Introduction

Updated February, 2023

Nickel is quickly becoming a hot topic among investors, and for good reason. Not only is demand on the rise from the stainless steel sector but also from the rapidly developing electric vehicle market which is poised to see substantial growth in the coming decade. As such, we are now seeing governments, auto manufacturers and influential people like Elon Musk calling for increased production of nickel sulphate, but more importantly, in an environmentally friendly way. With most of the world’s nickel supply coming from places like New Caledonia, the Philippines and Indonesia who use coal-powered electricity that is counter intuitive to the concept of greener technologies. This is where an operation like the one Canada Nickel is developing could become a major player in the nickel space in the very near future.

Summary

Overview – A brief description of the company

Crawford PEA Highlights and Notes – A quick look at the 2021 PEA and some notes on whats changed since

Nickel supply and Demand Outlook – A look at world supply and demand, the impacts of the invasion of Ukraine and the needs of manufacturers as they apply to the carbon footprint left behind by nickel mining and refining operations.

History – An in depth look at the discovery of the Crawford Ultramafic Complex that led to the formation of Canada Nickel and every development since.

Canada Nickel – Developing a District Scale Nickel Mining Operation in Ontario – In this section we detail all the work that has been done on the full land package since inception in more general terms. The individual details and results can be found in the following section which hones in on each property individually.

— Expanding Operations – Discussing the addition of 5 more properties in a deal with Noble Mineral Exploration

— Updated Resource Estimate – Breaking down the increase in resources ahead of the PEA

— Community Engagement and First Nations Agreements – In this section we look at how CNC is developing relationships to ensure the success of their projects.

— Crawford Nickel Sulphide Pre Economic Assesment (PEA) – Highlights from the 2021 PEA. Please note, that improvements to the PEA are stated in the ” Crawford PEA Highlights and Notes” section and more detail to be provided below.

— Metallurgical Advancements – As the Project has developed, so has the Metallurgy! This is the first of several improvements highlighted in this report.

— Additional Notes on Crawford Drilling Results from 2021 – Additional Drilling results from 2021 exploration at Crawford

— Additional Assets Acquired in 2021 – Canada Nickel has optioned and acquired several large-scale nickel sulphide targets within a short distance of the Crawford deposit from Noble Minerals, staking and prospectors alike. With the addition of these 18 targets, Canada Nickel now has the potential to become one of the largest nickel sulphide producers in the world, turning the greater Timmins area into a district scale nickle operation.

2022 Exploration, Acquisition and Advancements – Covering all the activity that took place for CNC in 2022 in chronological order from acquisitions to project improvements and everything in between.

— 2022 Mineral Resource Update – A look at the incorporation of the updated resource into the PEA

— Carbon Credit System – A brief description of the Carbon Credit system as it pertains to this project

— Texmont – Highlighting the aquisition of the past producing high grade nickel mine

2023 Exploration, Acquisitions and Advancements – Covering all the activity that took place for CNC in 2022 in chronological order from acquisitions to project improvements and everything in between.

Net Zero Carbon – In a world focused on green energy, Canada Nickel is uniquely poised to be able to meet the demand to produce nickel in an environmentally efficient manner and achieve zero carbon or at least close to it. As a result of the unique advantages of the Timmins region with its proximity to zero-carbon hydroelectricity and Crawford being comprised largely of serpentine rock that naturally absorbs CO2 when exposed to air, Canada Nickel has the potential to develop zero-carbon products. Combined with the company’s plans to use an all electric fleet, CNC could become an industry leader in clean mining techniques.

— IPT Carbonation Process – Discussing the IPT Carbon Sequestration Process developed by CNC

Management and board – A look at the team running Canada Nickel

Conclusion – Closing Statements

Overview

Canada Nickel Company Inc. (TSX.V: CNC) Located in the mining friendly jurisdiction of Timmins, Ontario and within the world famous Abitibi Greenstone belt, Canada Nickel is focused on advancing the next generation of high quality nickel-cobalt sulphide and PGM projects to deliver the metals needed to power the electric vehicle revolution and feed the high growth stainless steel market. with potential to become one of the largest district scale nickel sulphide mining operations in the world. Once in operation it will be the largest base metal mining operation in North America. In addition to the 100% owned Crawford Nickel-Cobalt Sulphide and PGM Project, Canada Nickel holds 20 additional projects with historical nickel occurrences, and resources such as the past producing Texmont high grade nickel mine and 2-3 other deposits with +1% nickel which will compliment Crawford.

Crawford 2021 PEA Highlights & Notes

The first resource established on Crawford, was initially based on drilling of just over 20 percent of the ultramafic structure, and already it ranked in the top twelve largest nickel sulphide deposits in the world using methods by Wood Mackenzie. So it was no surprise that when they updated the resource estimate shortly after in the maiden PEA on the project, it climbed to number 5 on the global chart with around 50% of the Crawford Ultramific Complex drilled off.

The PEA dated July 2021, indicated a 25-year mine plan based on a phased 120,000 tonnes per day open pit mine and processing operation using conventional nickel sulphide concentrator, producing nickel concentrates and magnetite concentrates.  

Over the 25-year mine life Crawford is expected to produce 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome valued at $24 billion using long-term price assumptions. Annual average nickel production of 75 million pounds (34,000 tonnes) with peak period annual average of 93 million pounds (42,000 tonnes), with significant iron and chrome by-products of 860,000 tonnes per annum and 59,000 tonnes per annum, respectively.

Highlights:

• After-tax, $1.2 billion NPV_8% and 16% IRR at long-term price assumptions (Note 1)
• Large scale, low cost, long-life
• Significant iron and chrome by-products of 860,000 tonnes per annum and 59,000 tonnes per annum, respectively
• Life-of-mine net C1 cash cost of $1.09/lb and net AISC of $1.94/lb on a by-product basis (1st quartile) (Notes 2 and 3)
• Life-of-mine production of 25 years with 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome valued at $24 billion using long-term price assumptions (Note 1)
• Significant earnings and free cash flow generation. Annual EBITDA of $439 million and annual free cash flow of $274 million (Notes 1 and 3)
• Minimization of carbon footprint through use of autonomous trolley trucks and electric shovels, which reduces diesel use by 40%. Optimization of the carbon sequestration potential of tailings and waste rock.

PEA Notes and Assumptions

1. All dollar figures are in United States (“US”) dollars. US metal prices used in the PEA were $7.75/lb nickel, $1.04/lb chromium, and $290/tonne iron. A US dollar exchange rate of 0.75 was applied.
2. Source for 1^st quartile costs – Wood Mackenzie and S&P Capital IQ; Priced as of May 20, 2021.
3. C1 cash cost, AISC, EBITDA and cash flow data are non-IFRS measures. Refer to Non-IFRS measures.
4. A full copy of the Technical Report and PEA, including material assumptions, notices and cautions, can be found on the Company’s profile at www.sedar.com.

The upcoming Feasibility study will incorporate all the remaining drill data which will increase the size by 50 – 100 percent as much more material has gone into indicated resource from the inferred category.

Additionally, the metallurgy has improved exponentially and CNC now boasts one of the highest recovery rates for nickel sulphides on a global scale. The improvements on metallurgy provide additional value to the project and each percentage point improvement in nickel recovery would yield a US$92 million improvement in the value of the NPV_8% of the project, based on the PEA metrics

Highlights:

• Flowsheet improvements yield recovery gains and enhanced magnetite concentrate quality (all figures below relative to Preliminary Economic Assessment (“PEA”) model)
  • Nickel recovery of 62% – 10 percentage points or 19% improvement
  • Iron recovery of 45% – 2 percentage points or 5% improvement
  • Magnetite concentrate grade of 54% iron – 6.5 percentage points or 14% improvement
  • Cobalt recovery of 70% – 30 percentage points or 75% improvement

Furthermore, The company has also made progress on the carbon sequestration aspect of their tailings which will allow the company to capitalize on the emerging carbon credit sector.

