Enters Binding LOI with Noble Minerals to
Option Additional MacDiarmid Properties
Highlights
- Completion of regional geophysics and interpretation of
historical drilling has yielded multiple targets including the
MacDiarmid target in excess of 1.8
km long and an average of 400 metres wide – a similar quality
target and approximately 15% larger than the size of original
Crawford Main Zone discovery
- Entire MacDiarmid target has
now been acquired through a binding letter of intent with Noble
Mineral Exploration to consolidate additional mining claims around
entire target
TORONTO, Feb. 17, 2021 /CNW/ - Canada Nickel Company
Inc. ("Canada Nickel" or "The Company")
(TSX-V: CNC) (OTCQB: CNIKF) and Noble Mineral Exploration
("Noble") today announced that they have entered into a
binding letter of intent ("LOI") to consolidate ownership of a
recently identified high priority nickel target in MacDiarmid township.
The LOI options additional claims adjacent to the original
MacDiarmid property option
previously announced on July 13,
2020. Canada Nickel has identified prospective targets on the
Option Properties it obtained from Noble: Kingsmill, Mahaffy-Aubin,
Nesbitt North, and Crawford
Nesbitt-Aubin and drilling on several of these targets is expected
to begin during the current winter season.
"With MacDiarmid's location
just west of the Kidd Creek Mine, we are thrilled by the
district-scale potential of this rapidly emerging nickel sulphide
corridor along Highway 655 and we look forward to unlocking the
potential of MacDiarmid in
addition to the other properties optioned from
Noble." said Mark Selby,
Chair and CEO of Canada Nickel.
Airborne geophysics and a compilation of historical
exploration activities led to the identification of the
MacDiarmid target, 1.8 km long and
an average 400 metre wide geophysical footprint, 15% larger than
Canada Nickel's original Crawford Main Zone discovery. The
geophysics results were further confirmed by review of historical
drill logs (no assays were completed) for all seven holes drilled
entirely within the target coincident anomaly which all intersected
dunite or peridotite (the mineralized host rock at Crawford) across
the bulk of the core length. All seven of the holes also
indicated presence of magnetite and sulphides in abundances
consistent with that seen in Crawford core logs.
Vance White, President & CEO
of Noble added "Today's results support our belief that the
nickel exploration potential on the set of properties that were
optioned to Canada Nickel has the potential to generate as much or
more return for our shareholders as the original Crawford
transaction. Noble has always been very confident that the Project
81 land package has the potential to generate multiple large
tonnage Nickel Sulphide deposits and with the expertise of CNC, we
think we are well on our way to realize this potential."
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.
MacDiarmid Nickel-Cobalt Sulphide Target
As Canada Nickel continues to advance its Crawford discovery,
the Company has been working through the interpretation of an
airborne geophysics survey program completed in September 2020, on the set of properties optioned
from Noble Mineral Exploration (see Canada Nickel announcement
dated July 13, 2020). The company has
identified a number of nickel-cobalt targets on the MacDiarmid, Kingsmill, Mahaffy-Aubin, and
Nesbitt properties – the MacDiarmid target being the most attractive.
Drilling on each of the targets is expected during the current
winter season. (See Figure 4 for map of properties.)
Drill results from the Crawford Ultramafic Complex have
demonstrated that coincidental strong magnetic high and gravity low
geophysics anomalies have generally delivered mineralization with
higher grades from the Crawford project. The Crawford Main
Zone Measured & Indicated resource of 606 Mt grading 0.26% nickel, including
201 Mt grading 0.34% nickel at a
0.30% cutoff (see Canada Nickel announcement dated January 18, 2021), is hosted mainly in
serpentinized dunite or peridotite.
The coincident MacDiarmid
anomaly is 15% larger than Crawford, measuring a combined 1.8 km
long by average 400 metres wide. Based on historic drill hole logs,
the MacDiarmid target is an
ultramafic intrusion with identified serpentinized dunite and
peridotite, much of it was not assayed (as the historic target was
not nickel sulphides).
Over 50 holes have been drilled in the area since the original
Inco hole in 1946 but only eleven holes ever intersected the
ultramafic intrusion. Of those only seven holes intersected the
coincident magnetic and gravity anomaly portion of the intrusion.
These seven holes all intersected dunite and/or peridotite over
their entire length, interrupted only by narrow dykes and faults.
All seven of the drill holes had similar quantities of visible
magnetite and sulphides as in the Crawford drill holes, magnetite
being an indicator of serpentinization which is the process that
generates nickel mineralization in this type of ultramafic
body. Four holes drilled outside the anomaly (MCD32-02,
MCD41-02, MAC-3, MAC-4) intersected significant sulphides within
much of the volcanic rocks intersected. While these holes did
not intersect dunite or peridotite across their entire length, the
presence of sulphides is a good indicator of the presence of
sulphur inside the intrusion, which is critical to the formation of
nickel sulphide minerals.
See below caution regarding Historical Information.
