Alaska Energy Metals stock rises on drill results at Nikolai nickel project

Nickolai project in Central Alaska. Image from Alaska Energy Metals.

Alaska Energy Metals’ (TSXV: AEMC) stock rose on Monday after releasing results for two additional diamond drill holes from its 2023 exploration program at its 100% owned Nikolai nickel project.

The Nikolai project is possible host to disseminated nickel-copper-cobalt-PGE mineralization analogous to the Crawford deposit in Canada and the Norilsk mine in Russia, according to the company’s website.

Eight diamond drill holes were drilled during the latest campaign, with results from four holes now received and results for the remaining holes pending.

Assay results from drill hole EZ-23-003 returned 324.6 metres at 0.34% nickel equivalent (0.23% nickel, 0.08% copper, 0.02% cobalt, 0.119 g/t palladium, 0.053 g/t platinum and 0.013 g/t gold). Assay results from drill hole EZ-23-005 returned  356.2 metres at 0.34% nickel equivalent (0.22% nickel, 0.08% copper, 0.02% cobalt, 0.122 g/t palladium, 0.057 g/t platinum and 0.014 g/t gold).

Results from these holes, as well as EZ-23-001 released previously, confirm the consistency of mineralization spanning 600 metres of strike length along the Eureka zone. The mineralization remains open in all directions.

The Nikolai project holds promising potential as a large, reliable, domestic source of nickel for the ongoing energy transition, Alaska Energy said, adding that based on historical drilling, there are strong indications of a significant nickel deposit, along with other valuable metals.

By conducting an initial drilling program scheduled for completion by fall 2023, the Vancouver-based explorer aims to establish an inferred resource by spring 2024.

If the historic concentrations are confirmed, the resource is expected to surpass one billion pounds of contained nickel, the company claimed.

“The Eureka zone of the Nikolai project in central Alaska is proving to be every bit as persistent, consistent, and homogeneous as indicated by the historical drilling on the property,” Alaska Energy Metals CEO Gregory Beischer said in a news release.

“With our grid-pattern drilling at 300-metre centers, we are quickly blocking out a large tonnage of rock mineralized with nickel and other related metals.”

By market close in Toronto on Monday, the company’s stock was up 6.9%. Trading volume reached 155,586, compared to the average daily volume of 67,335, capitalizing it at C$36.7 million ($27.1m).