Highlights:

• Initial lab scale testing demonstrates that Crawford tailings have the potential to capture 17.5 kg CO₂ per tonne of tailings – more than 3 times the amount required to offset the Project’s projected carbon footprint. Any amounts in excess of projected 4.6 kg CO₂ per tonne could be sold for carbon credits.

Notes

Several of improvements have been made since the release of the PEA that will be incorporated into the upcoming Feasibility study and will be covered in this report. But just so you have an idea of where the project is headed, here is what you need to know. Please note that all the following notes will be covered in more detail later in the report.

1) Resource – In the PEA it was projected that Crawford had a mine life of 25 years, however our first improved metric was the resource update! This doubled the resource to 1.4 billion tonnes of nickel grading .24% with the addition of 113 new holes. But it will grow because there were 54 additional exploration drillholes in the East and Main Zone that didn’t get included. These additional resources add at least another 20-25 years bringing us to a 45 – 50 -year mine life.

2) Metallurgy – The target for recoveries was 35% so when we see an announcement that they are recovering 63% on low grade material with a 46% concentrate (which is the highest known nickel sulphide concentrate from any project globally based on all available published studies), one might have grounds to get excited! Why? Because, each percentage point of improvement in nickel recovery would yield a US$92 million improvement in the value of the NPV8% of the project, based on the Preliminary Economic Analysis (“PEA”) metrics. Additionally, Nickel recovery from the slimes circuit was not included in the reported results and represents a further opportunity to improve flowsheet performance and will be evaluated during this phase of feasibility work.

3) Carbon Capture – In a huge development, Canada Nickel announced that they can capture 710,000 tonnes of CO2 credits annually and 18 million total tonnes over the expected life of mine! With carbon credits sitting at $50 per and projected to hit $180 it could produce an entirely new revenue stream for the project while helping the environment. For context, that’s $35.5 million in revenue @$50 and $127 Million @ $180… Now add that to these figures… Significant earnings and free cash flow generation. Annual EBITDA of $439 million and annual free cash flow of $274 million.

4) Spot Price of Nickel – The price of nickel will drastically affect profit margins so the fact that its approaching $13 per pound bodes very well for CNC. I’m sure I’m missing something in there but these are just some examples of how the company is creating real value which will reflect in the upcoming Feasibility study. Lastly, I would like to highlight that they have agreements with 2 first nations groups, The city council and local MP’s are in full support, Permitting has already been started and majors are inquiring regularly. Don’t be surprised to see the provincial government invest as there is a glaring need for nickel and CNC might just be the best option on the planet. Anyways, I think you get my point. This stock is grossly undervalued and as noted above you can see why I believe Canada Nickel is in for a big re-rate post feasibility study due mid 2023.

Additionally, Timmins is a world-class, mining friendly jurisdiction, with a wealth of infrastructure and skilled local labour to support a project of this scale. Mark Selby, Chair and CEO of Canada Nickel, is a well-respected expert on nickel and his experience has already accelerated this project much faster than anyone anticipated. With EV sales continuing to grow and the demand for more environmentally friendly mining at the forefront of the sector, we believe Canada Nickel has a real opportunity to become one of the largest and most efficient nickel producers on the planet while creating generational wealth as many of their predecessors have before them.

Finally, The company’s true value cannot be assessed on Crawford alone as they have recently secured the rights to an additional 20 projects (10 of which are comparable to Crawford), A past producing high grade mine in Texmont and a few are higher grade, smaller deposits in the area. But when you start to see the bigger picture of whats shaping up in Northern Ontario, you cant help but get excited for the opportunity this district scale project represents. Now lets have a look at the Nickel Markets in 2023 and beyond before diving into all the details of CNC. Hope you have your coffee ready.

Nickel Supply and Demand Outlook

In March 2020, Nickel hit a low of just $11,000 USD per ton despite the supply crunch being projected by analysts around the world. However, since the crash of 2020 Nickel has seen a steady climb up into the $30,000 USD range and holding on the back of trade disputes, export bans, tariffs, inflation and the war in Ukraine along with the fact that global LME stocks have been dropping dramatically with new demand for the metal coming from both the stainless steel and EV sectors. As 2023 gets under way, nickel is emerging as a clear favorite among base metals after a very volatile year in 2022.

Nickel demand is mainly driven by the stainless steel industry which accounts for roughly 70% of demand, while batteries only account for roughly 13% in 2023. However, battery metals like nickel are slated to triple by 2030 or better and signs can already be seen in the market. Large blue chips producers and auto manufacturers are cutting deals to secure supply and the industry is getting commitments from the government to build the infrastructure and remove the red tape needed to put mines into production and meet the critical mineral demands created by a burgeoning industry. What does that mean for investors? Find Nickel exploration projects with good fundamentals, take a position and let it mature! but I digress.

While there has been a lull in Nickel demand with China shutting down with a Zero Covid policy, they have recently lifted restrictions and the global nickel markets are beginning to heat up again. All signs point to a continued growth pattern, especially when you consider that Indonesia is pulling supply to push the value higher and Russia has already taken a large quantity supply off the open market as they secure feed for their war machine. The end result is that in 2023, we’ve seen nickel gaining strength and it is my opinion that we could see nickel break the $15 USD mark by the end of the year provided that there are no unforeseen macro events that swing the price wildly up or down.

History

For many years the property on which the Crawford Nickel deposit is hosted was owned by a logging company and saw little to no exploration activity while the rest of the Timmins area was being heavily explored and drilled in hopes of finding the next big gold mine. Then in 1963, the discovery of the VMS deposit in Kidd Township which ultimately led to the development of the Kidd Creek Mine, about 15 km south of the Crawford Deposit, led to a flurry of exploration in and around Timmins.

INCO Limited, a Canadian mining company and the world’s leading producer of nickel for much of the 20^th century, did the bulk of the exploration work around Crawford Township but they were not interested in low grade high tonnage nickel deposits as the value of these types of deposits were unknown and for the most part they overlooked the potential. So while everyone was looking for the next Kidd Creek, these already identified nickel sulphide targets sat untouched and exploration in these townships all but stopped in the 1980’s until Noble Mineral Explorations acquired the rights to the property in 2011 and dubbed it Project 81.

Originally the property was acquired by Noble because of the Kingsmill Nickel deposit and the Lucas Gold showing. In the first few years they did a range of Geophysics, ran some small drilling campaigns and continued to build out their land package by staking additional claims. Prior to the development of Canada Nickel, Noble had amassed approximately 79,000 hectares of property and tailored their business model to be a project generator whereby they could still maintain exposure to the future success of their property but not have to put out the capital to explore their large land package.  

In 2017, Noble Mineral Exploration completed a 1,031.3 line km airborne helicopter MAG-EM survey and hired Orix Geoscience to conduct a data compilation of all known exploration activities on the property. This ultimately led to a joint venture deal with Spruce Ridge Resources to explore certain targets in Crawford Township, including the Crawford Ultramafic Complex (CUC).

In 2018, a fixed-wing 936.1 line km FALCON©, Airborne Gravity Gradiometer and magnetic surveys were conducted, both covering Crawford Township and the CUC. This was followed by the application of Windfall Geotek’s Artificial intelligence, CARDS technology which all but confirmed the CUC as a high priority target. Once Spruce Ridge received the targets from Windfall, they began a diamond drilling program late in the year that continued into 2019.

This was the point where Mark Selby was introduced to Vance White, CEO of Noble Mineral Explorations. Mark reviewed the information on Crawford and immediately pinpointed several similarities to the Dumont project, which he spent 10 years developing from a greenfield discovery into a construction ready and fully permitted project as CEO of RNC Minerals. Knowing that he could leverage his experience, Mark opted to take part in this project and began to work with Noble and Spruce Ridge to acquire the Crawford Ultramafic Complex under a newly formed subsidiary company that was to be spun out from Noble Mineral Exploration, called Canada Nickel Company.  

