14:40:37 EDT Thu 23 May 2024
Enter Symbol
or Name
USA
CA



Fathom Nickel Inc
Symbol FNI
Shares Issued 102,775,797
Close 2023-09-28 C$ 0.19
Market Cap C$ 19,527,401
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Fathom Nickel completes Gochager Lake drill program

2023-09-28 12:39 ET - News Release

Mr. Ian Fraser reports

FATHOM ANNOUNCES COMPLETION OF 2,000+ METER DRILL PROGRAM AT THE GOCHAGER LAKE PROPERTY AND THE COMPLETION OF THE FIRST ANNIVERSARY PAYMENTS UNDER THE ORIGINAL GOCHAGER LAKE EARN-IN AGREEMENT

Fathom Nickel Inc. has completed the fall 2023 drill program at the historic Gochager Lake deposit within the company's 22,620-hectare Gochager Lake project.

Highlights:

  • Seven drill holes completed, totalling 2,168 metres.
  • Semi-massive and massive sulphides intersected in GL23005 and GL23010, extending the nickel-copper-cobalt (Ni-Cu-Co) mineralization intersected in GL23003 (see press release dated April 12, 2023) both up and down plunge.
  • Disseminated, interstitial, net-textured, semi-massive sulphide mineralization occurring at 304 metres to 384.5 metres in GL23009 significantly extends the historic Gochager Lake deposit at depth.
  • Massive sulphide veins observed crosscutting the gabbro host rock throughout the drilled area.
  • Multiple off-hole borehole electromagnetic (BHEM) responses detected in all drill holes and BHEM surveys suggest significant conductivity buildup at depth.
  • Two strong off-hole BHEM anomalies associated with favourable host rocks encountered in drill hole GL23011, located approximately 400 metres northeast of the Gochager Lake deposit.

Ian Fraser, chief executive officer and vice-president of exploration, stated: "The recently completed drill program has accomplished exactly what we set out to do. We now have a much better understanding of geological controls on the impressive nickel-cobalt values intersected in GL23003, and we have been able to extend this mineralization both up and down plunge. We are dealing with a very dynamic intrusive at Gochager Lake and we are very encouraged to be intersecting a wide range of sulphide textures typical of magmatic nickel sulphide deposits. We confirmed that the deep off-hole conductor detected in historic drill hole GL18002 is associated with a buildup of semi-massive to massive sulphide mineralization at depth. Furthermore, BHEM continues to indicate conductivity buildup beyond the bottom of several drill holes, suggesting the possible continuation of mineralization at depth. We look forward to continuing to demonstrate that there are chutes of high-grade nickel-copper-cobalt mineralization within the historic Gochager Lake deposit. We also look forward to defining the source, or the feeder, of the magmatic sulphide textures we continue to consistently encounter at the Gochager Lake deposit."

In respect of the stepout drill hole 400 metres northeast of the Gochager Lake deposit, Mr. Fraser continued: "We are also very encouraged and intrigued with the presence of massive sulphide veinlets occurring in GL23011 -- some 400 metres from the known Gochager Lake deposit. Additionally, BHEM identified two prominent off-hole anomalies occurring within favourable host rock proximate to the off-hole anomalies. GL23011 was a follow-up to a VTEM [versatile time domain electromagnetics] anomaly first detected in 2008 but never drilled until now."

The company anticipates the receipt of assay results from the 2023 fall drill program within four to five weeks. The company continues to model BHEM and surface geophysics results. The company will release results of the BHEM survey analysis in the coming weeks. In addition to drilling and geophysics, the company completed some baseline soil geochemistry profiles in the area of the 2008 VTEM anomaly that was tested by GL23011, as well as overtop of some other prominent VTEM/TDEM (time domain electromagnetics) anomalies. Initial ground prospecting was also performed in and around the areas of the Mal Lake nickel occurrence and the Borys Lake Zn-Pb-Ag (zinc-lead-silver) deposit. Results of this work will be released in the coming weeks as well.

