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, ending in mineralization. This hole, the deepest drilled to date at the project, 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. Together, 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 Pipestone XL hosts a large-scale, naturally occurring nickel-iron-cobalt alloy called awaruite, which contains approximately 77% nickel and no sulphur. The sulphur-free composition eliminates acid mine drainage risk, and its magnetic properties allow for processing through magnetic separation and flotation, avoiding the electricity requirements, emissions, and environmental impacts of conventional smelting, roasting, or high-pressure acid leaching. This could reduce dependence on overseas nickel processing infrastructure, a strategic concern highlighted by the U.S. Geological Survey in its 2012 Annual Report on Nickel, which noted that awaruite deposits may help alleviate prolonged nickel concentrate shortages because the natural alloy is much easier to concentrate than typical nickel sulphide.
Observations from XL-26-16 also showed that awaruite abundance, consistency, and grain size increased as magnetite decreased. This prompted 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. The company is developing its ONSHORE MAX(TM) process to concentrate Pipestone XL awaruite without smelting, roasting, or high-pressure acid leaching, and is also evaluating secondary chromium mineralization and low-carbon Engineered Mineral Hydrogen in partnership with VEMA Hydrogen.
The project’s location near existing infrastructure, with year-round road access and proximity to hydroelectric power, provides favorable logistics for exploration and future development. This strengthens First Atlantic’s role in establishing a secure and reliable source of North American nickel and cobalt production for the stainless steel, electric vehicle, aerospace, and defense industries. The mission gained importance when 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.
In 2026, initial metallurgical test work using the company’s 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. First Atlantic is a member of the U.S. Defense Industrial Base Consortium. 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, and has signed a letter of intent with VEMA Hydrogen to jointly develop low-carbon Engineered Mineral Hydrogen through a proposed 50/50 joint venture.
The extension of the Alloy Max zone underscores the potential for a significant domestic supply of critical minerals, which is vital for national security and the transition to clean energy. As drilling continues, the company aims to further delineate the resource and unlock the full potential of the Pipestone XL project. For more information, visit First Atlantic Nickel & Cobalt Corp..