As they waited for approval to get a listing on the TSX venture exchange, Vance was able to acquire a long standing 5% royalty on the property held by Franco Nevada. This deal had been in the works for sometime but worked to the advantage of Canada Nickel as it was completed before the spin out. With the October 1st, 2019 announcement that Noble had created a new entity, Canada Nickel Company took control of the drilling program from Spruce Ridge Resources.

Canada Nickel Company was officially spun out of Noble Mineral Exploration and listed on the Toronto Venture Stock Exchange in February 2020 at an initial listing price of $0.25 cents per share. The company quickly made a name for itself with nickel expert, Mark Selby at the helm as Chairman and CEO. The insight and experience he brings have become very apparent as he has navigated his way through this project very quickly. Dumont really is the most comparable to Crawford in terms of grade, size and metallurgy, thus allowing the CNC team, many of whom worked with Mark on Dumont, to leverage some of their previous work into this project.

Canada Nickel

Developing a District Scale Nickel Mining Operation in Ontario

Following up on the initial four holes completed in late 2018 and reported in early 2019 (see Noble news release date March 4, 2019), results from CNC’s first nine drill holes, which totaled 5,280 m, were announced by Noble on December 9, 2019. A further 11 holes totaling 7,298 m were announced by CNC on February 28, 2020. Total diamond drilling to up to January 2020 was 14,461.70 m in 25 holes which includes 65.5 m from an abandoned drill hole (CR19-14).

The focus of the 2019-2020 drilling was to extend mineralization along strike, test the northeastern and southwestern extents of mineralization (i.e., contacts), and to test deeper portions of the CUC. To date, diamond drilling has outlined a west-northwest trending (~285-315Az) ultramafic body (largely dunite-peridotite) that is at least 1.74 km in strike length, 225 to 425 metres wide, and more than 650 metres deep. Mineralization remains open along strike to the northwest, and at depth. A north-northwest trending regional sinistral, strike–slip fault terminates the ultramafic body along its southeastern extent. A 3D-Inversion magnetic anomaly, nearly one kilometre deep, has been only partially tested at depth with several drill holes extending beyond the 650 m depth containing intervals of >0.25% Ni. Diamond drilling is on-going on the Property.

On February 27^th, Canada Nickel Company officially started trading on the TSX venture under the ticker symbol CNC. Under the agreement with Noble and Spruce Ridge Resources; Noble would receive 2 million dollars and 12 million shares of CNC and Spruce Ridge was to receive 20 million shares for their stake in the project.

By February 28^th, Canada Nickel had sufficient drilling to put out a maiden resource estimate totaling 600,390,054 tonnes grading at .25% Nickel of Measured and Indicated resource and an additional 310,496,263 tonnes grading .23% Nickel of inferred resource making the Crawford Nickel project the 11^th largest nickel sulphide deposit in the world with only 20% of the structure drilled. In addition to the nickel content, there is a section of PGM’s that run in parallel to the nickel body, with the best results to date returned 2.6 g/t palladium + platinum (1.3 g/t Pd, 1.3 g/t Pt) over 7.5 metres within an overall 1.8 g/t (0.9 g/t Pd, 0.9 g/t Pt) over 12 metres at 123 metres downhole. This structure extends over 1.5 kms and continues to expand as drilling continues.

Within the ore body there is also a higher grade core near surface which will allow for higher cash flow in the early years of production. Diamond drill core assay results to date allow for the delineation of the two higher grade (>0.30% Ni and >0.35% Ni) regions within the larger Higher Grade Zone (>0.25%Ni), which in turn are within the larger enveloping Low-Grade Zone (>0.15% Ni), all contained within the host ultramafic body of the CUC. The Higher Grade Zone has a minimum strike length of about 1.57 km, is between approximately 160 and 230 m wide, and contains regions of incrementally higher grade nickel (i.e., >0.30% Ni and >0.35% Ni). The Higher Grade Zone and internal regions of higher grade nickel remain open along strike to the west-northwest and at +650 m depth.

Expanding Operations

With a great start to the project it was only natural that Mark would look to add some of the other prospective targets within Project 81 that were similar in composition to Crawford as highlighted by the work done by INCO in the 1960’s. Then on March 4^th, 2021, Canada Nickel Company announced that they agreed to pay  Noble $500,000 in cash and issue 500,000 Canada Nickel common shares to acquire the Crawford Annex property and the option to earn up to an 80% interest in 5 additional nickel targets within the Project 81 land package and in close proximity to Crawford. 

The Crawford Annex is comprised of 4,909 hectares in Crawford and Lucas Township and the 5 option areas of Crawford-Nesbitt-Aubin, Nesbitt North, Aubin-Mahaffy, Kingsmill-Aubin, and MacDiarmid range in sizes of 903 to 5,543 hectares. If the conditions to earn a 60% interest or 80% interest become satisfied, a joint venture would be formed on that basis and a 2% net smelter return royalty would be granted to Noble.

To understand the significance of acquiring these properties, we need to look at each of the additional 5 targets individually

Kingsmill

The Kingsmill target is a large serpentinized ultramafic intrusion which is 2.2 km long and between 375-600 metres wide. A thorough review of historical drilling results yielded both significant nickel and PGM intersections and the north side of the structure appears to have the same PGE enrichment as Crawford Main and East Zones: 1.0 g/t PGM over 2 metres from 96 metres within 0.3 g/t PGM over 30 metres from 69 metres in historic hole KML-12-11, 0.8 g/t PGM over 5 metres from 523 metres within 0.5 g/t PGM over 24 metres in historic hole KML-12-07.

Several large portions of the structure remain highly prospective for nickel-cobalt-PGM mineralization:

• The two sections were 1.3 km apart leaving a large portion of the overall structure completely untested.
• There are several intersections which points to the potential for relatively higher quantities of recoverable minerals
• Holes KML-12-06, KML-12-11, KML-12-12 on the Eastern section all contained intersections with significant nickel and sulphur content (which is necessary for formation of nickel sulphide minerals) across wide intersections (see Table 1 below)
• Hole KML-12-03, yielding 0.26% nickel and 0.03% sulphur over 130 metres, was the only hole (of four holes on the Western section) drilled on the northern half of the structure, which has yielded the best mineralized portions of the Crawford Main and East Zones
• Historic hole 27090 also drilled on north side of the structure in 1966 yielded 0.31% nickel over 302 metres (sulphur was not assayed)

The understanding of the mineralogy of these deposits has evolved significantly since the Kingsmill drilling was completed eight years ago, particularly the controls and the deportment of potentially recoverable nickel minerals across the deposit.  Initial mineralogy results from Kingsmill in 2012 were less positive as the test was conducted on one master sample compiled from all drill cores – not taking into account the significant variability in mineralogy between rock types, and that some ultramafic rock will have low amounts of potentially recoverable nickel minerals.

Historical Drill Tables

Kingsmill Selected Historical Drilling Key Nickel Intersections – Holes 6, 11, 12 (Eastern), 3 (Western), Kingsmill Township, Ontario

Kingsmill Selected Historical Drilling Key PGM Intersections – Holes 6, 11, 12 (Eastern), 3 (Western), Kingsmill Township, Ontario

Once the new resource update for Crawford is complete, the historic drilling will be re-logged and mineralogical samples will be selected to understand the deportment of potentially recoverable nickel minerals (pentlandite, heazlewoodite, awaruite).

