CNC.V · 2021-10-26 12:00:00

Canada Nickel Announces Discovery of Higher Grade Core at Crawford East Zone

Exploration Programs

Highlights

 Infill drilling identified an extensive Higher-Grade Core in the East Zone, similar to the Main

Zone.

 The higher grade cores span combined strike length of 1.6 kilometres, a width of 20 to 50

metres, to a depth of 690 metres.

 Drilling in the East Zone has successfully infilled and extended strike length to a total of 2.1

kilometres, substantially larger than previously reported resource.

 Hole 142A averaged 0.31% Ni across its entire 576 metre core length, ending in

mineralization. Hole 165A (assays pending) was mineralized across its entire 690 metre core

length, ending in higher grade mineralization at 735 m etres. Five other holes recently

completed intersected drill intervals of up to 216.6 metres of higher grade mineralization.

 Samples from East Zone Higher Grade Core yielded the highest grade concentrate from

Crawford during metallurgical work reported for the previously released Preliminary

Economic Assessment with 43 % of the recovered nickel reporting to a 55% nickel

concentrate.

TORONTO, October 2 6, 2021 – Canada Nickel Company Inc. ("Canada Nickel" or the " Company") (TSXV: CNC)

(OTCQX: CNIKF) today announced the results from the infill drilling program at its Crawford Nickel-Sulphide Project

(“Crawford” or the “Project”), which included the discovery of a higher-grade core in the East Zone. The East Zone

has now been successfully tested for 2.1 km of its overall 3.2 km interpreted strike length.

Mark Selby, Chair and Chief Executive Officer commented, “The East Zone is becoming a significant resource. The

most recent infill and expansion drilling at the Crawford East Zone continues to confirm our target of increasing the

East Zone resource by 2-3x and the identification of an extensive Higher Grade Core, similar to the Main Zone, has

been an exciting development. This East Zone core has yielded intervals of both high-grade nickel and PGMs and the

latest two holes ( CR21-142A, CR21-165A), which were drilled to test this higher -grade mineralization at d epth,

remained in higher grade mineralization to the end of each hole at 62 4 and 735 metres deep respectively – more

than 100 metres below the current resource. I look forward to the resource update on the Main, East, and North

zones next year to support the feasibility study expected to be delivered later in 2022.”

Crawford East Zone

In the East Zone, an additional 6 holes have assays reported, a further 22 holes have been drilled with assays

pending. Infill drilling is expected to continue for the balance of the current year to contribute to the resource

update next year that will support the feasibility study. Infill drilling, deeper drilling, and drilling beyond the resource

outline along strike have all demonstrated continuity for a distance of 2.1 kilometres.

The Higher Grade Core was identified during a drill program intended to expand the current resource and was

present in previous holes (CR20-28, CR19-31, CR20-33, CR20-34, CR20-35, CR20-36, CR20-37, CR20-39, CR21-112)

but was thought to be discontinuous. Additional drilling is consistent with the Company’s belief that this core is

more continuous and centered along the East Zone, much like the higher-grade core of the Main Zone. See Figures

1 and 2 below. This Higher-Grade Core remains open at depth and along strike.

Figure 1 – Plan View of East Zone Nickel - Drilling Results overlain on total field magnetic intensity, Crawford

Nickel-Cobalt Sulphide Project, Ontario

e western portion of the higher grade core extends for 0.9 kilometres, extends from surface in some places to a

depth of 730 metres (see Figure 1 above, and Figure 2 below for views of this structure).

The eastern portion of the higher grade core extends for 0.7 kilometres, extends from surface in some places to a

depth of 280 metres, with more planned drillholes targeting depth extension (see Figure 1 above, and Figure 2

below for views of this structure).

Crawford East Zone Metallurgical Work

Sample EZ-33-V15, from hole CR20-33 from 327 to 349 metres (which is now part of the East Zone Higher Grade

Core) and averaged 0.36% nickel, 0.08% sulphur, 0.201 g/t palladium, and 0.047 g/t platinum yielded the highest-

grade concentrate produced during the PEA testwork program with 43% of the recoverable nickel in final

concentrates reporting to a high grade nickel concentrate grading 55% nickel.

Figure 2 – East Zone Higher Grade Core (Section A, B, C, D, E, F)

Table 1a: East Zone Infill Drilling Results, Crawford Nickel Sulphide Project, Ontario.

