Premium Nickel Resources Ltd. Completes Purchase of Selkirk Mine in Botswana
Premium Nickel Resources Ltd. Completes
Purchase of Selkirk Mine in Botswana
Toronto, Ontario--(Newsfile Corp. - August 22, 2022) -
Premium Nickel Resources Ltd.
(TSXV:
PNRL)
(formerly, North American Nickel Inc.) ("Premium Nickel" or the "Company")
is pleased
to announce the completion of its acquisition of the nickel, copper, cobalt, platinum-group elements ("
Ni-
Cu-Co-PGE
") Selkirk Mine in Botswana, together with associated infrastructure and four surrounding
prospecting licences formerly operated by Tati Nickel Mining Company ("
TNMC
"). The acquisition was
completed pursuant to the Company's previously-announced asset purchase agreement with the
Liquidator of TNMC (see news release dated February 14, 2022). With the acquisition now complete,
ownership of the Selkirk Mine has been transferred to the Company.
The Company began comprehensive due diligence programs on the Selkirk Mine in 2020 and has since
continued to verify old data and collect new data, including completion of a 'concept-level' metallurgical
study. The metallurgical testing carried out at SGS Lakefield, Ontario, Canada, will help to establish the
Companies re-development plan to produce separate copper and nickel-cobalt concentrates.
Keith Morrison, CEO, commented:
"Completing the transfer of ownership of the Selkirk Mine
concludes PNRL's announced asset purchases with the Liquidator of TNMC in Botswana. On a voluntary
basis, PNRL will move forward with completing its initial NI 43-101 technical report on Selkirk and the
surrounding prospecting licenses. Concurrently, we will prioritize the preparation and exploration
requirements that will support our proposed redevelopment plans for new modern operations with state-
of-the-art processing and tailings management facilities. The re-development plan will encompass
modern best practices, using less power, less water and assuming conservative commodity prices."
The Selkirk Mine is situated 28 kilometres south-east of the town of Francistown, and 75 kilometres
north of the 100% owned Selebi Mines. The Selkirk mining license covers approximately 14.6 square
kilometres and the four prospecting licenses cover 126.7 square kilometres (
figure 1
). Production at the
Selkirk Mine took place between 1989 and 2002 with Anglo American mining high grade Ni-Cu massive
sulphides and producing 1 million tonnes at 2.6% Ni and 1.5% Cu. Thereafter, in 2006, LionOre Mining
International Ltd. ("
LionOre
") published a technical report in accordance with NI 43-101, which reported
a historic indicated mineral resource estimate of 6.0 Mt grading 1.06% Nickel and 0.36% Copper at a
cutoff grade of 0.75% Ni. The technical report entitled
"A Preliminary Assessment and Techno-
Economic Analysis of the Requirements for the Establishment of a Nickel Mining & Processing
Facility at the 'Selkirk Project' Situated on the Farms 73NQ and 75 NQ in NE Botswana, Mineral
Properties and Prospects Held by LionOre"
with an effective date of September 21, 2006 (the
"
Historic Selkirk MRE
") was prepared for LionOre by TMP Consulting (PTY) Ltd. See
"Historical
Estimate"
.
The former operator acquired Selkirk from Norilsk Nickel through a purchase agreement in
October 2014. Norilsk was preparing Selkirk as an open pit operation and had completed Definitive
Feasibility Studies in 2012 and 2013 (Norilsk Nickel Annual Reports).
Figures may be viewed using
the link provided with this news release.
PNRL intends to complete a technical report, in accordance with National Instrument 43-101 -
Standards
of Disclosure for Mineral Projects
("
NI 43-101
"), to advance its understanding of the Selkirk property.
The technical report is being prepared on a voluntary basis, as the Selkirk property is not a material
property of the Company pursuant to NI 43-101. Following the completion of the technical report, the
Company currently anticipates that a work plan will be proposed for the Selkirk Mine re-development that
will include drilling to better define the existing resources and search for additional resources, develop a
3D geological and structural model, and complete additional metallurgical studies.
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Sharon
Taylor, Chief Geophysicist of the Company, who is a "qualified person" for the purposes of NI 43-101.
Historical Estimate
The Historic Selkirk MRE, completed in 2006, is considered to be historical in nature and should not be
relied upon as a current mineral resource estimate. While management believes that the Historic Selkirk
MRE could be indicative of the presence of mineralization on the Selkirk Mines property, a qualified
person has not completed sufficient work to classify the historical mineral estimate as a current mineral
resource estimate and PNRL is not treating the historical mineral estimates as current mineral resource
estimate.
About Premium Nickel Resources Ltd.