Crawford-Nesbitt-Aubin

The Crawford-Nesbitt-Aubin Township target consists of two ultramafic units 6 km long and 150-200 metres wide containing serpentinized peridotite and much of it was not assayed. Inco drilling in 1964-66 yielded highlights including narrow intervals of up to 0.35% Ni which tested the edges of the geophysical target. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

Nesbitt North

Two ultramafic units 3.7 km long by 150-300 metres wide with significant nickel intersections were identified in Nesbitt township. Inco 1966 drilling highlights included 0.28% Ni over 163 m in historic hole 27083. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

July 14th, 2021 – Canada Nickel expands the potential of Nesbitt to 1.8 kms of strike. A step out hole was drilled along the geophysical anomaly that intersected 302 metres of nickel mineralization with intervals of visible disseminated sulphides just like at Crawford, highlighted the size potential of the property and given its proximity to the CUC, the potential for it to be inclusive into future Crawford plans.

MacDiarmid

A target of 3 km by 150-600 metres wide ultramafic intrusion with serpentinized peridotite has been identified, much of it was not assayed. Highlights include historic hole 18127 which intersected 142 m of mineralized peridotite which was not assayed, and narrow intervals of up to 0.22% Ni over 1.5 m in NRK-65-7 (1965). For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

Mahaffy-Aubin

A target of 8 km by 200-500 metres wide interpreted ultramafic intrusion has been identified, much of it was not assayed. Highlights include historic hole 31901 (1966) which intersected 0.23% Ni over 127 m, and hole T2-80-2 (1980) which intersected 277 m of serpentinized ultramafic rock with no assays reported. For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide.

Table 2 – Historical Drill Hole Orientation, Canada Nickel Option Properties, Ontario

The addition of these areas gives Canada Nickel a larger footprint to fully develop Crawford as each can potentially host nickel-cobalt deposits that are similar in nature to Crawford. With these additional targets Canada Nickel could grow their resource exponentially and easily become one of the top players in the nickel sector or provide a major an opportunity to secure feed for many years to come.

Updated Mineral Resource Estimate

Then on October 21st, 2020 Canada Nickel announced an updated mineral resource for its 100% owned Crawford Nickel-Cobalt Sulfide Project which more than doubled it’s mineral resources in both the Measured and Inferred resource categories. This increase pushed CNC up the global ladder to the number 7th largest nickel sulfide deposit globally. Considering that this was achieved on less than 50% of the structures drilled in the CUC, this leads to great optimism for the Crawford deposit and beyond.

In having such great success in exploration, the company opted to get to work and put deals in place with the local first nations in the Wabun tribal council and initiate a working relationship with the Taykwa Tagamou, which would see them take an active role in building the hydro electric infrastructure required to get the project into production. This was a big step for this project as community acceptance is a big part of developing projects and so far CNC is way ahead of the game.

Then on January 25th, 2021, Canada announced very positive results from its latest metallurgical testing. The first phase of metallurgical testing was designed to confirm initial flowsheet design, which uses a typical nickel sulphide ultramafic flowsheet of two stages of grind-deslime-float with magnetic separation to support recovery of magnetic minerals. Subsequent testing during 2021/22 will continue to optimize various flowsheet parameters towards a final flowsheet for the feasibility study.

Continue reading for additional Flow Sheet Improvements and updates in 2022

Community Engagement and First Nations Agreements

Then came a non-binding Memorandum of Understanding (“MOU”) with Glencore Canada Corporation in order to examine the potential use of Glencore’s Kidd concentration and metallurgical site in Timmins, Ontario for the treatment and processing of material mined from Canada Nickel’s 100% owned Crawford Nickel-Cobalt project located 40 km north of Glencore’s operations. This was a big step forward as the economics of the project will be far more robust not having to build everything from scratch and should have a very positive effect on the project as a whole. This also bodes well from the perspective of having a major establish a working relationship with Canada Nickel Co. For more information on the MOU [Click Here]

In April, Canada Nickel Signed a Memorandum of Understanding with Taykwa Tagamou Nation for Mine Fleet Financing for the Crawford Nickel-Cobalt Sulphide Project. Under the terms of the MOU, TTN will seek favourable financing terms to participate in the financing of all or a portion of the heavy mining equipment fleet required for Crawford’s operation. Training and associated employment opportunities will also be available to TTN where specialized maintenance and operation is required for the equipment and where that equipment is financed or owned in whole or in part by TTN. This deal augments first nations participation in this project and highlights the strong support from the local communities who will benefit from a project like this for generations.

Crawford Nickel Sulphide Pre Economic Assesment (PEA)

Then came the PEA, which put Canada Nickel on the radar of every investor in North America and placed it as the 5th largest Nickel Sulphide project globally with only 50% of the deposit drilled off! The Economics were robust and showed that large low grade deposits like this can be extremely profitable! Using metrics that look low at today’s nickel prices also highlight the long term sustainability of the project as we transition to green energy that is reliant on nickel.

I’m not going to spend much time here aside from providing highlights because so many metric have improved that these numbers are quite frankly outdated and substantially better now. Full PEA can be found @ https://canadanickel.com/wp-content/uploads/2022/08/Crawford-43-101-Technical-Report-and-PEA-May-19-2022-1.pdf

Metallurgical Advancements 2021

In early October, Canada Nickel announced that they achieved 62% nickel recovery through substantial improvements in metallurgical performance at the Crawford Nickel Sulphide Project. This is huge! Each percentage point improvement in nickel recovery yields a US$92 million improvement in the value of the NPV_8% of the project, based on the PEA metrics.

Highlights:

• Flowsheet improvements yield recovery gains and enhanced magnetite concentrate quality (all figures below relative to Preliminary Economic Assessment (“PEA”) model)
  • Nickel recovery of 62% – 10 percentage points or 19% improvement
  • Iron recovery of 45% – 2 percentage points or 5% improvement
  • Magnetite concentrate grade of 54% iron – 6.5 percentage points or 14% improvement
  • Cobalt recovery of 70% – 30 percentage points or 75% improvement

“I am very pleased with this step change in metallurgical performance that our team has unlocked during this phase of flowsheet optimization.  The nickel recovery is substantially higher than the 4-5 percentage point improvement in nickel recovery the Company is targeting for the feasibility study.  The improvement in grade and recovery of iron in the magnetite concentrate that has already been unlocked is excellent.  I cannot underscore enough the importance of these results, as we believe all of these improvements provide additional value to the project.” said Mark Selby, Chair and CEO

Additional Notes on Crawford Drilling Results 2021

In late October, with 5 drills turning on the property another development came in the discovery of a higher grade core in the East Zone of Crawford. Not only did this discovery add more tons to the Feasibility study but it also boasted fantastic metallurgical results as well. highlights below.

Highlights

• Infill drilling identified an extensive Higher-Grade Core in the East Zone, similar to the Main Zone.
• The higher grade cores span combined strike length of 1.6 kilometres, a width of 20 to 50 metres, to a depth of 690 metres.
• Drilling in the East Zone has successfully infilled and extended strike length to a total of 2.1 kilometres, substantially larger than previously reported resource.
• Hole 142A averaged 0.31% Ni across its entire 576 metre core length, ending in mineralization. Hole 165A (assays pending) was mineralized across its entire 690 metre core length, ending in higher grade mineralization at 735 metres. Five other holes recently completed intersected drill intervals of up to 216.6 metres of higher grade mineralization.
• Samples from East Zone Higher Grade Core yielded the highest grade concentrate from Crawford during metallurgical work reported for the previously released Preliminary Economic Assessment with 43% of the recovered nickel reporting to a 55% nickel concentrate.  

While exploration at Crawford was going on full steam ahead and metallurgical work was being improved upon, the work on Carbon Sequestration was developing, making this one of those coveted green nickel mining operations. On November 10th, 2021, CNC announced that Initial lab scale testing demonstrated that Crawford tailings have the potential to capture 17.5 kg CO₂ per tonne of tailings – more than 3 times the amount required to offset the Project’s projected carbon footprint but we will cover that below.

