Calgary, Alberta – February 28, 2023 – Fathom Nickel Inc. (the “Company” or “Fathom“) (CSE:FNI) (FSE: 6Q5), (OTCQB: FNICF) is pleased to announce that the Q1-2023 drill program at the Gochager Lake Project has been completed. Equipment and personnel are currently being remobilized to the Albert Lake Project. Diamond drilling is expected to commence at Albert Lake by March 3.
Commenting on the Gochager Lake Exploration Program, Ian Fraser, CEO and VP Exploration stated, “We are very pleased with the outcome of both the drilling and BHEM initiatives at Gochager Lake. The initial drillhole confirmed the presence of mineralization previously identified in historic drillhole IVY-67-012, and the second drillhole also confirmed the Gochager Lake deposit style of mineralization and provided an excellent platform for the BHEM surveys. As expected, the BHEM tool has proven extremely useful in identifying off-hole conductors. We eagerly await assay results which will be released upon receipt and interpretation, expected in early April. Our attention now turns to the Albert Lake project where we will be targeting several very exciting priority areas including the Tremblay-Olson Claims area.”
- Q1-2023 drill program at Gochager Lake Project completed.
- 2 Drillholes completed at Gochager; both intersected broad zones of disseminated, semimassive to massive sulphide mineralization; results expected by mid-April.
- Albert Lake Project drilling to commence by March 3, 2023.
- Q1-2023 drilling at Albert Lake will initially focus around the Tremblay-Olson Claims area.
- The Tremblay-Olson Claims area (NIC-5 and Tremblay-Olson) had returned the highest concentration of metals-in-soil collected to date at the Albert Lake Property (Press Release Jan. 17, 2023). See also Figure 1.
Gochager Exploration Program
The Q1-2023 exploration program at Gochager was designed around two primary objectives: 1) drill testing of the reported results from a historic drillhole (IVY-67-012) that encountered mineralization over a 290-meter zone, and; 2) probe both current and historic drillholes with a borehole electromagnetic (“BHEM”) tool to determine the existence and extent of off-hole conductors.
We are pleased to announce success in meeting both objectives. Drillhole GL23003 was drilled to a depth of 336 meters; GL23004 was drilled to a depth of 389 meters. Both holes intersected broad zones of disseminated, semi-massive to massive sulphide mineralization. Three historical drillholes were also open to bottom and were probed with induction and fluxgate probes. The r2023 drillholes were also probed with both systems. Several off-hole responses were detected including, importantly, a strong response outside the area of known mineralization. The Company continues to interpret and model these data which will form the basis for future exploration and drilling programs.
Core samples are currently being prepped for shipping to ALS Global’s Vancouver laboratory. Samples will be assayed for the full suite of base and precious metals including, importantly, cobalt. Historic samples were never systematically sampled for cobalt in spite of reported grades as high as 0.143% Co from selected assays retrieved from historic drillhole IVY-67-12 available at the La Ronge Core Library.
Albert Lake Exploration Plan
Further commenting on the Albert Lake Exploration Program, Ian Fraser, stated, “We are excited to drill test the favourable soil geo-chem targets that we have defined at the Tremblay-Olson Claims area. The soil geochem, the coincident gradient MAG and MAG inversions, VTEM and AirTEM along with the recently completed gravity survey data defines a very favourable exploration target along trend and to the southwest of the historic Rottenstone deposit. We look forward to confirming that the metal (Ni, Cu, Co, Mg, Cr and Pd, Pt) contained in soils at the Tremblay-Olson Claims area is the result of a mineralized ultramafic source”.
B-Horizon soil geochemistry has now defined a multi-element anomaly that encompasses all known mineralized ultramafic occurrences and deposits, most notably, the historic high-grade Rottenstone NiCu + PGE deposit (see Figure 1). This anomalous feature now has a strike length in excess of 5 kilometers and a width up to 1 kilometer. Ongoing interpretation within this zone has defined favourable stratigraphy that is comparable to that which is host to the historic Rottenstone Mine as well as Fathom’s recently discovered Bay-Island Trend. The stratigraphy also hosts the necessary structural traps that act as the trapping mechanism for the magmatic nickel deposits thus far defined on the Albert Lake property.
The focus of the exploration strategy at Albert Lake for the Q1-2023 program is centred on the TremblayOlson Claims area anomaly(s). Within the Tremblay-Olson Claims area, the robust, multi-element soil geochemistry anomaly(s) is directly coincident with recently completed gravity, historic VTEM, gradient MAG and AirTEM data sets. Fathom will be drill testing these target areas beginning in the first week of March.