Table 1 – Historical Drill Hole Orientation, MacDiarmid
Nickel-Cobalt Sulphide Target, Ontario*
DDH
ID
|
Northing
|
Easting
|
Azimuth
|
Dip
|
Length
|
Year
|
|
(mN)
|
(mE)
|
(°)
|
(°)
|
(m)
|
|
MCD41-02
|
5391404
|
457314
|
242
|
-50
|
268.2
|
1999
|
MCD32-02
|
5390220
|
459180
|
57
|
-60
|
251
|
1999
|
MAC-3
|
5390338
|
460165
|
270
|
-45
|
247
|
1964
|
MAC-4
|
5390335
|
459895
|
90
|
-46
|
216
|
1964
|
MAC-5
|
5390455
|
459858
|
270
|
-45
|
213
|
1964
|
MAC-6
|
5390455
|
459858
|
360
|
-90
|
136
|
1964
|
MAC-7
|
5390583
|
459865
|
180
|
-45
|
246
|
1964
|
MAC-73-1
|
5390616
|
459622
|
180
|
-60
|
190.5
|
1973
|
MAC-73-2
|
5390526
|
459419
|
222
|
-60
|
190.5
|
1973
|
MAC-73-3
|
5390349
|
459630
|
360
|
-60
|
192.6
|
1973
|
MAC-73-6
|
5390687
|
458160
|
222
|
-45
|
239
|
1973
|
Historical drillholes are not NI43-101 compliant. All references
to UTMs are in NAD-83 Datum and Zone 17N Projection.
Transaction Summary
In exchange for the option, Canada Nickel has agreed to (i)
issue 200,000 common shares of CNC to Noble, (ii) forgive the
$160,224 amount currently owed by
Noble to CNC, (iii) take all steps as are commercially reasonable
to transfer $500,000 in assessment
credits to Noble, and (vi) Noble to retain an NSR of up to
1.75%. Under the terms of the Option, a 60% interest in the
Claims will vest in CNC provided CNC funds at least $100,000 of exploration and development
expenditures on the Claims within 18 months. An 80% interest in the
Claims will vest in CNC provided CNC funds at least an additional
$150,000 (for a total of $250,000) of exploration and development
expenditures on the Claims within 36 months. CNC will also be
responsible for exploration expenditures and other costs required
to maintain the Claims in good standing (and to make certain
related filings).
If the conditions to earn a 60% interest or 80% interest have
been satisfied, a joint venture would be formed between CNC and
Noble on such proportionate basis.
The transaction is subject to certain specific conditions,
including prior approval of the TSX Venture Exchange, Board
approvals and third party approvals.
Next Steps
Canada Nickel has applied for exploration permits and expects to
begin drilling MacDiarmid in
early March.
Cautionary Statement Concerning Historical
Information
The historical information referenced in this press release is
based primarily on drilling results reported by Inco Ltd. and Noble
Mineral Exploration Inc. The information has also been filed with
the Ontario Government and is available on-line though the Mining
Lands Administration System (MLAS) website. The company believes
this information is relevant, as it was completed by reputable
companies using industry standard drilling and sampling practices.
The company or its "qualified person" (for the purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral Projects)
has reviewed the information to confirm it has been correctly
reproduced from the public MLAS database, but given the company's
and its qualified person's inability to access the underlying data,
the company or its qualified person has not done sufficient work to
verify the historical information contained in this news
release.
Qualified Persons and Data Verification
Stephen J. Balch P.Geo. (ON), VP
Exploration of Canada Nickel and a "qualified person" as such term
is defined by National Instrument 43-101, has verified the data
disclosed in this news release, and has otherwise reviewed and
approved the technical information in this news release on behalf
of Canada Nickel Company Inc.
Randy S C Singh P.Geo. (ON), P.Eng. (ON), VP Exploration &
Project Development of Noble and a "qualified person" as such term
is defined by National Instrument 43-101, has verified the
technical data disclosed in this news release on behalf of Noble
Mineral Exploration Inc.
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 Company has applied in multiple
jurisdictions to trademark the terms NetZero NickelTM,
NetZero CobaltTM, NetZero IronTM and is
pursuing the development of processes to allow the production of
net zero carbon nickel, cobalt, and iron products. Canada Nickel
provides investors with leverage to nickel and cobalt in low
political risk jurisdictions. 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. For more information
please visit www.canadanickel.com.
About Noble Mineral Exploration Inc.:
Noble Mineral Exploration Inc. is a Canadian-based junior
exploration company which, in addition to its shareholdings in
Canada Nickel Company Inc., Spruce
Ridge Resources Ltd. and MacDonald Mines Exploration Ltd., and its
interest in the Holdsworth gold exploration property in the area of
Wawa, Ontario, holds approximately
72,000 hectares of mineral rights in the Timmins-Cochrane areas of Northern Ontario known as Project 81. Project
81 hosts diversified drill-ready gold, nickel-cobalt and base metal
exploration targets at various stages of exploration. More detailed
information is available on the website at
www.noblemineralexploration.com .
Noble's common shares trade on the TSX Venture Exchange under
the symbol "NOB".
Cautionary Statement Concerning Forward-Looking
Statements
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, drill results relating to the Crawford
Nickel-Cobalt Sulphide Project, the potential of the Crawford
Nickel-Cobalt Sulphide Project, timing of economic studies and
resource estimates, 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, failure to
obtain regulatory or shareholder approvals, and the impact of
COVID-19 related disruptions in relation to the Company's business
operations including upon its employees, suppliers, facilities and
other stakeholders. 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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SOURCE Canada Nickel Company Inc.