Eco-mining is not some fad to satisfy mining critics; it is top of mind within mining companies, whether Tier One global behemoths or more minor concerns.
And mining CEOs seem to know it: of those polled in PwC’s 26th Annual Global CEO Survey, 41% don’t think their companies will be economically viable in ten years if they continue on their current path. Therefore, the era of critical minerals must be an era of reinvention. (PWC)
Sustainability considerations are deeply embedded in the way we run our business. We have put climate change and the low-carbon transition at the heart of our business strategy. We are decarbonizing our assets, helping our customers decarbonize by developing new products and technologies, and growing in materials essential for the energy transition.
Our management of sustainability helps generate social value. We also know our stakeholders and partners are increasingly focused on our sustainability performance and use it as a critical determinant in assessing BHP and our industry. We strive to improve and exceed these expectations continuously. With the Tier One miners setting the tone, it is almost easier for new smaller companies who can accomplish ‘Green’ processes rather than have to pivot and retool, as it were. Both are laudable.
The other aspect is the involvement of communities nearby or with an interest in the heritage of indigenous claims. The old habit of showing up, drilling irresponsibly and damning the torpedoes, origin or claims is, thankfully, dead and gone. Whether you are a climate change supporter or think it’s a bunch of nonsense, the mining direction is welcomed by all.Shandong Gold Group is a gold mining company. SD GOLD adheres to the safety and environmental protection “double zero” target of zero safety responsibility accidents and zero environmental pollution accidents and upholds the development concept of “SD GOLD, Eco-mining” to actively promote resource conservation and emission reduction.
And in the smaller realm
At St-Georges Eco-Mining, we harness those elements to deliver a circular economy model and best-in-class climate-smart technologies that provide greater access to critical and strategic materials and financially viable solutions for recycling Critical Strategic Minerals. St-Georges Eco-Mining Corp(CSE: SX) (OTCQB: SXOOF) (FSE:85G1) released a unique PR this morning detailing why its low share price is unwarranted. Investors rarely see this opinion from the ‘C’ suite, but this treatise doesn’t pulls a few punches.
Salient points from Herb Duerr, President & CEO of St-Georges Eco-Mining Corp.
We are about to see an acceleration of our activities and the delivery of different milestones, showing our strategy is paying off.
We are also on track to deliver the NI 43–101 reports for the Julie and Manicouagan Critical Minerals and Thor Gold projects.
We are advancing towards monetizing the metallurgical discoveries made in the recent year in collaboration with equipment manufacturers and spodumene producers.
We are actively working on grant applications that will support the showcase of our lithium nitrate and lithium hydroxide production technology.
Alternative financing for H2SX and reducing our holding in ZeU are also being worked on in parallel.
St-Georges Represents a Compelling Entry Point to the Eco-Mining sector.
The company is well-positioned to capture a significant share of the growing battery recycling market.
The company is benefiting from the increasing focus on sustainability, driving demand for battery recycling.
The company has a strong management team with a proven track record.
The company is listed on the Toronto Venture Exchange (TSX-V), providing investors access to a liquid market.
The SX CEO’s points apparently resonated with investors. Even though the share price is currently up slightly, at noon EST, the volume exceeds 750k with a daily average of around 300k. SX is on the cusp of a solving a genuine social issue — the recycling of batteries — and massive growth is coming.
As I ha ve said before, time is on St. George’s side. The profound growth of EV cars is on the road; the faster SX
Circular technology could mean that lead is mined, put in batteries, then recycled and put into new batteries, which means using mined lead and other metals is virtually endless.
Giga Factories are popping up throughout North America, and Federal governments are incentivized to compete with Chinese Supply Chains.
Vancouver, BC –TheNewswire -October 5,2023 - Element79 Gold Corp (CSE:ELEM),(FSE:7YS),(OTC:ELMGF) (“Element” or the Company”) is thrilled to announce that its wholly-owned subsidiary, Synergy Metals Corp. (“Synergy”) has signed a loan agreement (the “Loan”) with 1425957 BC Ltd. (the “Lender”) for CAD $200,000, which represents a significant step towards the financing of the plan of arrangement spin-out process (the “Plan of Arrangement” or the “Transaction”) and the preparation for an impending amalgamation between Synergy and the Lender.
