Canada Nickel Announces Successful Drill Results from Recently Acquired Deloro target and Provides Corporate Update
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Canada Nickel Announces Successful Drill Results from Recently Acquired
Deloro target and Provides Corporate Update
Highlights
• First hole in recently acquired properties intersects 480 metres of dunite at Deloro using a sixth
drill rig acquired at start of year.
• All nine holes from Dargavel, Mahaffy, MacDiarmid, Kingsmill intersected multi-hundred metre
intersections of miner alization with best interval from first hole at Dargavel of 16 2 metres of
0.30% nickel including 0.34% nickel over 28.5 metres.
• Completion of Crawford feasibility study expected by fourth quarter of 2022 and formal start of
permitting process in first quarter of 2022.
• Announces management additions in engineering and environment to support Company efforts
to advance Crawford through feasibility and subsequent steps towards development.
TORONTO, January 24, 2022 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC)
(OTCQX: CNIKF) today announced assay results from its Mahaffy, Dargavel, Kingsmill, and MacDiarmid properties,
and provided an update on drilling and corporate activities.
In addition to completed drill assay results, partial assays have been received to date from 11 holes drilled at the
Company’s Nesbitt property – these results have also been in line with expectations and will be released when all
assays are received.
“I’m very excited to start the year with successful drilling of Deloro - the first of the thirteen targets we acquired
at end of last year and the first step in confirming the potential of the Timmins Nickel District. After two very
successful years in 2020 and 2021, the year 2022 sets the stage for Canada Nickel to move to the next level with
the formal launch of Crawford permitting this quarter, an updated resource next quarter, and a feasibility study
expected to be completed by the fourth quarter, which is just over three years from our Crawford discovery,” said
Mark Selby, Chair & CEO. “I am also pleased to expand our capabilities with the latest additions to our team.
Canada Nickel is well-positioned not only for success this year but for continued success in 2023 and beyond as
we advance Crawford towards production.”
Steve Balch, VP Exploration, added, “Today’s successful assay results from our initial set of properties outside of
Crawford and the success of the first hole at Deloro confirm our targeting approach is correct. Deloro is a great
first example having intersected mineralized dunite from just two metres below surface over a length 480 metres.
This year we will move beyond our flagship Crawford property and start exploring our thirteen newly acquired
regional properties, confident that our targeting approach will yield multiple discoveries. With over 40 km2 of
ultramafic rocks yet to explore, we believe our project has the potential to grow to a massive scale. I look forward
to further success as we continue to delineate this potential during 2022.”
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Exploration Results
All 20 holes from the regional drill program intersected thick sequences of peridotite and/or dunite with some
holes collared in, or ending in, volcanics. The highest-grade intersection was 0.34% nickel over 28.5 metres in
Dargavel hole DAR21-01 (0.30% cutoff) within a larger zone grading 0.30% nickel over 162.0 metres (0.25% cutoff)
starting at 375 metres downhole. The thickest interval of mineralization was in Kingsmill drillhole KML21-01 which
intersected 0.24% nickel over 334.5 metres starting at 16.5 metres downhole. The overburden encountered was
highly variable with as little as 12.5 metres at Nesbitt and as much as 160 metres at Mahaffy.
Deloro Property
DEL22-01, collared in the centre of the ultramafic target measuring 1. 4 km long by 300 – 500 metres wide, and
drilled toward the west contact, intersected mineralized dunite (including some narrow dykes) starting at 1.8
metres downhole. The hole remained in dunite beyond its projected length of 400 metres to 482 metres at the
west contact for a total interval of 480 metres.
Previously, six holes (FY-02-02, FY-02-06, FY-02-10, FY-02-11, FY-02-12, FY-02-13) were drilled at Deloro by other
explorers, inside or on the edge of the ultramafic, with five intersecting serpentinized dunite/peridotite. Hole FY-
02-10 intersected 24.2 metres, FY -02-13 intersected 138.4 metres and four holes ended in serpentinized
dunite/peridotite. All five holes noted magnetite (up to 20-25% magnetite in FY-02-02 from 39.4-89.5 metres) and
disseminated sulphides. Only specific non -consecutive intervals were assayed. Two of the four holes had nickel
mineralization exceeding 0.40% nickel: FY02-02 with 0.42% nickel over 4.2 metres, with up to 0.73 g/t Pd and 0.23
g/t Pt over 1.2 metres, and FY-02-10 intersecting 0.48% nickel, 0.28 g/t Pd, and 0.14 g/t Pt over 2.8 metres.
