Canadian North Resources Inc. (“Canadian North” or
the “Company”) (TSXV: CNRI; OTCQX: CNRSF; FSE: EO0 (E-O-zero)) is
pleased to announce that following the release of the Mineral
Resource estimate on March 19, 2024, it has filed its National
Instrument 43-101 Technical Report on its 100% owned Ferguson Lake
base metal (nickel, copper, cobalt) and platinum-group metals
(“PGM”, palladium and platinum) Project (“the Ferguson Lake
Project” or “the Project”), entitled “Independent Technical Report
on the Mineral Resource Estimate for the Ferguson Lake Project,
Nunavut, Canada (“the Technical Report”)”, prepared by SRK
Consulting and Ronacher McKenzie Geoscience Inc., effective March
19, 2024, on SEDAR at http://www.sedar+.com. The Technical Report
has also been posted on the Company’s website at
www.cnresources.com.
“The new NI 43-101 Technical Report has
demonstrated the project is one of the largest and highest-grade
undeveloped critical mineral projects in North America, still with
large potential for Mineral Resource expansion,” commented Dr.
Kaihui Yang, President and CEO of Canadian North, “We believe this
filed Mineral Resource provide a solid bases for the development of
a potential producing mine. We will continue to expand the size of
the Project, expand the metallurgical testing, and commence
economic evaluation, infrastructure, and environmental studies for
a low-carbon footprint mine development plan for the Ferguson Lake
Project.”
On March 19, 2024, the Company announced the
results of the updated Mineral Resource estimation in compliant
with NI43-101 Standard for the Ferguson Lake Project. The Technical
Report was completed by SRK Consulting and Ronacher McKenzie
Geoscience Inc., based on their independent review, verification
and modeling of exploration and metallurgical data for the Project.
The main conclusions of the NI43-101 Technical Report are
summarized below:
- The Technical
Report supports the definition of the large and high-grade Mineral
Resource at the Ferguson Lake Project (Table 1), including 52.7Mt
of high-grade open pit Indicated Mineral Resources at 0.65% Cu,
0.43% Ni, 0.05% Co, 0.97g/t Pd and 0.17% Pt, which provides a solid
Mineral Resource base for the initial development of a potential
large mine.
- Mineral
Resources are estimated for West, Central and East Zones along the
15km-long main mineralized horizon (Figure 1). The Mineral Resource
model indicates potential for continued Mineral Resource expansion
along strike and at depth over the mineralized horizon.
- Significant
resource upside potential outside the main mineralized zone is
anticipated when sufficient grid definition drilling is completed
on additional zones including M-Zone, A51-Zone, A51 Far Side Zone,
West Zone South and South Discovery Zone
- The Mineral
Resources were estimated based on the flotation-gravity flowsheet,
a low-capital cost option for the potential mine development with
lower metal recoveries (refer to the Notes below) than
hydrometallurgy. The results of hydrometallurgical tests
demonstrated much higher recoveries for copper, nickel, cobalt,
palladium and platinum. Alternatively, the hydrometallurgy could be
a technically highly effective option for the mine development of
the Ferguson Lake Project, albeit with potentially higher capital
and operating costs.
- The NSR values
of the Mineral Resources are sensitive to the metallurgical
processing methods. Compared to the flotation-gravity flowsheet,
the hydrometallurgical process with very high recoveries of metals
significantly increases the NSR values of the Mineral Resources,
but was not considered for this study due to the higher cut-off
values associated with hydrometallurgical processes.
- Mineral
Resources are primarily modelled on the occurrence of massive or
semi-massive sulphide (MS) as a lithological type, with a total of
18 massive sulphide and 2 low-sulphide PGE domains (LSPGE).
Overall, the total volume of the massive sulphide mineralized zones
increased by 25% in comparison with a prior 2022 model.
- The MS domains
were modeled based on logging criteria and the nickel and copper
assays >1% Ni + Cu. The LSPGE domains were modeled with Pd + Pt
> 1 g/t.
- Rhodium, gold
and silver are not included in the resource modeling due to no
systematically collected assay results, although there are
significant local assay values in mineralized zones.
