First Atlantic Nickel Extends Alloy Max Zone with 525-Meter Mineralized Drill Hole

First Atlantic Nickel & Cobalt Corp. (TSXV: FAN) (OTCQB: FANCF) (FSE: P210) has announced that drill hole XL-26-16 at its wholly owned Pipestone XL Nickel-Cobalt Alloy Project in central Newfoundland intersected large-grain, visibly disseminated awaruite over its entire 525-meter drilled length and ended in mineralization. This hole, the deepest drilled to date at Pipestone XL, was completed approximately 445 meters south of the Alloy Max discovery hole XL-26-15 and showed higher visual awaruite abundance and more frequent coarser grains. The two holes have confirmed approximately 445 meters of strike within the roughly 4-kilometer Alloy Max target, leaving the majority of the zone untested along strike and at depth.

The significance of this extension lies in the growing evidence that the Alloy Max zone is a substantial, high-grade nickel source. Observations from XL-26-16 also showed that awaruite abundance, consistency, and grain size increase as magnetite decreases, prompting the company to reinterpret regional magnetic surveys for potential expansion of the Alloy Max and RPM zones. Drilling is continuing at Alloy Max, the second large-scale awaruite zone identified at Pipestone XL, which spans the 30-kilometer Pipestone Ophiolite Complex.

First Atlantic is developing its ONSHORE MAX(TM) process to concentrate Pipestone XL awaruite without smelting, roasting, or high-pressure acid leaching. This approach is particularly relevant given the U.S. Geological Survey's recognition of awaruite's strategic importance in its 2012 Annual Report on Nickel, noting that these deposits may help alleviate prolonged nickel concentrate shortages since the natural alloy is much easier to concentrate than typical nickel sulphide. In 2026, initial metallurgical test work using the ONSHORE MAX process upgraded RPM Zone material into a high-grade alloy concentrate averaging 67.4% nickel and grading up to 71.9% nickel and 1.76% cobalt, demonstrating a smelter-free, mine-to-refinery pathway.

The implications of this announcement extend beyond the company's immediate exploration success. As the U.S. added nickel to its critical minerals list in 2022, recognizing it as a non-fuel mineral essential to economic and national security with a supply chain vulnerable to disruption, First Atlantic's progress at Pipestone XL positions the project as a potential domestic source of nickel and cobalt for the stainless steel, electric vehicle, aerospace, and defense industries. The project is located near existing infrastructure with year-round road access and proximity to hydroelectric power, providing favorable logistics for exploration and future development.

Furthermore, the company is also advancing a parallel geologic hydrogen initiative at Pipestone XL, where the same serpentinization process that formed awaruite also generates natural hydrogen. First Atlantic has signed a letter of intent with VEMA Hydrogen to jointly develop low-carbon Engineered Mineral Hydrogen (EMH) through a proposed 50/50 joint venture. This dual focus on critical minerals and clean energy underscores the broader strategic value of the Pipestone XL project.

As drilling continues at Alloy Max, the potential to expand the known mineralization could further solidify Pipestone XL's role in strengthening North American supply chains. The reinterpretation of magnetic surveys based on the latest drill results may unlock additional targets within the 30-kilometer complex, suggesting that the full extent of the project's resource potential has yet to be realized. For more information, visit First Atlantic Nickel and the full press release at InvestorWire.