SPC Nickel’s maiden Mineral Resource Estimate (MRE) for the West Graham Project announced in January 2024 represents a major milestone for the company. After a diamond drilling program consisting of 67 holes totaling 14,180 meters, SPC delineated 224.8 million pounds of nickel and 155 million pounds of copper, with inferred resources adding another 86.2 million pounds of nickel and 57.5 million pounds of copper. The geometry of West Graham’s mineralization and its suitability for low-cost open-pit mining methods suggest a promising path to production.
The in-pit resource extends to a depth of 435 metres and consists of indicated resources of 19.3 million tonnes at 0.42 per cent Ni and 0.28 per cent Cu, and inferred resources of 3.3 million tonnes at 0.37 per cent Ni and 0.28 per cent Cu. There is clear potential to expand the higher-grade zones (>0.9 per cent NiEq) in-pit through additional infill drilling. The out-of-pit resource contributes additional scale through indicated resources of 3.2 million tonnes at 0.63 per cent Ni and 0.47 per cent Cu, and inferred resources of 3.9 million tonnes at 0.69 per cent Ni and 0.43 per cent Cu. Potential expansion of the out-of-pit resource could be achieved through further drilling.
In addition to the West Graham Deposit, the larger Lockerby East Property of which it is a part possesses considerable exploration upside. The inclusion of the 100 per cent owned high-grade LKE Deposit, 200 meters down-dip from West Graham, adds to the project’s value. The LKE Deposit comprises a lens of high-grade Ni-Cu-PGM massive sulphide, where historical drilling returned values as high as 5.60 per cent Ni, 1.26 per cent Cu over 10 metres.
Most projects never become mines because the nature of the deposit or its location makes it uneconomical to bring into production. SPC Nickel’s situation is different. Grant Mourre, SPC Nickel’s chief executive officer, emphasises West Graham’s geology benefits from its geography. The project’s strategic advantage is its location at the heart of the Sudbury Mining Camp, a leading nickel jurisdiction. With neighbours like Magna Mining and global giants Glencore and Vale, SPC Nickel knows it is sitting at the nickel industry’s top table.
The West Graham Deposit, unlike more remote peers, can draw on the region’s skilled local labour, and its proximity to essential infrastructure such as power, transportation, and nickel sulphide mills and smelters. That the majority of the deposit can be accessed via a low-strip ratio open pit precludes the need to build out site-specific infrastructure. Sudbury’s 130-year mining history and accompanying development this implies is an enormous advantage for a smaller company like SPC Nickel.
Good management goes a long way towards de-risking a project when assessing a junior miner’s prospects, and SPC Nickel ably ticks that box. CEO Mourre’s more than 25 years of experience with magmatic nickel deposits is impressive enough on its own, but the proof of the value this brings is in the project’s progress. In January 2023, SPC announced an agreement with Vale Canada to consolidate the West Graham and Crean Hill 3 deposits to unlock their joint potential. To produce an MRE only 12 months later is an enormous achievement and tribute to the team’s technical prowess as well as Mourre’s commitment to delivering results.
SPC Nickel’s MRE for the West Graham Project not only underscores the opportunity of the Lockerby East Property generally but also reflects SPC Nickel’s measured, strategic approach to developing the deposit. Both in-pit and out-of-pit resources, coupled with the optionality exploration upside brings, presents a robust case for the project’s potential. The proximity to essential infrastructure and a focus on low-cost open-pit mining methods further enhance the project’s future promise while positioning SPC Nickel at the forefront of nickel development in the Sudbury Basin.