Additional Assets Acquired in 2021

On November 22, 2021, Canada Nickel made a bold statement by going out and securing an additional 13 properties which all share similar geophysical traits and historical exploration data. This was a strategic move to secure a true district scale land package and nobody saw it coming! Lets take a look at those projects. (Taken from News release dated November 22, 2021, Please refer to the news release for more information on the property acquisitions.

Highlights

• Acquisition of 13 additional target properties consolidates district scale potential.
• Combined target surface footprint of 37.7 square km – 40 times larger than current Crawford Main Zone resource of 0.85 square km.
• Ten target properties have larger footprint than Crawford and nine confirmed to contain the same host mineralization as Crawford.
• Sothman target property has historical higher grade, shallow resource of approximately 190,000 tons of 1.24% nickel (with 300 metres strike length)¹; remaining 2.2 km of strike length is largely untested.
• Four target areas have yielded drill intersections of > 0.3% nickel including:
  • Sothman: 2.31% nickel and 0.19% copper over true width of 3.2 metres within 1.58% nickel and 0.12% copper over true width of 8.6 metres from 41 metres;
  • Deloro: 0.38% nickel and 0.22 g/t PGM over core length of 15.5 metres within 0.28% nickel and 0.09 g/t PGM over core length of 299 metres from 241 metres;
  • Midlothian: 0.24% nickel over core length of 345 metres, including 0.30% nickel over 42 metres;
  • Mann Southeast: multiple 3 metre intervals grading 0.31-0.33% nickel within 111 metres of dunite across entire core length

Sothman

Canada Nickel has entered into an agreement with Glencore Canada Corporation (Glencore) to acquire 50 mining leases that are in Sothman, Kemp and Mond Townships, 45 of which have associated Mining and Surface rights and five of which have Mining Rights only. Glencore will also hold a contingent right to receive a bonus payment in the amount of $10,000,000 (paid in cash or shares, at the Company’s election) in the event the Company discloses a mineral resource pursuant to National Instrument 43-101 of 10,000 tonnes or more of nickel or nickel equivalent. Glencore will also retain offtake rights to purchase the ore, concentrate or other mineral products produced from the property at market pricing. Canada Nickel staked an additional nine mining claims adjacent to the mining leases.

Sothman is a property of approximately 1,000 ha located 70 km south of Timmins.  The Property contains an ultramafic sill comprised mainly of dunite (see Figure 2) that is estimated to be up to 200-300 metres thick, 2.2 km long and open at depth. An unclassified historical resource estimate reported as 189,753 tons grading 1.24% nickel (the Sothman West Zone)³ is centred 500 metres west of the sill (the 2.2 km dunite sill is largely untested).

The Sothman West Zone occurs at the north ultramafic contact within a footwall embayment approximately 300 metres wide and open at depth. The best historical intersection was hole DG50-S04 with 1.58% nickel over 12.2 metres (8.6 metres estimated true width) from 41.2 metres downhole including 4.6 metres (3.2 metres estimated true width) of 2.31% nickel and 0.19% copper. A sample of historical drill results is shown in Table 1a and 1b. Two drillholes intersected a deeper pod of similar sulphide mineralization (3.4 metres of 1.32% nickel from 398 metres in SM71-1 and 5.5 metres of 0.49% nickel from 353.2 metres in SM71-2) outside of the resource during the last drill program in 1971.

The Sothman Main Zone has seen very limited exploration but is known to contain dunite and peridotite and is similar in size to the East Zone at Crawford. For example, drill hole SM67-B25, SM67-B26 and SM67-B27 all intersected peridotite below overburden intersecting 54.56 metres of peridotite from 36.6 metres, 112.47 metres of peridotite from 7.6 metres, and 109.43 metres of peridotite from 12.19 metres respectively. All three holes ended in peridotite. Drill hole SM67-B28 was collared in peridotite (intersecting 46.02 metres of ultramafics from 15.24 metres) and crossed the south contact into volcanics at 61.26 metres, completing the only geologic section across the Sothman Main Zone.

Drill hole DG53-S41A is the only hole drilled in the eastern area of the Sothman Main Zone and intersected 60.1 metres of peridotite from 23.8 metres downhole, ending in peridotite. The south contact of the Sothman Main Zone has been intersected in three drill holes (DG51-S09, DG51-S12 and SM67-B28) with all holes starting in peridotite and ending in volcanics.

Table 1a – Historical Drilling – Sothman West Zone – Significant Intersections

Hole ID	From (m)	To (m)	Length (m)	Estimated True Width (m)	Ni %	Cu %
SM56-K11	93.2	102.4	9.2	4.6	1.58	0.17
including	93.2	97.5	4.3	2.2	2.58	0.34
SM67-B06	28.7	40.5	11.8	8.4	1.57	0.11
including	28.7	33.8	5.1	3.6	2.28	0.16
DG50-S04	41.2	53.3	12.2	8.6	1.58	0.12
including	41.2	45.7	4.6	3.2	2.31	0.19
DG51-S20	89.9	95.8	5.9	4.0	1.56	0.13
DG50-S05	19.8	21.0	1.2	0.9	7.51	0.62
SM71-1	398.1	409.0	11.0	4.1	0.66	0.04

___________________________

3 See Statement Regarding Historical Resource Estimates on page 27 of this press release.

Table 1a – Historical Drilling – Sothman West Zone – Significant Intersections (continued)

Hole ID	From (m)	To (m)	Length (m)	Estimated True Width (m)	Ni %	Cu %
including	398.1	401.4	3.4	1.2	1.32	0.05
SM71-2	353.3	358.8	5.5	2.5	0.49	0.03

Table 1b – Historical Drilling – Sothman Property – Selected Lithologies

Hole ID	From (m)	To (m)*	Rock Type
DG-50-S04	32.4	107.9	Ultramafics – Peridotite
DG-50-S05	22.9	82.0	Ultramafics – Peridotite
DG-51-S09	7.3	217.0	Ultramafics – Peridotite
DG-51-S12	7.0	111.4	Ultramafics – Peridotite
DG-51-S12	111.4	114.1	Ultramafics – Gabbro
DG-51-S12	114.1	118.3	Ultramafics – Peridotite
DG-51-S12	118.3	142.8	Ultramafics – Gabbro
DG-51-S20	19.8	96.9	Ultramafics – Peridotite
DG-53-S41A	23.8	83.8	Ultramafics – Peridotite
SM-56-K11	85.7	148.4	Ultramafics – Peridotite
SM-67-B06	25.5	101.8	Ultramafics – Peridotite
SM-67-B25	36.6	91.1	Ultramafics – Peridotite
SM-67-B26	7.6	120.1	Ultramafics – Peridotite
SM-67-B27	12.2	121.6	Ultramafics – Peridotite
SM-67-B28	15.2	47.7	Ultramafics – Peridotite
SM-71-01	394.0	426.7	Ultramafics – Peridotite
SM-71-02	351.1	366.7	Ultramafics – Peridotite
* Denotes ended in mineralization

December 1st, 2022 Update

Five drill holes were drilled on the eastern half of the target anomaly (SOT22-01 to SOT22-05). These holes succeeded in confirming the continuation of ultramafic lithologies, primarily peridotite, with moderate to strong serpentinization and variable amounts of mineralization throughout. Assays from all holes are pending.

Deloro Nickel Property

The Deloro Project consists of mining claims and patents acquired from two vendors in separate Purchase Agreements. In the first Purchase Agreement a 100% ownership was acquired to 35 mining claims and 30 mining patents. The mining claims are subject to a 2.00% NSR while the patents are subject to various NSRs, ranging from 2.00-5.50%. In the second Purchase Agreement, Canada Nickel acquired a 100% ownership in four contiguous mining patents. The vendor will retain a 3.00% NSR on any gold resource outlined.