Completion of first-year anniversary payment of Gochager Lake earn-in agreement

Fathom is also pleased to report that both the cash payment and share issuance required on or before the date of the first-year anniversary of the Gochager Lake earn-in agreement have now been completed. Under the terms of the agreement, Fathom was required to make a cash payment of $15,000 and issue 170,000 shares in order to complete the first anniversary requirements and earn a 10-per-cent interest in the Gochager Lake property. However, at the request of the vendor, the terms of the first anniversary requirements were amended to reduce the cash payment to $5,000 and increase the share issuance to 210,000 (the original 170,000 shares and additional 40,000 shares valued at 25 cents per share).

Commenting on the agreement, Doug Porter, president and chief financial officer, stated: "We were pleased when the Gochager Lake vendor approached us and requested an amendment to the agreement to weigh more heavily towards the share issuance. This clearly demonstrates the vendor's continued belief in the potential of the Gochager Lake property. Additionally, under the terms of the agreement, we are required to spend $2-million on qualifying exploration expenditures within a four-year period in order to earn a 100-per-cent interest in the Gochager Lake property. We are pleased to announce that at the completion of the fall drill program we have now fulfilled this exploration spend commitment. We expect to complete the balance of the requirements under the agreement (an additional cash payment of $70,000 and an additional issuance of 600,000 shares) before the end of the year, at which point we will own 100 per cent of the Gochager Lake project."

Quality assurance/quality control (QA/QC) disclosure statement

Fathom implements an industry-standard QA/QC program for all field and diamond drill programs. Fathom, through the services of TerraLogic Exploration Inc., inserts QA/QC samples in its diamond drill programs at a rate of one sample per approximately every 12 to 13 samples collected. Standards sourced from CDN Resource Laboratories and CCRMP were inserted into the sample stream at a rate of one in 30 samples. Additionally, lab duplicates (coarse rejects) were inserted and positioned in the sample sequence at a rate of one in 30 samples, and positioned in the sample sequence alternating with standards to result in a QA/QC insertion rate of no less than one in 15 samples. Blanks were inserted at the start of every sample batch and additionally after samples of anticipated high-grade or high-sulphide content.

Assaying is performed at ALS Canada Ltd. ALS is an accredited laboratory (SCC -- CAN-P-1579 and CAN-P-4E ISO/IEC 17025) and is independent of Fathom. All drill core samples are analyzed using a four-acid digestion, followed by 33-element ICP-AES (inductively coupled plasma atomic emission spectroscopy) analyses (code ME-ICP61). Overlimit nickel and copper results are further analyzed by a four-acid, ore-grade element ICP-AES process (code ME-OG62). Analyses for gold (Au), palladium (Pd) and platinum (Pt) utilized the ore-grade Pt, Pd and Au by ICP-AES (code PGM-ICP27). Total sulphur is analyzed by S-IR08.

Qualified person and data verification

Mr. Fraser, PGeo, CEO, vice-president of exploration, and a director of the company, and the qualified person as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of the company.

About Fathom Nickel Inc.

Fathom is an exploration company that is targeting magmatic nickel sulphide discoveries to support the rapidly growing global electric vehicle market.

The company now has a portfolio of two high-quality exploration projects located in the prolific Trans-Hudson corridor in Saskatchewan: the Albert Lake project, a 90,000-plus-hectare project that was host to the historic and past-producing Rottenstone deposit (produced high-grade nickel/copper plus platinum group elements from 1965 to 1969); the 22,000-plus-hectare Gochager Lake project, which is host to a historic, NI 43-101 non-compliant open-pit resource -- the Gochager Lake deposit (4.3 million tons at 0.295 per cent nickel and 0.081 per cent copper, defined 1967 to 1970) -- an analogous drill-tested nickel occurrence of drill intersections greater than 1 per cent nickel (Mal Lake last drilled in 1967); and the Borys Lake zinc-copper-lead-plus-silver occurrence.

We seek Safe Harbor.

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