Canada Nickel Identifies Multiple Nickel Targets on Recently Acquired Option Properties
Canada Nickel Identifies Multiple Nickel Targets on Recently
Acquired Option Properties
Highlights
Seven separate nickel-bearing target structures with more than 30 kilometres of total strike length ranging from 150 to 600 metres wide
have been identified
Historic drilling yielded nickel-bearing intersections on all of the target structures.
Kingsmill – 0.30% Ni over core length of 503 metres from 118 metres in historic hole KML-12-02 (2012) and 0.31% Ni over 302 metres
core length from 20 metres in historic hole 27090 (1966)
Nesbitt-North – 0.28% Ni over core length of 163 metres from 233 metres in historic hole 27083 (1966)
Mahaffy-Aubin – 0.23% Ni over core length of 127 metres from 82 metres in historic hole 31901 (1966) and core length of 276 metres
of serpentinized ultramafic mineralization (similar host mineralization at Crawford) in historic hole T2-80-2 (1980) with no assays
provided
Please note that a majority of the holes were drilled more than forty years ago and only tested the periphery of target structures and did
not traverse entire width of the proposed targets. See below caution regarding Historical Information
PGM-enriched structures similar to Crawford also identified at Kingsmill
1.0 g/t PGM over 2 metres from 96 metres within 0.3 g/t PGM over 30 metres from 69 metres in historic hole KML-12-11 (2012), 0.8
g/t PGM over 5 metres from 523 metres within 0.5 g/t PGM over 24 metres in historic hole KML-12-07 (2012).
TORONTO
,
July 13, 2020
/CNW/ - Canada Nickel Company Inc. (TSX-V:CNC) ("Canada Nickel" or the "Company") today announced that after
reviewing historical drilling and geological information, it has identified multiple nickel targets with large scale potential on option properties that
were acquired in
May 2020
.
"This initial review highlights the nickel-cobalt sulphide potential of the overall land package we have assembled in addition to our Crawford
project: seven different structures ranging in size from 2.2 kilometres long by 375-600 metres wide (Kingsmill), and 8 kilometres long by 200-
500 metres wide (Mahaffy-Aubin), and each structure yielding historical drill intersections indicating that the geophysical targets identified are
nickel bearing,"
said
Mark Selby
, Chair and CEO of Canada Nickel.
"We have already defined a large resource, yet we believe we are just
scratching the surface of the nickel-cobalt sulphide potential of the property. Even with our upcoming resource update, we still have more than
half of Crawford left to explore in addition to all of these new properties, which we will evaluate further once we complete the geological work
necessary to deliver our Preliminary Economic Analysis (PEA) by year-end."
The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific
Timmins
-
Cochrane
mining camp in
Ontario, Canada
, and is
adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.
Figure 1 – Plan view of Crawford, Kingsmill, Nesbitt-Aubin, Nesbit North, MacDiarmid and Mahaffy-Aubin Properties, Ontario. (CNW
Group/Canada Nickel Company Inc.)
Kingsmill
The Kingsmill target is a large serpentinized ultramafic intrusion which is 2.2 km long and between 375-600 metres wide. For reference, the
Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.
Initial review of historical drilling results has yielded both significant nickel and PGM intersections and the north side of the structure appears to
have the same PGE enrichment as Crawford Main and East Zones: 1.0 g/t PGM over 2 metres from 96 metres within 0.3 g/t PGM over 30
metres from 69 metres in historic hole KML-12-11, 0.8 g/t PGM over 5 metres from 523 metres within 0.5 g/t PGM over 24 metres in historic
hole KML-12-07.
The Company believes that the initial review points to several large portions of the structure which remain highly prospective for nickel-cobalt-
PGM mineralization:
The two sections were 1.3 km apart leaving a large portion of the overall structure completely untested.
There are several intersections which points to the potential for relatively higher quantities of recoverable minerals
Holes KML-12-06, KML-12-11, KML-12-12 on the Eastern section all contained intersections with significant nickel and sulphur content
(which is necessary for formation of nickel sulphide minerals) across wide intersections (see Table 1 below)
Hole KML-12-03, yielding 0.26% nickel and 0.03% sulphur over 130 metres, was the only hole (of four holes on the Western section)
drilled on the northern half of the structure, which has yielded the best mineralized portions of the Crawford Main and East Zones
Historic hole 27090 also drilled on north side of the structure in 1966 yielded 0.31% nickel over 302 metres (sulphur was not
assayed)
The understanding of the mineralogy of these deposits has evolved significantly since the Kingsmill drilling was completed eight years ago,
particularly the controls and the deportment of potentially recoverable nickel minerals across a deposit. Initial mineralogy results from Kingsmill in
2012 were less positive as the test was conducted on one master sample compiled from all drill cores – not taking into account the significant
variability in mineralogy between rock types, and that some ultramafic rock will have low amounts of potentially recoverable nickel minerals.
