Highlights:
- First of seven new nickel resources expected to be published by
end of the first quarter of 2025 demonstrating the potential scale
of the Timmins Nickel District
- Initial Deloro indicated
Resource of 81 million tonnes grading 0.25% nickel containing 202kt
of nickel plus a further Inferred Resource of 357 million tonnes
grading 0.25% nickel containing 885kt of nickel
- Seven exploration rigs currently drilling across the Timmins
Nickel District
TORONTO, July 18,
2024 /CNW/ - Canada Nickel Company Inc. ("Canada
Nickel" or the "Company") (TSXV: CNC) (OTCQB: CNIKF)
today announced an initial mineral resource for its 100% owned
Deloro Nickel Sulphide Project ("Deloro") near Timmins, Ontario.
The Deloro Nickel 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. The Deloro project is accessible year-round by
road, is located just 8 km south of Timmins, 7 km southwest of the Dome Mine-Mill
Complex and less than 2 km from existing powerlines.
Mark Selby, CEO of Canada Nickel
commented, "We are very pleased with the size of this initial
resource on Deloro particularly
given the relatively small scale of the target footprint relative
to the 20+ targets in our portfolio. Deloro has an advantageous location near both
Timmins and the mining and
processing infrastructure at the Dome Mill, and benefits from a
relatively low overburden of an average of just 9 metres."
Selby continued, "Our exploration program continues to
successfully demonstrate the potential of the Timmins Nickel
District and now has seven drill rigs operating – four drilling on
our Mann Central and Mann Northwest properties, two completing the
next phase of drilling at our Reid project, and one targeting the
east end of our Reaume project. Updates on drilling at each of
these properties will be provided as assay results are
compiled."
Deloro Mineral Resource Estimate
For the initial Mineral Resource Estimate, a total of 8,242
metres of core drilling in 22 drill holes was utilized to calculate
the Mineral Resources in two categories as provided in Table 1
below. Inferred Resources totalled 357 million tonnes grading 0.25%
Ni, for a total of 885 kt of contained nickel, and Indicated
Resources totalled 81 million tonnes grading 0.25% Ni, for a total
of 202 kt of contained nickel. A cut-off grade of 0.10% Ni was
used. Example cross-section and block model views of the resource
estimate are provided in Figures 1 through 4 below.
Drilling at Deloro was
completed in 2022 and 2024. The 2024 campaign successfully
completed the goal of infilling previous sections in order to
define an initial 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.
This Mineral Resource Estimate was prepared by Caracle Creek
International Consulting Inc. in accordance with CIM Definition
Standards on Mineral Resources and Reserves. A Technical Report in
support of the Mineral Resource Estimate will be filed on SEDAR+
(www.sedarplus.ca) within 45 days.
Table 1 – Initial Mineral Resource Estimate (in-pit
resources) for the Deloro Nickel Sulphide Project, Ontario
|
Mineral Resource
Estimate
|
|
Contained
Metal
|
|
DOMAIN
|
CLASS
|
TONNES
(Mt)
|
Ni
(%)
|
Co
(%)
|
Fe
(%)
|
Cr
(%)
|
S (%)
|
Pd
(g/t)
|
Pt
(g/t)
|
Ni
(kt)
|
Co
(kt)
|
Fe
(Mt)
|
Cr
(kt)
|
S
(kt)
|
Pd
(koz)
|
Pt
(koz)
|
|
MAIN
|
Indicated
|
81.3
|
0.25
|
0.011
|
5.2
|
0.24
|
0.056
|
0.0029
|
0.0045
|
201.8
|
8.6
|
4.2
|
193.6
|
45.6
|
7.7
|
11.8
|
|
Inferred
|
357.5
|
0.25
|
0.011
|
5.2
|
0.23
|
0.063
|
0.0040
|
0.0053
|
885.4
|
38.0
|
18.6
|
835.4
|
224.9
|
45.7
|
60.6
|
|
*Totals may not add
due to rounding.
|
|
1.
|
The independent
Qualified Person for the Mineral Resource Estimate, 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 July 15, 2024.
|
|
2.
|
The quantity and grade
of reported Inferred Resources in this Mineral Resource Estimate
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 for the Main Domain (combined high- and low-grade
estimated domains). Cut-offs were determined on the basis of core
assay geostatistics and drill core lithologies for the deposit, and
by comparison to analogous deposit types.
|
|
4.
|
Geological and block
models for the Mineral Resource Estimate used data from a total of
22 surface drill holes, completed by CNC in 2022-2024. 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 CNC and by comparison of umpire
assays performed at a second laboratory.
|
|
5.
|
Estimates have been
rounded to two significant figures.
|
|
6.
|
The Mineral Resource
Estimate 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 Mineral Resource Estimate comprises three
mineralized domains hosted by variably serpentinized ultramafic
rocks: a relatively higher-grade core (dunite) and two, western and
eastern, lower-grade envelopes (peridotite). Individual wireframes
were created for each domain in Leapfrog Geo 2023.2.3
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 mineral resource
estimates have been revised to include a conceptual pit envelope
constraint 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 magnetite, US$1,350/oz palladium, and US$1,150/oz
platinum. Different pit slopes were used for each layer (in
degrees): 9.5 in clay, 11.6 in sand, and 45.0 in
rock. Exchange rate utilized was US$/C$ at $0.75. Mining costs
utilized different values for overburden (clay, gravel), selective
mining, and bulk mining, ranging from C$1.62 to C$3.28/t mined.
Processing costs and general and administration costs for a 60 ktpd
operation (similar to the initial stage of Crawford) were C$8.40/t.
Based on the range of grade and ratio of sulphur to nickel,
calculated recovery averages 49% for Ni, 56% for Fe, 5% for Co and
21% 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, on the basis of 954 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
2.62 g/cm3 (t/m3), while peridotite domains
yielded averages of 2.69 g/cm3 (t/m3) in the
west and 2.75 g/cm3 (t/m3) in the
east.
|
Exploration Update
The Company's 2024 exploration program focused on demonstrating
the potential of the Company's portfolio in the Timmins Nickel
District. The Company has completed 112 holes so far for a
total of 47,482 metres. The Company has drilled 32 holes in
Crawford defining the Crawford PGM Zone, 28 holes at Reid, 26 holes
at Texmont, 13 holes at Mann, and 11 holes at Deloro which formed the basis of this
resource. The Company plans to next publish an initial resource for
the Crawford PGM Zone followed by an initial resource for Texmont.
The Company then plans to publish five additional resources before
the end of the first quarter of 2025.
Next Steps:
- A technical report with respect to the Mineral Resource
Estimate disclosed today will be filed within 45 days as required
by National Instrument 43-101.
- Mineralogical studies and metallurgical testwork will continue
through the fourth quarter of 2024, as well as infill drilling to
further upgrade the resource.
Assays, Quality Assurance/Quality Control and Drilling and
Assay
Edwin Escarraga, MSc, P.Geo., a
"qualified person" as defined by National Instrument 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 core logging facility. 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 or SGS Callao (Peru). 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 are inserted at a
rate of 3 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" as 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.
The magnetic images shown in this press 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 Deloro 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.
