In Search of Mother Rottenstone: Fathom Nickel's Data-Driven Search for the Next Big Nickel Discovery
Fathom Nickel's CEO Ian Fraser joined me again, this time to give a geological lesson on his Albert Lake and Gochager Lake deposits.
tl;dr:
One of my favourite companies came back on the show. CEO Ian Fraser of Fathom Nickel joined me to do a deep dive into the geological model of their Albert Lake and Gochager Lake projects in northern Saskatchewan. Geology is obviously a critical part of every exploration story, but the exhaustive levels of knowledge and detail Ian and Fathom have developed on these projects has allowed them to attain a level of mastery that is rare for a company at this stage of exploration. Which is why it is one of my favourite pre-discovery (ish) exploration companies, and why “setting the table” geologically, as this interview set out to do, is particularly important for Fathom and its current and future investors.
Below is 4 different pieces of content. The interview, my companion article, my written summary, and a link to the full interview transcript.
lndex
The Interview
Companion Article
Link to Full Transcript
Written Summary, w/ Timestamps
1. The Interview
2. Companion Article
If you’ve been following my work you will know I have gotten awfully excited about Fathom Nickel the past few months. Yes it checks a few of the more general, macro boxes for me - namely that it is nickel (I’m a bull), and a Saskatchewan project (I believe Saskatchewan is underexplored for metals, but as a stubble jumper I am also just a sucker for home-grown stories). However, that is just the start of the story for me.
Fundamentally, I don’t know if I can name another project like Fathom Nickel (FNI.CN). Its combination of (exhaustive) data collection and collation, its high-conviction (and proven) exploration model, the scale of its potential, and its current tiny valuation combine to make it a unique, compelling opportunity. In honesty, this is one of those stories where the more stones I unturn, the more I like it.
1. Data Collection
CEO Ian Fraser is an obviously intelligent geologist with a level of commitment to these land packages that exceeds any “normal” expectations. He’s worked this land for the better part of 20 years and has spent that time collecting, collating, and analysing some 70 years of data. He rebuilt the geophysical signature of the old Rottenstone mine. He has assayed historical core never before assayed. He has continuously consulted with some of the world’s leading nickel experts in his pursuit (which can only be described as dogged) of putting the puzzle pieces together to unlock the geological story of what went into making that old Rottenstone mine one of the highest-grade Ni-Cu+PGE mines in Canadian history.
2. Proven Exploration Model
If you watched my previous interview with Ian, you will know how transformative borehole electromagnetic data (BHEM) has been for this project. It isn’t new technology, but it is new to Albert Lake (the former Rottenstone mine) and Gochager Lake. BHEM gives Fathom the incredibly enviable ability to go downhole and “see” what is around the drillhole. So, rather than drilling out a hole and thinking it has come up a duster, Ian and Fathom can - and have - return to these barren holes and use it to identify and vector into nearby EM anomalies with a high degree of confidence. Fathom has just nicely gotten BHEM going on this project and will be taking it into the field to use live in this upcoming winter drill campaign. Imagine the powerful effect this real-time data could have on what is already such a high-potential project.
3. The Scale of its Potential
As explained in the last interview, and my last article, Fathom looks like it is just starting to scratch the surface of these land packages. In addition to already identifying a large number of high priority targets (the connected “pods” left behind by the magmatic intrusion - see above image as an example), Ian is on the search for “Mother Rottenstone” - the potentially massive, high-grade intrusion that fed such a high-grade deposit as the old Rottenstone mine (anyone like 4% Ni, 3% Cu, 10.5 gpt PGE+Au?). The image below shows a conceptualised potential model of its occurence.
4. Current Valuations
As you all no doubt know, investing in the right project bought at the wrong time can have the same outcome as investing in a wrong project in the first place. I don’t see much risk from that perspective with Fathom. At just $15m market cap, precious little success is being factored in and the level of effort and data put into getting Fathom to where it is today makes it seem like an awfully good bargain. Some of the typical issues contribute to this - a brutal market, lack of recent news, and the market knowing a raise is forthcoming are all likely weights around Fathom’s ankles. But these are, ultimately, just noise. Fathom will raise the money needed to get back into the field. That much is a certainty. And I have a lot of confidence the drill bit will be adding a lot of value in the coming campaigns. As we have all seen over at BIG.V, this market still rewards big discoveries. If you ask me, I like Fathom’s chances an awful lot to be one too.
My Thoughts on the Interview
As for the details of the interview itself, I am grateful for Ian’s willingness to do a mini-lecture on his geological model. You can tell he carries passion for his work, and we as shareholders stand to potentially benefit greatly from his considerable knowledge and expertise. And suffice it to say, it certainly adds to my own conviction as well. Ian’s ability to explain his model, the data behind it, and the targets it continues to produce is a big shot of confidence, speaking as an investor in this company.