See Tables
1a and
1b
and Figure 2 for results. See below caution regarding Historical Information.
Table 1a – Kingsmill Selected Historical Drilling Key Nickel Intersections – Holes 6, 11, 12 (Eastern), 3 (Western), Kingsmill Township,
Ontario
DDH ID
From
To
Length
Ni
Co
Pd
Pt
S
Fe
(m)
(m)
(m)
(%)
(%)
(g/t)
(g/t)
(%)
(%)
KML-12-02
117.1
620.6
503.5
0.30
0.012
0.003
0.003
0.01
5.36
KML-12-03
134.0
264.4
130.4
0.26
0.012
0.022
0.022
0.03
6.51
including
134.0
169.0
35.0
0.24
0.013
0.042
0.055
0.01
7.59
Including
235.0
264.4
29.4
0.27
0.011
0.008
0.003
0.06
5.94
KML-12-06
54.7
550.0
495.3
0.21
0.011
0.006
0.005
0.05
5.89
including
57.0
324.0
267.0
0.26
0.011
0.008
0.006
0.03
5.88
KML-12-11
112.0
304.0
192.0
0.24
0.011
0.009
0.006
0.03
6.11
including
181.0
303.0
122.0
0.27
0.012
0.008
0.005
0.02
6.25
KML-12-12
175.0
272.0
97.0
0.18
0.011
0.018
0.010
0.10
5.98
Note: 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. True widths will be less than the core lengths by a number of
factors. The drill hole orientations are reported in Table 2. See below caution regarding Historical Information.
Table
1b
– Kingsmill Selected Historical Drilling Key PGM Intersections – Holes 6, 11, 12 (Eastern), 3 (Western), Kingsmill Township,
Ontario
DDH ID
From
To
Length
Pd+Pt
Pd
Pt
Ni
Co
(m)
(m)
(m)
(g/t)
(g/t)
(g/t)
(%)
(%)
KML-12-07
522.0
546.2
24.2
0.4
0.2
0.2
0.06
0.008
including
523.0
528.0
5.0
0.8
0.5
0.3
0.02
0.005
KML-12-11
69.0
99.0
30.0
0.3
0.1
0.1
0.01
0.004
including
96.0
98.0
2.0
1.0
0.3
0.7
0.01
0.005
KML-12-12
153.0
157.0
4.0
0.4
0.2
0.3
0.02
0.005
Note: 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. True widths will be less than the core lengths by a number of
factors. The drill hole orientations are reported in Table 2. See below caution regarding Historical Information.
Figure 2 – Plan view of Kingsmill Property – Historical drilling overlain on total field magnetic intensity, Kingsmill Township, Ontario. (CNW
Group/Canada Nickel Company Inc.)
For details on Noble Mineral Exploration Inc.'s ("Noble") 2012 drilling program, please see Noble's press release dated
March 15, 2018
that is
filed on
www.sedar.com
.
Once the resource update for Crawford is complete, the historic drilling will be re-logged based on our understanding of the geology, and
mineralogical samples will be selected to understand the deportment of potentially recoverable nickel minerals (pentlandite, heazlewoodite,
awaruite).
Crawford-Nesbitt-Aubin
Two targets have been identified in Crawford-Nesbitt-Aubin Township, consisting of two ultramafic units 6 km long and 150-200 metres wide
containing serpentinized peridotite, much of it was not assayed. Inco drilling in 1964-66 yielded highlights including narrow intervals of up to
0.35% Ni which tested the edges of the geophysical target. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres
wide.
See Figure 3 for results. See below caution regarding Historical Information.
Figure 3 – Plan view of Crawford-Nesbitt-Aubin Property – Historical drilling overlain on total field magnetic intensity, Crawford, Nesbitt and Aubin
Townships, Ontario. (CNW Group/Canada Nickel Company Inc.)
Nesbitt North
Two ultramafic units 3.7 km long by 150-300 metres wide with significant nickel intersections were identified in
Nesbitt
township. Inco 1966
drilling highlights included 0.28% Ni over
163 m
in historic hole 27083. For reference, the Crawford Main Zone resource is 1.7 km long and 225-
425 metres wide.
See Figure 4 for results. See below caution regarding Historical Information.
Figure 4 – Plan view of Nesbitt North Property – Historical drilling overlain on total field magnetic intensity, Nesbitt Township, Ontario. (CNW
Group/Canada Nickel Company Inc.)
MacDiarmid
A target of 3 km by 150-600 metres wide ultramafic intrusion with serpentinized peridotite has been identified, much of it was not assayed.
Highlights include historic hole 18127 which intersected
142 m
of mineralized peridotite which was not assayed, and narrow intervals of up to
0.22% Ni over
1.5 m
in NRK-65-7 (1965). For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.
See Figure 5 for results. See below caution regarding Historical Information.
Figure 5 – Plan view of MacDiarmid Property – Historical drilling overlain on total field magnetic intensity, MacDiarmid Township, Ontario. (CNW
Group/Canada Nickel Company Inc.)
