TORONTO, Feb. 28, 2020 /CNW/ – Canada Nickel Company Inc. (TSX-V:CNC) (“Canada Nickel” or the “Company”) today announced a maiden mineral resource estimate for its 100% owned Crawford Nickel-Cobalt Sulphide Project (“Crawford”) near Timmins, Ontario.
“We believe the results of this initial campaign and resource are a clear demonstration of Crawford’s potential scale. The Canada Nickel team will continue to leverage the project’s excellent location and infrastructure, and our team’s extensive project, industry and capital markets experience to explore and advance this large-scale nickel-cobalt project. With exploration activities and mineralogy work well underway, we expect a steady stream of news flow that will underpin an exciting inaugural year for the Company. As the global demand for electric vehicle battery components shifts into high gear, the timing is ideal for the launch of this new pure play nickel-cobalt company in one of the world’s best mining jurisdictions.”
Mark Selby, Chair and CEO of Canada Nickel
The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.
Resource & Drilling Highlights:
Maiden resource with higher grade core of measured
and indicated resource of approximately 263 million tonnes at 0.31%
nickel, 0.013% cobalt, and 0.038 g/t Pd + Pt within an overall measured
and indicated resource of approximately 600 million tonnes at 0.25%
nickel, and 0.013% cobalt, and an additional higher grade inferred
resource of approximately 66 million tonnes at 0.29% nickel and 0.013%
cobalt within an overall inferred resource of approximately 310 million
tonnes at 0.23% nickel and 0.013% cobalt.
Based on
metrics utilized by Wood Mackenzie and SNL, the Crawford Nickel-Cobalt
Sulphide Project already ranks as one of the largest 12 nickel sulphide
resources globally according to WoodMac (Table 2).
Significant
potential to expand resources as drilling has only tested <20% of
the overall Crawford structure and maiden resource remains open in
multiple directions.
The westernmost hole,
CR19-22, continued with strong mineralization, highlighting additional
potential at the Main anomaly and striking northwestward.
All
drill holes intersected multi-hundred metre mineralization with
multiple intersection of 19 to 92 metres in excess of 0.40% nickel and
0.014% cobalt. Hole CR19-14A intersected 901 metres of mineralization
with 0.31% nickel and extended mineralization to a depth of 850 metres
(well below the current modelled resource bottom of 650 metres
vertical).
Similar to other ultramafic hosted deposits
where serpentinized waste rock and tailings have demonstrated the
ability to capture CO2 which provides the potential for lower carbon
footprint operation.
Maiden Resource Estimate
Canada Nickel Company is pleased to announce a maiden Mineral
Resource Estimate for the Crawford Nickel-Cobalt Sulphide Project. A
total of 13,042 metres of core drilling in 24 drill holes was utilized
to calculate the Mineral Resources in the three categories as provided
in Table 1 below, and specifically Measured + Indicated Resources of
approximately 600 million tonnes grading 0.25% Ni and Inferred Resources
of approximately 310 million tonnes grading 0.23% Ni. A cut-off grade
of 0.15% Ni was used for the low-grade domain and 0.25% Ni for the
higher-grade domain (Higher Grade Core)
of the Mineral Resource Estimate. Example cross-section and block model
views of the resource estimate are provided in Figure 1a and Figure 1b below.
This Mineral Resource Estimate was prepared by Caracle Creek
International Consulting Inc. in accordance with CIM Definition
Standards on Mineral Resources and Reserves. A Technical Report in
support of the Mineral Resource Estimate will be filed on SEDAR (www.sedar.com) within 45 days. The Mineral Resource Estimate is effective as of February 27, 2020.
Table 1 – Maiden Mineral Resource Estimate for the Crawford Nickel-Cobalt Sulphide Project, Ontario
DOMAIN
CLASS
TONNES
Ni (%)
Ni Contained (kt)
Co (%)
Co Contained (kt)
HIGHER GRADE CORE
Measured
59,490,559
0.31
185
0.013
8
Indicated
203,350,316
0.31
622
0.013
26
Mea+Ind
262,840,875
0.31
807
0.013
34
Inferred
66,385,504
0.29
191
0.013
8
LOWER GRADE
Measured
145,379,632
0.21
310
0.013
19
Indicated
192,169,547
0.21
407
0.013
25
Mea+Ind
337,549,180
0.21
718
0.013
44
Inferred
244,110,758
0.21
516
0.013
31
DOMAIN
CLASS
TONNES
Pd (g/t)
Pd Contained (oz)
Pt (g/t)
Pt Contained (oz)
HIGHER GRADE CORE
Measured
59,490,559
0.026
49,496
0.010
19,798
Indicated
203,350,316
0.028
180,640
0.011
73,531
Mea+Ind
262,840,875
0.027
230,136
0.011
93,330
Inferred
66,385,504
0.029
61,606
0.014
29,103
SUMMARY
DOMAIN
CLASS
TONNES
Ni (%)
Ni CONTENT (kt)
Co (%)
Co CONTENT (kt)
TOTAL GRADE
Mea+Ind
600,390,054
0.25
1,525
0.013
78
Inferred
310,496,263
0.23
707
0.013
39
DOMAIN
CLASS
TONNES
Pd (g/t)
Pd CONTENT (oz)
Pt (g/t)
Pt CONTENT (oz)
HIGHER GRADE CORE
Mea+Ind
262,840,875
0.027
230,136
0.011
93,330
Inferred
66,385,504
0.029
61,606
0.014
29,103
1.
