Canada Nickel’s hits at Texmont crown recent results in Timmins district

Drilling at seven of Canada Nickel‘s (TSXV: CNC; US-OTC: CNIKF) properties in the Timmins-Cochrane mining district of northern Ontario has returned positive results, with results at Texmont expanding high-grade mineralization to the north and at depth.   

Hole TEX24-51 at Texmont returned 6.5 metres grading 2.68% nickel from 58.5 metres depth, while hole REI24-42 at Reid returned 710 metres of 0.25% nickel, including 105 metres of 0.35% nickel and 22 metres of 0.41% nickel. 

“Reid’s strategic importance is continuing to grow given its size, grade, and shallower overburden compared to Crawford,” CEO and director Mark Selby said in a news release on Tuesday. “While still at a relatively early stage, Mann West is emerging as another excellent large-scale, shallow target. We remain on track to publish a total of seven additional resources by mid-next year.” 

The results come almost one week after Canada Nickel announced that government agency Export Development Canada (EDC) might loan it US$500 million for its Crawford project in northern Ontario. The flagship project might become the world’s largest nickel-cobalt sulphide development, and hosts proven and probable reserves of 1.7 billion tonnes grading 0.22% nickel, plus copper, palladium, and platinum, according its feasibility study released last October. 

At Mann West, mineralization was delineated over a 1.7-km strike length and over 600 metres in width; and at Mann Central, hole MAN24-21 cut 223.4 metres averaging 0.29% nickel, including 10.5 metres section of 0.51% nickel. 

At Reaume, improved nickel mineralization was intersected including sections of visible coarse grained awaruite in hole REU24-12.

Crawford boasts an after-tax net present value is US$2.6 billion at an 8% discount rate, with an internal rate of return of 18.3%.

The mine, expected to start output in 2027, would feed into two proposed plants estimated to cost more than $1 billion that would process nickel and to produce stainless-steel and alloys, Canada Nickel said in February.

Despite long-term forecasts for increasing battery metal demand to meet rising electric vehicle production, prices for nickel and lithium have crashed in the past year, forcing some miners to suspend operations and delay projects.

Shares in Canada Nickel were up almost 1% to $1.03 apiece on Wednesday afternoon in Toronto, valuing the company at $184.8 million. Its shares traded in a 52-week range of 89¢ and $2.24.