In this interview, Ian walks us through the nitty gritty of this project geologically.
He talks BHEM. Its methodology. Its strengths and limitations. He also provides some (admittedly cryptic to the layman) visuals produced by BHEM that so critically guides exploration.
He talks soil geochem work. The efforts involved, and the resulting data he used to layer on top of geophys work to produce his targets.
Geochem anomalies and how they correlate to the newly-discovered Bay Island trend He expounds on the nature of how the various mineralisation styles interrelate - how you can “read” the combination of disseminated sulphides, semisulphides and massive sulphides as being part of a continuous system, and how the mineralisation styles present (globules and more) is potentially indicative of a massive, high-grade system lurking beneath.
He discusses his efforts in tracing the numerous traps back to “Mother Rottenstone”, through all the little clues and hints and pathfinders left behind.
He discusses future drill plans, and articulates how a primary target of this winter’s drill campaign will be to find that Mother Rottenstone. And (shoutout to megacopper on ceo.ca here who called this with his own work) Ian has identified the anomaly 1000m south of Rottenstone mine as a potential magmatic source for the whole package. Which is to say, he thinks it might be Mother Rottenstone itself. And one he will be targeting in a few short months.
So, if you see what I see, you see a geological exploration model that has been substantially proven that keeps spitting out new targets to be drilled. All that’s left is to drill them and hope mother nature has done what she had to with Mother Rottenstone. Thanks for reading. I greatly enjoyed my interview with Ian and hope you find it similarly informative.
3. Link to Full Transcript
(Shoutout here to cormacart and mein deutsch freunde!)
Click here to have access to the full, time-stamped transcript for translation purposes.
4. Written Summary w/Timestamps
(Underlined timestamps are hyperlinks to the interview.)
00:00
Matt emphasizes the geology-centric focus of the episode and Ian's expertise in depositional modeling. Ian acknowledges the importance of understanding geological stories for the Gochager and Albert Lake projects.
Matt initiates discussion on depositional modeling, prompting Ian to explain the formation of magmatic nickel sulfide deposits. He details the role of magmas, sulfur, and structural traps in the process.
04:27
Ian delves into the characteristics of pathways and traps, drawing on Dr. Peter Lightfoot's expertise. He explains the role of cracks in the Earth's crust as conduits and dilating zones as ideal locations for magmas to settle.
04:45
Matt follows up, asking Ian about the high-grade Rottenstone mine. Ian describes its significance and questions why historical exploration overlooked its potential.
10:15
Ian elaborates on the Rottenstone mine, highlighting its exceptional grade and proposing a larger, undiscovered magmatic system. He emphasizes the importance of more metal equating to more magma and discusses his exploration at Albert Lake.
11:28
Matt questions Ian about the exploration direction. Ian presents models indicating the search for isolated mineralization pods, citing the Bay Island trend as a 2021 discovery. The ultimate goal is finding the source of the high-grade deposits.
14:25
Ian discusses soil geochemistry results near Tromblay-Olson, suggesting the presence of subsurface mineralization. He outlines the exploration strategy, aiming to discover the master magma chamber or "Mother Rottenstone" and predicting more isolated deposits in the process.
16:49
Matt transitions into discussing various mineralization types. He asks Ian to provide more detailed insights into each type, their relationships, and what their presence might indicate about their location.
17:53
Ian begins by utilizing visual aids to illustrate the intricate relationships between different mineralization types, focusing on the settling of magmas in structural traps. He delves into the specifics of net-textured, semi-massive, and massive sulfide mineralizations, using the Bay Island trend as a compelling case study. Ian meticulously outlines the discovery process, emphasizing the importance of these mineralizations in the overall exploration narrative. His detailed explanations showcase the depth of Fathom's geological understanding.
25:46
Matt expresses his excitement for the upcoming campaign and underscores the significance of rocks telling a story. He prompts Ian to elaborate on the concept of "tenor" in mineralization, seeking a deeper understanding. Ian draws parallels between Gochager and Rottenstone mineralization. He emphasizes the nuanced differences in nickel grades and ties it back to the proof of concept for a substantial mineralization system.
27:57
Ian goes on to clarify the intricate concept of metal tenor, offering a nuanced explanation. Drawing from his extensive geological expertise, he elaborates on the significance of sulfur in nickel grades and carefully differentiates between sulfide and sulfur. Ian skillfully relates this back to the distinctive richness of Rottenstone mineralization compared to Gochager. Through detailed analysis, he highlights the unique geological characteristics that contribute to these variations, reinforcing the proof of concept for Fathom's exploration.
