Flying Nickel adds 42% to Minago resource, issues first PGM estimate at Manitoba project

Minago’s in-pit portion is 36 million measured and indicated tonnes at 0.67% nickel, 0.18 gram per tonne palladium and 0.08 gram platinum for 531.3 million lb. of contained metal, the company said on Thursday. That compares with 23.9 million measured and indicated tonnes grading 0.71% nickel for 374.3 million lb. contained metal in a 2021 resource. 

With an underground component, the project holds a total of 43.4 million measured and indicated tonnes grading 0.72% nickel, 0.2 gram palladium and 0.09 gram platinum for 689.5 million lb. of nickel, 279,330 oz. of palladium and 125,700 oz. of platinum, the company said in a release. 

“This is an outstanding mineral resource estimate update with an inaugural PGM resource,” Flying Nickel CEO John Lee said. “Those two factors will be studied further in Minago’s on-going feasibility study.” 

Nickel is a vital electric battery metal as the world advances greener power. Platinum and palladium are primarily used in the catalytic converters of fossil fuel cars to reduce emissions, but those cars are being phased out. PGMs may see new applications in the hydrogen engines being developed by General Motors and Toyota, but there are large obstacles in cost, efficiency and distribution to solve. 

Still, Flying Nickel aims the project to be world-leading in other aspects, such as its carbon footprint. That would compare it favourably with the Chinese-financed polluting projects in Indonesia, the world’s leader in production. Discussion is mounting of setting premium prices for ethically sourced metals such as nickel. 

Thompson nickel belt

Victory Nickel explored the Minago project area in the 2000s before Silver Elephant Mining (TSX: ELEF) bought the project in early 2021 and created Flying Nickel. Manitoba’s Thompson nickel belt has produced some 5 billion lb. nickel, second to Sudbury, Ont. in Canada’s production of the metal. 

Minago’s PGM resources are based on assays before 2022, plus cores from the Flying Nickel’s 2022 drill program and analysis of historical drill cores, the company said. In total, 4,041 metres from 47 holes drilled before 2021 were assayed for PGM last year. The company drilled six holes for 1,320 metres of sampling in 2022 and had 70 holes for 9,622 metres of sampling by previous operators.

To date, about US$50 million has been spent on exploration, a historical feasibility study and environmental permitting, most of which was by Victory and Flying Nickel.

Shares in Flying Nickel rose a fifth to 10¢ apiece on Thursday from 8¢ at Wednesday’s close, for a market capitalization of $8.7 million. They’ve traded in a 52-week range of 5¢ to 18¢.