Canada Nickel Company Inc V.CNC

Canada Nickel Confirms High Grade Nickel Near-Surface

[EndZonefor7]

Highlights

• Nine of first twelve holes with intervals of greater than 1% nickel
• First twelve holes confirm high grade mineralization over 400 metres of strike length that remains open to the north and at depth
• High grade intervals within thick mineralized sections include:
• Hole 22-03: 5.2 metres of 2.60% nickel within 21.0 metres of 1.22% nickel within 91.5 metres of 0.50% nickel from 58.5 metres
• Hole 22-06: 4.0 metres of 2.43% nickel within 12.0 metres of 1.45% nickel within 28.0 metres of 0.77% nickel from 76.5 metres

TORONTO, March 6, 2023 /CNW/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) today announced assay results from the first twelve holes of its initial drill program at the Texmont property that confirm high grade, near-surface nickel mineralization. Texmont is located 36 kilometres south of Timmins.

The Company has drilled a total of 39 holes and 9,670 metres, completing its initial phase to support the development of a mineral resource at Texmont expected to be delivered later this year.

Mark Selby, Chair & CEO of Canada Nickel Company, said, "We are excited by the results of our initial phase of drilling and assay results at Texmont which confirm our thesis of near-surface, high grade intervals of nickel that is present within thick mineralized sections, which support the potential for near-term, smaller scale, open pit production.  This near-term production potential is highly complementary to our large-scale Crawford and regional nickel sulphide project."

Texmont Nickel Property

The Texmont Property is located 36 kilometres south of Timmins. It is considered to be a komatiite flow rather than a dunite sill with sections of highly mineralized peridotite and dimensions approximately 1.2 kilometres long by up to 150 metres wide (see Figure 1).

Canada Nickel has drilled 39 drill holes to date, 34 of which targeted the known mineralization and five of which targeted a possible north extension (Figure 2).   This news release contains the assay results from the first 12 holes totaling 3,204 metres (see Tables 1,2). Historic drilling confirms the mineralization pinches out to the south but remains open to the north and at depth. Further drilling to the north of the former mine shaft intersected thick sections of mineralized peridotite but assay results are not yet available.  This drilling is expected to be incorporated, along with historic drilling by Fletcher Nickel (which drilled 28,883 metres from 2006-2008) into an initial resource estimate to be released later this year.

https://ceo.ca/@newswire/canada-nickel-confirms-high-grade-near-surface-mineralization

[EndZonefor7]

Those are some awesome high grade numbers. Check out the 10% core sample at the PDAC booth. Wowsers ! https://ceo.ca/cnc?344a71bb41b9

[MrDales62]

Well done here.  GLTA

[caramba71]

I don't think this is a big deal.  Considering the history of this property and the drilling that was done there a long time ago, everything else would have been a surprise. Even to a mining dummy like myself.  But I guess some news had to be produced.  MDI42A03NE00002 has some additional background info. Some of it is very old. 

[NoobTube]

Several extremely high grade intercepts indicates something bigger down there.  Plus at the 10% interval there's also 1.2gpt pd and 1.68gpt pt.  Expect quite a few more holes around hole 6.

[CravingProfits]

Caramba, I believe Texmont is more of a strategic step in moving forward into an open pit, higher grade, and earlier startup, rather than than anything else. Remember they do have multiple other properties with Nickel and Cobalt, so this acquisition was not necessarily to only add resources. If Texmont can be profitable, it would go to CNC`s bottom line in the long run, accelerating Crawford`s

[PCGuy10]

I saw the Texmont cores at the PDAC yesterday, and they looked really good. However the high grade assay release hasn't had the desired effect on the share price. It's like the market doesn't really care. The problem is, going through the historical archives of the property, there are serious issues that need to be addressed, in order to profitably mine the property. Abandoned mines

[EndZonefor7]

Yes surprising we can't even get a mild bump. Markets are strange these days but not like we didn't know Texmont already had high grade. More confirmation it can be an early feeder for a battery EV maker.   You chat to anyone at the booth PCguy? Was it busy ? 

[PCGuy10]

Moderately busy. I went down on the Go Train from Kitchener. I thought it opened at 9:30, but it opened at 10:00. I had a brief glimse of Mark who ran into the Cafe/Lounge before the trade show opened.

