Gungnir Resources Inc (CVE:GUG) (OTCPINK:ASWRF) (FRA:AMO1) said it plans to increase spend at its Rormyrberget and Lappvattnet nickel sulphide deposits in Sweden next year after a highly positive updated mineral resource on the assets.
Rormyrberget, for example, was shown to contain three times the amount of contained nickel than was reported in the most recent historical estimate in 2009.
READ: Gungnir Resources builds ground in Sweden after doubling extent of gold zone at Knaften project
"These are significant nickel resources in Sweden with the potential for further resource expansion and to incorporate PGEs (platinum group elements) in the estimates," said Gungnir's CEO Jari Paakki in a statement on Wednesday.
"Given the very positive mineral resource update and up-side potential, the company plans to increase expenditures on these projects including fresh drill holes in 2021."
According to the 2020 CIM-compliant estimate, Rormyrberget houses 154 million pounds of inferred nickel at 0.19%, compared to the historical 48.7 million pounds at 0.35%.
Estimated at Lappvattnet is 23.1 million pounds of inferred nickel at 1.35%, compared to 22.9 million pounds at 0.91% from 2009.
Gungnir put the increase at Rormyrberget down to a much larger tonnage used in the 2020 estimate, attributable to the use of a lower cut-off grade, which is similar to that used in estimates for similar, low-grade open pit nickel-copper deposits in Canada and Sweden.
The firm highlighted that there was potential to improve nickel grades at Rormyrberget by assaying un-sampled drill core within the resource and to expand higher-grade zones.
There is also the potential for significant PGEs as demonstrated by Gungnir's sampling, which has included 50.91 grams per ton (g/t) PGEs (39.0 g/t platinum, 11.8 g/t palladium, 0.11 g/t gold) with 2.13% nickel over 0.45 metres at Lappvattnet, it added.
There is also potential to improve on the 65% nickel recovery, used in the current resource estimates, noted Gungnir.
In a separate statement later on Wednesday, the firm clarified that the resources above were not covered by a current NI 43-101 report (the standard disclosure for mining projects in Canada) and therefore could not be relied upon. However, Gungnir noted that an NI 43-101 technical report in support of the mineral resource estimates will be filed on SEDAR within 45 days.
Explorer Gungnir's projects include Knaften, which hosts a developing intrusion-hosted gold system, and a VMS (zinc-copper) and copper-nickel target, and the Lappvattnet and Rormyrberget nickel-copper-cobalt-(PGE) deposits, which lie 100km east of Knaften.
Shares in Toronto added over 7% on the day to stand at C$0.075 each.
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