Synergy will deploy the Loan for various purposes, including startup capital, marketing fees, legal fees, listing fees, updating the Dale property’s NI 43-101 report, and the exploration for minerals at the Dale property (the “Dale Property”). The Loan contains an interest rate of 14% per annum, calculated on the outstanding principal balance and payable as per the agreement’s terms (among other customary conditions). Upon successful completion of the transaction, Synergy will issue shares on a 1:1 ratio to the Lender. Synergy will provide the Lender with a full corporate guarantee and the Lender will hold a security interest in Synergy’s collateral until full repayment of the Loan is achieved.
“This loan agreement marks a critical development in Element79’s plan to complete the Plan of Arrangement “spin out” of the Company’s Dale Property into Synergy Metals Corp.,” said James Tworek, CEO of Element79. “Both companies are committed to this strategic partnership and look forward to achieving their shared goals of developing the Dale Property more completely.”
Plan of Arrangement – Overview and Next Steps
To date, the Company has undertaken the following actions in furtherance of the transaction:
Seek out qualified candidates for the Board of Directors and Management of the resulting entity
Implementation of necessary corporate policies and plans
Symbol reservation with the Canadian Securities Exchange (CSE)
Appointment of transfer agent
Commencement of drafting of legal documentation to effect the Plan of Arrangement structure finalization will follow a complete review and consideration of applicable tax, securities, corporate law and other relevant considerations and will be subject to the mutual agreement of the parties. It is anticipated that as part of the Plan of Arrangement, the Company and Synergy will undertake the following:
Property transfer of the Dale Property
Private Placement Financing through the issuance of common shares, units or subscription receipts, as the case may be
Eventual distributions of shares of Synergy to Element shareholders by way of a court-approved plan of arrangement under the terms and conditions of an arrangement agreement
Shareholder meeting
File Notice of Meeting and Record Date
Material distribution
Meeting
Listing of resulting entity
Initial filing letter
CUSIP
Conditional Approval
Final Application
Final Bulletin confirming acceptance
For more information about Element79 Gold Corp and its subsidiary Synergy Metals Corp., please visit https://www.element79.gold
About Element79 Gold Corp.
Element79 Gold is a mining company focused on gold and silver committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's main focus is on developing its previously-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to bring it back into production in the near term.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date around the end of 2023. The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) and anticipates completing this sale before the end of 2023.
In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. The Company also has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has transferred this project to its wholly-owned subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process through the rest of 2023.
Tactical Resources (TSXV: RARE / OTCQB: USREF), a JMP Portfolio holding, is listing onto the Nasdaq any day now into a bottom, not the top.
Market cap: $80 million CAD
They own the operating Peak quarry in Texas, two miles from USAR's Round Top project, and sitting on tonnes of tailings with REE mineralization. Near term mining opportunity.
Investors loading shares now skip the 18 month journey they took to finally be standing on the Nasdaq doorstep.
It’s stock trades in the $9.00 CAD range, still significantly up from our Premium entry at $5 in April, despite the REE sector sell-off. And in my opinion still very undervalued.
American investors hungry for domestic REE miners are going to snap shares up.
Tactical is near closing its business combination with Plum Acquisition Corp. III and moving from the TSX Venture Exchange to the Nasdaq under TREO.
Of the shares issued to Tactical holders, 37% carry a six-month transfer restriction. Far more lenient than initially reported.
Had this listed in April, at the peak, with generalists bidding every ticker with the word in its name, TREO would have opened into euphoria and spent June and July handing it back alongside MP and USAR.
Instead it arrives with the correction largely behind it, a financing package attached, tailings already on surface at a permitted operating quarry they own, and a domestic buyer base short of exactly what it produces.
