Nickel Rock Resources Completes Expansion of the Hard Nickel Project West of the Decar Nickel Project of FPX Nickel Corp.
Nickel Rock retains the option to purchase onehalf of the NSR (being onehalf of the 2%) for the sum of $3 million dollars.
VANCOUVER, BC, Feb. 2, 2021 /PRNewswire/ -- Nickel Rock Resources Inc. ("the Company") (TSXV: NICL) (OTCQB: NICKLF) is pleased to announce it has entered into an Option Agreement with arms-length vendor 802213 AB Ltd (Kelly Funk) for the purchase of a 100% interest, subject to a 2% NSR, in 6 mineral claims located approximately 15 km west of Mt Sydney Williams near Fort St James, BC. Additionally, the Company located two adjoining claims by title selection. Combined, the acquisition of 8 additional claims has increased the Company's prospective land position west of the Decar nickel deposit owned by FPX Nickel Corp from 1,151 to 4,146 hectares. The Company will control a 100% interest in over 13,704 hectares in the district.
Importantly, the additional claims overlie a 15 km long magnetic high trend underlain by similar geology as the Decar nickel deposit. In 2011-2012, an airborne magnetic and EM survey with accompanying geophysical modeling was completed over the property. A 2012 field program confirmed the presence of serpentinized ultramafic rocks within the area of the additional claims. Eight rock samples taken from this area yielded highly elevated values of nickel, cobalt, and chromium. Seven of these eight rock samples yielded elevated values of nickel in the magnetic fractions of these samples indicated by Davis Tube analyses, suggesting the presence of the nickel-iron alloy mineral awaruite. However, no mineralogy was completed on the samples to confirm the presence of awaruite. (source: BC ARIS report - 33690Geochemical and Physical Work Report on the MAC Property -2012 for Stratton Resources Inc.). Field work programs including prospecting and rock sampling on the additional claims are planned as part of the 2021 field program on the Hard Nickel Project. See location map (Nickel Rock Expansion).
Terms of the Acquisition
|
Date |
Cash Payments |
Dollar Value of Shares to be Issued |
Mining Work |
|
Upon signing the agreement |
$50,000 |
N/A |
N/A |
|
Upon Exchange approval |
N/A |
$225,000 |
N/A |
|
1st Anniversary date of the effective date |
$75,000 |
$225,000 |
Completion of $100,000 in year 1 |
|
2nd Anniversary date of the effective date |
$100,000 |
$250,000 |
Completion of $150,000 in year 2 |
|
3rd Anniversary date of the effective date |
$150,000 |
$300,000 |
Completion of $300,000 in year 3 |
|
4th Anniversary date of the effective date |
$200,000 |
$500,000 |
Completion of $500,000 in year 4 |
|
Upon conversion of the claims to a mining lease |
$500,000 |
$1,500,000 |
N/A |
On commencement of commercial production, a 2% NSR Royalty will be payable to the Optionor. Nickel Rock retains the option to purchase one–half of the NSR (being one–half of the 2%) for the sum of $3 million dollars.
The Agreement is subject to TSX Venture Exchange ("Exchange") approval and all securities issued in connection with transaction will be subject to a four month and a day hold period in accordance with applicable securities laws.
About the Hard Nickel Project
The subject claims are partially underlain by rocks like those hosting the Decar project of FPX Nickel where mineralization includes nickel, cobalt, and chromium. Previous exploration suggests that at least some of the nickel mineralization occurs as awaruite which is a naturally occurring nickel-iron alloy important in the manufacture of environmentally efficient batteries for the electric vehicle markets globally. The mineral awaruite is both highly magnetic and very dense and is therefore amenable to concentration by mechanical processes including magnetic and gravity separation. This style of deposit is unique and presents considerable metallurgical and processing cost saving advantages.
Significantly, the awaruite found is found in a serpentinized ultramafic rock. In 2018, G. Dipple at the University of British Columbia began the Geoscience BC funded research project "Carbon Mineralization Potential Assessment for BC" scheduled for completion in early 2021. In late 2020 a preliminary assessment report was published. One of the key items from the report was "The use of reactive serpentinite tailings from nickel mining as a carbon sink has the potential to make nickel mining carbon neutral or a net carbon sink." The presence of serpentinized ultramafic rocks has been repeatedly documented in the areas covered by the claims of the Nickel Rock Projects, as well as at FPX Nickel Corp.'s Decar Project (Dipple, G. et.al., Geoscience BC Report 2020-15). The funds to be received from our flow through financing are earmarked for detailed exploration programs on our two very prospective nickel projects in British Columbia and will start as soon as weather permits.
The Company has seen the commodity spot price for nickel to be in a steady uptrend while world stockpiles have been on the decline and EV manufacturers are calling for more supply of nickel because nickel quantities are increasing in batteries as they increase the amount of charge a battery can hold, thus allowing the EV's to travel greater distances. One such company is Tesla Inc., the world's leading EV manufacturer. Tesla's Founder, Elon Musk, stated that a large contract would be signed if a company could produce nickel with a lowered carbon footprint by using more environmentally friendly ways of mining. His comments made waves in the nickel space and several juniors have benefited from his comments and surged 2 to 3 times their value.
Clayton Valley Project, Silver Peak, Nevada
The Company is exploring for lithium clays and brines within its project area of 118 claims covering over 930 hectares (2,300 acres). The property stretches in a northwest direction from the evaporation ponds of Albemarle Corporation. It has been widely reported that Albemarle is planning to double its lithium production by 2025 by committing between US$30 million and US$50 million in additional investment on the property. In 2021, Albemarle plans to commence exploration of clay and evaluate technology that could accelerate the viability of lithium production from clay resources in the region.
Clayton Valley lithium mineralization occurs both in brine and in montmorillonite clays within sediments to a depth of over 150 meters. Recent metallurgical testing indicates low-cost processing can be achieved by leaching with low acid consumption (125 kg/t) resulting in lithium recoveries of over 85%. These high extractions prove the dominant lithium-bearing minerals present are not hectorite, a refractory clay mineral which requires roasting and/or high acid consumption to liberate the lithium. Testing by other companies on their lithium clay properties, including Lithium Americas (Thacker Pass Project, Nevada), Bacanora Minerals (Sonora Project, Mexico), Ioneer (Rhyolite Ridge Project) and Cypress Development (Clayton Valley Project) have all indicated that economic extraction of the lithium may well be possible.
Qualified Person
Jacques Houle, P.Eng., a qualified person as defined by NI 43 - 101, is responsible for the technical information contained in this release. Readers are cautioned that the information in this press release regarding the property of FPX Nickel Corp is not necessarily indicative of the mineralization on the property of interest.
About Nickel Rock Resources Inc. www.nickelrockresources.com
The Company is a Canadian-based mineral exploration company active in the exploration for the nickel-iron alloy awaruite in British Columbia and lithium in Nevada. Nickel Rock Resources Inc. is a Canadian based exploration company whose primary listing is on the TSX Venture Exchange. The Company's maintains a focus on exploration for high value battery metals required for the electric vehicle (EV) market.
On Behalf of the Board of Directors
"Robert Setter"
Robert Setter, President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.
Nickel Rock Resources Inc.
1220 – 789 West Pender Street
Vancouver, BC, Canada V6C 1H2
604- 428-5690
www.nickelrockresources.com
[email protected]
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SOURCE Nickel Rock Resources Inc.
