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Canada Nickel Company Doubles M&I Resources and Makes Major Discovery

October 21 2020, 14:27 GMT+01:00

Canada Nickel

  • TSX-V: CNC, OTCQB: CNIKF
  • Shares Outstanding: 79.8M
  • Share Price C$2.04 (21.10.2020)
  • Market Cap: C$163M

Fresh off the back of news regarding the company's doubled M&I resources, Canada Nickel Company has released more positive news for investors. The company has now made a third new discovery at its Crawford Nickel-Cobalt Sulphide Project. This latest announcement has drove Canada Nickel's share price up to heights of C$2.40.

UPDATE: 21/10/20

West Zone Discovery Holes CR20-69 through CR20-72 over top of gravity gradient (Crawford Township airborne gravimetric survey completed in 2018)West Zone Discovery Holes CR20-69 through CR20-72 over top of gravity gradient
(Crawford Township airborne gravimetric survey completed in 2018)

Let's start with the highlights from this latest press release:

Highlights:

  • All four drill holes intersected mineralized dunite across width of 800 metres and along a strike length of 425 metres in 2.5 km by 400-800 metre wide geophysical anomaly approximately 850 metres northwest of Main Zone.
  • Fourth hole ended in mineralization (0.31% nickel, 0.09% sulphur, 0.06 g/t PGM, 0.014% Co, 7.37% Fe across 21 metres) with more assays pending.

CEO Mark Selby gave his take on the figures, stating “This is yet another exciting discovery on the Crawford Nickel-Cobalt Sulphide project with a geophysical footprint larger than the Main Zone... These drill holes intersected mineralization consistent with what we’ve seen in the Crawford Main Zone, and reinforces our geophysical understanding of Crawford’s mineralization. I look forward to seeing these assay results and our continued exploration results as we continue to unlock the potential at Crawford.”

These figures cap off what was an excellent week for the Canadian nickel player. Market interest has been strong in recent months, with investors taking a keen interest in a story that has rapidly evolved into one of the largest nickel sulphide projects on the planet. Sulphide projects received a boost in recent months after Elon Musk's statement partially regarding the cleanliness of nickel production. Sulphide projects appear to be a cleaner source of nickel than laterite projects.

With as much as 50% of Crawford's structure remaining untested, Canada Nickel is now in a strong financial position to drive more growth into the company through the drill bit. We will be following this story closely as it develops. Could Crawford be much larger than originally envisaged?

DATE POSTED: 21/10/20

Mark Selby, the CEO of Canada Nickel Company Inc. (TSX-V: CNC, OTCQB: CNIKF), has impressed some investors recently. It’s not surprising as the share price has quadrupled since it IPO’d earlier this year.

If you weren’t paying attention to nickel as an investment until now, it’s probably time to understand the market fundamentals and momentum that is driving prices to over $7.25/lbs, a sizeable leap up from mid-$5/lbs at the start of the year. Tesla wants clean and economic nickel. Total demand is for +4X what is being produced today. Investors are paying attention, but you need to select carefully.

In an accelerated timescale of just 6 months, Selby has shown Canada Nickel’s 100%-owned Crawford Nickel-Cobalt Sulphide Project to be the 11th largest nickel sulphide resource globally. A PEA is expected in December 2020 and the Feasibility Study 12 months after that.

Selby’s experience in the nickel space is extensive, having most recently earnt some stripes de-risking and getting Waterton's Dumont Nickel Project shovel-ready. Back to his own project, he has driven Crawford’s scale to a level that will make potential acquirers pay attention. Why? Because they need nickel, and they can see scale. This project, which can deliver multi-decade production, is clearly of interest.

The news today could transform the Canada Nickel value proposition even further. It takes the form of a significant mineral resource update at Crawford. The major headline here is that having conducted a total of 30,519m of core drilling in 62 drill holes, Canada Nickel has more than doubled its total M&I resources.

The scale of the reporting this morning puts this deposit unquestionably at the top table:

  • Main Higher-Grade Zone Measured resource increased by 162% to 153 Mt at 0.32% nickel (485kt nickel).
  • Total M&I resource increased by 9% to 657Mt at 0.26% nickel (1.7Mt nickel).

We previously documented how this higher-grade zone had the potential to transform Crawford’s bulk-tonnage economic credentials, and this speculation has now come to fruition. The zone is larger than previously presented, and a 162% increase in scale will be welcomed by the market.

  • Total Inferred resource increased by 121% to 646Mt at 0.24% nickel (1.6Mt nickel)
  • Including an increase of 50% in Main Zone (433 Mt @ 0.23% nickel) and an initial resource from East Zone of 213 Mt at 0.24% nickel (505 kt nickel).

This is perhaps the most eye-catching highlight. Canada Nickel had already established itself as a meaningful nickel player, both in terms of scale, economic durability and, most recently, environmental friendliness/carbon neutrality (see their ‘NetZero’ nickel initiative).

  • Significant exploration potential remains with approximately 50% of Crawford structure untested and is now actively being explored.
  • The Main Zone remains open to the west and the East Zone has more than 2.8km of strike length (40%) remaining to be drilled.

In especially exciting news for retail investors, Crawford’s exploration upside remains meaningful. This means more catalyst moments could be on the horizon, and more growth might be expected where it is most desired: Canada Nickel’s share price. With over 50% of Crawford’s potential being untapped, the question remains not how far can this resource can go, but how quickly can this asset get into production?

Selby has given his take on the results, stating “This latest drilling phase did an outstanding job of delivering on both of its key objectives – better defining and increasing the Main-Higher Grade Zone and establishing an initial resource in the East Zone. With a 162% increase in the Measured High-Grade Zone nickel content, a 121% increase in total inferred resources, and an initial East Zone resource, this resource update puts us in excellent position for the delivery of a Preliminary Economic Analysis (“PEA”) by year-end.

I look forward to continued drilling results as we explore several highly prospective nickel and PGM targets at Crawford, and to completing the remaining metallurgical and engineering testing for the PEA. With the recently completed financing, the Company is well-positioned to aggressively advance Crawford towards a Feasibility Study expected by year-end 2021.” Not only is this a project that appears to have strong regional infrastructure within the renowned Timmins-Cochrane mining camp and plenty of exploration upside, it also seems to be a project that is progressing at a rapid pace.

Having created value through the drill bit in 2020, Selby will be hoping to repeat Canada Nickel’s success with future exploration efforts but is clear that his focus is on hitting this nickel super cycle and getting into production in 2025. It is worth paying attention to this Goldilocks company, which seems to have timed it just right.

To find out more, go to the Canada Nickel website.


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