NorthX Nickel Provides Exploration Update on the Grasset Nickel Project
Vancouver, July 8, 2024 - NorthX Nickel Corp. (CSE: NIX) (OTCQB: NXNIF) (FSE: 6YR) (the "Company" or "NorthX") is pleased to provide a summary of the drilling completed and an update on the latest geophysics results for work completed through our 2023-2024 exploration program at its 100%-owned Grasset Ni-Cu-PGE Project ("Grasset") in the Abitibi Greenstone Belt of Quebec, Canada.
Highlights
- In 2023 and 2024, drilling by NorthX discovered the H1X Discovery Zone (see press release dated March 22, 2024) and include the following results:
- GR23-03: 1.55% Ni, 0.18% Cu, 1.2 g/t Pt-Pd over 5.80 metres;
- GR23-07: 2.97% Ni, 0.10% Cu, 4.1 g/t Pt-Pd over 0.44 metres;
- GR23-08: 1.06% Ni, 0.14% Cu, 0.7 g/t Pt-Pd over 5.60 metres; and
- GR24-10A: 1.29% Ni, 0.19% Cu, 1.1 g/t Pt-Pd over 7.20 metres.
- A property-wide airborne magneto-telluric ("MT") survey revealed several untested conductive zones in areas with host ultramafics that were never drilled;
- The Sonic drilling conducted in 2023 identified strong Ni, Co and Cu till geochemical anomalies just northwest of the H1 and H3 mineralized horizons, making it a useful tool to detect mineralized zones under thick glacial overburden;
- Planning is underway for the next phase of the exploration program consisting of:
- Drilling to extend the H1X Discovery Zone at depth and to the east;
- Drill-test conductive EM plates identified in a 2023 ground EM survey below the current resource;
- Ground MT surveys over the most prospective airborne MT anomalies to better define their shape, location and conductivities as drill targets; and
- A detailed reverse-circulation drilling program to sample basal tills over known untested ultramafic rocks.
- Drilling to extend the H1X Discovery Zone at depth and to the east;
"A compilation of recent geophysical data reveals several untested anomalies immediately to the northwest and east of the Grasset resource in addition to a wide and long conductive zone at the northwest end of our property. These results further support the fertile nature and prospectivity of our flagship Grasset property and clearly indicate that there's still a lot of obvious exploration to do towards making more discoveries. The H1X Discovery Zone is less than 500 metres away from the current resource and is open to expansion. Analysis and planning for the next phase of the program continues as we anticipate following the trend of high-grade nickel sulphides at depth and to the southeast where there is ample room to significantly expand our current resource," said Tom Meyer, President and Chief Executive Officer of NorthX.
2023- 2024 Drill Program
The 2023-2024 Program consisted of 11 diamond drill holes ("DDH") totaling 8,251 metres of drilling.
Summary of 2023 drilling:
- The Phase One program in 2023 consisted of 6 DDH for 5,796 metres drilled between February and July 2023;
- The first 2 holes were designed as deep sub-vertical pilot-holes that were drilled for directional drilling to test for extensions of the H3 and H1 mineralized horizons at depth, however both were abandoned due to difficult ground conditions;
- GR23-03, the first hole to reach its planned target, intersected the high-grade H1X Discovery Zone
- The next 3 holes tested under the H3 mineralized horizon without any significant results; and
- Two more holes drilled in the Fall of 2023 confirmed the extension at depth of the new H1X Discovery Zone.
Summary of 2024 drilling:
- GR24-09 was abandoned due to drilling problems trying to test a deep conductive plate 2 km northeast of Grasset;
- GR24-10A extended the H1X mineralized zone to the east; and
- GR24-11 missed the ultimate target due to strong deviation of the drill hole.
H1X Discovery Zone
The H1X Discovery Zone starts at a depth of 300 metres and is less than 500 metres east of the Grasset deposit (5.5 MT @ 1.53% NiEq). The mineralization within the H1X Zone consists of thicker net-textured and/or disseminated sulphide zones with thin basal massive sulphide intervals that may thicken towards the central part of the interpreted channel structure. TheH1X Zone is open at depth and laterally for at least 500 metres. In many respects the H1X Zone closely reflects the H3 Horizon which hosts most of the current resource, suggesting ample room for additional nickel mineralization in this zone. (All results were previously disclosed in a press release dated March 22, 2024).
