First Atlantic Nickel (TSXV: FAN) soared to its highest in over two years after a new high-grade discovery was made at the company’s district-scale project in central Newfoundland.The drilling occurred at the Super Gulp zone of the Atlantic nickel project, with a total of five holes completed during the initial phase. The first hole returned assays as high as 0.32% nickel and 0.8% chromium, averaging 0.25% nickel and 0.28% chromium over the entire 293.8-metre length.Shares of the Canadian junior surged 20% at Wednesday’s market close following the results, giving it a market capitalization of C$26.8 million. During the session, the stock hit a new 52-week high of C$0.34, compared to a low of C$0.075.The discovery hole — located 16 km south of the Atlantic Lake zone and 10 km north of the RPM zone — confirms the continuous awaruite nickel mineralization within the company’s district-scale 30-km trend, First Atlantic said in a news release Wednesday.The company noted that the Super Gulp hole significantly exceeded the average depth of historical drilling in the Atlantic Lake zone, which had 0.22% nickel over its entire 87.15-metre length.To test what it believes to be a new major nickel zone within the 30-km trend, First Atlantic is set to begin a second phase of drilling at Super Gulp while it awaits the remaining drill results from Phase 1.Alongside drilling, the company is also conducting a metallurgical test on the awaruite-style mineralization to quantify the amount of magnetically recoverable nickel and evaluate the project’s suitability for magnetic separation as a commercial processing method.
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