Update on Private Placement
Highlights
- Two holes continue to extend the higher grade mineralization in
the western portion of the Main Zone.
-
- Hole CR20-61 intersected true width of 94 metres of 0.35%
nickel including 49 metres of 0.40% nickel
- Hole CR20-53 intersected core length of 183 metres of 0.35%
nickel to a depth of over 300 metres
- Three holes continue to support and extend the higher grade
mineralization in the eastern portion of the Main Zone.
-
- Hole CR20-60 intersected true width of 72 metres of 0.33%
nickel including 49 metres of 0.36% nickel
- Hole CR20-47 intersected 0.30% nickel across entire core length
of 369 metres outside existing 0.30% grade shell and Hole CR20-60
intersected two intervals with combined core length of 250 metres
of 0.30% nickel
TORONTO, Sept. 8, 2020 /CNW/ - Canada Nickel Company
Inc. (TSX-V: CNC) ("Canada Nickel" or the "Company")
today announced additional encouraging results from infill drilling
on the Main Zone at its Crawford Nickel-Cobalt Sulphide
project.
"Excellent results continue from our infill drilling program.
These most recent drilling results continue to expand the
widths and vertical extent of the higher-grade mineralization in
the western end of the Main Zone and further confirm and extend the
higher grade mineralization in the eastern end of the Main Zone.
These higher-grade resource areas will be the initial focus of the
mine plan in the Preliminary Economic Assessment currently underway
and expected to be completed by year-end," said Mark Selby, Chair and CEO of Canada
Nickel.
"With the drilling necessary for the updated resource to be
released later this month now complete, we will turn our attention
to the other exciting exploration opportunities identified at
Crawford. Three follow-up holes on the previously reported
encouraging PGM results from hole CR20-32 (which yielded three
separate intersections including 2.6 g/t PGM over 7.5 metres) have
been completed and intersected the anticipated structures. Drilling
began this week of the several other prospective geophysical nickel
targets on the several kilometres of the Crawford structure which
remain untested. Exploration results from these holes are
expected before the end of September."
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.
Main Zone Infill Results
Infill drilling on the Main Zone continued to focus on more
clearly defining and upgrading the Higher-Grade Core resource,
which was previously defined as part of the resource estimate and
dips steeply within the ultramafic unit and having a previously
reported true thickness that varies from 40
m to 160 m. Assays from
the remaining six in-fill holes will be released over the next
several weeks. See Table 1 and Figure 1 and 2 for results.
Table 1 – Main Zone Nickel – Drilling Results, Crawford
Nickel-Cobalt Sulphide Project, Ontario
DDH ID
|
From
|
To
|
Length
|
Estimated True
Width
|
Ni
|
Co
|
Pd
|
Pt
|
S
|
Fe
|
|
(m)
|
(m)
|
(m)
|
(m)
|
(%)
|
(%)
|
(g/t)
|
(g/t)
|
(%)
|
(%)
|
|
|
|
|
|
|
|
|
|
|
|
CR20-47
|
33.3
|
402.0
|
368.7
|
na
|
0.30
|
0.011
|
0.020
|
0.008
|
0.07
|
5.91
|
including
|
40.5
|
286.5
|
246.0
|
na
|
0.31
|
0.011
|
0.022
|
0.008
|
0.06
|
5.54
|
including
|
363.0
|
399.0
|
36.0
|
na
|
0.36
|
0.014
|
0.030
|
0.009
|
0.14
|
6.96
|
|
|
|
|
|
|
|
|
|
|
|
CR20-53
|
52.0
|
402.0
|
350.0
|
na
|
0.29
|
0.012
|
0.017
|
0.007
|
0.10
|
6.37
|
including
|
169.5
|
352.5
|
183.0
|
na
|
0.35
|
0.011
|
0.021
|
0.007
|
0.12
|
6.66
|
including
|
169.5
|
210.0
|
40.5
|
na
|
0.40
|
0.009
|
0.039
|
0.012
|
0.35
|
5.22
|
|
|
|
|
|
|
|
|
|
|
|
CR20-60
|
51.0
|
352.5
|
301.5
|
193.8
|
0.24
|
0.013
|
0.016
|
0.009
|
0.10
|
6.94
|
including
|
51.0
|
163.5
|
112.5
|
72.3
|
0.33
|
0.014
|
0.028
|
0.011
|
0.20
|
7.24
|
including
|
51.0
|
127.5
|
76.5
|
49.2
|
0.36
|
0.014
|
0.024
|
0.008
|
0.23
|
7.13
|
including
|
84.0
|
100.5
|
16.5
|
10.6
|
0.43
|
0.015
|
0.031
|
0.010
|
0.33
|
7.06
|
|
|
|
|
|
|
|
|
|
|
|
CR20-61*