The H3, H1 and now the H1X Ni-Cu magmatic sulphides are hosted within what appears as subvolcanic ultramafic intrusions. The H1 Horizon is located at the base of the ultramafics and the H3 Horizon within another intrusion higher up in the stratigraphic sequence. They are separated by 10 to 50 metres of weakly mineralized ultramafics. These subvolcanic ultramafic rocks intrude into sulphide-rich metasediments and both felsic and mafic volcanics. They are cut by quartz porphyry dykes and some shear zones and late faults.
The H3 Horizon has been delineated across a strike length of over 500 metres and hosts the bulk of the high-grade Ni-Cu-PGE resources. In comparison, the H1 Horizon has been delineated across a greater strike length of over 900 metres and although it currently hosts mostly disseminated nickel sulphides.. H1X is an extension of the H1 Horizon to the southeast and is thicker, hosting higher Ni, Cu and PGE grades in addition to massive sulphides (Figure 2).
In comparison, the nickel grades of the H1X mineralization are higher than the 0.82% Ni average grade of the indicated resources that are hosted by the H1 Horizon. In general, the mineralized horizons contain disseminated, net-textured and massive sulphides containing the sulphide minerals pyrrhotite, pentlandite, pyrite and chalcopyrite.
The mineralized horizons belong to the Grasset Ultramafic Complex ("GUC") which strikes west-northwest in the deposit area, dips subvertically to the northeast and extends for about 10 kilometres to the northwest. The GUC is cut by the south-dipping Sunday Lake Deformation Zone ("SLDZ") to the southeast, allowing for a hidden zone of mineralized GUC rocks in the footwall of the SLDZ.
Figure 1: Geological Plan of the Southeastern Portion of the Grasset Property Showing the Location of 2023-2024 Drilling by NorthX Nickel Corp.
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Figure 2: H1 Horizon Metal Factor Vertical Longitudinal Section
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Airborne Magneto-telluric Survey
The entire Grasset property was covered by an airborne magneto-telluric survey conducted by Expert Geophysics Limited in 2023. The survey consisted of 781 line-kilometres of magneto-telluric (MT), magnetics (MAG), and Very Low Frequency Electromagnetic (VLF) over a 148 km2 area, including the Grasset deposit sector (Figure 3). The purpose of the survey was to map bedrock structures and lithology, including possible alteration and mineralization zones reflected in the electrical resistivity and magnetic properties of the rocks. The data were processed to identify anomalous zones of MT resistivity (less than 600 Ohm-m) and residual magnetic field strength.
The resultant processed responses clearly identify the Grasset deposit and, more significantly, a large area just east of the Grasset deposit where coincident magnetic and low resistivity anomalous responses, with similar intensities as the Grasset deposit, have been delineated. Additionally, just north and west of the Grasset deposit, several MAG-MT anomalies occur in areas of sparse shallow historical drilling. Discrete coincident magnetic and low resistivity anomalies are also clustered farther west of the Grasset deposit area.
Figure 3: Grasset Property Geology and Main MT Anomalies
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In the far north-west part of the property, an isolated VTEM anomaly was previously drilled by historical hole JER-15-04 that intersected ultramafic rocks with 3.5 metres of barren semi-massive sulphides (mainly pyrrhotite) at the south-west contact of the ultramafic rocks. The 2023 airborne MT survey detected a deeply buried (800-1,000m), wide, thick (300 to 600m) and isolated flat lying MT-Mag feature of 400 Ohm-m that dips up to the ultramafic intersection in hole JER15-04 (Figure 3). This large conductive zone is a very attractive target to follow-up given that the MT data strongly suggests that the conductive zone connects with the ultramafic rocks intersected in JER-15-04 that hosts 3.5 metres of magmatic semi-massive sulphides. A detailed ground MT survey is proposed to better define this deep anomaly before any further drilling in this area.
