First Atlantic Nickel Reports New Discovery at Super Gulp: Initial Drill Hole Intersects 0.25% Nickel & 0.28% Chromium Over 293.8 Meters

Rhea-AI Summary

First Atlantic Nickel Corp (FANCF) has announced significant drill results from its Super Gulp Zone at the Atlantic Nickel Project in Newfoundland. The initial drill hole AN-24-01 intersected 0.25% nickel and 0.28% chromium over 293.8 meters, with peak values reaching 0.32% nickel and 0.8% chromium.

The discovery represents a major step-out within the company's 30-kilometer nickel trend, located 16 km south of the Atlantic Lake Zone. The mineralization contains large awaruite grains (up to 271 microns), suitable for magnetic separation processing. The company is currently conducting Davis Tube Recovery metallurgical testing and preparing for Phase 2 drilling, supported by a recent $3M strategic raise.

The drill hole significantly exceeded historical drilling depths in the area, suggesting potential for a large-tonnage nickel deposit. The mineralization remains open at depth beyond 297 meters, with additional Phase 1 drill results pending.

Positive

• Major new discovery with 293.8m of continuous nickel mineralization
• Higher grades than historical results (0.25% Ni vs 0.22% Ni)
• Large awaruite grains enable cost-effective magnetic separation
• $3M non-dilutive funding secured for Phase 2 drilling
• Mineralization remains open at depth

Negative

• Relatively low-grade nickel mineralization (0.25-0.32%)
• Metallurgical recovery rates not yet confirmed
• Infrastructure development still required for Super Gulp Zone access

VANCOUVER, British Columbia, Feb. 26, 2025 (GLOBE NEWSWIRE) -- First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) ("First Atlantic" or the "Company") is pleased to announce the initial assay results from its first drill hole at the Super Gulp Zone, part of its 100% owned Atlantic Nickel Project in central Newfoundland. The first drill hole, AN-24-01, returned assays of up to 0.32% nickel and 0.8% chromium, with an average of 0.25% nickel and 0.28% chromium over the entire 293.8-meter length. These strong results confirm extensive nickel mineralization, initially observed as large-grain awaruite disseminated throughout the drill hole. This marks the first of five holes drilled in the Phase 1 program, with additional drill results pending.

The discovery hole significantly exceeds the average depth of historical drilling in the Atlantic Lake Zone, confirming the presence of a major new nickel zone within the Company's district-scale 30-kilometer trend. For comparison, historical drilling in the Atlantic Lake Zone (78-AL-1) intersected 0.22% nickel over its entire 87.15 meter length and ended in mineralization, remaining open in all directions (NFLD/3284).

Alongside these promising drill results, Davis Tube Recovery (DTR) metallurgical testing is currently underway, with results expected soon. This testing aims to quantify magnetically recoverable nickel and evaluate the project's suitability for magnetic separation as a commercial mining processing method.

Highlights

• Wide Interval of Nickel: The first drill hole at Super Gulp (AN-24-01) intersects 0.25% nickel and 0.28% chromium over its entire 293.8-meter length, with peak values reaching up to 0.32% nickel and 0.8% chromium.
• Mineralized Depth Extension: Drill hole AN-24-01 reached a depth of 293.8 meters, significantly exceeding the historical average of 80 meters drilled at Atlantic Lake. Notably, DDH78-AL-1 previously assayed 0.22% nickel over 87.15 meters. Future drilling will continue to step-out to further expand the depth and size of the Super Gulp Zone.
• Major Step-Out within 30-km Nickel Trend: The Super Gulp discovery hole, AN-24-01 - located 16 km south of the Atlantic Lake Zone and 10 km north of the RPM Zone - confirms continuous awaruite nickel mineralization within the district-scale, 30-km magnetic ultramafic ophiolite.
• Large Awaruite Grains: Assays confirm the presence of nickel-alloy (awaruite) throughout the drill hole, consistent with visual observations. Grain sizes reach up to 271 microns, well above the threshold for effective magnetic separation.
• Phase 2 Drilling Program: Phase 2 drilling is set to begin soon, utilizing new road access and a higher-power NQ/HQ drill rig to target deeper mineralization. The program is fully funded by a recently closed strategic non-dilutive $3M raise, with additional Phase 1 drill assay results pending.
• Metallurgical Testing: DTR testing is underway to quantify magnetically recoverable nickel and evaluate the project's suitability for commercial processing via magnetic separation - a critical step in establishing project economics.