PNRL is a Canadian company dedicated to the exploration and development of high-quality Ni-Cu-Co
resources. PNRL believes that the medium to long-term demand for these metals will continue to grow
through global urbanization and the increasing replacement of internal combustion engines with electric
motors. Importantly, these metals are key to a low-carbon future.
PNRL maintains a skilled team with strong financial, technical and operational expertise to take an asset
from discovery to exploration to mining.
PNRL has focused its efforts on discovering world class nickel sulphide assets in jurisdictions with rule-
of-law that fit a strict criteria that comply with PNRL's values and principles which stand up and surpass
the highest acceptable industry standards. PNRL is committed to governance through transparent
accountability and open communication within our team and our stakeholders.
On January 31, 2022, PNRL closed the acquisition of PNRL's flagship asset, the Selebi Mine. The
Selebi Mine includes two shafts, (Selebi and Selebi North shafts) and related infrastructure (rail, power
and water). Shaft sinking and plant construction started in 1970. Mining concluded in October 2016 when
the operations were placed on care and maintenance due to a failure in the separate and offsite
processing facility. The Selebi Mine was subsequently placed under liquidation in 2017.
The proposed work plan for the Selebi Mine includes diamond drilling which is expected to be ongoing
for up to 18 months. During that time, additional metallurgical samples will be collected and sent for more
detailed studies. The underground infrastructure at Selebi North will be upgraded to support an
underground drilling program as well as improve health & safety.
In addition, PNRL is evaluating direct and indirect nickel asset acquisition opportunities globally, and
also: (i) holds a 100% interest in the Maniitsoq property in Greenland, which is a camp-scale permitted
exploration project comprising 3,048 square kilometres covering numerous high-grade nickel-copper +
cobalt-sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the
Greenland Norite Belt; (ii) holds a 100% interest in the Post Creek/Halcyon property in Sudbury, Ontario
which is strategically located adjacent to the past producing Podolsky copper-nickel-precious metal
sulphide deposit of KGHM International Ltd.; (iii) holds a 100% ownership of property in the Quetico
region near Thunder Bay, Ontario; and (iv) is expanding its area of exploration interest into Morocco.
ON BEHALF OF THE BOARD OF DIRECTORS
Keith Morrison
Chief Executive Officer
Premium Nickel Resources Ltd.
For further information about Premium Nickel Resources Ltd., please contact:
Jaclyn Ruptash
Vice President Business Development
+1 (604) 770-4334
Cautionary Note Regarding Forward-Looking Information
Certain statements contained in this news release may be considered "forward-looking statements"
within the meaning of applicable Canadian securities laws, including the ability of exploration results
(including drilling) and past production to accurately predict mineralization; the timing and ability of
the Company to prepare a technical report on the Selkirk property in accordance with NI 43-101; the
ability of the Company to compile and verify historic data; and the business and prospects of the
Company. These forward-looking statements, by their nature, require the Company to make certain
assumptions and necessarily involve known and unknown risks and uncertainties that could cause
actual results to differ materially from those expressed or implied in these forward-looking statements.
Forward-looking statements are not guarantees of performance. Words such as "may", "will", "would",
"could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or
comparable terminology, as well as terms usually used in the future and the conditional, are intended
to identify forward-looking statements. Information contained in forward-looking statements are based
upon certain material assumptions that were applied in drawing a conclusion or making a forecast or
projection, including management's perception of geology and mineralization; perceptions of
historical trends, current conditions and expected future developments, current information available
to the management of the Company, public disclosure from operators of the relevant mines, as well
as other considerations that are believed to be appropriate in the circumstances. The Company
considers its assumptions to be reasonable based on information currently available, but cautions the
reader that their assumptions regarding future events, many of which are beyond the control of the
Company, may ultimately prove to be incorrect since they are subject to risks and uncertainties that
affect the Company and its businesses.
For additional information with respect to these and other factors and assumptions underlying the
forward-looking statements made in this news release concerning the Company, see the section
entitled "Risks and Uncertainties" in the most recent management discussion and analysis of the
Company, which is filed with the Canadian securities commissions and available electronically under
the Company's issuer profile on SEDAR (
www.sedar.com
) and the risk factors outlined in the filing
statement of the Company dated July 22, 2022, which are available electronically on SEDAR
(
www.sedar.com
) under the PNRL's issuer profile. The forward-looking statements set forth herein
concerning the Company reflect management's expectations as at the date of this news release and
are subject to change after such date. The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information, future events or
otherwise, other than as required by law.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news
release. No stock exchange, securities commission or other regulatory authority has approved
or disapproved the information contained herein.
Figure 1. Selkirk Mining License
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7759/134454_9a2edb0094de5b82_002full.jpg
.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/134454