|
36.8
|
276.0
|
239.2
|
153.8
|
0.30
|
0.013
|
0.022
|
0.008
|
0.14
|
5.39
|
including
|
36.8
|
183.0
|
146.2
|
94.0
|
0.35
|
0.014
|
0.030
|
0.010
|
0.20
|
5.01
|
including
|
36.8
|
156.0
|
119.2
|
76.6
|
0.38
|
0.014
|
0.034
|
0.011
|
0.23
|
4.84
|
including
|
67.5
|
144.0
|
76.5
|
49.2
|
0.40
|
0.015
|
0.039
|
0.012
|
0.26
|
4.92
|
|
|
|
|
|
|
|
|
|
|
|
CR20-62
|
45.3
|
402.0
|
356.7
|
na
|
0.29
|
0.013
|
0.018
|
0.007
|
0.28
|
6.83
|
including
|
49.5
|
132.0
|
82.5
|
na
|
0.30
|
0.010
|
0.017
|
0.007
|
0.09
|
5.48
|
including
|
231.0
|
399.0
|
168.0
|
na
|
0.30
|
0.015
|
0.028
|
0.011
|
0.49
|
7.63
|
These holes were drilled at steep angles of -80 degrees almost
entirely within the higher-grade core to better determine grade or
-50 degrees to help better define northern or southern boundaries
of the higher grade core. See Table 2. The estimated
true width of this zone has been determined from previous drilling
to vary from 40 to 160 m depending on
location of the section.
*Hole CR20-61 has only received complete assays to a depth of
276 metres of total drill length of 504 metres.
Next Steps
Three holes have now been completed on the previously reported
excellent PGM results from hole CR20-32 (three intervals including
2.6 g/t PGM over core length of 7.5 metres) and have intersected
multiple sections of similar gabbro/peridotite/pyroxenite sequences
encountered in the CR20-32 discovery hole. Assays from these
three drill holes are expected by the end of September. All
drill results to date will be incorporated into an updated resource
now expected later this month. Drilling has begun on several
other prospective geophysical targets on the several kilometres of
the Crawford structure which remain untested on the west side of
the highway.
Table 2 – Drill Hole Orientation, Crawford Nickel-Cobalt
Sulphide Project, Ontario
DDH
ID
|
Easting
|
Northing
|
Dip
|
Azimuth
|
Length
|
|
(mE)
|
(mN)
|
(°)
|
(°)
|
(m)
|
CR20-47
|
473404.4
|
5408743.2
|
-80
|
215.2
|
300
|
CR20-53
|
472794.1
|
5409028.6
|
-80
|
212.1
|
402
|
CR20-60
|
473505.1
|
5408696.5
|
-50
|
215.3
|
402
|
CR20-61
|
473027.8
|
5408815.1
|
-50
|
35.3
|
504
|
CR20-62
|
473505.6
|
5408695.0
|
-80
|
215.3
|
402
|
Private Placement Update
The Company is also pleased to provide an update to its
August 11, 2020 news release, in
which it announced a best efforts offering (the "Offering") of up
to 600,000 flow-through common shares ("FT Shares") at a price of
$2.60 per FT Share, for total gross
proceeds of approximately $1.5
million. The Offering is now oversubscribed and as a result
will now consist of 682,500 FT Shares to raise gross proceeds of up
to approximately C$1.8 million.
For a full summary of the Private Placement, please see Canada
Nickel's news release from August 11,
2020.
Assays, Quality Assurance/Quality Control and Drilling and
Assay Procedures
William E. MacRae, MSc, P.Geo., a
"qualified person" as defined by 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 core logging facility.
The core is marked and sampled at 1.5 metre lengths and cut with a
diamond blade saw. Samples are bagged with QA/QC samples inserted
in batches of 35 samples per lot. Samples are transported in secure
bags directly from the Canada Nickel core shack to Actlabs Timmins,
an ISO/IEC 17025 accredited lab. Analysis for precious metals
(gold, platinum and palladium) are completed by Fire Assay while
analysis for nickel, cobalt, sulphur and 17 other elements are
performed using a peroxide fusion and ICP-OES analysis. Certified
standards and blanks are inserted at a rate of one QA/QC sample per
32 core samples making a batch of 35 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 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 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 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, timing of economic studies and
resource estimates, 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.