For further information, questions, or investor inquiries, please contact Rob Guzman at First Atlantic Nickel by phone at +1 844 592 6337 or via email at rob@fanickel.com.

Super Gulp Discovery Details

Drill Hole AN-24-01: Drilled westward at a -60° dip to a final depth of 297 meters, AN-24-01 encountered consistent nickel mineralization throughout the drill hole after only 3.23 meters of overburden. The hole intersected 293.8 meters grading 0.25% nickel and 0.28% chromium, including peak values of up to 0.32% nickel and 0.8% chromium. Assay results confirm remarkable grade consistency, with serpentinized ultramafic rock and visible disseminated awaruite (natural nickel-iron alloy, Ni₃Fe) observed throughout the drill hole.

Super Gulp Zone Expansion: The Super Gulp Zone marks a significant 16-kilometer step-out from historical drilling at Atlantic Lake and lies 10 km north of the RPM zone, confirming the potential for multiple large nickel zones across the Company's 30-kilometer trend. Historical drilling at Atlantic Lake (DDH78-AL-1) intersected 0.22% nickel over its entire 87.15-meter length and ended in mineralization, remaining open in all directions (NFLD/3284). The Super Gulp discovery significantly expands the known mineralized footprint and demonstrates that the nickel system extends much deeper than previously documented, with AN-24-01 reaching over three times the depth of the historical hole while maintaining consistent mineralization throughout.

Table 1: Initial Assays from Super Gulp Drill Hole 1 (AN-24-01)

Drill Hole	From (m)	To (m)	Interval (m)	Nickel (%)	Chromium (%)
AN-24-01	3.23	297	293.8	0.25	0.28
Drill Hole Intersection Breakdown
including	3.23	75	71.8	0.25	0.32
including	75	195	120	0.26	0.25
including	195	297	102	0.24	0.30
including “up-to”				0.32	0.80

Table 2: Super Gulp Drill Hole 1 (AN-24-01) collar location information

Hole ID	Easting (NAD83)	Northing (NAD83)	Elevation (m)	Azimuth (deg°)	Dip (deg°)	Depth (m)
AN-24-01	571017mE	5364751mN	295	270	-60	297

Phase 1 drilling encountered soft, rippable rock across the property in all holes. Specifically, AN-24-01 encountered heavily fractured, broken serpentinized rock throughout, suggesting the potential for lower-cost mining methods that do not require drilling and blasting. For future drilling, the Company plans to use a larger drill rig with HQ/NQ-sized core to reach greater depths, improve drilling efficiency, and expand the mineralization, which remains open at depth beyond 297 meters.

Microscopic analysis has confirmed awaruite grain sizes ranging from 25 to 271 microns, well above the 10-micron threshold required for effective magnetic separation¹. This supports the potential for simple, cost-effective processing without smelting, aligning with the Company's strategy to develop a smelter-free nickel project that could strengthen North America's nickel supply chain. The consistent grade throughout the hole, combined with mineralization that remains open at depth, underscores the potential for a large-tonnage nickel deposit.

Figure 1: Location of Super Gulp Drill Hole 1 (AN-24-01) at Atlantic Nickel Project showing the 30km awaruite sulfur-free nickel-alloy trend over TMI magnetics.

Figure 2: Super Gulp Drill Hole 1 (AN-24-01) showing disseminated sulfur-free-nickel (awaruite) in serpentinized ultramafic rock, with serpentine-magnetite fracture filling and veinlets at 43m and 87m downhole.

Figure 3: Microscope images of awaruite grains (~200-271 microns) in Super Gulp Drill Hole 001 (AN-24-01).

Phase 2 Drill Program

The Company is preparing for Phase 2 drilling to further delineate and expand the RPM Zone, which will begin shortly using the newly constructed road for direct access. This road access allows for a larger, more cost-effective program compared to Phase 1. In addition, the Company is evaluating plans to develop road access to the Super Gulp Zone. Phase 2 drilling will employ a higher-power drill rig with both NQ and HQ core capabilities, targeting deeper mineralization than was achievable in Phase 1. The Company's recent $3 million in strategic funding will support Phase 2 drilling, assays, and metallurgical work, with additional assay results from other Phase 1 drill holes expected to be released soon.

