Canada Nickel Confirms Large Scale Discovery at Reid, Provides Regional Exploration Update
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Canada Nickel Confirms Large Scale Discovery at Reid,
Provides Regional Exploration Update
Highlights
• Current drilling confirms large scale discovery at Reid – delineated mineralized footprint
already 90% of Crawford footprint of 1.6 km2 which contains the fifth largest Measured
& Indicated sulphide resource globally of 3.5 million tonnes of contained nickel
• Regional drilling continues to validate geophysical targeting approach highlighting
potential from 42 km2 of geophysical targets
• Latest assays from Deloro include DEL22-05 intersecting 394 metres of 0.26% nickel
TORONTO, September 28, 2022 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company")
(TSXV: CNC) (OTCQX: CNIKF) today confirmed a large-scale discovery at its Reid property, and positive
drilling results at other regional targets as a result of its ongoing regional exploration drilling campaign.
Mark Selby, Chair & CEO of Canada Nickel, “These results are very exciting for several reasons. First,
our current drilling has delineated a mineralized footprint at Reid already 90% of the size of Crawford,
which we believe is the world’s fifth largest nickel sulphide resource. Second, the results at Reid,
Deloro, and Reaume with 33 of 34 holes hitting target mineralization and the historic drilling at
Bannockburn, continue to reinforce the success of our geophysical targeting approach and increase
the probability of success at our other over 20 properties within the 42 km2 of geophysical targets.”
The Company’s Reid, Deloro, Reaume and Bannockburn properties sit within a 100 km radius of the
Company’s flagship Crawford Nickel-Sulphide project in the Timmins area. The Company has the right
to earn a 100% interest in Reaume and has already acquired a 100% interest in Reid, Deloro and
Bannockburn.
Reid Nickel Property
The Reid Property is located just 16 km southwest of Crawford, or 37 km northwest of Timmins, and
contains an ultramafic target with a target geophysical footprint of 3.9 km 2 (see Figure 1). Our
ongoing drilling program continues to successfully intersect mineralized dunite, helping define the
boundary of the target, confirming a footprint that is already 90% of the footprint of the current
Crawford resource (Figure 2), with remarkably similar lithology, mineralogy, and alteration. Partial
assays results confirm expected Ni grades. Ni mineralization in serpentinized dunite has been found
in all 16 holes drilled to date and stronger mineralization has been intersected in holes REI22-02,
REI22-06, REI22-09, REI22-14, and REI22-16. The interpreted thickness of the dunite intersected by
REI-22-16 and REI -22-14 at Reid appears to be thicker than the thickest intersection within the
Crawford Resource (Figure 3).
Three holes (REI22-12, REI22-13, REI22-15) were drilled in the north limb with all holes intersecting
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the targeted mineralized dunite. REI22-13 intersected the typical differentiation sequence, collaring
in gabbro and followed by pyroxenite, peridotite and dunite. The hole finished in dunite.
The 13 remaining holes were drilled in the central core of the anomaly, with all of them intersecting
consistent moderate to strongly serpentinized dunite , and visible nickel mineralization (Figure 4).
Dunite is the lithology predominant in the central core, with only an occasional occurrence of later
dykes that crosscut the anomaly in a northwest and southeast direction (Table 1).
The south limb of the anomaly remains to be drilled and over 50% of the geophysical target remains
untested.
Preliminary mineralogy results from first two holes at Reid indicate that mineralogy is consistent with
well-serpentenized mineralization found at Crawford containing quantities of magnetite, brucite,
and chrome minerals. Nickel mineralization is largely in heazlewoodite and awaruite.
Figure 1 – Plan View of Reid – Drill results Overlain on Total Magnetic Intensity
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Figure 2 – Plan View of Reid Vs Crawford TMI at the same scale.
