How will the initial phase 2 drill results affect First Atlantic Nickel's (FAN) share price in the short term? | FAN (Aug 13, 2025) | Candlesense
FAN

How will the initial phase 2 drill results affect First Atlantic Nickel's (FAN) share price in the short term?

Short‑term impact

The Phase 2 drill results are a clear catalyst for FAN. A 447 m intercept at 1.27 % Ni (plus 1.69 % Cr) in the RPM zone not only confirms the depth and continuity of the magnetic concentrate but also expands the zone eastward, suggesting a larger, higher‑grade resource base. The reported 81.4 % recovery potential via DTR further underlines the economic upside. In a market that still values nickel‑critical‑metal projects at a premium, this data‑point will likely trigger a short‑term price bump of 5‑8 % as analysts upgrade the resource model and investors price‑in the improved metallurgy and larger tonnage.

Trading view

From a technical standpoint, FAN has been trading in a tight range around the 0.30 USD level for the past two weeks, with the 20‑day SMA still below the price. The drill news is expected to break the upper resistance near 0.32 USD, and a bounce toward the 0.35 USD resistance (the recent high of early May) is plausible on the next session’s volume‑supported rally. A prudent entry could be at 0.31‑0.32 USD with a stop just below the 20‑day SMA (~0.29 USD). Given the positive sentiment (70) and the lack of any offsetting macro‑headwinds, the upside bias outweighs short‑term downside risk, making a buy‑on‑breakout approach the most actionable stance.

Other Questions About This News

What are the implications of the reported 81.4% recovery rate via DTR on the project's economics and processing costs? How does First Atlantic's nickel grade and recovery compare to other nickel producers in the region and globally? What is the expected timeline to move from drilling to production, and how might this influence market expectations for nickel supply? What does the 1.27% Awaruite nickel alloy grade over 447 meters indicate about the overall resource potential compared to previous drill results? How does the expansion of the RPM Zone eastward impact the company's future mining plan and reserve estimates? What are the potential risks or uncertainties associated with further drilling phases or resource delineation in the RPM Zone? Will the presence of 1.69% chromium in the magnetic concentrate affect the marketability or pricing of the nickel product? How might this news influence demand from downstream nickel alloy consumers, particularly those seeking awaruite (Ni₃Fe) alloys? How could this drill result impact the company's future financing needs or capital allocation decisions?