- All the Mineral
Resources were established within the mining leases. The Project
covers an area of 253.8 km2, including 96.9 km2 of mining leases
and 124 km2 of exploration claims. This land package covers all the
known base metals and PGM mineralized zones and outcrops at the
Ferguson Lake area. Drilling and surface programs are being carried
out over the area.
- Significant
technical programs with an estimated budget of over $46 million are
recommended for the exploration and expansion of Mineral Resources,
follow-up metallurgical tests and development and environmental
baseline studies at the Ferguson Lake Project.
Figure 1: Geological Map showing
Mineralization Zones. The Mineral Resources incorporate West,
Central and East Zones.
Table 1: Mineral Resource Statement*, Ferguson Lake
Project, Nunavut, SRK Consulting (Canada) Inc., March 19,
2024
Mineral Resource Statement, Ferguson Lake Project, Canada.
SRK Consulting (Canada)., March 19, 2024 |
Mining Method |
Category |
Tonnes (Mt) |
Grade |
Material Content |
NSR |
Cu |
Ni |
Co |
Pd |
Pt |
Cu |
Ni |
Co |
Pd |
Pt |
(US$/t) |
(%) |
(%) |
(%) |
g/t |
g/t |
(Mlbs) |
(Mlbs) |
(Mlbs) |
('000oz) |
('000oz) |
Open Pit |
Indicated |
52.7 |
149 |
0.65 |
0.43 |
0.05 |
0.97 |
0.17 |
755.7 |
497.2 |
57.7 |
1,647 |
295 |
Inferred |
4.0 |
159 |
0.65 |
0.50 |
0.06 |
0.88 |
0.17 |
56.7 |
43.4 |
5.3 |
111 |
21 |
Underground |
Indicated |
13.5 |
243 |
1.13 |
0.61 |
0.07 |
1.60 |
0.29 |
336.8 |
181.0 |
21.6 |
692 |
124 |
Inferred |
21.9 |
231 |
1.04 |
0.60 |
0.07 |
1.53 |
0.26 |
501.0 |
289.7 |
34.4 |
1,081 |
184 |
Total |
Indicated |
66.1 |
168 |
0.75 |
0.47 |
0.05 |
1.10 |
0.19 |
1,092.5 |
678.2 |
79.3 |
2,340 |
419 |
Inferred |
25.9 |
220 |
0.98 |
0.58 |
0.07 |
1.43 |
0.25 |
557.8 |
333.1 |
39.6 |
1,192 |
205 |
Mineral Resource Estimation
Notes
- The Mineral
Resource estimation work including construction of geological
solids, grade estimation, associated sensitivity analyses, and
Mineral Resource classification was completed by Joycelyn Smith,
P.Geo. (PGO#2963), under supervision of Mr. Glen Cole, P.Geo.
(PGO#1416), an appropriate independent Qualified Person as this
term is defined in National Instrument 43-101.
- The Mineral
Resources have been estimated in conformity with generally accepted
Canadian Institute of Mining (CIM) Estimation of Mineral Resource
and Mineral Reserves Best Practices Guidelines (November 2019) and
are reported in accordance with the Canadian Securities
Administrators’ National Instrument (NI) 43-101.
- Mineral
Resources are not Mineral Reserves and have not demonstrated
economic viability. All figures are rounded to reflect the relative
accuracy of the estimate.
- A total of 18
massive sulphide and two low-sulphide platinum group element
(LSPGE) domains were modeled within an overall host gabbroic
intrusion to constrain the mineralization.
- The Mineral
Resources for the Ferguson Lake Project are estimated based 756
boreholes (approximately 226,167 metres) as of November 2, 2023,
including 129 boreholes (approximately 35,775 meters) added to the
deposit model out of the 39,270 metres completed since the previous
Mineral Resource update as on June 13, 2022 (refer to “Independent
Technical Report, Updated Mineral Resource Estimate, Ferguson Lake
Project, Nunavut, Canada, Prepared by Ronacher McKenzie Geoscience
Inc. and Francis Minerals Ltd ” filed by the Company to Sedar.com
on July 13, 2022).
- All composites
have been capped where appropriate.