32:26
Matt reflects on the uniqueness of Fathom's position in the junior mining sector. Transitioning to the Bay Island trend, Matt invites Ian to delve deeper into its significance. Ian seizes this opportunity to provide an in-depth exploration of the Bay Island trend, emphasizing its potential and the crucial role it plays in Fathom's exploration strategy. Ian's detailed insights showcase the depth of Fathom's geological understanding and set the stage for the upcoming exploratory endeavors.
33:54
Ian discusses the discovery of mineralized ultramafic rock on the Island Showing. In 2003, a drilled hole confirmed mineralization in the rock. Fast forward to 2016, Ian assayed the core, revealing high magnesium oxide (MgO) content. In 2021, a drilled hole showed the most mineralized ultramafic rock on the property, though lower in metal. Lithogeochemistry and borehole electromagnetic (EM) tools aided in identifying conductive anomalies.
35:34
Matt expresses excitement about the discussion on methodology. Ian explains the significance of MgO values, emphasizing the effectiveness of borehole EM as a "mine finder" in the nickel business.
37:54
Ian discusses the 2021 drilling on the island, noting an unexpected off-hole anomaly revealed by borehole EM. This anomaly led to the discovery of mineralization in Hole 52, demonstrating the power of lithogeochemistry and borehole EM in exploration.
40:24
Matt acknowledges the importance of borehole EM and transitions to the broader discussion of the Bay Island trend. He prompts Ian to share more about its significance and potential. Ian outlines the lower tenor of the trend, its continuation, and the need for further exploration.
40:59
Ian elaborates on the Bay Island trend, emphasizing its geophysical recognition and plans for future drilling. He discusses the Tromblay-Olson claims and the superior nickel anomaly discovered, hinting at its transformative potential in upcoming drills.
43:21
Ian delves into soil geochemistry, revealing anomalies below the surface, notably a conductive and dense rock. He explains the potential presence of metal-rich ultramafic rock, outlining the geological factors supporting a compelling target.
45:29
Ian details the significance of the Bay Island trend's nickel anomaly, highlighting its correlation with gravity anomalies and lithological contacts. He anticipates transformative results in 2024 through further exploration.
46:48
Matt acknowledges the upcoming drill campaign's transformative potential. He shifts the focus to borehole EM, asking Ian to emphasize its effectiveness and confidence-building aspects in exploration.
47:24
Ian presents a busy section of drill holes, showcasing the effectiveness of borehole EM in identifying conductive zones associated with mineralization. He emphasizes the tool's ability to provide confidence and insights beyond the drill holes.
49:46
Ian discusses a specific borehole EM image, pointing out the conductivity associated with semi-massive sulfides. He highlights the pending results from hole number nine, indicating the potential for further discoveries beyond the current drill holes. The conductivity building with depth suggests the need for extended drilling.
The discussion continues with Ian expressing the necessity of exploring conductive anomalies at the Gochager Lake deposit's depth, emphasizing the importance of borehole EM in guiding future exploration.
52:04
Ian shares insights into their drilling strategy, emphasizing the significance of understanding conductivity locations. He highlights drill hole 23008, which intersected a unique massive sulfide vein with no host rock inclusions, suggesting a compelling deposit. Referring to Dr. Peter Lightfoot's research, Ian notes similarities to world-class nickel deposits near Voisey’s Bay.
54:09
Ian expresses enthusiasm for the potential of their findings, expressing confidence in the significant prize hidden beneath. Matt acknowledges the exciting evidence presented, discussing the limitations of airborne magnetics and questioning similar constraints in borehole EM.
56:53
Ian clarifies that borehole EM's effectiveness depends on conductor strength, estimating a variable range of about 30 to 50 meters. He highlights the challenge of distinguishing valuable sulfides from less promising ones, emphasizing the need for sulfur associated with nickel.
59:41
Matt appreciates the insights and delves into future exploration targets. Ian discusses the Tromblay-Olson claims, outlining a high-priority area with compelling geological and geochemical indicators. He also mentions the dime target, which holds significant nickel potential, and Gochager Lake, a historic deposit with disseminated mineralization and potential high-grade chutes.
01:05:38
Ian concludes by anticipating the application of their 2023 exploration knowledge to a broader perspective in 2024. Matt reflects on the promising future for Fathom, emphasizing Ian's decade-long groundwork. He expresses excitement for upcoming drill campaigns and the potential revolutionary discoveries, concluding the conversation.
Thanks again! And good luck investing!
-Matthew from JRI