[NoobTube]

Not really surprising to me.  If I were a large entity trying to build a position the last thing I want to see is the price go up.  Much better to surpress the price and have frustrated impatient retail investors sell into your bids 

[apapas1973]

The problem with price suppression NoobTube is we become vulnerable to market volatility. And it's going to affect the capital we need to raise. The smaller the market cap, the more shares we'll need to issue for more capital. People are not receptive to news here it seems. Whether we wake up one day and it finally catches traction, who knows. We'll see. GLTA

[NoobTube]

From what I have read, they didn't shut down due to clogging.  They shut down to high fuel costs of running the generator.  At this time nickel prices were also not that high.  The 1970s saw two separate oil crises and fuel shortages.  Dealing with asbestos is a regular occurace with mining.

[PCGuy10]

The aforementioned summer student future CEO mentioned that. Ontario Hydro refused to hook them into the grid despite the power lines being a close distance away. Speaking of nickel being lower and the OPEC embargo killing it, wasn't everything else lower than as well? I keep hearing a story of how you could but a gallon of gasoline in the US for $0.25 in 1947. If you are lucky enough to

[NoobTube]

"THE TEXMONT NICKEL MINE IS LOCATED ABOUT 35 KILOMETERS SOUTH OF TIMMINS. BASED ON SOURCE MATERIAL IT IS BELIEVED THE TEXMONT PROPERTY WILL NOT BE BROUGHT BACK INTO PRODUCTION AND IS CURRENT LY BEING USED AS A TAX WRITE OFF. ADDITIONALLY, BASED ON THE FACT THAT THERE ARE LITTLE OR NO BY PRODUCTS TO HELP SUPPORT THE VENTURE, GOLDAR ASSOCIATES, INC. DOES NOT FEEL IT COULD BE ECONCMIC AT THE

[PCGuy10]

Sheridan Geophysics. That name rings a bell. Didn't Mark say that the property was tied up in an estate probate for a few years, and just came available? When I was working in Timmins cira 1997, Placer Dome just aquired the claims to the neighbouring Preston property from who someone decribed as (won't list first name, but one of the names of the 4 books of the Gospel) "The Shark

[EndZonefor7]

Yes it was PCguy. He said they were trying to get it 18 months ago. The Shark must have known it would have value to hold on until the end. Looks like an old report. 

[caramba71]

CravingProfits. Good point. I can't remember  which of the properties had an existing mining permit that could be resurrected. If it was this one, it would be excellent news.

[PCGuy10]

Carambs yes, this property did come with an active mining lease which could be reactivated in a lot less time than a virgin property. However, as I stated in my comments below, we need to make sure we don't fall in the same rabbit holes that plauged the property 50 years ago,

[CravingProfits]

Pcguy..wwrent' they still using picks and shovels back then? Lol...kidding.

[smallcap1967]

"The Company has entered into a binding agreement to acquire a 100% interest (subject to certain thirdparty rights described below) in 14 mining leases in exchange for a $250,000 cash payment and issuing a non-interest bearing promissory note of $3.75 million due March 14, 2023. At closing, the seller will be granted a 2% net smelter returns royalty, which can be bought down to 1% for $2

[caramba71]

PCGuy10 - What's the story of that rabbit hole from 50 years ago if you don't mind.

[PCGuy10]

The rabbit hole is from a post on ceo.ca from a now retired executive who was a summer student on site when they were mining it in the early 70's. According to him, they couldn't grade, because asbestos in the foot wall kept clogging the flotation circuit in the mill. They had to shut it all down and manually shovel it out into barrels, several times a week. This was also mentioned in an

[caramba71]

Thanks for the explanation PCGuy.  I saw the mentioning of asbestos in an old file (MDI42A03NE00002) - Ontario Mineral Inventory.  Hopefully that wouldn't be much of an issue.

[EndZonefor7]

I remember the early 70's. We had dial up party line phones and just got color TV. Tech changes things. Government will be happily hooking up hydro the way Ford is pumping critical minerals. New roads and rail not a prob too.     I'm sure they've been testing Texmont nickel in the lab before drilling 32 holes. Always good to ask the hard questions but let's use some