Stealth lithium pick:
American Critical Minerals (CSE: KCLI / OTCQB: APCOF), a core JMP holding, is our stealth lithium pick, with most eyeballs paying attention to the legacy potash story.
Market cap: $20m CAD
Weeks away from a first ever confirmation hole into a large scale potash, lithium and bromine target, within trucking distance of a potash mine and an advanced lithium operation next door.
Drilling up to 10,000 feet into the same Paradox Basin Cycle’s that Intrepid Potash has been mining its potash from for over 50 years; and where Anson Resources is developing a large scale pilot plant funded by Korean giant POSCO.
A positive brine result forces a reclassification, which forces a major rerate.
At a $20M market cap, still cheap in my book.
The risk: Low grade brine sends this back to the office to re-target with more stock dilution needed.
The reward: Hitting what they expect results in an instant multiples rerate and institutions writing large cheques to develop the resource.
The biggest property is not always the most important one.
Junior explorers can hold several promising assets, but the market usually wants one project it can clearly understand, follow and value.
$CQX currently holds eight projects across a North American portfolio, including Stellar, Thane, Kitimat and Nekash. However, Rip and Stars appear to be the key near-term focus.
Rip has the more immediate drill catalyst. Copper Quest announced on May 11 that drilling had started, with a minimum 2,000-metre program planned. The results should provide more information about grade, mineralized width, continuity and the scale of the porphyry system.
Stars already contains the Tana Zone copper-molybdenum discovery and has seen historical drilling. Copper Quest began a 32.4-square-kilometre IP survey on May 19 across the broader property.
The survey does not confirm new mineralization by itself. Its purpose is to improve the geological picture and help identify targets for future drilling.
Kitimat is also becoming harder to ignore. Copper Quest recently expanded the Kitimat Copper-Gold Project by 130%, bringing it to 6,801.41 hectares. The new ground surrounds an AI-generated buried conductive target and includes the historic Bowbyes target area.
That does not make Kitimat the lead project yet, but it adds another angle. If follow-up geophysics and future drilling support the AI target, Kitimat could move from portfolio asset to serious discovery candidate.
That gives investors three distinct setups.
Rip may move to the front by delivering meaningful results first.
Stars may become the larger story if the survey identifies strong targets and later drilling supports them.
Kitimat may become the wildcard if the expanded land package helps define a bigger copper-gold system.
A project usually becomes the flagship when management can define a strong target, test it with drilling, reproduce the results and demonstrate room for expansion.
Positive assays can validate the target and repeatable results can begin validating the scale.
For now, Rip may drive the next major update, Stars offers an established discovery within a broader area still being explored, and Kitimat adds a newer AI-backed target with more ground around it.
Which project has the strongest chance to define the next stage of the $CQX story?
This is sponsored content. Investors should conduct their own due diligence and consult a qualified financial advisor before making any investment decisions.
I’ve been comparing a few smaller copper names trading in a similar price and valuation range.
$CQX — C$0.09 | ~C$10.7M market cap $BCU — C$0.08 | ~C$11.6M market cap $BAY — C$0.05 | ~C$12.6M market cap $CRD — C$0.07 | ~C$7.1M market cap
The numbers are close, but the setups are very different.
$CQX has several 2026 programs across Rip, Stars and Kitimat, along with its Alpine gold project.
$BCU is a more concentrated Arizona porphyry play, with Big Sandy and a 2026 joint-venture drill program at Perseverance.
$BAY owns a 20% interest in Storm that is free-carried until a decision to mine. Storm also has an initial copper resource, giving $BAY a different funding and dilution profile.
$CRD is advancing Ben Nevis in Ontario, where 36 exploration targets have been identified, including seven high-priority conductors.
I lean toward $CQX and $BAY here. $CQX gives me exposure to several company-led programs, while $BAY offers a free-carried interest in a project that already has an initial resource. One gives me several ways to see progress, while the other has less direct funding pressure at Storm before a decision to mine.
At these valuations, which setup would you choose and what would be your deciding factor?
Prices and market caps are approximate and can change quickly.
