Historical work & resource Early development work outlined a potential low grade nickel mineral reserve. A mineral inventory of approximately 90,710,000 tonnes grading 0.22 per cent nickel has been identified (Property File - Schroeter T. (June, 1994): Monthly Report and CANMET IR 71-34). In 1996, an updated estimate of 30,000,000 drill indicated tonnes grading 0.22 per cent nickel and 0.015 per cent cobalt was reported by Gold City Mining Corporation, Orion International Mineral Corp. and Phoenix Gold Resources Ltd. (George Cross News Letter No. 31 - February 13, 1996). There is further potential for additional reserves downdip and along strike of the existing reserves.
The results of initial bench scale agitation metallurgical leach tests on three samples from the Old Nick prospect are given in the following table (George Cross News Letter No. 212 - November 3, 1995).
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SAMPLE# NICKEL COBALT PARTICLE SIZE RETENTION NICKEL COBALT
% % (%-75 MESH) (HOURS) (%EXT) (%EXT)
ON-1 0.15 0.02 75 25 81 80
ON-2 0.16 0.01 91 48 92 60
ON-3 0.22 0.01 81 48 87 76
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Notes: ON-1/2 = quartzite, ON-3 = dunite; EXT = extraction
From 1995 to 1998, Applied Mine Technologies Ltd. (AMT) completed 6 diamond drill holes into the deposit. Part of the resultant core was used for their bench scale tests and column leach testing of the Old Nick mineralization.
In 1998, AM Technologies Ltd. optioned the property from Consolidated Gold City Mining Corp. and plan bio heap leach tests.
In 2000 to 2001, Gold City Industries Ltd. undertook a small trenching program to verify and extend the known mineralization. In 2000 Gold City Industries Ltd. had an independent consultant complete a mineral resource estimate of 20.4 million tonnes (Indicated) grading 0.186% nickel, based on the CIM Mineral Resource Definitions and National Instrument 43-101 and Companion Policy 43-101CP (https://www.meritminingcorp.com/index.htm). Cobalt grade was not part of the resouce estimate. Sampling subsequent to the resource estimate indicates a cobalt grade of between 0.01% and 0.015%.
In 2004, Jantri Resources Inc carried out a 2275 metre diamond-drilling program in 16 holes on the Old Nick property. The drilling on this nickel-cobalt property was successful in providing better definition to, and extending the known mineralization along strike as well as identifying new mineralized areas. Jantri subsequently changed its name to Merit Mining Corp.