VANCOUVER, BC, March 14, 2022 /CNW/ - FPX Nickel Corp. (TSXV:
FPX) (OTCQB: FPOCF) ("FPX" or the "Company") is
pleased to announce results of the summer 2021 infill drilling
program at the Baptiste Project (the "Project") at the
Company's 100%-owned Decar Nickel District (the "District")
in central British Columbia. These results are highlighted by
hole 21BAP073, which returned the third-highest grading broad
interval of near-surface nickel mineralization in the Project's
history.
Highlights
- Results validated the PEA block model and potentially expanded
higher grade, near-surface DTR nickel mineralization at the
Baptiste deposit beyond the 2020 PEA resource model
- Holes in the area of the planned starter pit in the
southeastern portion of the Baptiste deposit all returned
near-surface, broad intervals with average DTR Nickel grades at or
above the global resource grade of 0.120% DTR nickel,
including:
-
- 21BAP071 intersected 153.0 m
grading 0.128% DTR nickel from 47 m
downhole, including 79.0 m grading
0.139% DTR nickel (see Note 2 below regarding true width)
- 21BAP072 intersected 282.0 m
grading 0.128% DTR nickel from 39 m
downhole, including 119.8 m grading
0.146% DTR nickel
- 21BAP073 intersected 254.9 m
grading 0.151% DTR nickel from 48.1 m
downhole, including 157.3 m grading
0.154% DTR nickel, representing the third-highest grading,
near-surface interval ever intersected at the Baptiste
deposit
- 21BAP074 intersected 317.2 m
grading 0.135% DTR nickel from 33.8 m
downhole, including 114.0 m grading
0.159 % DTR nickel
- 21BAP075 intersected 136.4 m
0.120% DTR nickel from 39 m
downhole
"We are very pleased to see that the 2021 drill results
validated the 2020 PEA block model, while continuing to showcase
very strong, near-surface DTR nickel grades in the Baptiste starter
pit area," commented Martin Turenne,
FPX's President and CEO. "We expect these results will
confirm the conversion of inferred mineralization to the indicated
category for a mineral resource estimate in support of a
preliminary feasibility study at Baptiste, which stands as the
world's third largest undeveloped nickel deposit."
Background
The 2021 Baptiste drilling campaign was designed to convert
near-surface inferred resources to the indicated classification to
support an eventual Baptiste preliminary feasibility study.
The mine plan from the NI 43-101 2020 Preliminary Economic
Assessment ("2020 PEA") envisaged the mining of a total of
approximately 1.5 billion tonnes of indicated and inferred material
averaging 0.120% Davis Tube magnetically recoverable ("DTR")
nickel over the Project's 35-year mine life, with approximately 89%
of this mineralization classified in the indicated category and 11%
in the inferred category.
The 2020 PEA highlighted the Baptiste Project's potential to
deliver robust operating margins throughout the nickel price cycle,
generating an after-tax net present value
("NPV8%") of US$1.7
billion and after-tax internal rate of return ("IRR")
of 18.3% at an assumed nickel price of US$7.75/lb. At the recent nickel price of
$12.00/lb., the Project would
generate an after-tax NPV8% of US$4.3 billion and after-tax IRR of 30.2%, based
on 2020 PEA metrics.
The PEA is preliminary in nature and includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability. There is no certainty that the conclusions or
results as reported in the PEA will be realized.
2021 Drilling Results
The ten holes drilled during last year's campaign are the first
holes drilled at Baptiste since 2017. Figure 1 below provides
a plan map of the locations for all holes drilled at Baptiste since
the Project's inception, including those drilled in 2021.
Table 1 summarizes the significant assays returned in the ten
holes.