Figure A – Plan View of Deloro – Current Drill Results Overlain on Total Field Magnetic Intensity
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Deloro is a property of approximately 1,800 ha in size and located 10 km southeast of Timmins. The Property
consists of a series of mining patents and mining claims that completely cover the ultramafic unit. The area is
within 10 km south of Timmins and is easily accessed by road. It contains an ultramafic intrusion 1.4 km in length
and up to 450 metres wide, that strikes south -southeast as identified by its high magnetic intensity. Historical
drilling intersected serpentinized dunite/peridotite with four of five holes ending in serpentinized
dunite/peridotite. All five historical holes noted the presence of magnetite and disseminated sulphides. Only
specific non-consecutive intervals were assayed, for example, FY02 -02 reported 0.42% nickel over a core length
of 4.2 metres.
Dargavel-Bradburn Property
A single hole in Dargavel Township was completed in 2021 to confirm historic drilling from the 1960s by Inco.
Drillhole DAR21-01 intersected 501.2 metres of 0.23% nickel below overburden starting at 68.0 metres with a
higher-grade zone of 0.30% nickel over 162.0 metres starting at 375.0 metres and including 0.34% nickel over 28.5
metres starting at 451.5 metres downhole (see Table 1).
Table 1 – Dargavel Drill Results – Intervals
BHID From To Length Ni Co Pd Pt Fe Cr S
(m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)
DAR21-01 68.0 569.2 501.2 0.23 0.01 0.02 0.02 6.94 0.43 0.01
including 375.0 537.0 162.0 0.30 0.01 0.00 0.00 6.84 0.20 0.01
including 447.0 475.5 28.5 0.34 0.01 0.00 0.00 7.24 0.10 0.01
*Note: Holes were drilled at various inclinations ranging from -50 to -70 degrees. The lengths reported are core lengths and not true widths.
Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.
Figure 1 – Plan View of Dargavel – Current Drill Results Overlain on Total Field Magnetic Intensity
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The Dargavel-Bradburn Property (see Figure 1) includes 3,554 ha of mining patents and 11,438 ha of mining claims.
The property hosts a series of very long ultramafic sills striking east-west that have been mapped for 10 km. These
townships have been relatively unexplored, but historical drilling in the 1960’s by Inco Limited in Dargavel
township encountered 590 feet of serpentinized peridotite in hole 25014 grading 0.24% nickel with local assays
up to 0.40% nickel and 287 feet of serpentinized peridotite in hole 28479 (no assays reported).
Mahaffy Nickel Project
Drilling in 2021 intersected thick zones of mineralized peridotite and dunite in two holes (see Table 2) with
MAH21-01A encountering 0.22% nickel over 429.5 metres and MAH21-02 intersecting 0.21% nickel over 335.0
metres. Overburden in the drilling area was up to 120 metres in vertical thickness but is known to be much thinner
in other areas of the property.
Table 2 – Mahaffy Drill Results – Intervals
BHID
From To Length Ni Co Pd Pt Fe Cr S
(m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)
MAH-21-01 131.5 561.0 429.5 0.22 0.01 0.00 0.00 5.12 3.26 0.79
including 419.5 561.0 141.5 0.24 0.01 0.00 0.01 5.00 3.12 0.73
MAH-21-02 160.0 495.0 335.0 0.21 0.01 0.01 0.01 7.34 0.66 0.04
including 344.1 469.5 125.4 0.25 0.01 0.01 0.00 6.10 0.86 0.05
including 426.0 430.5 4.5 0.46 0.01 0.04 0.01 6.07 0.94 0.13
*Note: Holes were drilled at various inclinations ranging from -50 to -70 degrees. The lengths reported are core lengths and not true widths.
Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.
Figure 2 – Plan View of Mahaffy – Current Drill Results Overlain on Total Field Magnetic Intensity
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The Mahaffy Property (see Figure 2) is located 12 km west of Crawford and consists of five closely spaced
ultramafic sills having an aggregate strike length of 24 km. This property, comprising mining claims totaling
approximately 4,600 ha, was previously tested by historic hole 31901 (1966) which intersected 0.23% nickel over
127 metres, and historic hole T2-80-2 (1980) which intersected 277 metres of serpentinized ultramafic rock with
no assays reported.
Kingsmill Property
In-fill drilling in 2021 intersected 334.5 metres of 0.24% nickel starting at 16.5 metres in KML21-01 and 268.5
metres of 0.21% nickel starting at 118.5 metres (see Table 3). Two holes testing for higher grade mineralization
near a major fault intersected only lower grade mineralization with KML21-03 encountering 76.5 metres of 0.13%
Ni and KML21-04 intersecting 161.0 metres of 0.14% Ni, both intervals within a weakly mineralized peridotite that
is commonly encountered at the contact of the ultramafic.
