Highlights:
- Initial Reid Indicated Resource of 0.59 billion tonnes grading
0.24% nickel containing 1.4 million tonnes of nickel, an Inferred
Resource of 0.99 billion tonnes grading 0.23% nickel containing 2.2
million tonnes of nickel. Exploration Target1 potential
of an additional 0.9-2.1 billion tonnes grading 0.20-0.22%
nickel
- Reid is the second of seven new nickel resources expected to be
published by mid-2025 demonstrating the potential scale of the
Timmins Nickel District
- 2024 drilling program across the Timmins Nickel District
completed over 119,000 metres across fourteen properties
TORONTO, Dec. 23,
2024 /CNW/ - Canada Nickel Company
Inc. ("Canada Nickel" or the "Company")
(TSXV: CNC) (OTCQB: CNIKF) today announced an initial mineral
resource (the "Mineral Resource Estimate") for its 100% owned Reid
Nickel Sulphide Project ("Reid") near Timmins, Ontario.
The Reid Nickel Sulphide Project is located just 16 kilometres
southwest of the Company's Crawford Nickel Sulphide Project
("Crawford") and is more than twice the size of Crawford based on
the outline of its geophysical target of 3.9 square kilometres. The
area of the geophysical target covered by the Reid resource
represents approximately 55% of the total target area. The Reid
project is now accessible year-round by an exploration road
constructed by Canada Nickel during the fall of 2024.
Mark Selby, CEO of Canada Nickel
said, "The size and scale of the Reid resource, which is
significantly larger than the initial Crawford resource, validates
our belief in the potential of the Timmins Nickel District. Reid's
target footprint is more than twice the size of our initial
Crawford project and is only the second of seven new mineral
resources we expect to announce by mid-2025. We look forward to
continuing to demonstrate the potential of this world class
district."
|
1 the potential quantity and grade is
conceptual in nature; there has been insufficient exploration to
define a mineral resource; it is uncertain if further exploration
will result in the target being delineated as a mineral resource
(also see below).
|
Reid Mineral Resource Estimate
For the initial Mineral Resource Estimate, a total of 26,508
metres of core drilling in 55 drill holes were utilized to
calculate the Reid Resources in two categories as provided in Table
1. Indicated Resources totalled 0.59 billion tonnes grading 0.24%
nickel, for a total of 1.4 million tonnes of contained nickel and
Inferred Resources totalled 0.99 billion tonnes grading 0.23%
nickel, for a total of 2.2 million tonnes of contained nickel. The
approximate dimensions of the resource are 2.2 kilometres long, 900
metres wide, extending to 700 metres deep and remaining open in
multiple directions. An additional 0.9 - 2.1 billion tonnes grading
between 0.20 and 0.22% nickel remain as a potential Exploration
Target pending further drilling. This Exploration Target is based
on core drilling by the Company and geophysical survey on the
Project. The Exploration Target potential was derived by modelling
the identified nickel sulphide mineralization within the current
estimation envelope but outside of the current Mineral Resource
Estimate area.
The volume of the modelled Exploration Target area determines
the potential tonnage statement in the Exploration Target. The
grade range given in the Exploration Target is determined with
consideration to the drill core results within the modelled
Exploration Target area, consideration of the geological setting in
a well understood nickel deposit type where grades are observed and
well understood and based on the experience of the Company and the
Qualified Persons. The potential tonnages and grades are conceptual
in nature and are based on drill holes and geophysical results that
define the approximate length, thickness, depth and grade of the
Exploration Target potential. There has been insufficient
exploration to define a current mineral resource and the Company
cautions that there is a risk that further exploration will not
result in the delineation of a current mineral resource.
Drilling at Reid was completed in 2022 and 2024. The 2024
campaign successfully completed the goal of infilling previous
sections to define an initial mineral resource estimate, gain
understanding on the geology of the deposit as well as
systematically collecting samples for mineralogical analysis that
would help define the potential of nickel recovery.
The Reid Mineral Resource Estimate was prepared by Caracle Creek
International Consulting Inc. in accordance with CIM Estimation of
Mineral Resources & Mineral Reserves Best Practice Guidelines
(2019) and CIM Definition Standards for Mineral Resources &
Mineral Reserves (2014). A Technical Report in support of the
Mineral Resource Estimate will be filed on SEDAR+
(www.sedarplus.ca) within 45 days of this news release.