Table 1: Reid selected lithology intervals
Hole # From To length Rock Type Hole # From To length Rock Type
REI22-03 58.6 417.0 358.4 Dunite REI22-13 45 99 54.0 Peridotite
REI22-04
48.5 183.5 135.0 Peridotite 99 405 306.0 Dunite
183.5 318.3 134.8 Dunite
REI22-14
27.4 75 47.6 Peridotite
338.0 417.0 79.0 Dunite 75 158.8 83.8 Dunite
REI22-05 52.5 462.0 409.5 Dunite 180.6 402 221.4 Dunite
REI22-06
28.8 108.0 79.2 Peridotite REI22-15 60 309 249.0 Dunite
108.0 165.2 57.2 Dunite 309 402 93.0 Peridotite
177.1 197.0 19.9 Dunite REI22-16 30 501 471.0 Dunite
207.2 312.5 105.3 Dunite
360.1 471.0 110.9 Dunite
REI22-07
38.2 60.0 21.8 Dunite
136.5 462.0 325.5 Dunite
REI22-08
57.2 108.0 50.8 Dunite
108.0 128.0 20.0 Peridotite
128.0 139.7 11.7 Dunite
139.7 160.0 20.3 Peridotite
160.0 430.0 270.0 Dunite
REI22-09
29.7 96.0 66.3 Peridotite
96.0 106.6 10.6 Dunite
116.6 429.3 312.7 Dunite
429.3 438.0 8.7 Dunite
REI22-10
60.3 100.6 40.3 Dunite
129.4 405.4 276 Dunite
REI22-11
23.6 100.2 76.6 Dunite
124.0 246.4 122.4 Dunite
261.2 360.6 99.4 Dunite
371.0 402.0 31.0 Dunite
REI22-12
40.0 73.0 33.0 Peridotite
73.0 441.0 368.0 Dunite
A
B
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Figure 3 – Cross Section of Reid
Figure 4 – Reid – Stronger Mineralization Examples – REI22-14, REI22-16
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Deloro Nickel Property
The Deloro property is located 35 km south of Crawford and 8 km south Timmins and contains an
ultramafic target that measures 1.4 km north-south by 450 metres east -west (see Figure 5). The
exploration program consisted of 11 drillholes and succeeded at defining the continuity of the ultramafic
lithologies and nickel mineralization throughout the target anomaly in all 11 holes. Assays from an
additional 4 holes are being released (Table 2).
DEL22-05 collared in dunite and was drilled to the northeast. The hole intersected 394 metres of 0.26%
Ni and finished in dunite, only interrupted by minor dykes. Showing moderate to strong serpentinization
and visible pentlandite-heazlewoodite mineralization with minor awaruite.
DEL22-04 collared in dunite near the center of the target and drilled to the northeast. The dunite is
mineralized throughout, interrupted only by a few minor dykes. Dunite graded 0.26% Ni over 43 metres,
and 0.26% Ni over 271 metres. The hole reached the east contact intersecting Peridotite and Mafic
volcanics.
DEL22-08 collared in dunite and was drilled to the southwest. Dunite graded 0.22 % Ni over 156.5
metres at the top of the hole, and 0.25% Ni over 213 metres near the bottom and ended in dunite.
Hole DEL22-03 collared in dunite on the northern half of the target and was drilled to the southwest. The
hole remained and finished in dunite except for a section of pyroxenite in the center. The dunite sections
grading up to 0.24% Ni over 157.7 metres, and 0.22% Ni over 106.2 metres with visible pentlandite -
heazlewoodite mineralization. Hole DEL22-02 drilled at the most northern edge of the target, intersected
a sequence of pyroxenite, peridotite and dunite rocks with varying degrees of alteration and
mineralization. Assays for this hole are pending.