Deloro is a property of approximately 1,800 ha located 10 km southeast of Timmins. It contains an ultramafic unit 1.4 km in length and up to 450 metres wide, striking south-southeast identified by the high magnetic intensity anomaly and historical drilling (see Figure 2). Six holes (FY-02-02, FY-02-06, FY-02-10, FY-02-11, FY-02-12, FY-02-13) were drilled inside and on the edge of the anomaly. Five of six holes intersected serpentinized dunite/peridotite with a core length of 24.2 metres in hole FY-02-10 up to 138.4 metres in hole FY-02-13, with four of five holes ending in serpentinized dunite/peridotite.

All five holes noted presence of magnetite (up to 20-25% magnetite in interval 39.4-89.5 metres from hole FY-02-02) and disseminated sulphides. Only specific non-consecutive intervals were assayed. Two of the four holes had nickel mineralization exceeding 0.40% nickel:  FY02-02 with 0.42% nickel over a core length of 4.2 metres, with up to 0.73 g/t Pd and 0.23 g/t Pt over 1.2 metres, and FY-02-10 with 0.48% nickel, 0.28 g/t Pd, and 0.14 g/t Pt over 2.8 metres. See Table 2a and 2b below.

Table 2a – Historical Drilling – Deloro Property – Significant Intersections*

Hole ID	From (m)	To (m)	Length (m)	Ni %	Cu %	Pd g/t	Pt g/t
FY-02-02	241.0	314.5	73.5	0.28	0.03	0.06	0.03
Including	299.0	314.5	15.5	0.38	0.06	0.15	0.07
FY-02-02	324.2	345.0	20.8	0.24	0.03	0.03	0.01
including	342.8	343.1	0.4	0.74	0.23	0.16	0.17
FY-02-10	54.7	59.7	5.0	0.27	0.03	0.01	0.00
FY-02-10	95.8	98.6	2.8	0.48	0.03	0.28	0.14
FY-02-13	122.8	152.9	30.1	0.25	0.01	0.02	0.01
FY-02-13	177.5	200.5	23.0	0.24	<0.01	0.00	0.00
FY-02-13	298.0	318.0	20.0	0.26	<0.01	0.00	0.00
* Insufficient drilling completed to determine dip and true width of orebody

Table 2b – Historical Drilling – Deloro Property – Selected Lithologies

Hole ID	From (m)	To (m)	Length (m)	Rock Type
FY-02-01	4.0	11.0	7.0	Peridotite
FY-02-01	11.0	14.1	3.1	Serpentinite
FY-02-01	14.8	18.2	3.4	Serpentinite
FY-02-01	18.2	29.9	11.7	Peridotite
FY-02-01	29.9	31.3	1.4	Peridotite
FY-02-01	31.3	34.8	3.5	Peridotite
FY-02-01	36.5	98.5	62.0	Peridotite
FY-02-01	98.5	102.0	3.5	Serpentinite
FY-02-02	5.8	21.3	15.5	Peridotite/Dunite
FY-02-02	23.1	33.7	10.6	Peridotite/Dunite
FY-02-02	33.7	34.7	1.0	Serpentinite
FY-02-02	39.4	89.5	50.1	Peridotite/Dunite
FY-02-02	89.5	90.4	0.8	Pyroxenite
FY-02-02	92.1	117.1	25.0	Peridotite/Dunite
FY-02-02	117.1	120.7	3.6	Serpentinite
FY-02-02	132.5	134.4	1.9	Peridotite
FY-02-02	135.4	136.8	1.4	Pyroxenite
FY-02-02	137.1	138.6	1.5	Serpentinite
FY-02-02	138.6	149.8	11.2	Peridotite/Dunite
FY-02-02	151.7	206.1	54.4	Peridotite/Dunite
FY-02-02	210.6	217.9	7.2	Serpentinite
FY-02-02	219.3	314.7	95.4	Peridotite
FY-02-02	316.7	319.0	2.3	Pyroxenite
FY-02-02	319.0	319.7	0.7	Peridotite
FY-02-02	319.7	321.2	1.5	Peridotite/Dunite
FY-02-02	321.2	324.2	3.0	Peridotite
FY-02-02	324.2	324.8	0.6	Peridotite
FY-02-02	324.8	325.8	1.0	Peridotite
FY-02-02	325.8	332.2	6.4	Peridotite
FY-02-02	332.2	333.5	1.3	Serpentinite
FY-02-02	333.5	339.7	6.2	Peridotite
FY-02-02	339.7	365.7	26.0	Serpentinite
FY-02-02	373.5	381.1	7.7	Serpentinite
FY-02-06	25.0	110.3	85.3	Serpentinite
FY-02-06	110.9	208.9	98.0	Serpentinite

Table 2b – Historical Drilling – Deloro Property – Selected Lithologies (continued)

Hole ID	From (m)	To (m)	Length (m)	Rock Type
FY-02-06	211.2	301.0	89.8	Serpentinite
FY-02-10	31.7	50.0	18.3	Pyroxenite
FY-02-10	54.7	59.7	5.0	Pyroxenite
FY-02-10	69.9	73.8	3.8	Peridotite
FY-02-10	75.5	97.6	22.1	Pyroxenite/Peridotite
FY-02-10	97.6	113.5	15.9	Peridotite/Dunite
FY-02-10	113.5	121.9	8.4	Peridotite
FY-02-10	121.9	123.5	1.7	Serpentinite
FY-02-10	123.9	124.6	0.7	Serpentinite
FY-02-10	124.8	130.7	5.9	Peridotite
FY-02-10	130.7	135.0	4.3	Peridotite
FY-02-12	52.4	58.6	6.2	Pyroxenite
FY-02-12	58.6	64.7	6.1	Serpentinite
FY-02-12	75.3	79.1	3.8	Serpentinite
FY-02-12	80.0	80.3	0.3	Serpentinite
FY-02-12	80.3	82.3	2.0	Serpentinite
FY-02-12	85.6	86.2	0.6	Serpentinite
FY-02-12	86.2	97.3	11.1	Peridotite
FY-02-12	97.3	113.5	16.2	Pyroxenite
FY-02-12	113.5	118.2	4.7	Peridotite
FY-02-12	119.4	122.0	2.5	Peridotite
FY-02-12	122.0	133.3	11.3	Peridotite/Dunite
FY-02-12	133.3	146.4	13.2	Dunite
FY-02-12	146.6	272.0	125.4	Dunite
FY-02-13	114.3	156.0	41.6	Peridotite
FY-02-13	166.1	168.1	2.0	Peridotite
FY-02-13	168.1	171.9	3.8	Peridotite
FY-02-13	171.9	177.5	5.6	Dunite
FY-02-13	177.5	179.6	2.1	Peridotite
FY-02-13	179.6	318.0	138.4	Dunite

Combined August 17th & September 28th, 2022 update for Deloro Nickel Property

Exploration drilling was performed at Deloro in 2022 as part of Canada Nickel’s campaign to drill test several of the newly acquired targets and Deloro didn’t disappoint!

Highlights

• Second significant discovery from newly acquired regional properties (Reid & Deloro)
• Assay results at Deloro confirmed expected grades over entire core length of 487 metres of 0.25% nickel including 91 metres of 0.28% nickel.
• Mineralization successfully defined over 1.1 kilometres of strike length by 100 – 400 metres wide to a depth of 420 metres.

Drilling was highlighted by hole DEL22-01 which intersected 487 metres of 0.25% nickel with a higher-grade section near the bottom of the hole intersecting 0.28% nickel over 91 metres and hole DEL 22-09 which intersected 393 metres of 0.26% nickel. Complete assays from 5 of the 11 holes are noted below

Hole DEL22-01 collared in dunite on the northern half of the target and was drilled to the southwest. The hole remained largely in dunite for a total length of 487 metres grading 0.25% nickel, with a higher-grade section near the bottom of the hole intersecting 0.28% nickel over 91 metres.

