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Class 1 Nickel, Alexo-Dundonald Project

Dec 1, 2023

What’s old is new again and with the burgeoning global interest in minerals for electric vehicles, that’s precisely what the new operators of the dormant Alexo-Dundonald property, 25 km northeast of Timmins are thinking. With its eye on the Alexo-Dundonald property, Toronto-based Class 1 Nickel is a neighbour to one of Ontario’s most promising nickel plays, the Canada Nickel Crawford Project. 
The company notes that its Flagship Alexo-Dundonald Project is a past-producer where Class 1 Nickel is completing a database review, 3D Modelling and infill drilling program to increase the known resource with a view to completing a PEA in 2023. Multiple local processing options for Alexo-Dundonald, which could reduce upfront capital expenditures. Mineralized material was previously sent to Glencore’s Strathcona processing facility near Sudbury, and the Kidd Metallurgical Site, less than 30 km away.
The Alexo-Dundonald Project comprises four deposits of 92 granted exploration licences, with a combined area of 19 km2 and over a 14 km strike-length of folded komatiite units, including Alexo North, Alexo South (operational during 2004 to 2005), Dundonald North and Dundonald South.
Historically, Alexo was a shallow, high-grade nickel sulphide mine, allowing Class 1 Nickel to leverage significant historic exploration and expenditure to delineate a MRE Indicated of 1,254 Kt with average grade 0.99% and a total MRE inferred of 2,007 Kt with average grade 1.01% (3.25Mt @ 1% total), and JORC 2012 equivalent Indicated and Inferred Mineral Resource Estimate at Alexo-Dundonald of 4.19Mt @ 0.92% Ni for 39Kt of nickel metal.
Given the Project’s historic production profile, and the existing shallow, high-grade Resource, excellent access to existing brownfields infrastructure and local processing facilities, Class 1 Nickel feels it is well-positioned for a potentially low cap-expenditure, high-margin production restart. Through utilizing third-party facilities for toll milling, management expect that production of a pre-concentrate can be ramped up quickly with little minimal pre-production capex. Based on assumptions from the previous operations operating costs will be largely limited to mining and haulage. Mineralized material from Alexo was historically processed at Glencore’s Strathcona mill with high metallurgical recoveries. Last year Strathcona Mill had approx. 2,500tpd excess capacity, which management estimate is more than enough to potentially underpin a highly profitable operation.
While Class 1 Nickel is yet to publish a PEA, management have had conversations with top-tier automakers, highlighting the demand for a production restart at Alexo-Dundonald, and the availability of the Nickel Resource.

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