TORONTO, Jan. 18, 2021 /CNW/ - Canada Nickel Company
Inc. (TSXV: CNC) ("Canada Nickel" or the "Company")
is pleased to announce the filing on SEDAR of an amended and
restated independent National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101") entitled:
"Independent Technical Report and Mineral Resource Estimates
Crawford Nickel-Cobalt Sulphide Project: Main Zone (Update) and
East Zone (Initial) Deposits" prepared by Scott Jobin-Bevans (Ph.D., PMP, P.Geo.),
John Siriunas (M.A.Sc., P.Eng.) and
David Penswick (P.Eng.) (the
"Amended Technical Report").
The Amended Technical Report can be found under the Company's
profile at www.sedar.com. The Amended Technical Report has been
filed further to a review by staff of the Ontario Securities
Commission (the "OSC"). The OSC review is now complete.
The Amended Technical Report includes a conceptual pit envelope
constraint in order to demonstrate reasonable prospects for
eventual economic extraction and updated mineral resource tables.
Prior mineral resource estimates, as previously disclosed in the
December 4, 2020 Technical Report,
were not constrained by conceptual pit envelopes. The
addition of a pit constraint resulted in no change to the Measured
& Indicated resource in the Higher Grade Core of the Main Zone,
a 1.5 kt reduction in contained nickel in the overall Measured and
Indicated resource to 1,690 kt, and a 335 kt reduction in contained
nickel from the original Inferred resource to 1,183 kt. 90% of the
overall reduction in Inferred resources occurred at depths below
300 metres.
In addition, the gram per tonne (g/t) assay values for Palladium
(Pd), Platinum (Pt), and Palladium + Platinum (Pd + Pt) included in
Table 10-2 of the Amended Technical Report have been corrected for
holes CR19-05 to CR19-13.
Disclosure of explorations targets for the Main Zone Pd + Pt
reef, two East Zone Pd + Pt reefs and the East Zone nickel domains
was also revised to comply with subsection 2.3(2) of NI 43-101.
Table 1 – Amended Total Mineral Resource Estimate for the
Crawford Nickel-Cobalt Sulphide Project, Ontario
Mineral Resource
Estimate
|
|
Contained
|
DOMAIN
|
CLASS
|
TONNES
(Mt)
|
Ni
(%)
|
Co
(%)
|
Fe
(%)
|
S
(%)
|
Pd
(g/t)
|
Pt
(g/t)
|
|
Ni
(kt)
|
Co
(kt)
|
Fe
(Mt)
|
Pd
(koz)
|
Pt
(koz)
|
MAIN HIGHER
GRADE
ZONE
|
Measured
|
151.7
|
0.32
|
0.013
|
6.25
|
0.20
|
0.029
|
0.012
|
|
482.2
|
19.9
|
9.5
|
141
|
57
|
Indicated
|
128.6
|
0.30
|
0.013
|
6.37
|
0.16
|
0.027
|
0.013
|
|
391.8
|
16.5
|
8.2
|
111
|
52
|
Mea+Ind
|
280.2
|
0.31
|
0.013
|
6.31
|
0.18
|
0.028
|
0.012
|
|
873.9
|
36.4
|
17.7
|
252
|
108
|
Inferred
|
109.9
|
0.29
|
0.013
|
6.66
|
0.09
|
0.026
|
0.013
|
|
315.0
|
14.0
|
7.3
|
93
|
47
|
MAIN LOWER
GRADE ZONE
|
Measured
|
62.5
|
0.22
|
0.013
|
6.83
|
0.05
|
|
|
|
135.1
|
8.2
|
4.3
|
|
|
Indicated
|
263.2
|
0.21
|
0.013
|
6.90
|
0.04
|
|
|
|
557.0
|
34.6
|
18.2
|
|
|
Mea+Ind
|
325.6
|
0.21
|
0.013
|
6.89
|
0.04
|
|
|
|
692.1
|
42.9
|
22.4
|
|
|
Inferred
|
210.2
|
0.21
|
0.013
|
6.87
|
0.06
|
|
|
|
444.9
|
27.1
|
14.4
|
|
|
EAST
ZONE
|
Measured
|
25.8
|
0.26
|
0.012
|
6.02
|
0.04
|
|
|
|
67.4
|
3.2
|
1.6
|
|
|
Indicated
|
21.8
|
0.26
|
0.013
|
6.20
|
0.04
|
|
|
|
56.2
|
2.7
|
1.3
|
|
|
Mea+Ind
|
47.5
|
0.26
|
0.013
|
6.11
|
0.04
|
|
|
|
123.6
|
6.0
|
2.9
|
|
|
Inferred
|
176.7
|
0.24
|
0.013
|
6.63
|
0.04
|
|
|
|
423.5
|
22.6
|
11.7
|
|
|
TOTAL
|
Mea+Ind
|
653
|
0.26
|
0.013
|
6.58
|
0.10
|
0.028
|
0.012
|
|
1,689.6
|
85.2
|
43.0
|
252
|
108
|
Inferred
|
497
|
0.24
|
0.013
|
6.74
|
0.06
|
0.026
|
0.013
|
|
1,183.3
|
63.8
|
33.5
|
93
|
47
|
|
|
1.
