ASX Announcement

26 April 2022

March 2022 Quarterly Report

Highlights

  • Expansion of the Mt Edwards nickel mineral resource base during the March Quarter:

    • Addition of well-positioned Inco-Boundary deposit which contains an Inferred Resource of 464kt at 1.2% Ni for 5,590t of contained Ni (@ 1% Ni cut-off)

    • Total Mt Edwards Project Mineral Resources now stands at 10,684kt at 1.6% Ni for 168,150t of contained Ni (@ 1% Ni cut-off).

  • Drilling campaign in full swing after RC and diamond drilling commenced in January.

  • Strong initial assay results at Gillett deposit released post March Quarter:

    • Initial assays indicate consistent and signficant nickel mineralisation across Gillett deposit

    • Width and grade of intervals drilled outside the existing Gillett Resource indicates additional expansion potential.

  • Anticipate continuation of positive momentum as drilling campaign continues with more assay results set to be progressively received over the coming months.

Widgie Nickel Limited (ASX:WIN) ("Widgie" or "the Company") is pleased to present its Quarterly Report for the period ended 31 March 2022.

Widgie Nickel Managing Director Steve Norregaard said;

"As we kicked off diamond drilling during the Quarter, the initial results from our ongoing drilling campaign have been very gratifying. Indications are we have increased both the size and confidence of the Mt Edwards project's resources in tandem with unlocking promising expansion opportunities located in the heart of our project area.

These early positive indications have just scratched the surface of Mt Edwards' substantial latent value and we will continue to build on the momentum we've generated during the early stages of our maiden drilling campaign.

For example, at Gillett, we anticipate the deposit will continue to grow with infill and extensional drilling results set to be received progressively over the coming months.

Furthermore, with a conservative 1% cut-off grade at Mt Edwards for sulphide mineralisation relative to the present nickel price environment and future price outlook, as well as the possibility of downstream processing increasing payability, an opportunity exists to reduce the sulphide cut-off grade and capture additional incremental value from the project as we progress our studies.

Widgie is taking major strides in achieving its overarching intial objective of being production ready by the end of 2023."

Addition of Inco-Boundary Deposit to Mt Edwards

On 9 March 2022, Widgie announced to the ASX (refer ASX release titled "Widgie grows Mt Edwards Nickel Resource" ) that it had increased the Mt Edwards resource base following an independent assessment of the Inco-Boundary deposit by Auralia Mining Consulting (Auralia).

Modelling of historical reverse circulation (RC) and diamond drilling (DD) carried out at the deposit has resulted in an Inferred Resource at the Inco-Boundary deposit of 464,000 tonnes, at a grade of 1.2% nickel, representing 5,590 tonnes of contained nickel (at a 1% Nickel grade cut-off).

This has increased the Total Resources across Mt Edwards to 10,684,000 tonnes, at 1.6% Ni, for contained nickel of 168,150 tonnes, encompassing both Indicated and Inferred Resources at a 1% grade cut-off.

ACN 648 687 094

PO Box 7713

T: +61 8 63817250

info@widgienickel.com

Level 4, 220 St Georges Terrace

Cloisters Square WA 6850

F: +61 8 63817299

widgienickel.com.au

Perth WA 600

Table 1: Updated Mt Edwards Project Mineral Resource Estimate

Deposit

Indicated

Tonne (kt)Nickel (%)

Inferred

Tonne (kt)Nickel (%)

TOTALTonne (kt)

Nickel (%)Nickel Tonnes

Widgie 3

626

1.5

626

1.5

9,160

Gillett

1,306

1.7

1,306

1.7

22,500

Widgie Townsite

1,183

1.7

1,293

1.5

2,476

1.6

39,300

Munda

320

2.2

320

2.2

7,140

Mt Edwards 26N

871

1.4

871

1.4

12,400

132N

34

2.9

426

1.9

460

2.0

9,050

Cooke

154

1.3

154

1.3

2,000

Armstrong

526

2.1

107

2.0

633

2.1

13,200

McEwen

1,133

1.4

1,133

1.4

15,340

McEwen Hangingwall

1,916

1.4

1,916

1.4

26,110

Zabel

272

1.9

53

2.0

325

2.0

6,360

Inco Boundary

464

1.2

464

1.2

5,590

TOTAL

2,015

1.9

8,669

1.5

10,684

1.6

168,150

*Mineral Resource estimates have been rounded to nearest 1,000t, 0.1% Ni and 10t of metal

Figure 1 - Drilling activity - Gillett

ACN 648 687 094

PO Box 7713

T: +61 8 63817250

info@widgienickel.com

Level 4, 220 St Georges Terrace

Cloisters Square WA 6850

F: +61 8 63817299

widgienickel.com.au

Perth WA 600

Inco-Boundary Location

The Inco-Boundary deposit is proximal to existing resources on mining leases M15/103 and M15/87 (Figure 2). Striking north-south it is situated 500 metres south of the historic Mt Edwards/26N underground nickel mine and 900m north of the Munda Resource (at surface). Mining Lease M15/103 is held by Mincor Resources Ltd, with Widgie Nickel's wholly-owned subsidiary Mt Edwards Lithium Pty Ltd retaining nickel rights over the tenement. Mining Lease M15/87 to the south is held by Widgie Gold Pty Ltd, a wholly-owned subsidiary of Auric Mining Ltd, with Mt Edwards Lithium Pty Ltd retaining nickel and lithium rights over this tenement.

