NiCAN has reported the intersection of nickel-bearing massive sulphides during its Phase I reconnaissance drilling and geophysical program at the Pipy South Nickel Project, located near Thompson, Manitoba. The results come from an initial exploration campaign designed to test for the presence of nickel mineralization within geological units known to host economic nickel deposits in the Thompson Nickel Belt.

The company announced that it has completed a total of 1,264 metres of diamond drilling across nine drill holes on the Pipy South Project. One of these holes, PIPY25-06, intersected a 1.45-metre interval of nickel-bearing massive sulphides at a depth of approximately 60 metres below surface. This intersection occurs within the Pipe Formation unit, a geological formation that hosts all known economic nickel mineralization within the Thompson Nickel Belt. The project area is located roughly 20 kilometres north of the Thompson Nickel Mine.

Visual examination of the drill core from PIPY25-06 identified fine disseminations and thin seams of pentlandite, a nickel sulphide mineral. Handheld X-ray fluorescence (XRF) readings confirmed that the interval contains nickel. At the time of reporting, laboratory assays for the drill core had not yet been received.

The location of hole PIPY25-06 was selected in proximity to historical drilling completed by INCO in 1966. Records from Manitoba Assessment File 99136 indicate that a nearby historical drill hole intersected a 1.35-metre zone described as “mineral breccia,” although no assay results were reported for that interval. In addition, another historical INCO drill hole situated approximately 250 metres south of PIPY25-06 intersected a 2.13-metre “mineral zone,” suggesting the potential for additional mineralization in the area.

Geophysical surveys conducted in conjunction with the drilling program provided further information on the extent of the conductive features associated with the sulphide mineralization. A downhole electromagnetic (BHEM) survey carried out in hole PIPY25-06 identified an in-hole conductive anomaly that correlates with the mineralized interval intersected by drilling. In addition, four surface lines of transient electromagnetic (TEM) surveying were completed over the immediate area of the intersection and extended approximately 400 metres to the south. These surveys identified strong conductivity along the entire surveyed length. The conductive anomaly remains open along strike to both the north and south, as well as up and down dip.

NiCAN’s aeromagnetic survey data indicate that the prospective Pipe Formation stratigraphy intersected in hole PIPY25-06 can be traced for approximately five kilometres along strike across the company’s two claim blocks at Pipy South. Approximately two kilometres of this prospective strike length is located on the southern claim block. Within this area, historical drill hole BD-02, documented in Manitoba Assessment Report 99102, reported two 0.3-metre intervals grading 1.55% and 1.04% nickel within Pipe Formation sediments.

The company noted that sulphide intersection thicknesses within the Thompson Nickel Belt can vary significantly along strike. This variability is attributed to polyphase deformation affecting the belt, which can result in relatively thin mineralized intervals occurring adjacent to much thicker zones. As an example, NiCAN referenced the 1C orebody at the Thompson Nickel Mine, where such variations in sulphide thickness are documented.

Other drilling completed during the Phase I program tested targets in different areas of the property. Four drill holes—PIPY25-01, PIPY25-02, PIPY25-02A, and PIPY25-03—were drilled on targets that were not on the same trend as PIPY25-06. Although these holes intersected the Pipe Formation, they did not encounter significant massive sulphide mineralization. An additional four drill holes were completed on newly acquired claims attached to the northwest boundary of the Pipy South Property. Assay results for these holes are also pending.

The Pipy South Project benefits from established access and infrastructure. Roads and existing trails cross the property, and the project is located just north of the City of Thompson, which hosts Vale’s long-producing Thompson Nickel Mine Complex. The regional setting places Pipy South within a well-known mining district that has supported nickel production for decades. NiCAN has indicated that follow-up drilling is planned to trace and expand the nickel-bearing massive sulphide zone intersected in hole PIPY25-06. In addition, the company is designing an airborne electromagnetic survey intended to trace the broader conductive trend associated with the sulphides and to identify other prospective zones of mineralization within the project area.

The Pipy South Project forms part of the broader Pipy Properties, which include Pipy South, Pipy North, and Pipy West. Together, these three project areas cover approximately 69.3 square kilometres within the Thompson Nickel Belt. Exploration activities are initially focused on Pipy South, which is adjacent to the Mystery Lake South area and located approximately 20 kilometres northeast of the City of Thompson. The project area has access to local infrastructure and established transportation routes.

The Pipy South Project is included under an Exploration Agreement with the Nisichawayasihk Cree Nation (NCN). The company has also noted that references to mineral resources at nearby deposits, including Moak Lake, Mystery Lake, and the Mel Deposit, are based on historical estimates reported in Manitoba Energy and Mines Geological Services Open File Report OF90-2 and a 2007 National Instrument 43-101 technical report prepared for Victory Nickel Inc. These historical estimates are cited for regional context.