Table 1: Baptiste Deposit Drill Hole Results
Hole1
|
Intersections2
|
DTR Nickel
(%)3
|
Total Nickel
(%)3
|
From
|
To
|
Length
|
21BAP071
|
47.0
|
200.0
|
153.0
|
0.128
|
0.194
|
including
|
47.0
|
126.0
|
79.0
|
0.139
|
0.191
|
|
|
|
|
|
|
21BAP072
|
39.0
|
321.0
|
282.0
|
0.128
|
0.193
|
including
|
39.0
|
158.8
|
119.8
|
0.146
|
0.196
|
and
|
158.8
|
285.0
|
126.2
|
0.131
|
0.194
|
|
|
|
|
|
|
21BAP073
|
48.1
|
303.0
|
254.9
|
0.151
|
0.189
|
including
|
145.7
|
303.0
|
157.3
|
0.154
|
0.191
|
and
|
48.1
|
145.7
|
97.6
|
0.146
|
0.186
|
|
|
|
|
|
|
21BAP074
|
33.8
|
351.0
|
317.2
|
0.135
|
0.202
|
including
|
237.0
|
351.0
|
114.0
|
0.159
|
0.209
|
and
|
33.8
|
237.0
|
203.2
|
0.122
|
0.198
|
|
|
|
|
|
|
21BAP075
|
39.0
|
175.4
|
136.4
|
0.120
|
0.197
|
|
|
|
|
|
|
21BAP083
|
8.9
|
138.0
|
129.2
|
0.112
|
0.198
|
|
|
|
|
|
|
21BAP084
|
31.0
|
151.0
|
120.0
|
0.112
|
0.199
|
|
|
|
|
|
|
21BAP086
|
0.0
|
223.0
|
223.0
|
0.109
|
0.236
|
|
|
|
|
|
|
21BAP087
|
3.0
|
147.0
|
144.0
|
0.147
|
0.208
|
1 An additional 7 short, vertical holes (21BAP076 to
21BAP082) were drilled to define the location of a future bulk
sample for metallurgical test work. These were used to further
inform the Project's bedrock model. Full assays results are
not yet available for hole 21BAP085; see discussion of 21BAP085
below.
2 The vertical depth (true width) of all quoted
intersections in this news release is interpreted to be
approximately 75% of downhole depth.
3 Core samples are assayed for "total nickel"
and Davis Tube Recoverable ("DTR") nickel." "DTR nickel"
analyses measure only the magnetically recoverable nickel hosted in
awaruite (nickel-iron alloy), whereas the "total nickel" analyses
measure both magnetically and non-magnetically recoverable
nickel. The Davis Tube method is in effect a
mini-scale metallurgical test procedure used to provide a more
accurate measure of recoverable nickel and is the global
industry-standard geometallurgical test for magnetic recovery
operations and exploration projects. See "Sampling and
Analytical Method", below.
In general, results from the 2021 Baptiste in-fill drilling
program validated the PEA block model. In particular,
drilling results in the starter pit area (holes 21BAP071 to
21BAP075) returned the expected nearer-surface, higher-grade
tonnage. Upon a future update of the Baptiste resource model,
it is expected that the intended conversion from inferred to
indicated categorization will be realized. In addition, the
drilling results also improve the Company's understanding of dikes
and their influence on internal dilution, yielding further benefits
in an eventual resource model update.
Hole 21BAP071 was collared within the 2020 PEA resource pit
outline and drilled to the northwest at an angle of minus 58
degrees. Drilling intersected bedrock at a depth of
47 m downhole, with strong awaruite
mineralization extending to 200 m.
Weaker awaruite mineralization characterized the remainder of
the hole due to pervasive Iron Carbonate alteration. Results
include a 2.5 m section of gabbro
dike.
21BAP072 was collared 170 m along
strike from 21BAP071 and drilled to the north at an angle of minus
61 degrees. Drilling intersected bedrock at 39 m, with strong awaruite mineralization
extending to 285 m. Weaker
awaruite mineralization characterized the remainder of the hole due
to pervasive iron carbonate alteration. Results include
11.6 m and 6.37 m sections of gabbro dike.
21BAP073 was collared approximately 300
m south of 21BAP072 and drilled to the northwest at an angle
of minus 61 degrees. Drilling intersected bedrock at
48.1 m, with strong awaruite
mineralization extending the remaining length of the hole to
303 m. Results include several
1-3 m gabbro dikes.
21BAP074 was collared approximately 135
m along strike of 21BAP073 and drilled to the northeast at
an angle of minus 61 degrees. Drilling intersected bedrock at
33.8 m, with strong awaruite
mineralization extending the remaining length of the hole to
351 m. Results include several
1-3 m gabbro dikes.