Hole DEL22-02 drilled at the most northern edge of the target, intersected a sequence of pyroxenite, peridotite and dunite rocks with varying degrees of alteration and mineralization.

Hole DEL22-03 collared in dunite on the northern half of the target and was drilled to the southwest. The hole remained and finished in dunite except for a section of pyroxenite in the center. The dunite sections grading up to 0.24% Ni over 157.7 metres, and 0.22% Ni over 106.2 metres with visible pentlandite-heazlewoodite mineralization.

DEL22-04 collared in dunite near the center of the target and drilled to the northeast. The dunite is mineralized throughout, interrupted only by a few minor dykes. Dunite graded 0.26% Ni over 43 metres, and 0.26% Ni over 271 metres. The hole reached the east contact intersecting Peridotite and Mafic volcanics.

DEL22-05 collared in dunite and was drilled to the northeast. The hole intersected 394 metres of 0.26% Ni and finished in dunite, only interrupted by minor dykes. Showing moderate to strong serpentinization and visible pentlandite-heazlewoodite mineralization with minor awaruite.

DEL22-06 collared in peridotite and transitioned in composition from dunite to peridotite and intersected a total of 227 metres of mineralization – 74 metres grading 0.20% nickel starting at 54 metres and 141 metres grading 0.21% nickel starting at 140 metres including a 12-metre core length of 0.33% nickel and 0.15 g/t Pt+Pd from 248 to 260 metres. This higher-grade Pt+Pd in dunite has similar characteristics to the high-grade core in Crawford’s East Zone.

DEL22-07 collared in dunite, on section with DEL22-01, 100 metres to the west. DEL22-10 collared in dunite and remained in dunite for the majority of the hole except for minor pyroxenite and mafic dykes. The hole intersected 79 metres of 0.25% nickel 124 metres downhole, and 87 metres of 0.25% nickel at 235 metres, before intersecting intermediate volcanics at the contact.

DEL22-08 collared in dunite and was drilled to the southwest. Dunite graded 0.22 % Ni over 156.5 metres at the top of the hole, and 0.25% Ni over 213 metres near the bottom and ended in dunite.

DEL22-09 collared in dunite and the hole intersected 393 metres of 0.26% nickel, including 51 metres of 0.28% nickel. The hole finished in peridotite.

Deloro Exploration Drilling Results.

Hole ID	From	To	Length	Ni	Co	Pd	Pt	Cr	Fe	S
	(m)	(m)	(m)	( %)	( %)	(g/t)	(g/t)	( %)	( %)	( %)
DEL22-01	1.8	487.0	485.2	0.25	0.010	0.003	0.003	0.22	5.03	0.03
including	234.0	365.9	131.9	0.27	0.011	0.003	0.003	0.24	5.27	0.03
including	373.5	464.9	91.4	0.28	0.011	0.003	0.003	0.37	5.20	0.03
DEL22-06	54.5	128.2	73.7	0.20	0.011	0.003	0.006	0.49	5.82	0.04
and	140.5	281.9	141.4	0.21	0.012	0.028	0.023	0.50	6.59	0.10
including	227.5	260.0	32.5	0.27	0.012	0.049	0.034	0.57	6.55	0.14

Deloro Exploration Drilling Results (continued).

Hole ID	From	To	Length	Ni	Co	Pd	Pt	Cr	Fe	S
	(m)	(m)	(m)	( %)	( %)	(g/t)	(g/t)	( %)	( %)	( %)
including	248.3	260.0	11.7	0.33	0.014	0.103	0.055	0.69	7.50	0.20
DEL22-07	3.1	113.0	109.9	0.19	0.011	0.021	0.015	0.39	6.32	0.02
and	128.2	216.4	88.2	0.17	0.011	0.018	0.016	0.39	6.72	0.04
including	129.5	159.5	30.0	0.24	0.013	0.039	0.028	0.46	7.20	0.09
DEL22-09	9.0	402.0	393.0	0.26	0.010	0.003	0.006	0.25	4.66	0.04
including	58.5	99.0	40.5	0.28	0.010	0.003	0.005	0.45	4.51	0.01
including	218.5	269.5	51.0	0.28	0.011	0.003	0.005	0.14	4.71	0.10
DEL22-10	3.0	87.0	84.0	0.23	0.010	0.003	0.005	0.22	5.63	0.09
and	123.5	203.0	79.5	0.25	0.010	0.003	0.005	0.16	4.92	0.10
and	235.3	322.7	87.4	0.25	0.010	0.003	0.005	0.23	5.09	0.13

*Note: The lengths reported are core lengths and not true widths. Canada Nickel has insufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.

Deloro Exploration Drilling Results (continued). (September 2022)

Mann

The Mann Property was acquired from Noble Mineral Exploration (“Noble”) in an Option Agreement with work commitments, cash payments, share issuances, NSRs, and buy-back provisions. The Company has acquired the right to earn an 80% interest in the Mann Property from Noble. Work commitments are $1.7 million over the Option Term with an initial $500,000 required in the first year. Noble will retain a 2.00% NSR (due to various vendors) with a 1.00% buy-back provision to Canada Nickel for $1.0 million plus 50% of the buy-back provisions that total $4.5 million ($2.25 million to CNC). Once Canada Nickel earns its 80% interest it will form a joint-venture with Noble to continue exploring the Property on an 80%-20% basis. An acceleration provision exists to allow the Company to reach its 80% interest earlier than the Option Period.

Mann is located 25 km east of Crawford and totals 7,800 ha. The ultramafic is estimated to be a combined 21 km in length with variable thickness and having at least three main dunitic cores like that at Crawford (Mann Central, Mann Northwest, and Mann Southeast). The Company has acquired the right to earn an 80% interest in the Mann Property from Noble by an initial payment of $100,000 in cash and 150,000 shares and paying a further $100,000 per year over the four-year Option Period (for a total cash payment of $400,000) and issuing a further 250,000 common shares, and incurring total exploration expenditures of $1.7 million, over the Option Period. Noble will retain a 2.00% Net Smelter Return (“NSR”) with a 1.00% buy-back to Canada Nickel for $1.0 million plus 50% of the buy-back provisions that total $4.5 million ($2.25 million to CNC).

Mann Central

The Mann Central Property area covers a single 4 km long by up to 1 km wide ultramafic intrusion (see Figure 3) that is evident in TMI geophysical surveys. Historical drilling has already delineated ultramafic mineralization over a strike length of 2,700 metres and 690 metres wide. Only one historical hole had assays – Falconbridge Ltd. intersected 79 metres (MAN43-03) of ultramafic which was intermittently sampled – with the highest reported assay of 0.29% nickel over ~1 metre (See Table 3a below).  Historical drilling began in 1951 with seven of eight holes intersecting serpentinized peridotite containing magnetite. The longest intersection occurred in hole M-1, with 212 metres of well serpentinized peridotite along its entire core length. A 1976 drilling campaign reported wide intercepts of serpentinized ultramafic intrusive with visible sulphides and pervasive magnetite. Hole MA5-2-76 was the longest at 114 metres of serpentinized ultramafics along its entire core length (see Table 3a below).

