Klow Property

Klow is located 120 kilometres northwest of Fort St. James and 55 kilometres north of the Decar Nickel District. An all-season public road runs along the eastern margin of the Klow property, linking the town of Fort St. James to the village of Takla Landing. A CN rail line is located about 12 kilometres west of the Klow property boundary.

During preliminary regional exploration field work conducted in 2009 and 2010, FPX Nickel discovered showings of nickel-iron alloy mineralization at the lower reaches of the main ridge, below the tree line, where bedrock exposure is limited due to overburden cover. Initial sampling showed fine-to-coarse grained nickel-iron alloy ranging from 50 to more than 500 microns in size, with values of 0.076% to 0.085% nickel-in-alloy.

Field work in 2011 consisted of follow-up mapping and sampling around sparse outcrops of mineralized bedrock that is exposed on shallow-to-moderately dipping slopes. The 2011 work, which included the collection of 134 rock samples, delineated widespread, anomalous nickel-iron alloy surface mineralization over an area measuring 1,500 by 1,000 metres.

Mineralization consists of a central coarse-grained nickel-iron alloy target that is enveloped by a halo of finer-grained mineralization. The coarse-grained target measured 1,000 metres long in a north-south direction. Work on the Klow property in 2012 included a ground-based magnetic geophysical survey, the results of which were used to assist in locating drill holes as part of an initial pass of exploration drilling.

FPX Nickel intersected a zone of nickel-iron alloy mineralization carrying encouraging grades in a first round of wide-spaced drilling that tested a 530-metre-long portion of the main target with five holes totalling 1,579 metres. The drilling suggests the nickel-iron alloy mineralization is increasing in grade proceeding to the north. The northernmost hole, DH-4, is the best of the five holes, intersecting 316 metres averaging 0.1% nickel-in-alloy from beneath 10 metres of overburden to 326 metres down-hole.

Hole DH-3 was drilled from the same pad as hole 4 but oriented in the opposite direction to the southwest. It intersected 290 metres grading 0.06% nickel-in-alloy, including 140 metres of 0.08% at the top of the hole. Together, these two holes indicate the mineralized zone is carrying grades of at least 0.08% nickel-in-alloy or better, is at least 320 metres wide at this location, and is open to the north and to the west.

The northern end of the mineralized zone remains open for another 650 metres to the boundary of the claim group and roughly 300 metres to the west before encountering a meta-volcanic contact, providing future exploration potential for a modest sized target. The northern extension area is covered by overburden.

A summary of the 2012 Klow drill results is presented in the table below. The first four holes were drilled from three pads spaced from 218 to 312 metres apart along the mineralized system’s projected northwest-southeast strike, while hole DH-5 tested the zone’s western extension, stepping out 650 metres from hole 2.

Klow Drill Hole Results

Hole #	Intersections (m)			Nickel Alloy (%)
	From	To	Interval
DH-1	40	416	376	0.049
including	40	64	24	0.081
including	216	308	92	0.073
DH-2	66	323	257	0.038
DH-3	12	302	290	0.056
including	12	152	140	0.083
DH-4	10	326	316	0.098
DH-5	31	210	179	0.056

The reported nickel alloy grades are based on a threshold of 0.06%. Intercepts of non-mineralized dykes greater than 1 metre wide are reported as zero grade.

Cautionary Note

Investors are cautioned that the exploration target at Klow is an early-stage exploration prospect, conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The above technical information and all the other technical information on this website pertaining to geology and drill hole data was prepared under the supervision of FPX Nickel’s Chairman Dr. Peter Bradshaw, P. Eng., a Qualified Person as defined in National Instruments 43-101 – Standards of Disclosure for Mineral Projects.