Basal Till Survey
The Grasset property is an underexplored 23-kilometre-long belt containing abundant favorable ultramafic host rocks but without outcrop. Quaternary glacial overburden is 50 to 90 metres thick in the southeastern half of the property, and 20 to 50 metres in the northwestern half. Such thick glacial overburden renders the Grasset deposit and other potential mineralization blind to conventional surface geochemical sampling techniques. A 15-hole orientation sonic drill program was therefore performed in 2023 to sample both the basal till, and 2-3 metres of solid bedrock below the overburden. Geochemical anomalies in the basal till can indicate the proximity to bedrock mineralization. This technique is commonly used with success in exploration campaigns for detecting mineral deposits under thick glacial overburden.
It was demonstrated by Veillette et al. (2005)1 that the oldest and main glacial movement in the Grasset property area was from southeast to northwest. Sonic hole number 4, located just north of theH1 Horizon and directly northwest of the Grasset resource, shows a very high geochemical anomaly in the fines of the basal till (Figure 4). An assay of 352 ppm Ni was obtained in this hole, while the background in the other holes is between 4 and 61 ppm Ni. Copper and cobalt are also highly anomalous in hole number 4. These results confirm that basal till sampling will be a very useful technique, used in conjunction with geophysics, for the search of hidden Ni-Cu-Co-Pt/Pd mineralization under thick overburden across the entire Grasset property. A major reverse circulation sampling program is in the planning stage to cover the major parts of the interpreted ultramafic sequences on the property, particularly over the thickest part of the sequences.
Figure 4: Basal Till sampling Results in the South-East of the Grasset Property
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The Grasset Project
The Grasset deposit, discovered in 2012, is located at the southern end of the Grasset Ultramafic Complex. It is comprised of two subparallel, and sub-vertically dipping mineralized horizons (H1 and H3) of disseminated to locally semi-massive sulphides. The H1 and H3 Horizons each remain open at depth and along strike to the northwest and southeast.
In 2021, an updated mineral resource estimate, using a 2016 drill cut-off, was completed with an Indicated Mineral Resource Estimate of 5.5 Mt grading 1.53% nickel equivalent ("NiEq") and an Inferred Mineral Resource Estimate of 217,000 tonnes grading 1.01% NiEq. For additional information regarding NorthX's Grasset Project please refer to the Technical Report entitled "NI 43-101 Technical Report for the Grasset Property, Quebec, Canada" dated effective September 2, 2022, prepared by Carl Pelletier, P.Geo., available under NorthX's profile on www.sedarplus.ca.
The vast majority of the Grasset Ultramafic Complex is underexplored and limited exploration prior to 2016 resulted in the discovery of several significant nickel sulphides showings along the entire 23-kilometre-long belt. Most notable is the GUC Central discovery, 7 kilometres northwest of the Grasset deposit, which hosts a 950-metre-thick ultramafic sequence with several mineralized horizons of nickel sulphides and a best mineralized intercept of 4.14% Ni over 0.65 metres, within 7.58 metres of 1.05% Ni.
The Grasset deposit is one of the largest nickel sulphide deposits in Canada's Abitibi region, outside of Sudbury, with an Indicated Mineral Resource Estimate of more than 50,000 contained tonnes of nickel and an average NiEq grade of over 1.5%, not controlled by a major mining company.
Corporate Matters
The Company wishes to announce that it has granted an aggregate of 425,000 incentive stock options (the "Options") to certain directors, officers, employees, and consultants of the Company. The Options have an exercise price of $0.28 per share, are exercisable for a period of five-years from the date of the grant and will vest in three equal annual instalments commencing on the grant date.
In addition, the Board of Directors authorized the grant of an aggregate 525,000 restricted share units (the "RSUs") to certain officers, employees, and consultants of the Company and 600,000 deferred share units (the "DSUs") to certain directors of the Company. The RSUs will vest in three equal annual instalments commencing on the first anniversary of the grant date and the DSUs will not vest until such time as the recipient Director ceases to be a Director of the Company, provided that no DSUs will vest within 12 months of the grant date.
The Options, RSUs, and DSUs were granted in accordance with the Company's Omnibus Equity Incentive Plan, which was approved by the shareholders of the Company at the special meeting of the shareholders held on June 25, 2024.