21BAP075 was collared approximately 185
m along strike from 21BAP071 and drilled to the southwest at
an angle of minus 60 degrees. Drilling intersected bedrock at
39 m, with strong awaruite
mineralization extending the remaining length of the hole to
175.4 m. Results include two
1-3 m dikes.
21BAP083 was collared 165 m along
strike to the northwest from 21BAP084. Drilling intersected
bedrock at 8.9 m, with moderate
awaruite mineralization extending to 138
m. This mineralization was associated with a higher
degree of antigorite alteration. A larger 5.82 m gabbro dike was encountered near the end
of the hole.
21BAP084 was collared within the northeastern section of the
Baptiste deposit and drilled to the northeast at an angle of minus
60 degrees. Drilling intersected bedrock at 31 m, with moderate awaruite mineralization
extending to 151 m. The results
included two 2-4 m gabbro dikes.
21BAP085 was collared adjacent to 21BAP86, drilling to the
southwest at an angle of minus 60 degrees. Drilling
intersected bedrock at the collar with moderate awaruite
mineralization extending the remaining length of the hole to
161.6 m. Assay results from the
top of the hole to 77.9 m have not
been finalized; from 77.9 m to the
end of the hole at 161.6 m, the hole
encountered 83.7 m grading 0.120% DTR
Ni (0.190% total Ni).
21BAP086 was collared within the northwestern portion of the
Baptiste deposit and drilled to the northeast at an angle of minus
60 degrees. Drilling intersected bedrock at the collar, with
moderate awaruite mineralization extending from 43 m to 159 m
downhole.
21BAP087 was collared 245 m to the
west of 21BAP086 and drilled to the northeast at an angle of minus
61 degrees. Drilling intersected bedrock at 3 m, with strong awaruite mineralization
extending from 3 m to 147 m.
Sampling and Analytical Method
For a description of the Company's sampling and analytical
method, including a description of QA/QC procedures, see the news
release dated October 19, 2021.
Peter Bradshaw, P. Eng., FPX
Nickel's Qualified Person under NI 43-101, has reviewed and
approved the technical content of this news release.
About the Decar Nickel District
The Company's Decar Nickel District claims cover 245
km2 of the Mount Sidney Williams ultramafic/ophiolite
complex, 90 km northwest of Fort St.
James in central British
Columbia. The district is a two-hour drive from Fort St. James on a high-speed logging
road.
Decar hosts a greenfield discovery of nickel mineralization in
the form of a naturally occurring nickel-iron alloy called awaruite
(Ni3Fe), which is amenable to bulk-tonnage, open-pit
mining. Awaruite mineralization has been identified in four target
areas within this ophiolite complex, being the Baptiste Deposit,
and the B, Sid and Van targets, as confirmed by drilling,
petrographic examination, electron probe analyses and outcrop
sampling on all four. Since 2010, approximately US
$28 million has been spent on the
exploration and development of Decar.
Of the four targets in the Decar Nickel District, the Baptiste
Deposit, which was initially the most accessible and had the
biggest known surface footprint, has been the focus of diamond
drilling since 2010, with a total of 99 holes and 33,700 m of drilling completed. The Sid
target was tested with two holes in 2010 and the B target had a
single hole drilled in 2011; all three holes intersected
nickel-iron alloy mineralization over wide intervals with DTR
nickel grades comparable to the Baptiste Deposit. The Van
target was not drill-tested at that time as bedrock exposures in
the area were very poor prior to more recent logging
activity. In 2021, the Company executed a maiden drilling
program at Van, which has returned promising results comparable
with the strongest results at Baptiste.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development
of the Decar Nickel District, located in central British Columbia, and other occurrences of the
same unique style of naturally occurring nickel-iron alloy
mineralization known as awaruite. For more information, please view
the Company's website at www.fpxnickel.com.
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and
Director
Forward-Looking Statements
Certain of the
statements made and information contained herein is considered
"forward-looking information" within the meaning of applicable
Canadian securities laws. These statements address future events
and conditions and so involve inherent risks and uncertainties, as
disclosed in the Company's periodic filings with Canadian
securities regulators. Actual results could differ from those
currently projected. The Company does not assume the obligation to
update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
SOURCE FPX Nickel Corp.