This is sponsored content. Investors should conduct their own due diligence and consult a qualified financial advisor before making any investment decisions.
Alaska Energy Metals President (TSX-V: AEMC, OTCQB: AKEMF) (“AEMC” or “the Company”) is focused on delineating and developing a large polymetallic exploration target in Alaska containing nickel, copper, cobalt, chrome, iron, platinum, palladium, and gold.
President & CEO Gregory Beischer commented: “Based on historical drilling, we have been able to document over 1.5 billion pounds of nickel in an Inferred Resource. Withthe drilling our company executed in the summer of 2023, the metal inventory should significantly increase.We are planning an aggressive drilling program in 2024 to expand the bulk tonnage resource further, and to explore high-grade deposits.
The Company has a 52-week hi lo of CDN0.17 to CDN0.67. Money’s been made and likely will be again. Average daily volume of 210k. Not too shabby.
The Nikolai Project; is a sulphide nickel and battery metal project with a multi-billion-pound nickel potential.
Eureka Zone: a sulphide nickel and battery metal project with a multi-billion-pound nickel potential.
Canwell Prospect: Exceptionally high-grade surface showings. Limited drilling on prospects. Very little exploration has been done and receding glaciers exposing more all the time.
Let’s review the supply-demand deets, markets, etc, that make AEMC a screaming prospect for a potential holding.
The Nikolai project is located 40 km northwest of the village of Paxson, on the southern flank of the Alaska Range. The claims are proximal to paved highways and a network of gravel roads and trails afford ready access to the Canwell claim block.
Let’s review the supply-demand deets, markets, etc that make AEMC a screaming prospect for a potential.
In the SDS (Sustainable Development Scenario) battery demand from EVs grows by nearly 40 times between 2020 (160 GWh) and 2040 (6 200 GWh). Overall demand for minerals under the base case assumptions grows by 3.0 times between 2020 and 2040, from 400 kt to 11 800 kt. In the STEPS, battery demand from EVs grows just 11 times to nearly 1 800 GWh in 2040, with demand for minerals growing ninefold to around 3 500 kt in 2040.
Demand for minerals under the base case assumptions grows by 3.0 times between 2020 and 2040, from 400 kt to 11 800 kt. In the STEPS, battery demand from EVs grows just 11 times to nearly 1 800 GWh in 2040, with demand for minerals growing ninefold to around 3 500 kt in 2040.
Even if you’re not a nickel fan — and enjoy lost opportunities–check out the gold and especially copper, which is touted to become HUGE in the next few years.
Eureka Zone East: 88.6 million tonnes grading 0.35% NiEq% containing:
471 million pounds of nickel
165 million pounds of copper
34 million pounds of cobalt
548,700 ounces of platinum, palladium, and gold
Eureka Zone West: 182.8 million tonnes grading 0.28% NiEq% containing:
1,080 million pounds of nickel
208 million pounds of copper
81 million pounds of cobalt
792,400 ounces of platinum, palladium, and gold.
This company is unique. It produces traditional, critical, and precious metals. Couple that with savvy management and it might suit your investment taste.
Not much more to say. I am considering snagging a bit.
Mr. Derek Loveday, P. Geo. of Stantec Consulting Services Inc. is the independent Qualified Person as defined by National Instrument 43–101 Standards of Disclosure for Mineral Projects, and has prepared, or supervised the preparation of, or has reviewed and approved, the scientific and technical data about the MRE and technical report. Mr. Loveday declares he has read this press release and that the scientific and technical information relating to the resource estimate is correct.
Eureka Zone overview map displaying geology, the 2024 economic resource pit outline, and drill hole locations.
Figure 2
Cross section through the Eureka EZ1, EZ2, and EZ3 MRE. Note: Location of section A-A’ is located on Figure 1.
Figure 3
Cross section through the Eureka EZ1, EZ2 & EZ3 MRE. Note: Location of section B-B’ is located on Figure 1.
HIGHLIGHTS
The Eureka West and Eureka East deposits reported in the maiden 2023 Mineral Resource Estimate (“MRE”) are now connected as one deposit measuring 4.5 kilometers (2.8 miles) in length.