Table 3 – Kingsmill Drill Results – Intervals
BHID
From To Length Ni Co Pd Pt Fe Cr S
(m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)
KML21-01 16.5 351.0 334.5 0.24 0.01 0.00 0.00 6.29 0.21 0.03
including 85.5 153.0 67.5 0.27 0.01 0.00 0.00 6.03 0.08 0.01
KML21-02 118.5 393.0 274.5 0.21 0.01 0.00 0.00 5.59 0.31 0.03
including 307.5 349.0 41.5 0.26 0.01 0.00 0.00 4.52 0.10 0.04
KML21-03 78.0 154.5 76.5 0.13 0.01 0.00 0.00 6.43 0.40 0.03
KML21-04 37.0 198.0 161.0 0.14 0.00 0.00 0.00 0.00 0.00 0.00
*Note: Holes were drilled at various inclinations ranging from -50 to -70 degrees. The lengths reported are core lengths and not true widths.
Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.
Figure 3 – Plan View of Kingsmill – Current Drill Results Overlain on Total Field Magnetic Intensity
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The Kingsmill Property (see Figure 3) contains a large serpentinized ultramafic intrusion 2.2 kilometres long and
375 to 600 metres wide. The property has been previously explored (see Canada Nickel press release dated July
13, 2020) where thick intersections of mineralized dunite were encountered. Follow-up drilling in 2021 consisted
of two in-fill drill holes and two more drill holes to test an area of major faulting (sometimes an area of upgraded
mineralization).
MacDiarmid Property
MAC21-01 intersected 241.5 metres of 0.22% nickel starting at 90.5 metres downhole, MAC21 -02 intersected
317.2 metres of 0.23 % nickel starting at 61.5 metres, and MAC21 -03 intersected 308.0 metres of 0.22% nickel
starting at 30.0 metres downhole. All holes intersected higher grade intervals as well (see Table 4).
Table 4 – MacDiarmid Drill Results – Intervals
BHID
From To Length Ni Co Pd Pt Fe Cr S
(m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)
MAC21-01 90.5 332.0 241.5 0.22 0.01 0.01 0.01 5.62 0.34 0.03
including 225.0 292.5 67.5 0.27 0.01 0.00 0.01 5.39 0.30 0.05
MAC21-02 61.5 378.7 317.2 0.23 0.01 0.00 0.01 5.75 0.35 0.04
including 136.5 356.0 219.5 0.25 0.01 0.00 0.01 5.68 0.34 0.03
including 144.0 168.0 24.0 0.28 0.01 0.00 0.01 5.33 0.23 0.02
MAC21-03 30.0 338.0 308.0 0.22 0.01 0.00 0.01 5.70 0.33 0.03
including 91.3 148.0 56.7 0.25 0.01 0.00 0.01 5.20 0.46 0.03
*Note: Holes were drilled at various inclinations ranging from -50 to -70 degrees. The lengths reported are core lengths and not true widths.
Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.
Figure 4 – Plan View of MacDiarmid – Current Drill Results Overlain on Total Field Magnetic Intensity
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The MacDiarmid Property contains a large ultramafic intrusion that is approximately 3 km long and 150 to 600
metres wide with the primary target a stronger magnetic anomaly of 1.8 km long and up to 400 metres wide (see
Figure 4). Three holes were collared on the eastern side of the intrusion spaced 200 metres apart and were
designed to intersect dunite -peridotite in this region. The 2021 drill program has now defined mineralization
across a strike length of 400 metres to a depth of 290 metres and widths of 140-180 metres. All holes were drilled
to the south (205o azimuth) at -50o inclination.
Crawford Project Update
The Company continues to aggressively advance Crawford and expects to deliver a feasibility study by the fourth
quarter of 2022 based on a reso urce update provided in the second quarter of 2022 . The Company also expects
to file the initial project description which will formally begin the permitting process for Crawford during the first
quarter of 2022. The feasibility study is expected to be delivered just over three years from when Canada Nickel
was formed and began drilling the fifth hole on the property.
As the company expects to complete the feasibility study for Crawford this year and intends to con tinue to
advance the project towards production, the Company has continued to build the team to ensure we are
successful in meeting our objectives for 2022 and beyond. The Company has promoted Christian Brousseau to the
position of Vice President, Capital Projects and has appointed Desmond Tranquilla as Project Director. Mr.
Brousseau will be responsible for completion of the Crawford Feasibility Study and leading the execution team to
develop the Project through to production. Mathieu Boucher has also been appointed as Manager, Environment.