Metallurgical Program

Preliminary DTR testing is currently underway to evaluate the Atlantic Nickel Project's potential for magnetic separation. This testing aims to characterize the recovery potential of awaruite-style mineralization. The Company is planning an intensive metallurgical process development program to build on the DTR testing, focusing on quantifying magnetically recoverable nickel. The metallurgical program will use a pilot scale magnetic separator as a key initial step in developing a process flowsheet, marking the start of a customized flowsheet optimization effort. Subsequent processing stages, following magnetic separation, will explore techniques such as gravity separation and/or flotation, as needed, to produce a saleable nickel concentrate. The objective of this program is to optimize the recovery of the abundant large-grain awaruite mineralization identified at the Atlantic Nickel Project and provide crucial data for future economic studies evaluating the project’s commercial viability.

Awaruite (Nickel-iron alloy Ni₂Fe, Ni₃Fe)

Awaruite, a naturally occurring sulfur-free nickel-iron alloy composed of Ni₃Fe or Ni₂Fe with approximately ~75% nickel content, offers a proven and environmentally safer solution to enhance the resilience and security of North America's domestic critical minerals supply chain. Unlike conventional nickel sources, awaruite can be processed into high-grade concentrates exceeding 60% nickel content through magnetic processing and simple floatation without the need for smelting, roasting, or high-pressure acid leaching². Beginning in 2025, the US Inflation Reduction Act's (IRA) $7,500 electric vehicle (EV) tax credit mandates that eligible clean vehicles must not contain any critical minerals processed by foreign entities of concern (FEOC)³. These entities include Russia and China, which currently dominate the global nickel smelting industry. Awaruite's smelter-free processing approach could potentially help North American electric vehicle manufacturers meet the IRA's stringent critical mineral requirements and reduce dependence on FEOCs for nickel processing.

The U.S. Geological Survey (USGS) highlighted awaruite's potential, stating, "The development of awaruite deposits in other parts of Canada may help alleviate any prolonged shortage of nickel concentrate. Awaruite, a natural iron-nickel alloy, is much easier to concentrate than pentlandite, the principal sulfide of nickel"⁴. Awaruite's unique properties enable cleaner and safer processing compared to conventional sulfide and laterite nickel sources, which often involve smelting, roasting, or high-pressure acid leaching that can release toxic sulfur dioxide, generate hazardous waste, and lead to acid mine drainage. Awaruite's simpler processing, facilitated by its amenability to magnetic processing and lack of sulfur, eliminates these harmful methods, reducing greenhouse gas emissions and risks associated with toxic chemical release, addressing concerns about the large carbon footprint and toxic emissions linked to nickel refining.

Figure 4: Quote from USGS on Awaruite Deposits in Canada

The development of awaruite resources is crucial, given China's control in the global nickel market. Chinese companies refine and smelt 68% to 80% of the world's nickel⁵ and control an estimated 84% of Indonesia's nickel output, the largest worldwide supply⁶. Awaruite is a cleaner source of nickel that reduces dependence on foreign processing controlled by China, leading to a more secure and reliable supply for North America's stainless steel and electric vehicle industries.

Investor Information                

The Company's common shares trade on the TSX Venture Exchange under the symbol "FAN", the American OTCQB Exchange under the symbol “FANCF” and on several German exchanges, including Frankfurt and Tradegate, under the symbol "P21".

Investors can get updates about First Atlantic by signing up to receive news via email and SMS text at www.fanickel.com. Stay connected and learn more by following us on these social media platforms:

https://x.com/FirstAtlanticNi
https://www.facebook.com/firstatlanticnickel
https://www.linkedin.com/company/firstatlanticnickel/

FOR MORE INFORMATION:
First Atlantic Investor Relations
Robert Guzman
Tel: +1 844 592 6337
rob@fanickel.com

Disclosure

Adrian Smith, P.Geo., is a qualified person as defined by NI 43-101. The qualified person is a member in good standing of the Professional Engineers and Geoscientists Newfoundland and Labrador (PEGNL) and is a registered professional geoscientist (P.Geo.). Mr. Smith has reviewed and approved the technical information disclosed herein.

Analytical Method & QAQC

Samples were split in half on site with one half remaining in the core box for future reference and one half packaged in secure bags. QAQC method included the use of blanks, duplicates and certified reference material (standards) with one being inserted once in every 20 samples in order to test the precision and accuracy of the lab. All results passed the QA/QC screening at the lab, and all company inserted standards and blanks returned results that were within acceptable limits.