BHID From To Length

Estimated

True

Width

Ni Co Pd Pt Cr Fe S

(m) (m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)

CR21-114A 26.0 494.0 468.0 197.8 0.21% 0.011 0.008 0.005 0.61 5.75 0.02

Including 26.0 354.0 328.0 164.0 0.25% 0.012 0.009 0.005 0.69 5.76 0.02

CR21-116 26.3 510.0 483.7 277.4 0.24% 0.012 0.003 0.005 0.62 5.61 0.03

Including 63.0 168.0 105.0 60.2 0.26% 0.011 0.003 0.006 0.65 5.29 0.03

CR21-121 12.0 507.0 495.0 209.2 0.21% 0.012 0.007 0.006 0.58 5.97 0.01

Including 265.5 394.5 129.0 54.5 0.26% 0.012 0.005 0.005 0.67 5.32 0.01

CR21-134A 90.0 319.5 229.5 114.8 0.22% 0.012 0.006 0.008 0.60 6.57 0.03

Including 195.0 249.0 54.0 22.8 0.28% 0.013 0.012 0.017 0.65 6.06 0.03

CR21-142A 47.5 624.0 576.5 10.1 0.32% 0.017 0.017 0.010 0.67 5.72 0.12

Including 441.0 582.6 141.6 9.9 0.37% 0.022 0.055 0.011 0.75 6.13 0.38

Including 472.5 490.5 18.0 3.6 0.43% 0.015 0.040 0.014 0.83 5.57 0.30

Including 530.1 543.6 13.5 2.3 0.43% 0.019 0.053 0.017 0.62 6.88 0.72

CR21-146 44.7 525.0 480.3 275.5 0.27% 0.013 0.009 0.007 0.61 5.75 0.05

Including 132 172.5 40.5 18.1 0.32% 0.014 0.065 0.035 0.68 6.45 0.12

Including 159 169.5 10.5 6.9 0.44% 0.016 0.155 0.080 0.78 6.20 0.15

Table 1b: East Zone – Completed Holes (Assays Pending) – Higher Grade Mineralization Intersections, Crawford

Nickel Sulphide Project, Ontario.

BHID From To Length

Estimated

True

Width

(m) (m) (m) (m)

CR21-138 261.0 309.0 48.0 19.5

CR21-149 256.0 412.0 156.0 8.2

CR21-153 410.0 597.0 187.0 6.5

CR21-156 437.0 575.0 138.0 2.4

CR21-161A 239.0 432.0 193.0 13.2

CR21-165A 468.0 735.0 267.0 21.1

Table 1c: Previously Reported Drill Holes (Higher Grade Core intervals)

BHID From To Length True

Width Ni Co Pd Pt Cr Fe S

(m) (m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)

CR19-28 406.5 520.5 114.0 54.5 0.35% 0.01 0.07 0.04 0.72 5.81 0.12

including 406.5 462.0 55.5 34.0 0.41% 0.01 0.13 0.07 0.69 6.01 0.21

CR19-31 304.5 333.0 28.5 23.1 0.31% 0.01 0.02 0.01 0.73 6.07 0.04

CR20-33 279.9 296.4 16.5 9.1 0.30% 0.01 0.01 0.00 0.59 5.66 0.04

and 315.9 362.4 46.5 34.9 0.35% 0.01 0.10 0.04 0.75 5.97 0.09

CR20-34 348.0 387.0 39.0 38.7 0.36% 0.01 0.19 0.07 0.69 6.04 0.09

including 349.5 381.0 31.5 9.8 0.37% 0.01 0.23 0.08 0.69 5.94 0.09

including 349.5 361.5 12.0 3.9 0.42% 0.01 0.46 0.17 0.77 611.0 0.08

CR20-35 55.5 78.0 22.5 8.6 0.30% 0.01 0.00 0.00 0.63 5.43 0.03

CR20-36 208.5 247.5 39.0 31.1 0.31% 0.01 0.02 0.01 0.69 6.41 0.12

CR20-37 163.5 208.5 45.0 34.8 0.30% 0.01 0.01 0.01 0.71 5.79 0.06

CR20-39 36.0 79.5 43.5 17.0 0.30% 0.01 0.01 0.01 0.75 5.77 0.04

CR21-112 52.5 99.0 46.5 17.9 0.30% 0.01 0.00 0.00 0.70 5.71 0.05

Table 2: Drill Hole Orientation

The table below lists drill locations for the results of the drill holes outlined in this news release, the holes currently

in the assay lab and those in progress.

