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Synergistic Asset Combination Opportunity
The West Graham and
West Graham Property Highlights:
- The West Graham Deposit occurs on SPC's 100% owned Lockerby East Property, which also hosts the past producing
Lockerby East Mine 1 & 3 (Figure 1 & 3). - The unmined near-surface West Graham nickel-copper Deposit contains over 47,000 tonnes of nickel and 34,000 tonnes of copper in indicated and inferred resources as defined in a technical report published by
First Nickel Inc. in 2009 that supported an indicated mineral resource on the property totaling 8.55 Mt grading 0.45 % Ni and 0.31 % Cu, along with an inferred mineral resource of 2.0 Mt grading 0.38 % Ni and 0.30 % Cu1.
The Company considers the West Graham Resource estimate to be historic mineral resources for purposes of NI 43-101. Neither the Company nor a qualified person on behalf of the Company have done sufficient work to classify the historical estimates as current mineral resources and the Company is not treating such historical estimates as current mineral resources. The Company considers the historic mineral estimates to be relevant to an understanding of the
- These grades have economic potential in the context of the
Sudbury Mining Camp , as the deposit is located very near to surface and may be amenable to low-cost open pit mining. The deposit is characterized by a broad zone of blebby to semi-massive sulphide that ranges from 1.7 to 66 metres thick and strikes for 350 metres with a dip extent of up to 533 metres. Within the larger resource, a distinct zone of higher-grade mineralization grading ~1% NiEq. is present. - The Company recently completed an 18 hole, 5,200 metres drill program which has expanded the extents of the high-grade mineralized zone within the West Graham Deposit while also adding confidence in the continuity of the resource. Results from this drilling campaign include 82.6 metres grading 0.68% NiEq. in hole WG-22-008 (see
SPC Nickel's June 13 ,July 13 ,September 6 ,October 11 , andDecember 6, 2022 press releases for full results).
Note: Reported drill hole intersections refer to down-hole intersection length. True widths for WG-22-008 are estimated at 60% of downhole length.
- Historic drilling completed by Vale (formerly Inco) between 1958 and 1960 returned mineralized intersections of similar thickness and grade compared to the adjacent West Graham Deposit. Highlights include hole 146740 that returned 44.48 metres grading 0.60% Ni and 0.27% Cu from 436.89 metres, including 2.29% Ni and 0.30% Cu over 4.42 metres2.
- Preliminary modelling of historic drill intersections suggests that the mineralized zone hosted on the Crean Hill 3 Property extends from the SPC-Vale property boundary to the west for over 600 metres.
- Mineralized surface outcrops, interpreted to represent the up-dip extension of the West Graham Deposit, outcrop along the exposed contact of the
Sudbury Basin . Mineralized grab samples, with values of up to 1.56% Ni and 1.21% Cu, were collected by the Company on the Crean Hill 3 Property.
Note: Reported drill hole intersections refer to down-hole intersection length. True widths for hole 146740 are estimated at 70% of down-hole lengths. Grab samples are selective by nature and values reported may not be representative of mineralized zones.
Key Terms of the Agreement
- Deliver to Vale a Feasibility Study for the Project by the deadline ("Feasibility Study Deadline") of
June 30, 2026 . - SPC shall have the right, at its sole discretion to extend deadline to
June 30, 2028 provided it has completed a NI 43-101 compliant Pre-Feasibility Study for the Project by the Feasibility Study Deadline. - Pay to Vale
$1,000,000 (CDN) in cash at the Feasibility Study Deadline.
Rights and Royalties Extended to Vale
Upon earning an 100% interest in the Crean Hill 3 Property,
- SPC grants Vale a 1% NSR on the combined Project.
- SPC grants Vale a net profits royalty (the "NPI"), at a rate of 37%, on net profits generated from the Project during each quarterly calculation period. The NPI shall only be payable provided that the net present value of all after-tax net profits earned in the calculation period exceed zero at an 8% discount rate, reflecting an 8% return on capital for
SPC Nickel . - Vale will retain a right of first refusal ("ROFR") over the sale of the Project or any part thereof by
SPC Nickel . - Vale will retain a ROFR for any ore produced from the Project.
- Vale will retain a ROFR on any concentrates that are produced from ores derived from the Project through a mill wholly-owned or controlled by
SPC Nickel or an affiliate. - If
SPC Nickel or an affiliate makes an investment decision to construct or acquire a smelter, Vale will have the right to purchase metal concentrates equivalent to those produced from the ore derived form the Project.
About the
Reference
1. | NI 43-101 Report, |
2. | Historic |
3. | Technical Report on the 2009 Resource Estimate for the Depth, East and Upper West Zones, |
4. | Nickel Sulfide Ores and Impact Melts, Lightfoot, 2017, |
Quality Assurance, Quality Control and Qualified Persons
The technical elements of this news release have been approved by Mr.
The historical technical information presented in this release was obtained from historical work reports produced by
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Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this news release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding estimated capital and operating costs, expected production timeline, benefits of updated development plans, foreign exchange assumptions and regulatory approvals. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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