The
independent Qualified Person for the Mineral Resource Estimate, as
defined by NI 43-101, is Mr. Luis Oviedo, P.Geo. (Chilean Mining
Commission: RM, CMC #013), of Caracle Creek International Consulting
Inc. and Atticus Chile S.A. The effective date of the Mineral Resource
Estimate is February 27, 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 domain and 0.25%
Ni for the high-grade domain of the Mineral Resource Estimate, both
determined on the basis of core assay geostatistics for the deposit and
by comparison to analogous deposit types.
4.
Geological
and block models for the Mineral Resource Estimate used data from 24
surface drill holes completed by Spruce Ridge Resources (4 holes in
2018) and Noble Mineral Exploration and Canada Nickel Company (20 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.
The
geological model as applied to the Mineral Resource Estimate comprises
two mineralized domains hosted by variably serpentinized ultramafic
rocks: a relatively high-grade core (largely dunite) and a lower grade
envelope (largely peridotite). Individual wireframes were created for
each domain.
6.
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 and Co
using the Ordinary Kriging interpolation method and Pt and Pd using
Inverse Distance Cubed method.
7.
Grade
estimation was validated by comparison of input and output statistics
(nearest neighbour and inverse distance cubed), swath plot analysis, and
by manual inspection of the assay data, block model, and grade shells
in cross-sections.
8.
An
average bulk density value for the ultramafic unit was calculated on
the basis of 2,738 specific gravity measurements collected during the
core logging process. Blocks within the high-grade and low-grade
portions of the resource model were assigned a single bulk density value
of 2.65 g/cm3 (t/m3).
9.
Estimates in Table 1 have been rounded to two significant figures.
10.
CIM Definition Standards for Mineral Resources and Reserves (May 10, 2014) have been followed.
Drilling Results
The focus of the 2019 and 2020 drilling programs was to extend the
mineralization after the initial discovery (see Noble Mineral
Exploration release dated March 4, 2019) along strike and to begin
testing the northern and southern extent of the mineralization. The 20
holes completed by Canada Nickel (CR19-05 to CR19-24) to date have
successfully extended the mineralized structure to 1.7 kilometre in
strike length by 225 to 425 metres wide by up to 650 metres deep (see
Figure 2 below.) The host ultramafic body is approximately 1.8 km in
strike length by 290-565 m wide by 650 m
deep. The mineralization remains open along strike to the northwest,
both north and south, and at depth based on 3D magnetic inversion and
deeper drilling to date. The nearly one kilometre deep 3D magnetic
inversion anomaly is only partially tested at depth (see Figure 1a
above). The results of the latest drilling are summarized in Table 3
below.
These new results from recent drilling continue to confirm the higher
grade area (>0.3% nickel) previously identified (see Noble Mineral
Exploration release dated December 9, 2019)
on the northern side of the structure. Drilling has now highlighted an
area across a 1.6 kilometre strike length with intersections of 160 to
230 metres up to 650 metres deep, containing an incrementally higher
grade zone (>0.35% nickel) with intersections of 35 to 134 metres
(e.g., CR19-16 and CR19-19). This higher-grade zone remains open to the
north, west and at depth (see Figure 2).
The modelled higher grade core portion of the host ultramafic
body in Figure 2 [Higher grade (>0.25% Ni) shell (orange ), enclosing
a >0.30% Ni shell (red) and two >0.35% Ni shells (fuchsia)] shows
good continuity along strike while the >0.30% Ni shell shows
reasonable continuity which may improve given increased drill hole
density. The >0.35% Ni shell has been modelled in two areas which
could develop greater continuity and size with increased drill hole
density. The >0.30% Ni grade shell contains an estimated 96 Mt with a
mean grade of 0.34% Ni and the >0.35% Ni grade shell contains an
estimated 21 Mt with a mean grade of 0.38% Ni.
Next Steps
A technical report with respect to the maiden
Mineral Resource Estimate disclosed today will be filed within 45 days
as required by The National Instrument 43-101.
The
drilling program launched in Q4-2019 will continue in 2020, with the
objective of 1) testing nearby targets for possible extensions and new
areas of mineralization; and 2) testing the extension and the continuity
of the mineralization. Mineralogical studies as part of the first phase
of metallurgical testwork will continue through the second quarter
2020.
Table 2 – Ranking of Largest Resource Nickel Projects worldwide.
NICKEL SULPHIDE RESOURCES (WoodMac)
* Denotes Operating Mines. Other Projects are exploration / development / earlier stage
Nickel (Mt)
Company
Project
Contained
1
Norilsk
Polar/Kola
19.0*
2
Waterton
Dumont
5.8
3
Terrafame
Terrafame
4.4*
4
Jinchuan
Jinchaun
4.4*
5
Zebedelia
Zebedelia
4.0
6
GIGA Metals
Turnagain
3.7
7
FPX
Decar
2.7
8
BHP
Yakabindie
2.7
9
Ivanhoe
Platreef
2.7
10
ONEXIM
Kingashky
2.4
11
BHP
Leinster
1.8*
12
Canada Nickel
Crawford
1.5(1)
(1)
Measured & Indicated resource only. All other comparators are
based on total resources (measured, indicated, and inferred)
*n-v
These holes were drilled at a steep angle of -82 deg. The length of
intersection represents the depth extent of the mineralization.
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. The independent Qualified Person for the
Mineral Resource Estimate, as defined by NI 43-101, is Mr. Luis Oviedo
(P.Geo., Chilean Mining Commission: RM, CMC #013), of Caracle Creek
International Consulting Inc. and Atticus Chile S.A. 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 provides investors with leverage to nickel and cobalt in
low political risk jurisdictions in a geopolitically stable jurisdiction
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.
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, mineral resource estimates relating to the Crawford Nickel-Cobalt
Sulphide Project, the potential of the Crawford Nickel-Cobalt Sulphide
Project, 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, and failure to
obtain regulatory or shareholder approvals. 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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