Class 1 Nickel Provides Exploration and Operations Update

December 13, 2023

TORONTO, Dec. 13, 2023 (GLOBE NEWSWIRE) — Class 1 Nickel and Technologies Ltd. (CSE: NICO | OTCQB: NICLF) (“Class 1 Nickel” or the “Company”) is pleased to provide an update on its nickel exploration and operations for its 100% owned Alexo-Dundonald (Ontario) and Somanike (Quebec) nickel projects. Both projects comprise extensive property packages covering past-producing nickel mines, offering near-term production opportunity and excellent exploration upside. The Company also holds 100% interest in its River Valley PGE Project located about 65 km northeast of the City of Sudbury, the world’s largest and longest operating nickel-copper-cobalt-PGE mining camp.

Table 1 provides a summary of the work completed to date by Class 1 Nickel on the highly prospective Alexo-Dundonald and Somanike nickel projects.

The Alexo-Dundonald Nickel Project (“A-D Project”), is located about 45 km northeast of the City of Timmins, Ontario, covers an area of approximately 1,895 hectares (18.95 km²) and was acquired by the Company in September 2018. The A-D Project includes four foundation nickel deposits (Alexo North and South and Dundonald North and South) of which the Alexo North and Alexo South (aka Kelex) were small-scale past producers of nickel (i.e., 1957; 2004-2005). The deposits are located on a near-continuous folded komatiite-ultramafic rock sequence that extends for at least 14 kilometres within the Property. The four mineral resources (Tables 2 and 3) are open at depth and along strike and could increase in size with additional drilling.

The Somanike Nickel Project (“Somanike”), located about 25 km north of the mining centre of Malartic and 40 km northwest of Val d’Or, covers an area of approximately 6,882 hectares (68.8 km²) and was acquired by the Company in February 2021. The Somanike includes the past-producing high-grade nickel Marbridge Mine which ceased production in 1968.

OPERATIONS UPDATE

Class 1 has engaged Caracle Creek Chile SpA (Canada/Chile) and their strategic partner Atticus Geoscience Consulting Ltd. (UK/Peru) (the “Consultants”) to conduct overarching independent reviews of both the A-D and Somanike nickel projects but with an initial focus on the Alexo-Dundonald Nickel Project and its four nickel-copper-cobalt-PGE deposits.

The work at A-D will include compilation and targeting and updating of 3D geological models with a view to produce revised mineral resource estimates, a preliminary economic assessment, and comprehensive exploration and development budgets for 2024 work programs to include:

Compilation and verification of data, assays, inventory, and NI 43-101 reporting;
Generating the Company’s first comprehensive 3D geological models (current), mineral resource models (2024), and pit optimisation scenarios (2024) looking toward a PEA level study or studies in 2024;
Conducting preliminary studies into the economic viability of proposed future nickel production scenarios;
A review of work done to date, regarding environmental studies and permitting; and
A comprehensive diamond drilling plan to expand current mineral resources.

Looking toward 2024, the Company is focused on completing an updated mineral resource estimate on the Alexo South Nickel Deposit and a drilling program is being planned to test high-grade nickel shoots, expand resources, and upgrade resource categorization at Alexo South. Various cross-sections showcasing the updated geological modelling are shown in Figures 1, 2, 3, 4, and 5 (or click to view Figure 1, Figure 2, Figure 3, Figure 4 and Figure 5). The remaining three nickel deposits will also see new updated mineral resource estimates in 2024.

The Consultants will also be undertaking a comprehensive review of the Somanike Nickel Project (Marbridge Mine and area) in Quebec, including the integration of recent exciting successful drill hole intercepts and data from 2022-2023 exploration programs which delineated a number of new geophysical targets within the historical Marbridge Mine area. Mr. Alexandr Beloborodov (P.Geo., OGQ #01637) is the Qualified Person with respect to the Somanike Nickel Project.

Table 1. Summary of work completed to date by Class 1 Nickel at Alexo-Dundonald and Somanike.

