Alaska Energy Metals Reports Maiden NI 43-101 Resource at Nikolai Project Exceeding 1.5 Billion Pounds of Nickel

Maiden resource estimate outlines large nickel-copper-cobalt system

Alaska Energy Metals Corporation said it has completed the first independent NI 43-101 mineral resource estimate for its 100% owned Nikolai Project in Alaska, with an effective date of November 20, 2023.

The inferred resource for the Eureka Zone totals 319.6 million tonnes at an average grade of 0.30% NiEq using a 0.20% NiEq cut-off grade, and contains 1.5 billion pounds of nickel, 372 million pounds of copper, 115 million pounds of cobalt, and 1.34 million ounces of platinum, palladium and gold.

Eureka East and West account for the bulk of the resource

The Eureka Zone East estimate includes 88.6 million tonnes grading 0.35% NiEq and contains 471 million pounds of nickel, 165 million pounds of copper, 34 million pounds of cobalt, and 549,000 ounces of platinum, palladium and gold.

The Eureka Zone West estimate includes 231 million tonnes grading 0.28% NiEq and contains 1,081 million pounds of nickel, 208 million pounds of copper, 81 million pounds of cobalt, and 792,000 ounces of platinum, palladium and gold.

The company also reported Eureka Zone 3 at 48.2 million tonnes grading 0.27% NiEq, containing 240 million pounds of nickel, 19 million pounds of copper, 6 million pounds of cobalt, and 32,694 ounces of platinum, palladium and gold.

Historical drilling underpins the initial estimate

Stantec Consulting Services prepared the estimate using historical drill hole data the company purchased earlier in the year. The resource is based on 8 of 37 drill holes cored prior to 2023, with the company saying several other holes provide early support for the idea that mineralization may be connected across the zones.

The Eureka Zone East and Eureka Zone West deposits are approximately two kilometers apart, and the company said the deposits remain open in all directions.

2023 drilling not yet included in the resource

Assay results from the eight-hole 2023 drill campaign were not included in the maiden estimate. Those holes were completed as approximately 250 to 300-meter step-outs designed to expand the resource around Eureka East and the EZ2 deposit.

Alaska Energy Metals said an updated NI 43-101 mineral resource estimate is anticipated in 2024 once the additional drill results are incorporated.

Company sees room for further growth

President and CEO Gregory Beischer said the two inferred resource areas are about two kilometers apart and that additional grid-based drilling could ultimately connect them. He also said the recent summer drilling should help join the deposits and could materially increase contained metal.

The company described the rapid resource growth as evidence of consistency and predictability in the deposit, while noting that the system remains open in all directions.

The rapid growth in resources speaks to the consistency and predictability of the deposit, which remains open in all directions. Eureka is quickly evolving into one of the larger nickel resources on the continent.

Gregory Beischer, President & CEO

Economic assumptions and technical caveats

The resource was reported within economic pit shells using a nickel price of US$23,946/tonne (US$10.9/lb), mining cost of US$2.50 per tonne, processing costs of US$25.00 per tonne, and recovery assumptions of 60% for nickel and 50% for other metals.

The company emphasized that mineral resources are not mineral reserves and do not have demonstrated economic viability. A NI 43-101 technical report is expected to be filed within 45 days.

By-product metals and metallurgy remain part of the story

Alaska Energy Metals said chrome and iron are present in the deposits but were not reported in the 2023 resource because of incomplete historical assay data and analytical limitations. The company said it will continue evaluating those elements for future updates.

Preliminary deportment work indicated that 83.4% of total nickel is in potentially recoverable phases of Ni-sulfides and Ni-Fe alloys, while 74% of total copper is in potentially recoverable phases of Cu-sulfides and Cu-oxides.

Investor takeaway

The maiden estimate gives Alaska Energy Metals a larger technical foundation for the Nikolai Project and highlights the scale of the nickel system before the 2023 drill results are added. For investors, the key near-term catalysts are the pending assay results, the NI 43-101 technical report, and the expected 2024 resource update.

The market will likely focus on whether additional drilling can connect the zones, improve continuity, and expand the contained metal inventory beyond the current inferred resource.