Quality Assurance and Quality Control
NorthX Nickel implements high-quality industry-standard quality assurance and quality control ("QA/QC") procedures for its diamond drill programs. NorthX's geologists insert alternating blanks and standards approximately one per every 10 samples collected. Moreover, a blank is added after logged, potentially high-grade mineralized zones with standards additionally inserted within such mineralized zones. Overall, blanks and standards account for approximately 12% of the samples submitted to the lab.
All samples are assayed at ALS's Val d'Or laboratory where duplicates are inserted in the sample sequence at a rate of 1 in 40 samples sequence alternating with standards and blanks to result in a QA/QC insertion rate of about 1 in 10 samples. All drill core samples are analyzed using a 4-Acid digestion followed by 33 element ICP-AES analyses (ALS's Code ME-ICP61). Over limit Ni results are further analyzed by 4-Acid ore grade elements ICP-AES process (Code ICP-81 or ME-OG62). Analyses for Au, Pd and Pt are done using the ore grade ICP-AES procedure (Code PGM-ICP23). Gold only assays are performed with Au-ICP21 or AU-GRA21 if any visible gold. ALS is an accredited laboratory (SCC - CAN-P-1579 and CAN-P-4E ISO/IEC 17025) and is independent of the Company.
Qualified Person
The scientific and technical content of this press release has been reviewed and approved by Mr. Jacquelin Gauthier, P.Geo, Vice President, Exploration, who is a "Qualified Person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Gauthier is satisfied that the analytical and testing procedures used are standard industry operating procedures and methodologies, including sampling, analytical and test data underlying the technical information disclosed in this news release.
About NorthX Nickel Corp.
NorthX is a Canadian Ni-Cu-Co-PGE focused exploration and development company with an extensive portfolio of assets in Quebec and Ontario, Canada. The Company's flagship asset is the Grasset Project, located within the Abitibi Greenstone Belt, with an indicated mineral resource of 5.5 Mt @ 1.53% NiEq (such NiEq grade being established based on: 1.22% Ni, 0.13% Cu, 0.03% Co, 0.26 g/t Pt, 0.64 g/t Pd). In addition, the Company holds a portfolio of 37 properties and over 300 km2 in the world-class mining district of Sudbury, Ontario.
The Company's growth strategy is focused on the exploration and development of its nickel sulphide properties within its portfolio. NorthX's vision is to be a responsible nickel sulphide developer in stable pro-mining jurisdictions. NorthX is committed to socially responsible exploration and development, working safely, ethically, and with integrity. For more information, please visit www.northxnickel.com.
Tom Meyer
President & Chief Executive Officer
Tel: +1 866 899 7247
Email: tom@northxnickel.com
Cautionary Note Regarding Forward-Looking Statements
Neither the CSE nor its Market Regulator (as that term is defined in policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. "Forward-Looking information" includes, but is not limited to, statements with respect to the activities, events or developments that NorthX expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Forward-Looking information and statements contained herein includes, but is not limited to, statements regarding the continued exploration, drilling; and that funding from the Company's recent private placement is sufficient for operations.
Such forward-looking information and statements are based on numerous assumptions, including among others, that the results of planned exploration activities are as anticipated, the anticipated cost of planned exploration activities, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment and supplies and governmental and other approvals required to conduct NorthX's planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by NorthX in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: risks associated with the conduct of the Company's mining activities; risks and uncertainties associated with certain exploration and drilling tools and/or measures; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks relating to project financing and equity issuances; risks related to the use of proceeds of the Company's recent private placement; risks and unknowns inherent in all mining projects; laws and regulations governing the environment, health and safety; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; the ongoing military conflict in Ukraine and the Middle East; general economic factors (including inflationary pressure); the price of commodities; and the factors identified under the caption "Risk Factors" in the Company's public disclosure documents.
The forward-looking information contained in this news release represents the expectations of NorthX as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. NorthX does not undertake any obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
1 Veillette, J.J., Paradis, S.J., Buckle, J. 2005. Bedrock and Surficial Geology of the General Area Around Rouyn‐Noranda, Quebec and Ontario. In: Bonham‐Carter, G. (Ed.), Metals in the Environment Around Smelters at Rouyn‐Noranda, Quebec, and Belledune, New Brunswick: Results and Conclusions of the GSC MITE Point Sources Project. Geological Survey of Canada, Bulletin 584, Natural Resources Canada, 1‐16.
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