EV Nickel’s stock soars after announcing ‘enormous’ mineral resource in Ontario

Shaw Dome project in Ontario, Canada. Image from EV Nickel.

EV Nickel (TSXV: EVNI) has announced an initial mineral resource estimate for the Carl Lang A Zone target near its Shaw Dome project in Ontario that it says puts it into the league of the largest undeveloped nickel deposits in the world.

After acquiring the property, which is 25 km southeast of Timmins in April 2022, EV Nickel launched a diamond drilling program totalling 28 holes over 8,295 metres to complete an initial mineral resource estimate in accordance with National Instrument 43-101.

The mineral resource estimate showed indicated resources of 1.25 million tonnes or 2.8 billion pounds of contained nickel and inferred resources of 1.16 million tonnes or 2.6 billion pounds of contained nickel.

According to the latest results, A Zone resources totalled 1 billion tonnes averaging 0.24% nickel, split between higher-grade core with 290 million tonnes at 0.27% nickel indicated and 203 million tonnes at 0.27% nickel inferred, and lower-grade with 219 million tonnes at 0.22% nickel indicated and 294 million tonnes at 0.21% nickel inferred.

The CarLang A Zone represents only 20% of the full 10 km-long CarLang Area Trend, the company said, adding that analysis continues to review the integrated carbon capture and storage potential for CarLang.

“Defining this enormous maiden mineral resource for our Large Scale A Zone is a major milestone for EV Nickel,” CEO Sean Samson said in a news release. “The A Zone is just the beginning of the CarLang Area because we know the host units have been identified over approximately 5 times the strike length.”

“If we consider the full potential of the CarLang Trend – this is the type of generational opportunity, which is near surface and in an excellent location, that the world needs for a supply of clean nickel to help fuel the energy transition,” Samson said.

The Toronto-based junior’s stock soared 60% by market close Wednesday on the TSX Venture Exchange. Trading volume reached 634,970 compared to a daily average of 70,411. EV Nickel has a C$8.2 million ($6m) market capitalization.