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. 

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

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

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

Canada Nickel Company (TSXV:CNC) recently acquired the Deloro property and has already reported a new discovery at the property. This is the second discovery at one of its two recently acquired properties, the other one being the Reid property. Drill intersected 487 metres of 0.25% nickel with a high-grade section close to the bottom of the hole where 0.28% nickel over 91 metres was intersected. At hole DEL 22-09, 393 metres of 0.26% nickel was intersected. The company has now released assays from 5 of the 11 holes.

In November 2021, Canada Nickel announced that it had acquired 13 properties – including Deloro and Reid. By consolidating its district-scale mining potential in the Timmins area, the company created a stronger presence for itself. These projects are located within close proximity of the company’s flagship Crawford nickel sulphide project; all falling within a 95 km radius.

Following a fresh assessment, the Crawford deposit is purported to have the fifth-largest nickel sulphide resource worldwide, weighing 1.4 billion tonnes and containing 0.24 percent nickel in the measured and indicated category and 0.23 percent nickel in the inferred category. The economic assessment of the project, based on former resource estimates, showed a 25-year operation would result in 842,000 tonnes of nickel.

Mark Selby, Canada Nickel Chair and Chief Executive Officer commented in a press release: “We are very pleased with the results from Deloro where we successfully delineated our target mineralization and grades throughout the intended geophysical target.  Deloro now joins Reid as another significant, sizeable nickel discovery and we look forward to continued success as we continue exploration around our regional properties, developing what we believe has the potential to be one of the world’s leading nickel districts. We will provide further updates on drilling and our regional plans in September.”

Highlights from the assays are as follows:

• Second significant discovery from newly acquired regional properties – Reid and Deloro.
• Assay results at Deloro confirmed expected grades over entire core length of 487 metres of 0.25% nickel including 91 metres of 0.28% nickel.
• Mineralization successfully defined over 1.1 kilometres of strike length by 100 – 400 metres wide to a depth of 420 metres.

Hole DEL22-01 collared in dunite on the northern half of the target and was drilled to the southwest. The hole remained largely in dunite for a total length of 487 metres grading 0.25% nickel, with a higher-grade section near the bottom of the hole intersecting 0.28% nickel over 91 metres.

DEL22-09 collared in dunite and the hole intersected 393 metres of 0.26% nickel, including 51 metres of 0.28% nickel. The hole finished in peridotite.

DEL22-06 collared in peridotite and transitioned in composition from dunite to peridotite and intersected a total of 227 metres of mineralization – 74 metres grading 0.20% nickel starting at 54 metres and 141 metres grading 0.21% nickel starting at 140 metres including a 12-metre core length of 0.33% nickel and 0.15 g/t Pt+Pd from 248 to 260 metres. This higher-grade Pt+Pd in dunite has similar characteristics to the high-grade core in Crawford’s East Zone.

DEL22-07 collared in dunite, on section with DEL22-01, 100 metres to the west. DEL22-10 collared in dunite and remained in dunite for the majority of the hole except for minor pyroxenite and mafic dykes. The hole intersected 79 metres of 0.25% nickel 124 metres downhole, and 87 metres of 0.25% nickel at 235 metres, before intersecting intermediate volcanics at the contact.

Source: Canada Nickel Company

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.

Canada Nickel Company (TSXV:CNC) has reported new assay results from its Reid property. The company has completed two drill holes as part of its regional exploration program. Hole REI21-02 intersected 354 metres of 0.24% nickel and includes 15 of 0.39% nickel and 6 metres of 0.57% nickel. These holes hold the same heazlewoodite-pentlandite-awaruite minerals as the Crawford property according to the mineralogy completed on those samples.

Mark Selby, Chair and Chief Executive Officer of Canada Nickel Company commented in a press release: “We are very pleased with our drilling on the Reid target. The assay results from the second hole achieved expected grades over 354 metres and contains a core of higher grade mineralization of 15 metres of 0.39% nickel, and the first hole intersected a PGM zone similar to that at Crawford. We are continuing to drill Reid as we highlight the resource potential of this target with a larger geophysical footprint than our original Crawford discovery. Additionally, we are looking forward to the release of our updated resource estimate for Crawford expected to be released by July 6, 2022.”

Highlights from the drilling are as follows:

• Assays achieved expected grades over entire core length of 354 metres: 0.24% nickel including 15 metres of 0.39% nickel and 6 metres of 0.57% nickel
• Confirmed same mineralogy as Company’s flagship Crawford Project
• Reid property has larger geophysical footprint than Crawford
• Crawford resource update expected to be released by July 6, 2022

Reid Nickel Property

The Reid Property is located just 16 kilometres southwest of Crawford and contains an ultramafic target that measures 3.3 kilometres north-south by 2.1 kilometres east-west based on the total magnetic intensity (“TMI”) (see Figure 1).  Hole REI-22-02 collared on dunite in the SE corner of the target, and was drilled to the NW. It remained in dunite for a total length of 354 metres grading 0.24% nickel, with a higher-grade section near the bottom of the hole intersecting 0.39% nickel over 15 metres (see table 1A). The hole ended in mineralized dunite, and the contact is open to the north.

REI22-01 collared on dunite in the same setup, drilling towards the south contact where the magnetic anomaly is at its highest. The hole transitioned from dunite to a sequence of peridotite-pyroxenite-gabbro similar to that seen at Crawford. The pyroxenite in the sequence yielded 1.6g/t Pt+Pd over 4.5 metres (see Table 1B) similar in grade and thickness to PGM zone at Crawford.

Mineralogy completed on samples from these holes confirmed that they contain the same heazlewoodite-pentlandite-awaruite minerals as Crawford.

As of June, drilling at Reid resumed with a helicopter supported program that will test the extent of the anomaly.