The priority target areas for the Q1-2023 Albert Lake program are as follows:
Nic-5 – The Nic-5 area has the most robust multi-element soil geochemistry anomaly(s) encountered thus far at the Albert Lake Project. Individual soils collected in the Fall of 2022 returned up to 497ppm Ni, 547ppm Cu, and one soil sample with a combined 1.21 g/t 3PE (platinum-palladium+gold). Historic drillholes dating back to the 1960’s intersected ultramafic rock of varying widths with some holes containing elevated nickel and copper within non-ultramafic rock. Fathom’s exploration team has evaluated MAG, EM and recent gravity data plus inversions (MAG, gravity) collected within the Nic-5 area. All data sets define anomalies coincident with the multi-element soil geochemistry anomaly(s). Fathom’s interpretation of all data sets, and in particular the soil geochemistry is indicative of an ultramafic source occurring within the Nic-5 area. Nic-5 is the highest priority drill target area during the Q1-2023 program. Two to three drillholes are planned for this area.
Bay-Island Trend Extension – TheBay-Island Trend, which occurs 400-500 meters west – northwest of the historic Rottenstone deposit, defines a 300+ meter mineralized ultramafic body discovered by drilling in 2021-2022. This structurally controlled ultramafic intrusion remains open along trend to the northeast. Gravity and MAG. together with their respective inversions, define a fold nose-like feature 650 meters along strike of where the 2022 drilling stopped. Structural traps and an interpreted fold hinge/nose is an ideal trap for a mineralized ultramafic body to occur. There is a coincident VTEM signature occurring on the immediate shore to the northeast and favourable/anomalous soil geochemistry occurs immediately along the shoreline. This priority drill target will be drilled from the ice.
TO-South – TO-South refers to a coincident deep MAG/gravity target with a strong localized multi-element soil geochemistry anomaly occurring along trend of all known ultramafic occurrences southwest of the historic Rottenstone deposit. The enclosed Ni in soil map illustrates a strong Ni anomaly at this location.
The recently completed gravity survey marks a strong increase in density at this location. One drillhole is planned at the TO-South target area.
Rottenstone Mine Southwest Extension – Time and budget permitting, Fathom will test the northeast continuation into the lake from the Nic-5 area, along trend to the historic Rottenstone deposit. MAG, historic surface EM and gravity signatures are suggestive of a possible ultramafic body/intrusion in this area. Furthermore, this planned drillhole will test the footwall of the F-Fault. The Rottenstone deposit occurs in the hanging wall and is in contact with the F-Fault. A drillhole in this area, followed by a BHEM survey, would test this possible footwall offset.
Qualified Person and Data Verification
Ian Fraser, P.Geo., CEO, VP 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: 1) the Albert Lake Project, a 90,000+ hectare project that was host to the historic and past producing Rottenstone deposit (produced high-grade Ni-Cu+PGE, 1965-1969), and 2) the Gochager Lake Project, a 4,696-hectare project that is host to a historic (NI43-101 noncompliant) open pitable resource consisting of 4.3M tons at 0.295% Ni and 0.081% Cu. The Company has commenced the Gochager Lake exploration program and upon completion immediately start the Albert Lake exploration program.
ON BEHALF OF THE BOARD
“Ian Fraser P.Geo.”
CEO, VP Exploration, Director
For Further Information Please Contact:
Ian Fraser, Chief Executive Officer and Vice-President, Exploration 1-403-650-9760
Manish Grigo, Director of Corporate Development
Forward Looking Statements:
This news release contains “forward-looking statements” that are based on expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “seek”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur, and include, without limitation, statements regarding payment of terms under the Option Agreement, permitting for the Property, receipt of an exploration permit, timing of the exploration program on the Property and the Company achieving the earn-in thresholds under the Option Agreement. Forward looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward- looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances except in accordance with applicable securities laws. Actual events or results could differ materially from the Company’s expectations or projections.
 The Saskatchewan Mineral Deposit Index (SMID#0880) reports drill indicated reserves of 4,262,400 tons grading 0.295% Ni and 0.081% Cu mineable by open pit. Fathom cannot confirm this resource estimate nor the parameters and methods used to prepare the reserve estimate. The estimate is not NI43-101 compliant and further work is required to verify this historical drill indicated reserve.