|
The independent
Qualified Person for the Mineral Resource Estimate, as defined by
NI 43-101, is Dr. Scott Jobin-Bevans (P.Geo., APGO #0183), of
Caracle Creek International Consulting Inc. and Atticus Chile
S.A. The effective date of the Mineral Resource Estimate is
December 11, 2020.
|
2.
|
These Mineral
Resources are not Mineral Reserves as they do not have demonstrated
economic viability. 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
0.15% Ni was used for the low-grade domains (Main and East zones)
and cut-off grades of 0.25% Ni (Main Zone) and 0.21% Ni (East Zone)
were used for the high-grade 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. Given the current stage of the Project, the mineral
resources contained within the Main and East zone deposits have not
been constrained by open pit optimization. The Company is planning
to complete open pit optimization and present pit-constrained
mineral resources as part of its Preliminary Economic Assessment
("PEA") scheduled to be completed by the end of the first quarter,
2021.
|
4.
|
Geological and
block models for the Mineral Resource Estimate used data from a
total of 62 surface drill holes (51 in the Main Zone and 11 in the
East Zone), completed by Spruce Ridge Resources (4 holes in 2018)
and Noble Mineral Exploration and Canada Nickel Company (58 holes
in 2019-2020). The drill 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 in Table
1 have been rounded to two significant figures.
|
6.
|
The mineral
resource estimates have also been revised in the Amended Technical
Report to include a conceptual pit envelope constraint that was
developed using the optimization parameters included in the Amended
Technical Report. Metal prices used (US$) were $7.75/lb nickel,
$15/lb cobalt, $90/tonne magnetite $1,600/oz Pd, and $800/oz Pt.
Different pit slopes were used for each layer (in degrees): 9.5 in
clay, 21.8 in gravel and 45 in rock. Exchange rate utilized was
US$/C$ of $0.75. Mining costs utilized different values for
overburden (clay, gravel), selective mining and bulk mining ranging
from C$1.75 to C$3.15/t mined. Processing costs and G&A for
100ktpd operation were C$6.18/t. Based on the range of grade and
ratio of sulphur to nickel at Crawford, recovery could be expected
to range from 10% - 60%. It has also been assumed that 30 – 40% of
total iron would be recovered to a saleable magnetite
concentrate.
|
7.
|
The Mineral
Resource Estimate was prepared following the CIM Estimation of
Mineral Resources & Mineral Reserves Best Practice Guidelines
(November 29, 2019).
|
|
|
MAIN
ZONE:
|
8.
|
The geological
model as applied to the Mineral Resource Estimate for the Main Zone
comprises three mineralized domains hosted by variably
serpentinized ultramafic rocks: a relatively high-grade core
(largely dunite) and two northern and southern lower grade
envelopes (combination of dunite and peridotite). Individual
wireframes were created for each domain.
|
9.
|
The block model
was prepared using Micromine 2020. A 12 m x 12 m x 9 m block model
was created and samples were composited at 4.5 m intervals. Grade
estimation from drill hole data was carried out for Ni, Co, Fe, S,
Pd and Pt using the Ordinary Kriging interpolation
method.
|
10.
|
Grade estimation
was validated by comparison of input and output statistics (nearest
neighbour and inverse distance cubed), swath plot analysis, 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 3,270 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 the
high-grade is 2.64 g/cm3 (t/m3), while low-grade domains of the
resource model yielded averages of 2.63 g/cm3 (t/m3) in the north
and 2.71 g/cm3 (t/m3) in the south.
|
|
|
EAST
ZONE:
|
12.
|
The geological
model as applied to the Mineral Resource Estimate for the East Zone
comprises three mineralized domains hosted by variably
serpentinized ultramafic rocks: a relatively high-grade core
(largely dunite) and two northern and southern lower grade
envelopes (largely peridotite). Individual wireframes were created
for each domain.
|
13.
|
The block model
was prepared using Micromine 2020. A 20 m x 20 m x 15 m block model
was created and samples were composited at 3 m intervals. Grade
estimation from drill hole data was carried out for Ni, Co, Fe and
S using the Inverse Distance Squared method.
|
14.
|
Grade estimation
was validated by comparison of input and output statistics (nearest
neighbour), swath plot analysis, and by visual inspection of the
assay data, block model, and grade shells in
cross-sections.
|
15.
|
An average bulk
density value for each mineralized domain was calculated on the
basis of 244 specific gravity measurements collected during the
core logging process. Blocks within the high-grade were assigned a
single bulk density value of 2.62 g/cm3 (t/m3), while low-grade
domains of the resource model were assigned single bulk density
values of 2.66 g/cm3 (t/m3) in the north and 2.72 g/cm3 (t/m3) in
the south.
|
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
Dr. Scott Jobin-Bevans (P.Geo.,
APGO #0183), independent of the Company and a Qualified Person as
defined by NI 43-101, has reviewed and approved the scientific and
technical content of this news release, and is responsible for the
Mineral Resource Estimate. The Quality Control-Quality
Assurance review was conducted by independent engineer Mr.
John Siriunas (P.Eng., APEO
#42706010), a Qualified Person as defined by NI 43-101.
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, 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 as a result of new
information, future events or otherwise, except as required by
law.
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SOURCE Canada Nickel Company Inc.