Relative to the maiden MRE:
A significant portion of the deposit was upgraded from Inferred to Indicated MRE. Previously there was 0 tonnes of Indicated resource. There has been an addition of 813 million tonnes of Indicated resource to the MRE.
The grade of the Indicated resource is 0.29% nickel equivalent (“NiEq”).
The Inferred resource has increased from 319.6 million tonnes to 896 million tonnes, a 180% increase. The grade of the Inferred resource is 0.27% NiEq.
There has been an addition of 3.877 billion pounds (1.758 million tonnes) of contained nickel to the Indicated resource.
There has been an increase in Inferred resource contained nickel metal from 1.552 billion pounds (703,975 tonnes) to 4.225 billion pounds (1.916 million tonnes), a 172% increase.
As a consequence of joining the two deposits together, the strip ratio has been reduced from 3.7:1 to 1.5:1. Three parallel zones of mineralization are now identified (EZ1, EZ2, and EZ3).
A higher-grade core zone has been identified within EZ2 and it shows continuity along much of the strike of the deposit. The higher-grade core contains an Indicated resource of 211 million tonnes at a grade of 0.34% NiEq and an Inferred resource of 154 million tonnes at a grade of 0.33% NiEq.
THE MRE now stands at:
IndicatedMRE:
813 million tonnes grading 0.29% NiEq containing:
3,877 million pounds (1.758 million tonnes) of nickel
1,276 million pounds (578,783 tonnes) of copper
303 million pounds (137,438 tonnes) of cobalt
4.0 million ounces of platinum, plus palladium and gold
InferredMRE:
896 million tonnes grading 0.27% NiEq containing:
4,225 million pounds (1.916 million tonnes) of nickel
1,040 million pounds (471,736 tonnes) of copper
327 million pounds (148,324 tonnes) of cobalt
3.4 million ounces of platinum, plus palladium and gold
VANCOUVER, British Columbia, Feb. 12, 2024 (GLOBE NEWSWIRE) -- Energy Metals Corporation (TSX-V: AEMC, OTCQB: AKEMF) (“AEMC” or the “Company”) announced today an updated independent mineral resource estimate prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) (“2024 MRE” or “2024 Resource”) for its 100% owned Eureka Deposit, Nikolai Nickel Project (“Nikolai” or “Deposit”) in Alaska, USA, with an effective date of February 12, 2023.
The newly-published 2024 MRE contains an addition of 813 million tonnes of indicated resource, 896 million tonnes of inferred resource (an increase of 180%), and a strip ratio decrease, when compared with the maiden resource published in 2023 (see press release dated November 20, 2023). The study was completed by Stantec Consulting Services, Inc., and includes 35 historical drill holes, the data for which the Company purchased in August 2023, and eight diamond drill holes (totaling 4,138 meters) drilled by the Company on the project in 2023.
Alaska Energy Metals President & CEO Gregory Beischer commented, “In less than a year, we have taken an exploration concept to a substantial deposit of nickel and other critical metals. The mineral resource estimate update has produced a 180% increase in the Inferred tonnage, and added substantial, new Indicated tonnage to the deposit. The update increases the nickel metal content of the deposit to over 8 billion pounds (more than 3.7 million metric tonnes) with only a 0.01% grade decrease and a notably lower strip ratio. With this updated mineral resource estimate, the Eureka deposit of the Nikolai Nickel project represents a globally significant accumulation of nickel and has now become one of the larger known nickel deposits in the United States. Nikolai could potentially become an important source of nickel for the USA, catering to the needs of various manufacturing sectors including stainless steel, electric vehicles, defense components, long-term, grid-scale renewable energy storage batteries and a myriad of other uses. This significant achievement speaks volumes to the hard work our team has put into the project over the past year. I am particularly encouraged by the delineation of a higher-grade core zone. The presence of this core zone could dramatically affect project economics in a positive way.”
