located 10 km north of the RPM Zone and 16 km south of Atlantic Lake within the Company's 30-kilometer awaruite nickel trend, has revealed significant metallurgical potential through recent Davis Tube Recovery (DTR) testing. Discovery drill hole AN-24-01 intersected visibly disseminated awaruite from 3.23 meters to 297 meters depth, yielding a magnetic concentrate grade averaging 0.89% nickel and 1.60% chromium across the entire 293.8-meter interval, with peak concentrate grades of 1.50% nickel at an average mass pull of 6.9%, significantly reducing the starting weight of rock by 93.1%. The testing underscores the potential of magnetic separation for disseminated awaruite nickel-iron alloy mineralization.

Phase 1 drilling at Super Gulp has outlined a mineralized area with consistent magnetic concentrate recoveries, supporting previously reported assay results of 0.25% nickel and 0.28% chromium over 293.8 meters. DTR nickel grades average 0.06% (up to 0.10%) across the interval, meeting or exceeding the average cutoff grade of 0.06% for the Baptiste awaruite nickel project in British Columbia, Canada. Chromium and cobalt recovered in the magnetic concentrate show potential for valuable by-products. These results provide valuable insights to optimize drill targeting and orientation in the next phase of drilling at Super Gulp.

Table 3: DTR Metallurgical Test Results from Super Gulp Drill Hole 1 (AN-24-01)

MAGNETIC SEPARATION - PROCESSING ADVANTAGES

The DTR test results confirm that the awaruite mineralization at the Atlantic Nickel Project is well suited for magnetic separation, a critical first step in developing a metallurgical process flow-sheet. Awaruite, a naturally occurring nickel-iron alloy, is approximately ten times more magnetic than magnetite¹ and contains no sulfur, making it an ideal candidate for magnetic separation. This characteristic enables a processing approach that:

1. Eliminates the need for secondary processing such as smelting, roasting, or high pressure acid leaching typically used in nickel sulfides or laterites
2. Magnetic Separation reduces total volume of rock prior to entering flotation circuit
3. Reduced energy requirements & reduced environmental impact compared nickel sulfides and laterites
4. Aligns with North American critical mineral supply chain requirements, particularly the U.S. Inflation Reduction Act's restrictions on minerals processed by foreign entities of concern