Samples were sent to Activation Laboratories LTD (“Actlabs”) in Fredericton, NB. Actlabs is an ISO 17025 certified lab, accredited and acting independently from First Atlantic Nickel. Each sample was crushed, with a 250 g sub-sample pulverized to 95% - 200 mesh. A portion of the sample is fused with a lithium metaborate/tetraborate flux and analyzed by ICP-OES for major oxides and elements including cobalt, chromium and nickel.

True widths are currently unknown. However, the nickel bearing ultramafic ophiolite and peridotite rocks being targeted and sampled in the Phase 1 drilling program at the Atlantic Nickel Project are mapped as several hundred meters to over 1 kilometer wide and approximately 30 kilometers long.

About First Atlantic Nickel Corp.

First Atlantic Nickel Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P21) is a Canadian mineral exploration company developing the 100%-owned Atlantic Nickel Project, a large-scale nickel project strategically located near existing infrastructure in Newfoundland, Canada. The Project's nickel occurs as awaruite, a natural nickel-iron alloy containing approximately 75% nickel with no-sulfur and no-sulfides. Awaruite's properties allow for smelter-free magnetic separation and concentration, which could strengthen North America's critical minerals supply chain by reducing foreign dependence on nickel smelting. This aligns with new US Electric Vehicle US IRA requirements, which stipulate that beginning in 2025, an eligible clean vehicle may not contain any critical minerals processed by a FEOC (Foreign Entities Of Concern)⁷.

First Atlantic aims to be a key input of a secure and reliable North American critical minerals supply chain for the stainless steel and electric vehicle industries in the USA and Canada. The company is positioned to meet the growing demand for responsibly sourced nickel that complies with the critical mineral requirements for eligible clean vehicles under the US IRA. With its commitment to responsible practices and experienced team, First Atlantic is poised to contribute significantly to the nickel industry's future, supporting the transition to a cleaner energy landscape. This mission gained importance when the US added nickel to its critical minerals list in 2022, recognizing it as a non-fuel mineral essential to economic and national security with a supply chain vulnerable to disruption.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements:

This news release may include "forward-looking information" under applicable Canadian securities legislation. Such forward-looking information reflects management's current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, expectations regarding the timing, scope, and results from the Phase 1 work and drilling program; results from the Phase 2 work and drilling program, future project developments, the Company’s objectives, goals or future plans, statements, and estimates of market conditions. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. Additional factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on http://www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. 

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¹ https://pubs.geoscienceworld.org/segweb/economicgeology/article-abstract/112/3/517/172164/Regional-Metallogeny-and-Genesis-of-a-New-Deposit
² https://fpxnickel.com/projects-overview/what-is-awaruite/
³ https://home.treasury.gov/news/press-releases/jy1939
⁴ https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf
⁵ https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf
⁶ https://www.airuniversity.af.edu/JIPA/Display/Article/3703867/the-rise-of-great-mineral-powers/
⁷ https://home.treasury.gov/news/press-releases/jy1939

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/07c1123c-b832-4eea-817f-f425cc19ad6d

https://www.globenewswire.com/NewsRoom/AttachmentNg/95053203-0df6-4488-bde0-42cdc8318379

https://www.globenewswire.com/NewsRoom/AttachmentNg/7e2bd25a-37bc-462a-81d2-b63bfbe756f8

https://www.globenewswire.com/NewsRoom/AttachmentNg/43f6cbcb-07d1-427a-8e2e-e35b65ace834

FAQ

What are the key findings from First Atlantic Nickel's (FANCF) Super Gulp Zone discovery?

The initial drill hole intersected 0.25% nickel and 0.28% chromium over 293.8 meters, with peak values of 0.32% nickel and 0.8% chromium.

How does FANCF's Super Gulp discovery compare to historical drilling results?

Super Gulp's 293.8-meter intersection significantly exceeds historical drilling at Atlantic Lake Zone, which previously showed 0.22% nickel over 87.15 meters.

What is the significance of awaruite grain size in FANCF's nickel discovery?

The awaruite grains reach 271 microns, well above the 10-micron threshold needed for effective magnetic separation, enabling simpler processing without smelting.

What are FANCF's next steps for the Super Gulp Zone development?

The company is preparing for Phase 2 drilling with a higher-power rig, conducting DTR metallurgical testing, and plans to develop road access to the zone.