While Fathom Nickel (CSE:FNI) is “on the radar of several companies”, CEO Ian Fraser says there is still a bit more work to be done before getting a potential partnership or investment across the line.
The Alberta, Canada-based explorer has been in talks with North American and Australian companies regarding a possible farm-in, joint venture or equity buy-in.
Fathom Nickel’s portfolio comprises the Albert Lake, Gochager Lake and Friesen Lake projects in Saskatchewan which are all located within the Trans Hudson Orogen, home to large producing mines owned by majors like Vale (NYSE:VALE), Glencore (LSE:GLEN) and Hudbay Minerals (TSX:HBM).
Albert Lake hosts the once-operational Rottenstone Mine, which produced 28,724 tons @ 3.28% nickel, 1.83% copper and 9.63 grams per tonne platinum, palladium and gold between 1965 and 1969.
Gochager Lake, meanwhile, hosts an historical nickel, copper and cobalt deposit.
Fathom Nickel’s focus is to uncover high-grade magmatic nickel sulphide deposits in Saskatchewan.
The Trans Hudson Orogen is the source structure underpinning “very large nickel districts” in Manitoba and Québec, according to the company.
There have been no large-scale high-grade nickel discoveries in North America since Voisey’s Bay, which is owned by Vale and was discovered in 1996.
Fraser tells Mining.com.au some of these discussions advanced to confidentiality agreements, with some still in place while others have expired.
“The willingness to ‘jump in’ by the majors has become more cautious than say three years ago and our most recent discussions can be summed up with the phrase ‘continue to de-risk these exploration targets and let’s talk again’,” he says.
Fraser says Fathom Nickel was approached by some of the parties as opposed to the company having to approach them.
“They have complimented us on our exploration approach, which is gratifying, but I think it safe to say we have a bit more work to do before these companies entertain a farm-in, JV, equity stake etc,” he tells this news service.
“It’s no secret Fathom will not become the miner of these potential deposits we seek to demonstrate. Our goal is to develop, for example, the Gochager Lake Project into something that demonstrates grade and scale, and liquidate the asset.”
Fathom Nickel has also attracted interest from a major producer in the orogenic gold potential of its ground within the Rottenstone Domain.
The company made a gold discovery at the Albert Lake Project in an area now known as the South Albert Lake Project.
Prospecting late in the summer of 2024 uncovered a grab sample that returned 2.68g/t gold about 14km along strike from a discovery hole drilled by Ramp Metals in 2024 that returned 7.5m @ 73.55g/t gold.
Exploration undertaken immediately to the south of South Albert Lake also revealed a volcanogenic massive sulphide trend that extends into Fathom Nickel’s ground.
Fraser says the major producer remains interested in orogenic gold within the Rottenstone Domain.
“I think a lot of the initial interest was based on whether the company exploring immediately south of the Albert Lake Project could demonstrate scale/continuity after the initial announcement of a significant gold discovery made by drilling over a year ago,” he explains.
Write to Angela East at Mining.com.au
Images: Fathom Nickel
