Alaska Energy Metals trading on the TSX-V-AEMC and the OTCQB-AKEMF has just released a substantially increased updated mineral resource estimate (MRE) on their Nikolai project in central Alaska. The market was generally expecting a double or triple of the existing maiden resource of ~1.5 billion pounds of contained nickel. Unbelievably, the Company was able to move this resource up to ~8.2 billion pounds. This is a five-fold increase from the maiden resource estimate and huge increase in size!
Of note the original resource estimate was derived from purely historical data the company recently purchased for 1.4 million dollars CAD. Management feels this data would cost upwards of roughly $50 million CAD in today’s dollars. This historical data was derived over decades of work by junior resource co’s and majors alike. To achieve such a solid maiden resource estimate off purely historical data alone is unique and gives credibility to the quality of the data.
Huge Resource – Very Little Current Drilling So Far
What’s really important here is this current updated MRE grew from the results of just 8 drill holes drilled this last season. All this data will help guide their upcoming drilling program. This program will consist of at least 15 to 20 or more drill holes. The Company believes this season’s program will grow the resource substantially as well considering what they see from the historic drilling in the data and these recent 8 drill results.
Taking into account the other critical metals – copper, cobalt, platinum, palladium and gold, AEMC has now established a total resource of more than ~10 billion pounds (~4.8 million tonnes) of nickel equivalent metal (NiEq).
Newly Discovered Continuous High-Grade Core
Adds Substantially
The recent drilling work has identified a higher-grade core zone that grades around 0.33% to 0.34% NiEq. This zone will be a focus for further exploration because it has potential to positively affect overall project economics. The great targets they’ve developed may represent more potential for further high-grade discoveries on the project.
Huge Increase In Indicated Resource
Adds To Its Certainty
A significant portion of the deposit was upgraded from Inferred to Indicated. Previously there were 0 tonnes of Indicated resource. There has been an addition of 813 million tonnes of Indicated resource to the MRE. The Inferred resource has increased from 319.6 million tonnes to 896 million tonnes, a 180% increase. The higher-grade core zone shows continuity along much of the strike of the deposit.
The MRE now stands at:
(Mineral resource estimation)
The current deposit is now roughly 4.5 km (2.8 miles) long and shows mineralization for up to 12 kilometers (7.5 miles). Connecting the original two deposits from the maiden resource has brought down the strip ratio as well. As a result of joining the two deposits together, the strip ratio has been reduced from 3.7:1 to 1.5:1. This is very important for any possible extraction. The higher-grade zone and outer zones are also open in all directions.
It is important to note that early mining would likely only excavate the high-grade core with no stripping of waste rock, which is likely to positively affect project economics.
Now One Of The Largest US Nickel Resources
THE NIKOLAI PROJECT
Investors can now count the Eureka deposit amongst the largest in the United States. With one more drill program it could very well become the largest known domestic US nickel deposit. While the metal concentration is not high, the deposit of mineralized rock is exceptionally continuous and homogeneous, desirable features in a bulk tonnage mining scenario. Because high grade nickel deposits of size are so rare, it is likely that the mining industry will migrate towards mining large-scale, low-cost, bulk-tonnage open pit nickel deposit mining. It’s a paradigm shift similar to that which occurred when the industry started mining porphyry copper deposits in the last century.
Already On A Solid Path Of Fast Tracking The Development
Going forward in spring and summer 2024
This development just announced is a great step forward and caps off the first year of work for the Company. AEMC plans to keep up the pace. Going forward in spring and summer 2024, the Company plans to expand the deposit further, but also further refine their understanding of the high-grade core.
AEMC is led by Alaskan Gregory Beischer who ironically discovered and drilled the first holes on this deposit over 20 years ago while working at INCO – at the time the largest nickel producer. At the time nickel did not have the demand it has now. With the rapidly expanding growth of needed energy storage in its many forms, nickel is now one of a handful of metals that have become critical to the growth of this sector. There is actually much more nickel in a lithium-ion battery than lithium.
The US Is In Desperate Need Of Domestic Critical Metal Production
And Currently Produces None
Now what is also important here, even though there are numerous battery manufacturing plants and electric vehicle producers in the US and more planned (LG Chem Signs Cathode Supply Deal With GM), it produces zero nickel for domestic supply. The US government recently raised nickel along with copper and other metals to the top tier of their critical metals list. The need for a domestic source of nickel has never been more imperative.
With this updated MRE and a planned extensive drill program planned for this next drilling season, AEMC could become one of only a handful of large US -based nickel projects. In North America there are roughly seven developing nickel prospects with similar attributes. Several of these Companies already have strategic arrangements with major companies from the mining industry, battery companies, car companies, refiners and stainless-steel producers.
The US Government Is Aggressively Moving
Away From Questionable Foreign Imports
Government grants and support, along with the significant investments from majors, is a good sign one of these large minable deposits will be put into production. Mine construction permitting and build out can become very costly. The extreme need for domestic production leaves one to believe any new nickel mine could be fast tracked and find capital for this much easier than normal. To date, the work that AEMC has completed shows no issues that come up with many mining projects. With AEMC’s rapid development of this deposit a strategic arrangement with a large company is quite high. Metallurgical results and further drilling will help show if this is the case.
Even though the price of nickel is at lows, the vast majority of it comes from Indonesia and is heavily backed by Chinese investment. The US government has been subsidizing many companies that are on the hunt for these critical metals inside the US. They know they need the domestic supply and are very outspoken in breaking their reliance on foreign imports from sometimes unfriendly jurisdictions.
Invest Along Side Billionaires & Major Investment Funds
THE NIKOLAI PROJECT
Invest Along Side Billionaires And Major Investment Funds
Kobold Metals – One of the largest mineral exploration companies in the world – backed by names like Bill Gates, Jeff Bezos, Richard Branson, Ray Dalio and more, uses artificial intelligence to search for lithium, cobalt, copper, and nickel through more than 60 projects across six continents. As mentioned, these target metals are critical for building renewable energy infrastructure such as solar panels, EV batteries and more, according to the International Energy Agency.
As Kobold is a private corporation average investors are unable to capitalize on their massive exploration programs and world class expertise – or is there?
Kobold Metals has staked a swath of land directly adjacent to AEMC’s Nikolai project. Of note AEMC recently sold some of the historic drilling and exploration data to Kobold for their neighbouring project.
Investing Along Side The Smart Money
The Opportunity For Investors
AEMC being a Canadian publicly-listed company trading on the TSX Venture Exchange symbol AEMC and the OTCQB symbol AKEMF is easily purchased by investors. The opportunity for investors here is a way to participate in a project directly adjacent to Kobold by investing in AEMC. With one of the largest domestic resource estimates in hand and high potential to grow markedly through the next drilling season, now is the time to look at Alaska Energy Metals – this is where the average investor can capitalize on an opportunity such as this.
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This is part of a paid awareness campaign and not financial advice, while FG is a firm believer in this company and the green energy sector this is not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. For more information on our policies please click here.
