Canada Nickel Company (CNC.V) announced results from the drilling currently underway at their Nesbitt Nickel property.
The drilling is part of Canada Nickel’s larger exploration project at their wholly-owned Crawford Nickel Sulphide Project. The project, located near Timmins, ON, has access to major infrastructure, such as roads, rail, power, and water. Because the area has been a popular mining district, Canada Nickel believes they could take advantage of a skilled local workforce and could take advantage of other companies’ infrastructure, such as Kidd Creek’s mill.
Today’s results follow on from CNC’s previously announced results, where they found two discovery holes. The first two discovery holes at the Nesbitt property intersected visible disseminated nickel sulphides on a geophysical target that is 3.7 kilometres long and 100 to 300 metres wide. The third hole was collared near the eastern limit of the central Nesbitt trend and was consistent with the first two holes. The goal of exploring there was to further understand a coincident (high) magnetic and (low) gravity anomaly identified during Canada Nickel’s geophysical exploration work conducted during the first half of 2021, pictured above.
“This third hole was drilled 1.8 kilometres east of the first two holes at Nesbitt and demonstrates the scale potential of this new discovery on a 3.7 kilometre long target. Located just 8 kilometres north of Crawford it is a potential source of higher-grade source of feed for the Crawford mill. The results further underscore the success of our geophysical approach and the district scale potential of our overall land package. I look forward to continued success at Nesbitt and to our upcoming follow-up on the significant 0.38% nickel interval at the recently acquired Bradburn/Dargavel target,” stated Mark Selby, Chair and CEO of Canada Nickel.
These results come just a few days after CNC filed their preliminary economic assessment (PEA), titled “Crawford Nickel Sulphide Project NI 43-101 Technical Report and Preliminary Economic Assessment”. The PEA estimated that the Crawford mine will produce a total of 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome, which the PEA valued at $24 billion using long-term price assumptions. It also anticipated 34,000 tonnes of nickel production per year on average, which they expect to peak at 42,000 tonnes in one year. Canada Nickel expects the project to be large-scale, low cost, and long-life.
Following today’s news, CNC shares are down 1 cent and are currently trading at $3.44.