Table 2: Deloro Exploration Drilling Results
Hole ID From To Length Ni Co Pd Pt Cr Fe S
(m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)
DEL22-03 39.60 86.00 46.40 0.25 0.010 0.002 0.004 0.26 4.41 0.05
and 151.80 309.50 157.70 0.24 0.009 0.003 0.004 0.16 4.59 0.04
and 327.80 434.00 106.20 0.22 0.009 0.01 0.009 0.17 5.29 0.03
DEL22-04 9.60 53.00 43.40 0.26 0.010 0.003 0.003 0.13 4.25 0.04
and 112.10 383.70 271.60 0.26 0.010 0.003 0.003 0.17 4.94 0.05
including 242.00 296.00 54.00 0.28 0.011 0.003 0.003 0.24 5.35 0.04
DEL22-05 6.95 401.00 394.05 0.26 0.011 0.003 0.003 0.22 5.06 0.03
including 218.00 261.5 43.50 0.28 0.011 0.003 0.003 0.25 5.34 0.02
DEL22-08 5.40 161.90 156.50 0.22 0.013 0.003 0.005 0.42 5.32 0.03
and 189.00 402.00 213.00 0.25 0.010 0.003 0.005 0.14 4.90 0.05
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Figure 5 – Plan View of Deloro – Drill results Overlain on Total Magnetic Intensity
Reaume Nickel Property
Reaume is located 20 km northeast of Crawford and contains an ultramafic target that measures 3
km east-west by 1.4 km north -south. The geophysical footprint indicates a highly folded structure,
unlike the single differentiated sills observed at Dumont, Deloro , and other properties including
Bannockburn, Sothman, and McCool among others.
Drilling this summer successfully confirmed the presence of ultramafic rocks, dominated by
peridotite with nickel mineralization in 6 of 7 drillholes. The peridotite intersect ed was generally
lower grade than the peridotites at Crawford. Minor pyroxenite and dunite were also intersected
(Figure 6). The North half of the target remains untested , due to difficult access outside of winter.
Assays are pending for 3 of the 7 holes.
Hole REU22-01, REU22-02 and REU22-03 drilled a fan of drillholes from the same setup, located near
the southwest of the target . REU22-01 drilled to the south-southeast, collaring on peridotite at 9.4
metres and stayed in peridotite for 327.7 metres grading 0.14% Ni. After a small gabbro section, the
hole intersected and finished in dunite with an average grade of 0.21% Ni over 68.7 metres (Table
3).
Hole REU22-02 drilled to the east, collaring, and finishing in peridotite averaging 0.13% Ni over 242.5
metres with the whole extent displaying moderate to strong serpentinization and minor pentlandite-
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heazlewoodite mineralization.
Hole REU22-07 is located east of the previous holes and closer to the center of the target. The hole
collared in a pyroxenite, continued into peridotite, and finished in peridotite averaging 0.16% Ni over
364.5 metres.
Hole REU22 -03 drilled to the northeas t, and intersected a typical succession of ultramafic
differentiation, drilling through peridotite, pyroxenite and gabbro. The pyroxenite here averaged
0.19 g/t Pd and 0.11 g/t Pt over a length of 23 metres.
The drilling to date has intersected mostly weakly mineralized peridotite. The more mineralized dunite is
expected to occur on the eastern edge of the property to which access is limited to winter months. This
will be more directly targeted as exploration at Reaume continues.
Table 3: Reaume Exploration Drilling Results
Hole ID From To Length Ni Co Pd Pt Cr Fe S
(m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) (%)
REU22-01 9.40 337.10 327.70 0.14 0.012 0.005 0.008 0.46 7.84 0.02
and 351.30 420.00 68.70 0.21 0.012 0.02 0.006 0.46 7.36 0.07
REU22-02 4.50 247.00 242.50 0.13 0.012 0.005 0.01 0.46 7.98 0.02
REU22-03 8.00 235.50 227.50 0.08 0.012 0.010 0.022 0.38 8.58 0.03
REU22-07 39.50 404.00 364.50 0.16 0.012 0.008 0.012 0.48 7.74 0.04
Figure 6 – Plan View of Reaume – Drill results Overlain on Total Magnetic Intensity
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Bannockburn
Bannockburn was acquired by the Company on June 6, 2022 (see release June 7, 2022). Drilling by
the previous operator was consistent with our geophysical approach and further confirms our
geophysical targeting model. 8 holes intersected 160.9 to 369 .0 metres of mineralization and
multiple holes (GBN21-01, GBN21-02, GBN21-03, GBN21-04, GBN21-06) intersected nickel grades in
excess of 0.3%. (See Figure 7 and Table 4 below).
Future drilling will continue to expand the low-grade mineralization outlined by Grid Metals as well
as target the high-grade nickel (up to 5% Ni) in the C-zone at shallow depths.
Figure 7 – Bannockburn “B Zone” – Historical Drillholes Over Total Magnetic Intensity.