- The Mineral
Resources for the Ferguson Lake Project were estimated using
Leapfrog Edge™ software. The estimation parameters consider 3
passes estimated by Ordinary Kriging with progressively relaxed
criteria, including a requirement of 3-4 boreholes in the first
pass, 2-3 boreholes in the second pass and at least 4 composites in
the third pass. Massive sulphide domains were estimated with hard
boundaries, and LSPGE domains were estimated with limited (10m)
soft boundaries.
- The block
classification strategy considers drillhole spacing, geologic
confidence and continuity of category. Indicated Mineral Resources
were defined for blocks inside geological resource solids estimated
within the first two passes and having a nominal drillholes spacing
less than 150 metres. Classification results were smoothed to
improve continuity.
- Mineral
Resources are reported in relation to a conceptual pit shell and
underground mining shapes. Open pit Mineral Resources include all
blocks inside the conceptual shell. Underground mineral resources
include blocks not meeting open pit reporting requirements
contained within conceptual mining shapes.
- Open pit Mineral
Resources are reported at a NSR cut-off value of US$33.00 and
underground Mineral Resources are reported at a NSR cut-off value
of US$96.00. Cut-off values are based on a price of US$4.00 per
pound of copper, US$9.00 per pound of nickel, US$22.00 per pound of
cobalt, US$1,250 per ounce of palladium, and US$1,150 per ounce of
platinum, and recoveries of 95 percent for copper, 51 percent for
nickel, 89 percent for cobalt, 76 percent for palladium and 60
percent for platinum for massive sulphide material, and 78 percent
for copper, 29 percent for nickel, 48 percent for cobalt, 60
percent for palladium and 70 percent for platinum for LSPGE
material, for open pit and underground resources.
- The reported
Mineral Resource is inclusive of East, Central and West zones along
the 15km-long main mineralized horizon.
Authors and Qualified Persons
Statement:
The NI43-101 Technical Report was completed by
Elisabeth Ronacher, PhD, P.Geo. of Ronacher McKenzie Geoscience
Inc. and Mr. Glen Cole, P.Geo. and Adrian Dance, PhD, PEng. of SRK
Consulting (Canada), who are all Independent Qualified Persons (QP)
as defined in National Instrument 43-101. Ms. Joycelyn Smith, PGeo
also contributed to the Technical Report.
Trevor Boyd, PhD, P.Geo. and Technical Advisor
for Canadian North Resources, a qualified person as defined by
Canadian National Instrument 43-101 standards and has reviewed the
technical content of this news release and has approved its
dissemination.
About Canadian North Resources
Inc.:
Canadian North Resources Inc. is an exploration
and development company focusing on the critical metals for the
clean-energy, electric vehicles, battery and high-tech industries.
The company is advancing its 100% owned Ferguson Lake nickel,
copper, cobalt, palladium, and platinum project in Nunavut,
Canada.
Further information please visit the website at
www.cnresources.com or contact:
Dr. Kaihui Yang, President and CEO
Phone: 905-696-8288 (Canada) 1-888-688-8809
(Toll-Free)
Email: info@cnresources.com
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.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained in this news
release, including statements which may contain words such as
“expects”, “anticipates”, “intends”, “plans”, “believes”,
“estimates”, or similar expressions, and statements related to
matters which are not historical facts, are forward-looking
information within the meaning of applicable securities laws. Such
forward-looking statements, which reflect management’s expectations
regarding the Company’s future growth, results of operations,
performance, business prospects and opportunities, are based on
certain factors and assumptions and involve known and unknown risks
and uncertainties which may cause the actual results, performance,
or achievements to be materially different from future results,
performance, or achievements expressed or implied by such
forward-looking statements.
These factors should be considered carefully,
and readers should not place undue reliance on the Company’s
forward-looking statements. The Company believes that the
expectations reflected in the forward-looking statements contained
in this news release and the documents incorporated by reference
herein are reasonable, but no assurance can be given that these
expectations will prove to be correct. In addition, although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. The Company undertakes no
obligation to release publicly any future revisions to
forward-looking statements to reflect events or circumstances after
the date of this news or to reflect the occurrence of unanticipated
events, except as expressly required by law.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/91a820ce-7982-462f-94a6-2273ecce5d79.
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