Geology and Geological Interpretation

The Inco-Boundary deposit occurs on the western limb of the north plunging Mt Edwards anticline, at or near the base of a series of ultramafic flows which overlie a footwall basaltic sequence. The ultramafics range from high MgO to low MgO peridotite and consist of a series of 40-50m thick flows with interflow sediments up to 5m thick. Drilling has defined a narrow, steep westerly dipping and NNW-plunging zone of nickel sulphide mineralisation. The mineralisation is generally of lower grade (≤1% Ni), although there are a number of higher-grade intersections (≥3% Ni).

Figure 2 - Location of the Inco-Boundary deposit.

Modelling

Geological modelling was completed using Micromine software with block modelling and grade estimation completed using Vulcan software. Mineralised domains were modelled based on elevated nickel grades and proximity to the basal surface at the mafic/ultramafic contact. A nominal cut-off grade of 0.4% Ni was used to model the shapes. This was based on the natural nickel cut-off grade determined from the cumulative log-normal distribution graph.

The mineralisation wireframes were supplied by Widgie with Auralia responsible for grade interpolation into these shapes. Auralia constructed a lithological contact surface to represent the mafic/ultramafic contact, based on historic geological mapping and drill logs. Mineralisation is modelled to extend over an 800m strike length to a depth based on current drilling of 400m. Only sulphide mineralisation has been included in the reported Mineral Resource.

Figures 3 and 4 illustrate the geological interpretation in long section and cross section.

ACN 648 687 094

PO Box 7713

T: +61 8 63817250

info@widgienickel.com

Level 4, 220 St Georges Terrace

Cloisters Square WA 6850

F: +61 8 63817299

widgienickel.com.au

Perth WA 600

Figure 3: Long-section looking North-East showing Inco-Boundary Modelled Domains

Figure 4: Cross-section showing mineralisation domains- 6,514,800mN

The interpretation was based on a nominal nickel grade only. It was not possible to further define the interpretation into massive, matrix and disseminated sulphides.

Top of fresh rock surface was modelled from the logging codes in drill holes and topographic surface was generated from drillhole collar locations.

Mineral Resource Classification

The Inco-Boundary Mineral Resource has been classified as Inferred. The historic nature of the drilling and the lack of QAQC data and bulk density measurements mean that a higher classification cannot be applied. Mineralisation above the top of fresh rock boundary has not been classified. Until mineralogical and metallurgical test-work has been completed and the viability of processing this material confirmed it will not be included in the resource estimate.

This is consistent with other recently reported Mineral Resource Estimates in the Widgie tenements.

Worthy of noting is that the reported size and tenor is calculated using a lower grade cut-off of 1% Ni which, if this constraint is relaxed to 0.5% Ni, the quantum of contained nickel and size of the resource grows fourfold to a contained 23,492 Ni tonnes (2.79Mt @ 0.84% Ni)

Gillett Assay Results

After commencing RC drilling in the December quarter and commencing Diamond Drill (DD) in the March Quarter (refer ASX announcement dated 20 January 2022), on 4 April 2022 Widgie released its first assay results (refer ASX release titled "Strong Initial Assay Results at Gillett" ) from the infill and extensional drilling program specific to the Gillett mineralisation. This encompassed four RC holes and the first eight DD holes.

RC drillholes for the majority, were primarily designed as pre-collars for the DD, and thus stop short of the Gillett mineralisation with the exception of the first four RC drillholes which were planned to drill through mineralisation.

ACN 648 687 094

PO Box 7713

T: +61 8 63817250

info@widgienickel.com

Level 4, 220 St Georges Terrace

Cloisters Square WA 6850

F: +61 8 63817299

widgienickel.com.au

Perth WA 600

Nickel sulphide intercepts of note included:

  • 8.2 m at 0.54% Ni from 220.8 m and 20 m at 1.42% Ni from 234 m (including 2.2 m at 4.18% Ni from 242.4 m, 1 m at 2.27% Ni from 246.2 m and 5 m at 1.93% Ni from 248 m) in MERC143 (DD)

  • 16 m at 1.79% Ni from 277.1 m (including 4 m at 3.10% Ni from 280 m) and 5.9 m at 2.16% Ni from 287.2 m in MERC144 (DD)

It is highly encouraging that the results from two of the four RC holes demonstrate continuation of Gillett nickel mineralisation beyond the current defined limits of mineralisation.

During the Quarter, Widgie completed nineteen RC drillholes for 3,614 metres and fourteen DD holes for 3,192 metres at Gillett. The Company expects a steady flow of assay results to be received progressively over coming months.

Mineralisation intersected in areas outside of the current resource envelope at the Gillett deposit indicates the resource remains open to the north, south and down dip. Figure 5 illustrates the geological interpretation of Gillett in long section.

Figure 5 - Gillett long section looking southwest

Geological Interpretation

To date the drilling has confirmed that the basal contact is mineralised. Importantly the drilling has also demonstrated that there are additional zones of mineralisation in stratigraphically higher positions within the volcanic pile (Figure 6). These are interpreted to be the mineralised basal contacts of multiple stacked ultramafic lava flows.

ACN 648 687 094

PO Box 7713

T: +61 8 63817250

info@widgienickel.com

Level 4, 220 St Georges Terrace

Cloisters Square WA 6850

F: +61 8 63817299

widgienickel.com.au

Perth WA 600

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Widgie Nickel Ltd. published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2022 02:59:09 UTC.