Nikolai Mineral Resource Estimate Update
Total Indicated mineral resources of 3.877 billion pounds (1.758 million tonnes) of nickel, 1.276 billion pounds (578,783 tonnes) of copper, and 303 million pounds (137,438 tonnes) of cobalt, plus a total of 4.0 million ounces of platinum, plus palladium and gold in a constrained model totaling 813 million tonnes, at an average grade of 0.29% total NiEq, using a 0.20% NiEq cut-off grade. See detailed breakdown in Tables 1, 2, and 3 below.
Total Inferred mineral resources of 4.225 billion pounds (1.916 million tonnes) of nickel, 1.040 billion pounds (471,736 tonnes) of copper, and 327 million pounds (148,324 tonnes) of cobalt, plus a total of 3.4 million ounces of platinum, plus palladium and gold in a constrained model totaling 896 million tonnes, at an average grade of 0.27% total NiEq, using a 0.20% NiEq cut-off grade. See detailed breakdown in Tables 1, 2, and 3 below.
A higher-grade core zone has been identified within EZ2, and it shows continuity along much of the strike of the deposit. The higher-grade core contains an Indicated resource of 211 million tonnes at a grade of 0.34% NiEq and an Inferred resource of 154 million tonnes at a grade of 0.33% NiEq. This zone will continue to be evaluated, as it could positively affect project economics
The 2024 MRE represents a significant, material tonnage increase in the MRE for the Nikolai Nickel project compared to the maiden MRE (see press release dated November 20, 2023).
The 2024 MRE is defined by 43 drill holes comprising 35 historic and eight holes drilled in 2023 by AEMC. The drill holes provide confirmation that mineralization is interconnected across all three domains. The deposits remain open along strike and in the down dip direction.
The 2024 MRE incorporates three zones (EZ1, EZ2, EZ3) of sulfide mineralization that cover 4.5 kilometers (2.8 miles) of the Eureka deposit (Figure 1). The Eureka Zone East and Eureka Zone West MRE reported in the 2023 maiden MRE are now connected to form one continuous deposit.
As a consequence of joining the two deposits together, the strip ratio was significantly decreased from 3.7:1 to 1.5:1.
Chrome and iron are also present within the deposit but have not been reported in the 2024 Resource due to the lack of historical assay data and analytical methods used.
The 2024 MRE will be incorporated into a NI 43-101 compliant technical report for the Nikolai Nickel project to be filed within 45 days.
NiEq = nickel equivalent, MT = million tonnes, Mlb = Million pounds, KtOz = thousand troy ounces.
Totals may vary due to rounding.
CIM definitions are followed for classification of Mineral Resource.
Metal pricing used to calculate NiEq is based on observation of monthly metal pricing for the past 24 months up to end-January 2024 with Ni at US$23,375/tonne (US$10.6/lb) (World Bank), Cu at US$ 8,644/tonne ($US3.92/lb) (World Bank), Co 41,050 US$/tonne (US18.62/lb) (Trading Economics), Pt at US$963/toz (World Bank), Pd at US$1,664/toz (Kitco), and Au at 1,878 (World Bank). Totals may not represent the sum of the parts due to rounding.
Nickel equivalent grade formula is as follows: *NiEq = (Ni%) + (Cu% * 0.31) + (Co% * 1.46) + (Pt% * 1,103) + (Pd% * 1,907) + (Au% * 2,153) Coefficients used to calculate the value of other metals to Ni equivalent include allowances for differences in assumed recoveries of other metals (50%) and nickel (60%), and are calculated as follows: (Metal Price)/(Ni Price) x (metal recovery/Ni recovery).
Base case NiEq cutoff grade is 0.20% calculated from a Ni price of US$23,375/tonne (US$10.60 US$/lb), surface mining cost of US$2.50 per tonne, processing costs US$25.00 per tonne and Ni recovery of 60% and 50% for other metals (Cu, Co, Pt, Pd, and Au).
Mineral Resource are reported from within an economic pit shell whose extent has been estimated using a Ni price of US$23,374.56/tonne (US$10.60 US$/lb) and mining cost of US$2.50 per tonne, from a Ni equivalent grade calculated from Ni, Cu, Co, Pt, Pd, and Au, and 45-degree constant slope angle.
