Beaver Nickel-Cobalt

100% Ownership

Inomin owns a 100% interest in the 4,250 hectare Beaver Nickle-Cobalt property located in British Columbia, Canada

Excellent Location

The Beaver property is situated in south-central BC, 15 kilometres east of the Gibraltar mine, the second largest open-pit copper mine in Canada. The property has excellent infrastructure including paved and forestry service roads allowing easy access to all parts of the property.

Multiple Large Targets

Nickel hosted ultramafic rocks has been effectively delineated by property-wide magnetic surveys. The surveys indicate ultramafic occurrences over an extensive 4 km by 8 km area of the property.

Advanced Project

Exploration surveys and drilling of 19 holes indicate good potential for large, bulk-tonnage, near-surface sulphide nickel deposits with cobalt credits.

Positive Metallurgy

A pre-scoping metallurgical study demonstrated 90% of the nickel is from nickel sulphide minerals heazlewoodite and pentlandite, the remaining in serpentine minerals. Nickel recovery tests achieved positive recoveries and a marketable nickel concentrate.

Overview

Previous exploration in the Beaver property area initially targeted gold. Although gold was found in select areas, nickel sulphide and cobalt were discovered in uniform amounts over all areas drill tested. The ultramafic rock hosting the nickel, delineated by magnetic surveys and drilling, covers a large 4 km by 8 km footprint indicating the property’s potential for large, bulk tonnage, near-surface nickel.

Given the discovery of significant nickel, a pre-scoping metallurgical study was completed by SGS Canada Inc. in 2015. Metallurgical tests demonstrated positive nickel recovery rates in line with nickel deposits of a similar nature. As nickel prices were relatively low at the time (around US$4.00/lb) and a new gold discovery was made by the past ownership group elsewhere in the region, no further work was done at the property.

Inomin acquired the Beaver property by staking in 2019. The company also acquired the 9,900 hectare Lynx nickel property, located just 11 kilometres south of Beaver, given the similar geological environment and extensive nickel occurrences found in outcroppings. As the Beaver and Lynx properties are near the Gibraltar and Mount Polley porphyry deposits – representative of major hydrothermal activity – the district is geological conducive for hosting substantial mineral deposits. Given the widespread nickel occurrences at Beaver and Lynx, the region could develop into a significant new nickel camp.

Location

The Beaver property is ideally located in south-central British Columbia, 50 kilometres north from the town of Williams Lake and just 15 kilometres east of the Gibraltar mine, the second largest open-pit copper mine in Canada. The property is easily accessible by paved roads with electric power nearby.

Geology

The Beaver and Lynx properties are situated in the Cache Creek Terrane bounded to the east and west by upper Triassic-aged rocks of the Quesnel (Quesnellia) Terrane.  The Cache Creek Terrane, extending from lower British Columbia to southern Yukon, consists of Permian to Triassic-aged volcanic rocks, carbonate rocks, coarse clastic rocks and small amounts of ultramafic rock, chert and argillite.

Drilling has shown that ultramafic occurrences underlie the property. Areas drill tested in magnetically anomalous zones intersected shallow dipping variably serpentinized dunites with lesser peridotites and gabbros. The dunites are composed of fine to medium grained olivines whereas the peridotites contain up to 10% coarser grains pyroxenes. These occurrences represent a basal sequence (upper mantle, lower crust) of a tectonically emplace ophiolite/island arc event.

The fabric of the underlying sediments and volcanics trend north-northwest as evidenced by the consistent drainage alignments. At least five prominent, north-northwest trending drainage lineaments cross the property. All of these are interpreted as marking bedrock fracture zones. This gives rise to the possibility that they represent horsetail splays of strike-slip faults at the end of a major strike-slip fault, possibly the Pinchi Fault which is considered to end at latitudes in the vicinity of the property (Gabrielse and Yorath, 1992). As such, the Beaver property is a prime site for hydrothermal activity.

Exploration

An airborne magnetics survey completed over the property in 2014 was effective in delineating large areas – totaling approximately 4 kms x 8 km – prospective for magnetite-rich serpentinite rocks associated with nickel. Follow-up ground magnetics more clearly defined drill targets. Of the numerous anomalies delineated by the magnetic surveys, four areas were partially tested by 19 diamond drilling holes totaling 2,187 metres.

Drilling in 2014 intersected sulphide nickel mineralization in shallow south to southwest dipping serpentinites in each of the areas tested. Nickel sulphide and cobalt concentrations were quite uniform over all of the zones. The magnetic surveys and initial drilling show the property has excellent potential to host large, bulk-tonnage, near-surface nickel deposits with cobalt credits.

Notable Historic Drill Intersections

Screenshot from 2019-10-31 00-04-13

Drillhole Summary Table
(Note: All reported intervals in drillhole lengths. No attempt has been made to correct to true widths.)

Mineralization and Metallurgy

Nickel mineralization at Beaver is associated with shallow dipping ultramafic rocks. Preliminary metallurgical tests conducted by SGS Canada Inc. demonstrated that 90% of the nickel is in the form of nickel sulphide minerals heazlewoodite and pentlandite, with the remaining found in serpentine minerals.

Initial testing also revealed positive nickel recoveries, in line with nickel deposits of a similar nature, through conventional floatation methods. Nickel deportment indicates 91% of the nickel is in a recoverable form with the 9% balance retained in solid solution with serpentine. Furthermore, as the host rock breaks down quite readily, nickel may be amenable to alternative low-cost recovery methods such as heap leaching.

Reviewing core from drilling at Beaver.

Nickel sulphide-bearing serpentinite from drill core.

Nickel Concentrations in Sample (SGS Canada).