Canada Nickel (TSXV:CNC) Announces New Drill Results and New Discovery at Sothman Property

Canada Nickel Company (TSXV:CNC) has announced new drill results from the ongoing regional drill campaign at the Reid and Sothman properties. The company received assay results that confirm the previous discovery made at Reid, with a higher-grade interval of 0.29% nickel, including 81 metres of 0.35% nickel. Canada Nickel has also made a new discovery at the Sothman property, with all five holes confirming mineralization. 

Figure 1 – Plan View of Reid – Drill results Overlain on Total Magnetic Intensity Source: Canada Nickel Company Inc.

Canada Nickel is currently advancing several nickel-sulphide projects to deliver the nickel required for EV and steel markets. These high-growth markets continue to be a main point of focus for the industry, as rising demand is set to outstrip supply in the coming years and new discoveries become critical for the mining industry.

Mark Selby, Chair & CEO of Canada Nickel, commented in a press release: “We continue to have excellent success with our regional exploration program.  The latest results provide further confirmation of the potential at Reid with a large higher-grade interval in hole REI22-07 and multiple holes well-mineralized across their entire core lengths. Our targeting approach was further confirmed with another bulk tonnage discovery at Sothman with all five holes intersecting mineralization. These latest results continue to reinforce the success of our geophysical targeting approach and increase the probability of success at our other 20-plus properties within the 42 km2 of geophysical targets.  We look forward to drilling our high-grade target at Sothman where historical drilling achieved multiple intervals greater than 1% nickel.”

Highlights from the drill results are as follows: 

  • Additional assay results confirm scale of discovery at Reid
  • Higher grade interval at Reid – REI22-07 325 metres of 0.29% nickel including 81 metres of 0.35% nickel
  • New discovery at Sothman

Reid Nickel Property

Figure 2 – Plan View of Sothman – Drill results Overlain on Total Magnetic Intensity. Source: Canada Nickel Company Inc.

The Reid Property is located just 16 km southwest of Crawford, or 37 km northwest of Timmins, and contains an ultramafic body with a target geophysical footprint of 3.9 km2 (see Figure 1). Preliminary assay results from our summer/fall drilling program confirms the presence of mineralized dunite, as well as currently undefined higher-grade sections. Partial assay results confirm expected nickel grades (Table 1). Nickel mineralization in serpentinized dunite was found in all 16 holes drilled to date.

This release provides an update with assays from five more holes to a total of eight holes with complete assays. True widths are unknown at this point. Hole REI22-07 collared near the center of the anomaly in dunite containing a series of late dykes and remained in a strongly serpentinized, moderate to strongly mineralized dunite to the end of the hole. The hole averaged 0.29% nickel over 325.5 metres, including a wide higher-grade section with 0.35% nickel over 81.5 metres. The hole then continued through mineralized dunite that averaged 0.27% nickel over the last 132 metres of the hole. 

REI22-03 collared in dunite on the east flank of the anomaly and was drilled to the west. The hole intersected 358.4 metres of dunite and finished in dunite, interrupted by a late dyke in the center. The hole shows moderate to strong serpentinization and visible pentlandite-heazlewoodite mineralization averaging 0.24% nickel over 223.1 metres.

REI22-04 collared in peridotite on the east flank of the anomaly 500 metres north of REI22-03, drilling to the northeast. The hole intersected peridotite, followed by dunite only interrupted by minor dykes. The hole averaged 0.19% nickel over 269.8 metres and 0.21% nickel over 79 metres.

REI22-05 collared in dunite and remained in dunite to the end of hole, only interrupted by a small late dyke. The hole was collared near the center of the anomaly and drilled to the west. The hole was strongly serpentinized throughout and averaged 0.24% nickel over 409.5 metres including 0.26% nickel over 55.5 metres.

REI22-08 collared in dunite on the same setup as REI22-03 but drilling to the northwest. The hole remained in dunite to the end of the hole, encountering minor peridotite sections. The hole averaged 0.24% nickel over 372.8 metres, including 0.26% nickel over 63 metres.

Results from the remaining eight holes are still pending, but with the encouraging results as provided in this release, Canada Nickel plans to resume drilling in 2023. The south limb of the anomaly remains to be drilled.

Table 1: Reid exploration drilling results

Hole ID From To Length Ni Co Pd Pt Cr Fe S
  (m) (m) (m) ( %) ( %) (g/t) (g/t) ( %) ( %) ( %)
REI22-03 58.6 354.0 295.4 0.24 0.01 0.003 0.003 0.80 5.51 0.04
including 140.8 259.5 118.7 0.25 0.01 0.003 0.003 0.84 5.34 0.04
REI22-04 48.5 318.3 269.8 0.19 0.01 0.005 0.007 0.61 6.31 0.08
and 338.0 417.0 79.0 0.21 0.01 0.010 0.007 0.57 6.30 0.11
REI22-05 52.5 462.0 409.5 0.24 0.01 0.004 0.005 0.76 5.63 0.06
including 380.5 436.0 55.5 0.26 0.01 0.007 0.005 0.82 4.90 0.09
REI22-07 136.5 462.0 325.5 0.29 0.01 0.028 0.010 0.75 5.38 0.08
including 147.0 228.5 81.5 0.35 0.01 0.050 0.015 0.74 5.40 0.10
REI22-08 57.2 430.0 372.8 0.24 0.01 0.004 0.006 0.85 6.11 0.08
including 229.0 292.0 63.0 0.26 0.01 0.003 0.005 0.94 5.59 0.07

Sothman Nickel Property

The Sothman property is located 70 km south of Timmins and contains an ultramafic target that measures 2.2 km east-west by 200 metres north-south (Figure 2).

Five drillholes were drilled on the eastern half of the target anomaly (SOT22-01 to SOT22-05). These holes succeeded in confirming the continuation of ultramafic lithologies, primarily peridotite, with moderate to strong serpentinization and variable amounts of mineralization throughout (see Table 2). Assays from all holes are pending.

Table 2: Sothman Selected lithology intervals

Hole # From To length Rock Type
SOT22-01 39.7 77.0 37.3 Pyroxenite
77.0 234.7 157.7 Dunite
SOT22-02 48.3 77.0 33.3 Dunite
77.0 149.0 72.0 Peridotite
149.0 201.5 52.5 Dunite
201.5 266.0 64.5 Peridotite
SOT22-03 39.5 143.0 103.5 Dunite
  143.0 184.9 41.9 Peridotite
SOT22-03 39.5 143.0 103.5 Dunite
143.0 184.9 41.9 Peridotite
SOT22-04 40.0 90.0 50.0 Peridotite
117.0 125.0 8.0 Peridotite
SOT22-05 38.0 245.0 207.0 Peridotite
245.0 315.5 70.5 Dunite
315.5 353.0 37.5 Peridotite

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

By Matthew Evanoff

I cover the mining industry and the best mining stocks around the world. I write about industry news, individual companies, projects, management, and profiles on industry leaders.

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