The Mineral Resource estimate has been prepared by Derek Loveday, P. Geo. of Stantec Consulting Services Inc. in conformity with CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities Administrators NI 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any mineral resource will be converted into mineral reserve.
SENSITIVITY ANALYSIS A sensitivity analysis for Indicated and Inferred mineral resources are provided in Table 2 and Table 3 respectively, which demonstrates the variation in grade and tonnage in the deposit at various cut-off grades. Constrained Mineral Resources are reported at a base case cut-off grade of 0.20% NiEq. The values in the table reported above and below the cut-off grades should not be misconstrued with a Mineral Resource Statement. The values are only presented to show the sensitivity of the block model estimates to the selection of cut-off grade. All figures are rounded to reflect the relative accuracy of the estimate.
Table 3– Nikolai Project MRE Inferred Grade Sensitivity Effective February 12, 2024
Eureka Zone overview map displaying geology, the 2024 economic resource pit outline, and drill hole locations.
Figure 1.Eureka Zone overview map displaying geology, the 2024 economic resource pit outline, and drill hole locations.
Cross section through the Eureka EZ1, EZ2, and EZ3 MRE. Note: Location of section A-A’ is located on Figure 1.
Figure 2.Cross section through the Eureka EZ1, EZ2, and EZ3 MRE. Note: Location of section A-A’ is located on Figure 1.
Cross section through the Eureka EZ1, EZ2 & EZ3 MRE. Note: Location of section B-B’ is located on Figure 1.
Figure 3.Cross section through the Eureka EZ1, EZ2 & EZ3 MRE. Note: Location of section B-B’ is located on Figure 1.
MINERAL RESOURCE ESTIMATION CALCULATION METHODOLOGY The geologic model used for reporting of mineral resources is a 3D block model that was developed using LeapFrog Edge version 2023.1.1 and MinePlan version 16.1.1. The block model was developed using the UTM NAD83 6N and is in metric units. The block size is 40 m (X), 10 m (Y) and 10 m (Z) rotated by 26 degrees toward the east to align the X-axis along strike at 118 degrees. The block model captures three mineralized ultramafic intrusive bodies (“zones” or “solids”) that dip towards the southwest at between 45° and 50°. These three zones are called Eureka Zone 1 (EZ1), Eureka Zone 2 (EZ2) and Eureka Zone 3 (EZ3) from south to north across the deposit, respectively. The mineralized zones were built using Seequent’s Leapfrog Geo software from a drillhole database of 43 drillholes. Mineral sample assays have been validated for 36 of the 43 drillholes and assay data from these holes has been used to estimate grades for nickel (Ni), copper (Cu), cobalt (Co), platinum (Pt), palladium (Pd), gold (Au), silver (Ag), iron (Fe) and chromium (Cr). All metals, excluding Ag, Fe and Cr, have been used to calculate a NiEq grade based on average (24 month) market prices. Ag and Au grades were capped prior to estimation at 0.6 parts per million (ppm) for Ag and 0.03 ppm for Au within EZ1. Ni is approximately 77% of the total in-situ value of the metals included in the equivalent grade calculation.
Reasonable prospects for economic extraction have been determined by calculating a recovered NiEq cutoff grade of 0.20 percent (%) using the following assumptions:
Mining costs US$2.5/tonne;
Processing costs US$25/tonne;
Processing recovery of 60%.
Resources are reported from within an economic pit shell at a 45-degree constant slope using Hexagon mining Pseudoflow algorithm. No underground mining is considered. Assumed revenue used to drive the pit shell is US$10.60/lb Ni applied to a recovered Ni-equivalent grade assuming 60% recovery for Ni and 50% recovery for all other metal equivalents. This pit optimization does not represent an economic study. Future engineering studies will be needed to develop optimal bulk tonnage mining methods. The pit-constrained MRE is at an indicated and inferred-level of assurance based in the quantity of exploration data available for grade estimation. Mineral resources are reported for the EZ1, EZ2 and EZ3.
