Nickel Explorer Hits 7-Month High as Investors Cheer Positive Modelling Data

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Wednesday, April 5, 2023

Canada is world renowned for its epic resources and metal deposits. The Abitibi Greenstone Belt, Red Lake District, and Golden Triangle are just a few that are cemented in both the nation’s mining past and future. Thanks to the likes of Agnico Eagle Mines (NYSE: AEM) (TSX: AEM) Canadian Malartic Mine and countless others, Canada is well known for prolific gold, but don’t pigeonhole the country into only hosting the precious yellow metal. Canadian rock is rich in other metals too.

ArcelorMittal’s (NYSE: MT) Mont Wright Mine is one of the largest open-pit deposits in Canada (24+ square kilometers) and supplies 40 percent of the ArcelorMittal Group’s iron ore supply worldwide annually.

The Trans Hudson Corridor is heralded for its potential to become one of Canada’s great mining districts underscored by high-grade finds of gold and metals key to a sustainable future, such as nickel (Ni), copper (Cu), uranium (Ur), and PGE (Platinum Group Elements). Formed about two billion years ago, the corridor stretches from the Midwest U.S., including the famous 45-million-ounce Homestake gold mine that is now a target of Dakota Gold (NYSE American: DC), all the way up through Saskatchewan before sweeping through Hudson Bay, northern Ontario, Quebec, and into Labrador.

While known for some prolific discoveries already, the sheer volume of corridor leaves it grossly underexplored.

The corridor is the same geologic formation at the heart of the prolific mining region around Flin Flon near the Saskatchewan/Manitoba border that is home to world-class uranium, zinc (Zn), copper, gold (Au), and silver (Ag) deposits. To the east of Flin Flon, operations are ongoing in the Thompson Nickel Belt and to the west, Alamos Gold (NYSE: AGI) (TSX: AGI) is developing its Lynn Lake project in the same region as Hudbay Minerals’ (NYSE: HBM) (TSX: HBM) Snow Lake gold mine and Fathom Nickel Inc.'s (CSE: FNI)(OTC: FNICF) Albert Lake and Gochager Lake projects.

Fathom’s 90,000+ hectare Albert Lake project was host to the historic Rottenstone deposit, which produced high-grade nickel, copper, and PGE during the 1960s. Last month, Fathom completed the acquisition of claims that expanded its Gochager Lake project to 18,560 hectares of prime mining real estate that is host to an historic National Instrument 43-101 non-compliant open-pit resource consisting of 4.3 million tons at 0.295% Ni and 0.081% Cu.

Exploration activity by Fathom in 2022 and 2023 is providing exciting data for the company and its investors. Going into the new exploration programs, Fathom management was excited about the use of borehole electromagnetic (BHEM) technology to identify mineralization for additional drilling that will further define its deposits. BHEM is used in mineral exploration for direct detection and mapping of conductive deposits through boreholes or tunnels.

In its recent exploratory work, all five drillholes Fathom probed by BHEM illustrated BHEM responses associated with in-hole mineralization as well as significant off-hole responses. Off-hole responses are interpreted as the potential to extend the strike beyond the drillhole. More specifically, drillhole GL23003 was consistently mineralized (1%-70%) throughout the total drillhole (~331 meters in length). Furthermore, semi-massive to massive sulphides were found between 124.45 – 148.6 meters and at 171.15 – 180.00 meters.

Examining existing drillholes, an off-hole BHEM response occurred down and away from historic drillhole GL18002, signaling mineralization below the defined depths at the historic Gochager Lake nickel deposit. The latest results align with historic work, which has management eager to conduct more exploratory work. 

“Our geophysical team is equally excited about the conductivity recognized and defined by a 2008 VTEM survey both at the Gochager Lake deposit as well as several similar signatures recognized away from the historic deposit,” said Ian Fraser, Fathom’s CEO and VP Exploration. 

Fraser added that BHEM will continue to guide drill targets, which will focus on semi-massive to massive style of mineralization. “We expect there will be multiple lenses of this style of mineralization within the historic Gochager Lake deposit,” he said.

News of the acquisition and conductivity findings have driven shares of Fathom higher. After closing on March 30 at C$0.11 per share, Canadian-listed FNI shot to C$0.145 on Friday and continued to climb through the following week, including touching C$0.19 by Tuesday, the highest for the stock since September 2, 2022. U.S. shares of FNICF have performed similarly, adjusted for foreign exchange.

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Fathom Nickel Inc. (CSE: FNI)(OTC: FNICF) Full Corporate Write-Up: Click Here.

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