Management Appointments
Mr. Christian Brousseau joined Canada Nickel in 2020 as Project Director to lead the preliminary economic
assessment for Crawford Project, which was completed in July 2021. He has 30 years’ experience in engineering,
design and construction in the Canadian mining industry, including over six years as Project Director for the
Dumont Project, a shovel -ready nickel project located in the Abitib i Region of Quebec. At Dumont, he led the
engineering and construction plans and was instrumental in completing the revised Dumont feasibility study in
2019. Prior to Dumont, Mr. Brousseau held the position of Engineering and Construction Manager on the US$1.2
billion capex Detour Lake open-pit mine, located in the Timmins-Cochrane mining district. He also held a number
of construction management positions at Canadian Malartic Mine in Quebec, and Newmont's Éléonore Mine, in
northern Quebec. Mr. Brousseau spent eight years at Falconbridge supervising and managing capital projects in
Sudbury and at Glencore Canada’s Raglan Mine and Horne Smelter in Quebec and Kidd Creek Mine north of
Timmins, Ontario.
Mr. Desmond Tranquilla has over 30 years’ experience in the management of major capital projects involving large
mines and processing plants in Canada and the U.S., as well as transportation infrastructure projects,
hydroelectricity and aggregate processing plants. Prior to joining Canada Nickel, Mr. Tranquilla held the position
of Director of Construction for SNC-Lavalin North America, and was responsible for project execution, construction
planning, procurement and contract agreements for Coeur Mining’s Rochester POA11 Merrill Crowe Heap Leach
Project in Nevada. Mr. Tranquilla also acted as Senior Project Manager overseeing engineering, procurement,
construction and management for the CAD$1.6 billion Vale Atmospheric Emission Reduction project in Sudbury,
Canada. As Project Director at Ausenco Canada Limited, Mr. Tranquilla developed the construction plan for
Hudbay Minerals’ US$1.9 billion Rosemont Copper Project in Arizona, U.S. Mr. Tranquilla also managed execution
of mining projects for the Potash Corporation of Saskatchewan and Detour Lake Gold Mine Developme nt in
Northern Ontario.
Mr. Mathieu Boucher has over 10 years of experience working in environment and engineering. Prior to joining
Canada Nickel, Mr. Boucher was employed at Glencore’s Horne Copper Smelter and North America Copper Assets,
where he held positions as Environment and Sustainability specialist, supervisor, and superintendent. Throughout
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his time with Glencore, Mr. Boucher acted as a technical advisor or lead for the development of key
characterization and improvement projects related to water treatment and water management from tailings
facilities and industrial operations.
Mr. Boucher started his career with Golder Associates, where he contributed to environmental site assessment,
site remediation, and water treatment projects for industrial and mining clients, and was involved in the
development of modern, innovative approaches to ensuring the protection of sensitive natural environments. Mr.
Boucher holds a Bachelor of Water Engineering from Laval University.
Table 6 – Drill Hole Orientation
BHID
Easting mE Northing mN Elevation Depth Azimuth Dip
(mE) (mN) (m) (m) (o) (o)
DAR21-01 459865.0 5432975.0 265.0 569.0 360.0 -55.0
DAR21-02 458415.0 5433486.0 266.0 lost 15.0 -55.0
DAR21-02A 458415.0 5433486.0 266.0 lost 15.0 -60.0
DEL-22-01 480413.0 5361341.0 320.0 492.0 248.0 -60.0
KML21-01 454867.0 5423113.0 275.0 446.0 360.0 -52.0
KML21-02 454810.0 5423105.0 265.0 428.0 270.0 -50.0
KML21-03 456499.0 5423095.7 271.8 lost 90.0 -50.0
KML21-03A 456498.0 5423097.0 265.0 156.0 90.0 -50.0
KML21-04 455772.5 5422900.0 274.4 198.0 90.0 -50.0
MAC21-01 459643.0 5390614.0 265.0 441.0 205.0 -50.0
MAC21-02 459443.0 5390613.0 268.0 411.0 205.0 -50.0
MAC21-03 459832.0 5390583.6 280.0 438.0 205.0 -50.0
MAH21-01 457650.0 5413477.0 270.0 lost 45.0 -50.0
MAH21-01A 457650.0 5413477.0 270.0 561.0 45.0 -70.0
MAH21-02 457562.0 5413681.0 275.0 lost 60.0 -60.0
MAH21-02A 457562.0 5413681.0 270.0 495.0 60.0 -70.0
Statement Regarding TSX Venture
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.
The completion of any transactions mentioned in this release is subject to customary closing conditions, including
final TSX Venture Exchange approval. The common shares issued pursuant to the above noted acquisitions will be
subject to a four month hold period under applicable Canadian securities laws. Some transactions may have been
approved prior to this release.
Qualified Person and Data Verification
Stephen J. Balch P.Geo. (ON), VP Exploration 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.