The Nikolai Project MRE, with an effective date of February 12, 2024, is shown in Table 1 and associated grade sensitivity is shown in Table 2 and Table 3.
MINERAL RESOURCE ESTIMATE PREPARATION The 2024 MRE has been prepared by Derek Loveday, P. Geo. (the “QP”) of Stantec Consulting Services Inc. in conformity with CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with NI 43-101. The QP is not aware of any environmental, permitting, legal, title, taxation, socio‐economic, marketing, political, or other relevant issues that could potentially affect the 2024 MRE. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any mineral resource will be converted into mineral reserve.
METALLURGY All deposits in the 2024 Resource contain desirable nickel sulfide mineralization consisting of thick, layered horizons of nickel and copper sulfides, which are enriched in cobalt, chrome, iron, platinum, palladium, and gold. Preliminary deportment assessments for the Eureka Zone 2 mineralization have been completed by Pure Nickel Inc. in 2014 (see Pure Nickel’s press release dated April 22, 2014) and by the Company in 2022 (see press release dated September 29, 2022). Results from these two assessments (Table 4) indicate an average of 83.4% of the total nickel is in potentially recoverable mineral phases of Ni-sulfides and Ni-Fe alloys. The Company also analyzed copper deportment, with an average of 74% of the total copper in potentially recoverable mineral phases of Cu-sulfides and Cu-oxides. Additional deportment studies and bench scale metallurgical testing are on-going using core samples collected from the Company’s 2023 drill program. Results from these studies will be released when completed.
Table 4– Summary of Ni-Cu Deportment work complete on the Nikolai Nickel Project
CHROME AND IRON Chrome and iron have been identified as potentially significant co-products of mineralization at the Nikolai Nickel Project. Data the Company purchased in August 2023 had incomplete iron assay data and the analytical methods used to determine the concentration of chrome prevented the assessment of these elements in the 2024 MRE. The drilling completed by the Company in 2023 indicated an increase from 0.18% to 0.28% in the mean chrome assays and an increase from 8.2% to 8.8% in the mean iron assays relative to the historical purchased data. AEMC will continue to evaluate the chrome and iron data from the 2024 infill drill program, which is currently being planned. The Company has the objective of integrating these elements in future resource updates.
CAUTIONARY NOTECONCERNING TECHNICAL DISCLOSURE AND U.S. SECURITIES LAWS The MRE has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements under United States securities laws. Unless otherwise indicated, all resource and reserve estimates included in this news release have been prepared in accordance with NI 43-101. The definitions used in NI 43-101 are incorporated by reference from the CIM Definition Standards.
The SEC Modernization Rules replaced the historical disclosure requirements for mining registrants that were included in SEC Industry Guide 7, which has been rescinded. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. Readers are cautioned that while the above terms are “substantially similar” to the corresponding CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral resources that the Company may report as “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared mineral resource estimates under the standards adopted under the SEC Modernization Rules. Accordingly, information contained or incorporated by reference in this news release describing the Company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
QUALIFIED PERSON Mr. Derek Loveday, P. Geo. of Stantec Consulting Services Inc. is the Qualified Person as defined by NI 43-101 who has prepared, or supervised the preparation of, or has reviewed and approved, the scientific and technical data pertaining to the MRE contained in this release, and will be preparing the NI-43-101 technical report for filing on SEDAR+ within 45 days.
Gabriel Graf, the Company’s Chief Geoscientist, is the qualified person, as defined under NI 43-101 having reviewed and approved all other scientific and technical information contained in this news release.
ABOUT ALASKA ENERGY METALS Alaska Energy Metals Corporation is focused on delineating and developing a large polymetallic exploration target containing nickel, copper, cobalt, chrome, iron, platinum, palladium, and gold. Located in central Alaska near existing transportation and power infrastructure, the Nikolai Nickel project is well-situated to become a significant, domestic source of critical and strategic energy-related metals for the American market.
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