Table 1 – Initial Mineral Resource Estimate (in-pit
resources) for the Reid Nickel Sulphide Deposit, Ontario
|
Mineral Resource
Estimate
|
|
Contained
Metal
|
|
Domain
|
Class
(Category)
|
Tonnes
(Mt)
|
Ni
(%)
|
Co
(%)
|
Fe
(%)
|
Cr
(%)
|
S
(%)
|
Pd
(g/t)
|
Pt
(g/t)
|
|
Ni
(kt)
|
Co
(kt)
|
Fe
(Mt)
|
Cr
(kt)
|
Pd
(koz)
|
Pt
(koz)
|
|
Higher
Grade
|
Indicated
|
525.6
|
0.25
|
0.012
|
6.0
|
0.71
|
0.048
|
0.010
|
0.007
|
|
1,294
|
63.7
|
31.7
|
3,742
|
167.0
|
120.2
|
|
Inferred
|
754.0
|
0.24
|
0.012
|
6.1
|
0.71
|
0.050
|
0.009
|
0.007
|
|
1,792
|
92.0
|
46.3
|
5,337
|
227.3
|
182.7
|
|
Lower
Grade
|
Indicated
|
70.2
|
0.19
|
0.013
|
7.3
|
0.60
|
0.045
|
0.014
|
0.011
|
|
135
|
9.1
|
5.1
|
418
|
30.7
|
24.0
|
|
Inferred
|
233.4
|
0.19
|
0.013
|
7.2
|
0.59
|
0.049
|
0.012
|
0.010
|
|
443
|
29.9
|
16.9
|
1,368
|
93.0
|
76.9
|
|
Total
|
Indicated
|
595.7
|
0.24
|
0.012
|
6.2
|
0.70
|
0.048
|
0.010
|
0.007
|
|
1,430
|
72.9
|
36.8
|
4,161
|
197.7
|
144.3
|
|
Inferred
|
987.4
|
0.23
|
0.012
|
6.4
|
0.68
|
0.050
|
0.010
|
0.008
|
|
2,235
|
121.9
|
63.1
|
6,705
|
320.3
|
259.6
|
*Totals may not add due to rounding.
|
1.
|
The independent
Qualified Person for the Mineral Resource Estimate ("MRE"), as
defined by NI 43-101, is Dr. Scott Jobin-Bevans (P.Geo., PGO
#0183), of Caracle Creek International Consulting Inc. The
effective date of the Mineral Resource Estimate is December 5,
2024.
|
|
2.
|
The quantity and
grade of reported Inferred Resources in this MRE are uncertain in
nature and there has been insufficient exploration to define these
Inferred Resources as Indicated or Measured. However, it is
reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration.
|
|
3.
|
A cut-off grade of
0.10% Ni was used to define potentially economic material for
inclusion within the MRE. Cut-offs were determined on the based on
core assay geostatistics and drill core lithologies for the
deposit, and by comparison to analogous nickel deposit
types.
|
|
4.
|
Geological and block
models for the MRE used data from a total of 55 surface drill
holes, completed by Canada Nickel in 2022 and 2024. The drill hole
database was validated prior to resource estimation and QA/QC
checks were made using industry-standard control charts for blanks,
core duplicates and commercial certified reference material
inserted into assay batches by Canada Nickel and by comparison of
umpire assays performed at a second laboratory.
|
|
5.
|
Estimates have been
rounded to two significant figures.
|
|
6.
|
The MRE was prepared
following the CIM Estimation of Mineral Resources & Mineral
Reserves Best Practice Guidelines (November 29, 2019) and the CIM
Definition Standards for Mineral Resources & Mineral Reserves
(May 19, 2014).
|
|
7.
|
The geological model
as applied to the MRE comprises two mineralized domains hosted by
variably serpentinized ultramafic rocks: a relatively higher-grade
core (dunite) and a lower grade (transitional dunite). Individual
wireframes were created for each domain in Leapfrog Geo 2024.1
software.
|
|
8.
|
A 20 m x 20 m x 15 m
block model was created, and samples were composited at 7.5 m
intervals. Grade estimation from drill hole data was carried out
for Ni, Co, Fe, Cr, S, Pd and Pt using the Ordinary Kriging
interpolation method in Isatis 2024.04 software.
|
|
9.
|
The MRE has been
constrained by a conceptual pit envelope that was developed using
the following optimization parameters. Metal prices used were
US$21,000/t nickel, US$40,000/t cobalt, US$325/t iron, US$3,860/t
chromium, US$1,350/oz palladium, and US$1,150/oz platinum.