New Holes

BHID Target Northing Easting Azimuth Dip Length (m)

CR20-38 East Zone 5409893 473900 360 -50 327

CR20-40 East Zone 5409995 473597 180 -50 378

CR20-41 East Zone 5409800 473499 360 -50 417

CR21-108 East Zone 5409721 475304 360 -50 501

CR21-111A East Zone 5409997 473402 180 -50 444

CR21-114A East Zone 5409888 475001 180 -60 464

CR21-116 East Zone 5409997 473999 180 -50 509

CR21-118 East Zone 5409961 474795 180 -60 504

CR21-119 East Zone 5409995 474299 180 -60 476

CR21-121 East Zone 5409977 474704 180 -60 507

CR21-123 East Zone 5409983 474503 180 -60 507

CR21-140 East Zone 5409778 473361 245 -60 267

Higher Grade Core

BHID Target Northing Easting Azimuth Dip Length (m)

CR19-28 East Zone 5410172 473700 180 -50 573

CR19-31 East Zone 5409610 474905 360 -50 552

CR20-33 East Zone 5409623 475101 360 -50 549

CR20-34 East Zone 5409671 473703 360 -50 630

CR20-35 East Zone 5409903 473701 360 -82 390

CR20-36 East Zone 5409799 474103 360 -50 483

CR20-37 East Zone 5409728 474903 360 -50 492

CR20-39 East Zone 5410004 473801 180 -50 522

CR21-112 East Zone 5409892 475198 180 -60 435

CR21-134A East Zone 5409800 473799 5 -60 351

CR21-138 East Zone 5409775 473355 360 -60 420

CR21-142A East Zone 5409895 473549 178 -86 624

CR21-146 East Zone 5410035 473290 180 -50 525

CR21-149 East Zone 5409887 473854 178 -87 474

CR21-153 East Zone 5409805 473763 360 -86 669

CR21-156 East Zone 5409813 473665 0 -86 658

CR21-161A East Zone 5409975 473928 180 -76 432

CR21-165A East Zone 5409897 473801 175 -84 734

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Assays, Quality Assurance/Quality Control and Drilling and Assay

Edwin Escarraga, MSc, P.Geo., a "qualified person" as defined by NI 43-101, is responsible for the on-going drilling and

sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in

sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5 metre lengths

and cut with a diamond blade saw. A set of Samples are transported in secured bags directly from the Canada Nickel

core shack to Actlabs Timmins, the other set of samples are securely shipped to SGS Burnaby. Both are ISO/IEC 17025

accredited labs. Analysis for precious metals (gold, platinum and palladium) are completed by Fire Assay while analysis

for nickel, cobalt, sulphur and 17 other elements are performed using a peroxide fusion and ICP-OES analysis. Certified

standards and blanks are inserted at a rate of 3 QA/QC samples per 20 core samples making a batch of 60 samples

that are submitted for analysis.

Qualified Person and Data Verification

Stephen J. Balch P.Geo. (ON), VP Explora tion of Canada Nickel and a "qualified person" as such term is defined by

National Instrument 43 -101, has verified the data disclosed in this news release, and has otherwise reviewed and

approved the technical information in this news release on behalf of Canada Nickel Company Inc.

Issuance of Shares

The Company also announced today that it has agreed to issue 30,000 common shares to an unrelated third party

in satisfaction of certain finder’s fees payable to such third party in connection the private placements completed

by the Company in October 2020. Such shares will be subject to a four month hold period under applicable

securities rules expiring on February 26, 2022.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the next generation of nickel-sulphide projects to deliver nickel required to

feed the high growth electric vehicle and stainless steel markets. Canada Nickel Company has applied in multiple

jurisdictions to trademar k the terms NetZero Nickel TM, NetZero Cobalt TM, NetZero Iron TM and is pursuing the

development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel

provides investors with leverage to nickel in low political risk jurisdictions. Canada Nickel is currently anchored by its

100% owned flagship Crawford Nickel- Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining

camp. For more information, please visit www.canadanickel.com.

For further information, please contact:

Mark Selby, Chair and CEO

Phone: 647-256-1954

Email: [email protected]

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute "forward -looking information" under applicable

Canadian securities legislation. Forward looking information includes, but is not limited to , drill results relating to the

Crawford Nickel Sulphide Project, the potential of the Crawford Nickel Sulphide Project, timing of economic studies and

mineral resource estimates, the ability to sell marketable materials, strategic plans, including future exploration and

development results, and corporate and technical objectives. Forward-looking information is necessarily based upon a

number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and

other factors which may cause the actual results and future events to differ materially from those expressed or implied

by such forward-looking information. Factors that could affect the outcome include, among others: future prices and

the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur

the expenditures required to retain and advance the property, environmental liabilities (known and unknown), general

business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining

industry, delays in obtaining governmental approvals, failure to obtain regulatory or shareholder approvals, and the

impact of COVID-19 related disruptions in relation to the Company's business operations including upon its employees,

suppliers, facilities and other stakeholders. There can be no assurance that such information will prove to be accurate,

as actual results and future events could differ materially fro m those anticipated in such information. Accordingly,

readers should not place undue reliance on forward-looking information. All forward-looking information contained in

this press release is given as of the date hereof and is based upon the opinions an d estimates of management and

information available to management as at the date hereof. Canada Nickel disclaims any intention or obligation to

update or revise any forward-looking information, whether as a result of new information, future events or otherwise,

except as required by law.

← Back to feed