Canada Nickel Reports Encouraging Initial Metallurgical Results from its Texmont Project, Announces Consolidation of Texmont Region
Canada Nickel Reports Encouraging Initial Metallurgical Results
from its Texmont Project, Announces Consolidation of Texmont Region
Highlights
• Initial metallurgy work yields e xcellent nickel and cobalt recoveries producing high -grade
concentrates:
o Nickel recoveries of 79 - 84%
o Cobalt recoveries of 77 - 83%
o Final concentrate grades of 18 - 28% nickel with up to 0.7% cobalt
• Simple process can be u sed and would provide significant flexibility for potential toll milling
opportunities
• Company acquires 9,520 hectares of mining claims covering 20 kilometres of strike length with the
potential to host Texmont style mineralization
TORONTO, June 22, 2023 – Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV:CNC)
(OTCQX:CNIKF) is pleased to announce the initial results from preliminary metallurgical test work on the
first set of samples from the Texmont Nickel Sulphide Project, which demonstrates a range of grades could
be processed using a simple process flowsheet and recoveries that meet or exceed historical results.
Mark Selby, CEO said, “ Texmont continues to deliver excellent results , with initial metallurgy yielding
nickel and cobalt recoveries and concentrate grades exceeding our expectations. Further, these results
were achieved with a simple flowsheet which will maximize potential opportunities to toll mill our initial
production. I look forward to the next phases of work while we complete our initial resource on Texmont
and complete a Preliminary Economic Analysis (“PEA”) by year-end.”
Mr. Selby continued, “Given our success at Texmont, we capitalized on the opportunity to acquire regional
mining claims , consolidating 20 kilometres of property with the potential to find more Texmont -style
deposits. We have signed a total of 10 agreements which consolidate 9,520 hectares of mining claims. We
view this as an important and highly prospective addition to our Timmins Nickel District.”
Figure 1. Preliminary Metallurgy Work - Texmont Recovery Performance
Description of Results
The Texmont property is a past producing mine, located approximately 36 kilometres south of Timmins,
that contains a large ultramafic body. Through analysis of historic drill data and supported by new drilling
(refer to news release June 1, 2023), Canada Nickel has identified a near surface, high grade zone of > 1%
nickel wrapped within a moderate-high grade zone of 0.6 to 1.0% nickel. The company is evaluating the
potential for near term production from Texmont through open pit mining of th is moderate-high grade
material.
Table 1 summarizes the results of open circuit testing completed at XPS (A Glencore Company), on three
samples from Texmont, with head grades ranging from 0.67 – 1.52% nickel. The samples were selected to
represent the moderate-high grade zone of the deposit and were tested using a simple flowsheet with
samples ground to 100 microns, that does not require desliming, and which offers flexibility for toll milling.
Nickel recoveries were in the range of 79 to 84%, while cobalt recoveries were similarly high, ranging from
77 to 83%. The mineralization shows excellent upgrading potential, with final cleaner concentrate grades
between 18 to 28% nickel and 0.44 to 0.70% cobalt, which is considered a high-grade concentrate for
material with pentlandite style mineralization . The Company is very encouraged by these results, which
are in line with and exceeding the historical results documented in the 2007 Fletcher Nickel NI 43-101
report, supporting the potential for a near term open pit operation.
Table 1. Open Circuit Metallurgical Test Results at Texmont
Head Grades
(%)
Rougher Recovery1
(%)
Final Cleaner
Concentrate Grade1
(%)
Sample ID Ni Co S Ni Co Ni Co
Sample 1 1.52 0.038 1.46 84 83 28 0.70
Sample 2 1.04 0.028 0.97 81 79 26 0.68
Sample 3 0.67 0.017 0.68 79 77 18 0.44
1 The grades and recoveries in Table 1 are from open cycle tests and should be considered indicative of
what could be achieved in a locked cycle test. Final results will be determined by completing locked cycle
testing in the next phase of metallurgical work.
84% Ni 81% Ni 79% Ni83% Co 79% Co 77% Co
Sample 1
1.52% Ni Head Grade
Sample 2
1.04% Ni Head Grade
Sample 3
0.67% Ni Head Grade
Nickel Recovery Cobalt Recovery
Next Steps in Metallurgical Testing
Through the summer months, Canada Nickel expects to finalize the metallurgical flowsheet by conducting
locked cycle and metallurgical variability tests. This test program will be used to define recovery equations
for the Texmont PEA, which is expected to be released by the end of 2023.
Acquisition of Texmont Trend
Canada Nickel, through a series of ten Purchase and Sale Agreements (including one previously announced
for 54,000 common shares) has acquired 403 additional mining claims within the Texmont ultramafic
trend. The Company will issue a total of 515,400 common shares (461,400 and 54,000) and make cash
payments totaling $300,550. Each of the foregoing issuances of common shares are subject to the prior
approval of the TSX Venture Exchange, and the shares will be subject to a four -month hold period under
Canadian securities laws from the date of the respective issuance.
Figure 2. Texmont Ultramafic Trend
Qualified Person and Data Verification
Arthur G. Stokreef, P.Eng . (ON), Manager of Process Engineering & Geometallurgy and a “qualified
person” as such term is defined by National Instrument 43-101, has reviewed and approved the technical
information in this news release on behalf of Canada Nickel Company Inc.
About Canada Nickel
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 trademark the terms NetZero Nickel ™, NetZero Cobalt™ and NetZero
Iron™ 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.
About XPS (A Glencore Company)
XPS (A Glencore Company) is an engineering and testing facility based in Falconbridge, Ontario. They
provide Industry Relevant Solutions to the mining and metals industry, including process development for
new mines. Services offered range from materials selection, process control, process modelling,
mineralogy, geometallurgy, mineral processing and extractive metallurgy.
For further information, please contact:
Mark Selby, CEO
Phone: 647-256-1954
Email: [email protected]
Cautionary Note and 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
and exploration results relating to the target properties described herein (the “Properties"), the potential
of the Crawford Nickel Sulphide Project, the Texmont Project and the other Properties, timing of economic
studies and mineral resource estimates, nickel and cobalt recoveries, grades of concentrates, the ability
to toll mill material from Texmont, the potential for near term production at Texmont using an open pit
mine, the potential to find more Texmont style deposits in the newly acquired claims, the ability to sell
marketable materials, strategic plans, including future exploration and development results, and
corporate and technical objectives. Forward -looking inform ation is necessarily based upon several
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 e xpenditures 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 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 because of new information, future events or otherwise, except as required
by law.