Different pit slopes were used for each layer (in degrees): 9.5 in
overburden, and 45.0 in rock. Exchange rate utilized was
US$/C$ at $0.76. Mining costs utilized different values for
overburden (clay, gravel), and rock mining, ranging from C$1.59 to
C$3.38/t mined. Processing costs and general and administration
costs for a 120 ktpd operation (similar to the ultimate scope of
Crawford) were C$7.65/t. Based on the range of grade and ratio of
sulphur to nickel, calculated recovery averages 49% for Ni, 11% for
Co, 57% for Fe, 30% for Cr and 32% for Pt and Pd.
|
|
10.
|
Grade estimation was
validated by comparison of input and output statistics (Nearest
Neighbour and Inverse Distance Squared methods), swath plot
analysis, cross-plots of declustered samples against the nearest OK
estimate, and by visual inspection of the assay data, block model,
and grade shells in cross-sections.
|
|
11.
|
Density estimation
was carried out for the mineralized domains using the Ordinary
Kriging interpolation method, based on 3,189 specific gravity
measurements collected during the core logging process, using the
same block model parameters of the grade estimation. As a
reference, the average estimated density value within dunite is
2.65 g/cm3
(t/m3), while the
transitional dunite domain yielded an average of 2.69
g/cm3 (t/m3).
|
Next Steps at Reid:
- A technical report with respect to the Mineral Resource
Estimate disclosed today will be filed within 45 days
- Mineralogical studies and metallurgical testwork will continue
through 2025, as well as infill drilling to further upgrade the
mineral resource
Overall Exploration Update
The Company's 2024 exploration program focused on demonstrating
the potential of the Company's portfolio in the Timmins Nickel
District through the initial drilling of several promising
ultramafic targets to the delineation of mineral resources on
targets previously drilled by the Company. Canada Nickel has
completed 59 drill holes at Reid since acquiring the Project for a
total of 34,615 metres. In 2024, the Company drilled 32 holes at
Crawford to better define the Crawford PGM Zone, 26 holes at
Texmont, 93 holes at Mann, 16 holes at Bannockburn and 12 holes at Midlothian. The
Company then plans to publish five additional resources before the
end of the first half of 2025.
Assays, Quality Assurance/Quality Control and
Drilling
Edwin Escarraga, MSc, P.Geo., a
"Qualified Person" within the meaning of NI 43-101, is responsible
for the on-going drilling and sampling program, including quality
assurance (QA) and quality control (QC). The core is collected from
the drill in sealed core trays and transported to the secure core
logging facility (core shack). The core is marked and sampled at
1.5 metre lengths and cut with a diamond blade saw. One set of
samples is transported in secured bags directly from the Canada
Nickel core shack to Actlabs Timmins, while a second set of samples
is securely shipped to SGS Lakefield for preparation, with analysis
performed at SGS Burnaby. All are ISO/IEC 17025 accredited labs.
Analysis for precious metals (gold, platinum, and palladium) are
completed by Fire Assay while analysis for nickel, cobalt, sulphur
and other elements are performed using a peroxide fusion and
ICP-OES analysis. Certified standards and blanks (QA/QC samples)
are inserted at a rate of three QA/QC samples per 20 core samples
making a batch of 60 samples that are submitted for analysis.
Qualified Person and Data Verification
Stephen J. Balch P.Geo. (ON), VP
Exploration of Canada Nickel and a "Qualified Person" within the
meaning of NI 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.
The magnetic images shown in this news release were created
from Canada Nickel's interpretation of datasets provided by the
Ontario Geological Survey.
About Canada Nickel Company
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 NickelTM, NetZero
CobaltTM, NetZero IronTM 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.
For further information, please contact:
Mark Selby
CEO
Phone: 647-256-1954
Email: info@canadanickel.com
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, the potential of the Reid Nickel Sulphide
Project, timing for filing a technical report in support of the
Mineral Resource Estimate, the significance of drill results,
the ability to continue drilling, the impact of drilling on the
definition of any resource, timing and completion (if at all) of
additional mineral resource estimates, the potential of the Timmins
Nickel District, strategic plans, including future exploration
and development plans and results, and corporate and technical
objectives. Forward-looking information 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
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, risks of the
mining industry, delays in obtaining governmental approvals,
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 because of new
information. 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.
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SOURCE Canada Nickel Company Inc.
