Canada Nickel advances on Timmins drilling update

Canada Nickel advances on Timmins drilling update
Share this article

 

VANCOUVER – Canada Nickel Company Inc. [CNC-TSXV] shares advanced on Tuesday after the company released drill results from a regional exploration program on properties in the Timmins, Ont., region where the company is working to complete a feasibility study on its flagship Crawford Nickel Sulphide Project.

“Our regional exploration program intended to highlight the potential for multiple Crawford-sized discoveries has taken several big steps forward,’’ said Canada Nickel Chairman Mark Selby.

Results released Tuesday are from the Reid, Nesbitt and Deloro properties, which are all located less than 20 kilometres from the Crawford project.

At Nesbitt, for example, drill hole NES21-09 intersected 415.3 (core length) metres of grade 0.26% nickel, including a higher-grade zone of 25.5 metres (core length), grading 0.31% nickel. The company said the same hole intersected a thick interval of peridotite grading to dunite from 41.7 to 459.0 metres, ending in peridotite.

“At Reid, a target with a larger footprint than Crawford, our second hole intersected dunite across the entire core length and contained an 84-metre interval which was visibly mineralized to similar extent as the Crawford Higher Grade Core,’’ said Selby.

“We extended the discovery at Deloro and intersected target mineralization Reaume [property located north of Crawford)– all of which confirm the success of our geophysical targeting model,’’ he said.

Selby said the company is encouraged by these exploration results as they represent targets that can be easily accessed and are not the company’s highest potential targets.

Canada Nickel shares advanced on the news, rising 3.8% or $0.08 to $2.16 on volume of 303,020. The shares are currently trading in a 52-week range of $4.20 and $1.95.

Canada Nickel has said a preliminary economic assessment (PEA) has confirmed robust economics for its 100%-owned Crawford project. The announcement came after Canada Nickel recently said it had entered into a non-binding MOU with Glencore Canada Corp. to examine the potential use of Glencore’s Kidd concentrator and metallurgical site in Timmins for the treatment and processing of material mined from the Crawford project.

Crawford is located 40 kilometres north of Glencore’s operations.

Canada Nickel said the PEA demonstrates the potential to develop a phased conventional nickel sulphide concentrator, producing nickel concentrates and magnetite concentrates. The operation is designed to have an open pit mine with a plant potential of 120,000 tonnes per day.

In a press release in October, 2020, Canada Nickel said the measured and indicated resource at Crawford had increased to 657 million tonnes at 0.26% nickel (1.7 million tonnes of nickel). It said the total inferred resource had increased to 646 million tonnes at 0.24% nickel (1.6 million tonnes of nickel).

The company said it is advancing the project to a feasibility study, which is expected to be completed by the fourth quarter of 2022, with substantial upside resource potential, improved recoveries and other initiatives expected to be included.

Related posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.