Project	Period	Work Program	Results Summary
Alexo-Dundonald	Jun-Aug 2020	38 grab rock samples	Alexo North pit from 2.33% to 5.85% Ni; Alexo South pit from 1.0% to 5.55% Ni
		8 historical core samples	range from 1.02% to 20.9% Ni
		rock geochemical samples	komatiite to komatiitic compositions; high R-factors and Ni tenors;
Alexo-Dundonald	Aug-Dec 2020	mineral resource estimates	update mineral resource estimates for the four Alexo and Dundonald deposits
			TOTAL resources: 1.25Mt Indicated @ 0.99%Ni; 1.01Mt Inferred @ 1.08% Ni
Alexo-Dundonald	Sept-Nov 2020	airborne geophysical survey	Geotech Ltd VTEM Plus Time-Domain EM survey/magnetics; 1,012 line-km; 14 high priority targets; integrated with historical BHEM targets for drill hole planning
Alexo-Dundonald	Mar 2021	MOU Matachewan FN	signed MOU with Matachewan First Nation
Alexo-Dundonald	Apr-Dec 2021	Diamond Drilling	20,607 metres; 37 drill holes Alexo South; 29 drill holes Alexo North; 18 drill holes Dundonald South; 4 scissor holes (final assays in March 2022)
Somanike	Jan 2021	Diamond Drilling	1,580 metres; 6 drill holes targeting 2014 airborne VTEM targets
Somanike	Sept 2021	10 grab rock samples	Cubric Bilson, Mine 2, Mine 1, Ataman West, Ataman Central sampled 0.008% to 3.78% Ni and averaged 1.22% Ni
Alexo-Dundonald	Jul 2021-Dec 2022	Environmental Baseline Studies	water monitoring since July 2021 expected to be completed by July 2024
Somanike	Feb-June 2022	ground TDEM survey	32.85 line-km survey; identified 10 new EM anomalies
Somanike	Aug 2022-Feb 2023	Diamond Drilling	16,510 metres; 36 drill holes in Marbridge Mine Area; 4 drill holes in Cominco Area

Permits

Several provincial environmental permits are in place for the A-D Project. These include:

2006 Ministry of Environment Conservation and Parks (“MECP”) Industrial Sewage Works Environmental Compliance Approval (“ISW ECA”);
MECP Permit to Take Water (“PTTW”) for the Alexo North Pit; and
Ministry of Mines (“MINES”) production-phase closure plan (“CP”) amendment (2011).

The ISW ECA permits the existing settling and polishing ponds and allows for the seasonal discharge of effluent to the nearby receiving body of water. However, the regulations governing mine discharges have changed substantially in recent years and site-specific effluent limits will most likely be required for this Project. Therefore, an amendment to the ISW ECA will most likely be required based on these new regulatory requirements. The PTTW allows for the dewatering and maintenance dewatering of the Alexo North Pit; however, it expires in October 2024. An application for renewal of this PTTW will be submitted during the first quarter of 2024. The CP amendment (2011) covers production from the Alexo North Pit and Alexo South Pit (aka the Kelex Pit) but the Project is currently in a state of inactivity and MINES only holds ~$70,000 of financial assurance for the Project.

To put the Alexo North Pit and Alexo South Pit into production, the following would be required:

an ISW ECA amendment application, including site-specific effluent limits, may have to be prepared and submitted to the MECP for approval (as indicated above);
a renewal of the PTTW for the Alexo North Pit is required from the MECP;
a PTTW for the dewatering and maintenance dewatering of the Alexo South Pit would have to be obtained from the MECP;
a Notice of Project Status, to take the Project from a state of inactivity to production, and Notice of Material Change would have to be submitted MINES; and finally
a CP Amendment would also be required for the new project, with the relevant amount of financial assurance submitted to MINES.

A Federal Impact Assessment and Provincial Environmental Assessments are not anticipated but this will depend on the proposed rate of production.