VANCOUVER, BC, Feb. 2, 2021 /CNW/ -- 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
info@nickelrockresources.com
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SOURCE Nickel Rock Resources Inc.