EV Nickel rises on high grade drill results at Shaw Dome in Ontario

Shares of EV Nickel (TSXV: EVNI) jumped more than 50% in morning trading as the company’s latest drill results from its Shaw Dome project in Timmins, Ont., intersected high-grade nickel sulphide.

Highlights from the drill results included 14.30 metres grading 1.50% nickel starting from 311.8 metres in drillhole EV22-12, including 5.40 metres grading 2.96% nickel; and 5.50 metres grading 1.33% nickel starting from 373.50 metres in drillhole EV22-13.

The assay results are from the first two holes completed as part of the company’s Phase 2 drill program, which is targeting the down plunge potential of the Langmuir W4 zone.

“The continuation of the high-grade mineralization over significant drill core widths…gives me confidence that we will be able to extend the W4 Zone along plunge,” Paul Davis, the company’s vice president of exploration, said in a press release.

“The extension of the mineralization is consistent with Kambalda style deposits… that can extend for considerable distances, like the other nickel deposits in the Shaw Dome including the Langmuir #2, Redstone and Hart Deposits,” he added.

Located about 25 km southeast of Timmins, Shaw Dome has a non-NI 43-101-compliant resource estimate dating from 2010.  The historic resource stands at 677,000 indicated tonnes grading 1% nickel for about 15 million lb. of contained nickel. Inferred resources add 171,000 tonnes grading 0.91% nickel for 3.3 million lb. nickel.

The company believes the 30,000-hectare project contains high-grade mineralization and the potential to host large scale deposits.  Under previous owners, the project saw production from the Redstone, McWatters, Langmuir 1 and Langmuir 2 mines, the company’s CEO Sean Samson told The Northern Miner in June.

Last month, the company’s shares rose by more than 150% on June 9 following the release of drill results from its Langmuir W4 zone.

Highlights included 48.6 metres grading 1.31% nickel starting from 37.3 metres in hole EVMET22-01; and 33 metres grading 0.74% nickel starting from 78 metres in hole EVMET22-02.

The holes were designed to provide a representative sample for metallurgical analysis, EV Nickel said.  

In the next few months, the company expects to report further results from its Phase 2 drilling in the W4 extension.

EV Nickel began trading on the TSX Venture Exchange in December after an initial public offering that raised $5.4 million.

The company is working on developing a conceptual process for the recovery of nickel and copper through bioleaching. The practice involves using indigenous bacteria to isolate and separate the metals from the Langmuir ore.

EV Nickel acquired the project from Rogue Resources (TSXV: RRS) in March 2021 and has since acquired additional land around it to expand Shaw Dome to 300 sq. kilometres.

Shares of EV Nickel hit 22¢ in mid-morning trading, before falling to 18.5¢ at midday.

Over the last year the junior explorer has traded in a range of 12.5¢ and 60¢. The company has 30.34 million common shares outstanding for a market cap of about $5.2 million.