Note: Property continues beyond map boundary.
Mahaffy-Aubin
A target of 8 km by 200-500 metres wide interpreted ultramafic intrusion has been identified, much of it was not assayed. Highlights include
historic hole 31901 (1966) which intersected 0.23% Ni over
127 m
, and hole T2-80-2 (1980) which intersected
277 m
of serpentinized ultramafic
rock with no assays reported. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.
See Figure 6 for results. See below caution regarding Historical Information.
Figure 5 – Plan view of Mahaffy-Aubin Property – Historical drilling overlain on total field magnetic intensity, Mahaffy and Aubin Townships,
Ontario. (CNW Group/Canada Nickel Company Inc.)
Table 2 – Historical Drill Hole Orientation, Canada Nickel Option Properties,
Ontario
HOLE ID
AREA
Easting
Northing
Dip
Azimuth
Length
(mE)
(mN)
(°)
(°)
(m)
KML-12-02
Kingsmill
454800
5422820
-60.0
30.0
620.6
KML-12-03
Kingsmill
454960
5423010
-45.0
30.0
281.0
KML-12-06
Kingsmill
456125
5422860
-50.0
0.0
551.0
KML-12-07
Kingsmill
456180
5422600
-50.0
0.0
546.6
KML-12-11
Kingsmill
456125
5423110
-45.0
180.0
308.0
KML-12-12
Kingsmill
456125
5423110
-80.0
180.0
272.0
27090
Kingsmill
454842
5423088
-45.0
335.0
495.9
18127
MacDiarmid
459781
5390438
-50.0
180.0
178.0
NRK-65-7
MacDiarmid
457198
5392500
-60.0
35.0
132.6
31901
Mahaffy-Aubin
457926
5415532
-50.0
80.0
205.1
T2-80-2
Mahaffy-Aubin
457694
5413626
-50.0
0.0
276.5
27083
Nesbitt-North
468008
5416506
-50.0
0.0
502.6
Note:
See below caution regarding Historical Information.
Option Terms:
As detailed in its
March 4, 2020
and
May 22, 2020
news releases, Canada Nickel acquired the Crawford Annex property and the option to earn
up to an 80% interest in 5 additional nickel targets within the Project 81 land package. The Crawford Annex comprises 4,909 hectares in
Crawford and Lucas township and the 5 option areas (Crawford-Nesbitt-Aubin,
Nesbitt North
, Aubin-Mahaffy, Kingsmill-Aubin, and
MacDiarmid
)
("Option Properties") range in size of 903 to 5,543 hectares. See Figure 1 for a map of property locations.
Canada Nickel has the option to earn up to an 80% interest in each of the Option Properties on the following terms and conditions.
1) Canada Nickel can initially earn a 60% interest in each of the Option Properties within 2 years by
:
funding at least
$500,000
of exploration and development expenditures on each option property;
paying all property maintenance costs for each option property, including all applicable mining land taxes
making a payment to Noble of
$250,000
in cash or, at Noble's election, Canada Nickel common shares.
2) Canada Nickel has the right to then increase their interest to 80% in each of the Option Properties within 3 years by funding an additional
$1,000,000
of exploration and development expenditures on each option property (for a total of
$1,500,000
per option property)
If the conditions to earn a 60% interest or 80% interest have been satisfied, a joint venture would be formed on that basis and a 2% net smelter
return royalty would be granted to Noble on the portion of the property which are mining claims and currently do not have any royalty on them.
(The overall result would be a total of 2% on each property.)
Cautionary Statement Concerning
Historical Information
The historical information referenced in this press release is based primarily on drilling results reported by Inco Ltd. and Noble Mineral
Exploration Inc. The information has also been filed with the Ontario Government and is available on-line though the Mining Lands Administration
System (MLAS) website. The company believes this information is relevant, as it was completed by reputable companies using industry standard
drilling and sampling practices. The company or its "qualified person" (for the purposes of National Instrument 43-101 – Standards of Disclosure
for Mineral Projects) has reviewed the information to confirm it has been correctly reproduced from the public MLAS database, but given the
company's and its qualified person's inability to access the underlying data, the company or its qualified person has not done sufficient work to
verify the historical information contained in this news 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.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the
high growth electric vehicle and stainless steel markets. Canada Nickel provides investors with leverage to nickel and cobalt 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.
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-Cobalt Sulphide Project, the potential of the
Crawford Nickel-Cobalt Sulphide Project, 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, timing of the updated resource estimate, risks of the mining industry, delays in obtaining
governmental approvals, and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to
be accurate, as actual results and future events could differ materially from 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 and 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.
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SOURCE
Canada Nickel Company Inc.
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%SEDAR: 00048733E
For further information:
Mark Selby, Chair and CEO, Phone: 647-256-1954, Email: [email protected]
CO: Canada Nickel Company Inc.
CNW 16:30e 13-JUL-20