Table 3a – Historical Drilling – Mann Central Property – Selected Lithologies

Hole ID	From (m)	To (m)	Length (m)	Rock Type
INCO-1	5.2	162.5	157.3	Peridotite
M-1	1.5	213.7	212.1	Peridotite
M-2	7.3	214.9	207.6	Peridotite
M-3	7.6	14.9	7.3	Peridotite
M-3	18.0	96.3	78.3	Peridotite
M-3	96.3	141.7	45.4	Pyroxenite
M-3	141.7	155.1	13.4	Peridotite
M-3	165.8	172.8	7.0	Pyroxenite
M-4	11.3	50.0	38.7	Dunite
M-4	50.0	54.6	4.6	Pyroxenite
M-4	54.6	88.4	33.8	Dunite
M-4	88.4	191.4	103.0	Peridotite
M-4	191.4	196.0	4.6	Pyroxenite
M-5	10.1	41.1	31.1	Pyroxenite
M-5	41.1	153.3	112.2	Peridotite
M-5	161.5	172.5	11.0	Pyroxenite
M-6	7.9	114.9	107.0	Peridotite
M-6	123.1	128.0	4.9	Pyroxenite
M-7	11.3	107.3	96.0	Peridotite
M-7	113.4	127.1	13.7	Peridotite
M-7	129.2	172.8	43.6	Peridotite
1A	0.9	7.0	6.1	Peridotite
1A	51.5	54.6	3.1	Peridotite
2A	2.4	8.7	6.3	Peridotite
2A	22.0	52.1	30.2	Peridotite
2A	83.8	111.3	27.4	Peridotite
3A	1.2	57.3	56.1	Peridotite

Table 3a – Historical Drilling – Mann Central Property – Selected Lithologies (continued)

Hole ID	From (m)	To (m)	Length (m)	Rock Type
3A	61.3	80.5	19.2	Peridotite
4A	0.6	10.4	9.8	Peridotite
4A	11.0	37.5	26.5	Peridotite
MA4-2-76	84.4	90.8	6.5	Gabbro
MA4-2-76	90.8	121.9	31.1	Pyroxenite
MA4-2-76	121.9	123.1	1.2	Peridotite
MA5-1-76	102.4	108.8	6.4	Gabbro
MA5-1-76	108.8	138.1	29.3	Peridotite
MA5-2-76	8.7	123.1	114.4	Ultramafic
MN87-3	32.3	200.0	167.7	Ultramafic
MAN43-01	9.0	188.0	179.0	Ultramafic
MAN43-03	78.6	158.0	79.4	Ultramafic

Table 3b – Historical Drilling – Mann Central Property – Significant Intersections

Hole ID	From (m)	To (m)	Length (m)	Ni %
MAN43-03	89.1	90.3	1.2	0.29
MAN43-03	95.1	95.5	0.4	0.15
MAN43-03	107.2	107.6	0.4	0.16
MAN43-03	116.0	116.5	0.5	0.19
MAN43-03	122.0	122.4	0.4	0.21
MAN43-03	131.0	131.6	0.6	0.23
MAN43-03	142.7	143.0	0.3	0.21
MAN43-03	149.0	149.5	0.5	0.22

Mann Northwest

The Mann Northwest Property covers an ultramafic intrusion having dimensions of 3.5 km long by 600-800 metres wide (see Figure 4). The intrusion is described as mostly peridotite, commonly serpentinized, with overlying leuco-gabbro and pyroxenite.

First Point Minerals Corp. conducted a three-hole drill program (468 metres) in 2002 targeting PGMs in pyroxenites that overlie the ultramafic units. While the first hole (FHR-01-01) targeted the contact between the volcanics and the ultramafic rocks, the second hole (FHR02-02) intersected serpentinized peridotite containing magnetite and some sulphide stringers in fractures. Nickel assays were taken at selected intervals and ranged from a low of 0.10% nickel to a high of 0.31% nickel with average values >0.20% nickel (see table 4a).

Drilling conducted by Tres-Or Resources Ltd., did not report nickel assays but did intersect wide sections of serpentinized peridotite with magnetite and/or sulphide minerals (e.g., MAN-87-1) as observed in 22 drill holes (see Table 4b), as well as elevated PGM values (e.g., 0.57-0.59 g/t PGM) from several channel samples. Geological descriptions and geochemistry from these programs resemble what is observed at Canada Nickel’s Crawford property.

Table 4a – Historical Drilling – Mann Northwest Property – Significant Intersections

Hole ID	From (m)	To (m)	Length (m)	Ni %	S %	Cr %	Co %	Pd (g/t)	Pt (g/t)
FHR01-02	25.3	29.0	3.7	0.22	0.06	0.20	0.01	0.001	–
FHR01-02	73.0	76.0	3.0	0.21	0.07	0.11	0.01	–	–
FHR01-02	86.0	89.0	3.0	0.23	0.06	0.08	0.01	0.002	–
FHR01-02	89.0	92.3	3.3	0.24	0.05	0.07	0.01	0.002	–
FHR01-02	92.6	95.0	2.4	0.23	0.05	0.06	0.01	0.003	–
FHR01-02	98.0	101.0	3.0	0.24	0.05	0.06	0.01	0.002	0.007
FHR01-02	101.0	104.0	3.0	0.23	0.05	0.08	0.01	0.001	–
FHR01-02	131.0	134.0	3.0	0.25	0.04	0.08	0.01	0.002	0.007
FHR02-02	33.5	35.0	1.5	0.22	0.07	0.23	0.01	0.063	0.048
FHR02-02	75.4	76.4	1.0	0.21	0.10	0.14	0.01	0.003	–
FHR02-02	113.0	114.3	1.3	0.31	0.17	0.10	0.02	0.021	0.013
FHR02-02	117.0	118.6	1.6	0.21	0.09	0.08	0.01	0.002	–
FHR02-02	121.7	122.3	0.6	0.29	0.12	0.15	0.01	0.038	0.017
FHR02-02	134.7	135.4	0.7	0.28	0.19	0.19	0.01	0.044	0.021
FHR02-02	158.0	161.0	3.0	0.27	0.14	0.07	0.01	0.031	0.009
FHR03-02	27.5	32.0	4.5	0.17	0.10	0.08	0.01	0.004	0.014
FHR03-02	133.0	137.0	4.0	0.15	0.18	0.18	0.01	0.005	–

Table 4b – Historical Drilling – Mann Northwest Property – Selected Lithologies

Hole ID	From (m)	To (m)	Length (m)	Rock Type
FHR01-02	25.3	63.5	38.2	Peridotite
FHR01-02	63.5	87.5	24.0	Peridotite
FHR01-02	87.5	92.3	4.8	Peridotite
FHR01-02	92.6	111.8	19.2	Peridotite

Table 4b – Historical Drilling – Mann Northwest Property – Selected Lithologies (continued)

Hole ID	From (m)	To (m)	Length (m)	Rock Type
FHR01-02	116.9	119.1	2.2	Peridotite
FHR01-02	119.1	137.0	17.9	Peridotite
FHR02-02	7.0	33.5	26.5	Peridotite
FHR02-02	33.7	43.5	9.8	Peridotite
FHR02-02	43.5	150.0	106.5	Peridotite
FHR02-02	150.8	161.0	10.2	Peridotite
FHR03-02	15.0	123.8	108.8	Peridotite
MAN-73-6	12.2	112.3	100.1	Peridotite
MAN-73-6	115.5	119.9	4.4	Peridotite
MAN-73-6	119.9	128.0	8.1	Pyroxenite
MAN-73-6	152.1	167.6	15.5	Peridotite
MAN-00-01	5.2	100.3	95.1	Peridotite
MAN-00-01	100.3	104.0	3.8	Gabbro
MAN-00-01	104.0	106.5	2.4	Peridotite
MAN-00-01	106.5	128.8	22.3	Gabbro
MAN-00-01	128.8	200.3	71.5	Peridotite
MAN-01	5.2	100.3	95.1	Peridotite
MAN-01	100.3	104.0	3.8	Gabbro
MAN-01	104.0	106.5	2.4	Peridotite
MAN-01	106.5	128.8	22.3	Gabbro
MAN-01	128.8	200.3	71.5	Peridotite
M-01-1	–	192.0	192.0	Peridotite
M-01-2	–	212.3	212.3	Gabbro
M-01-2	212.3	237.1	24.8	Carbonatized Zone
M-01-2	237.1	251.0	13.9	Peridotite
M-01-3	–	150.0	150.0	Peridotite
M-01-4	–	102.0	102.0	Peridotite
M-01-5	–	40.2	40.2	Peridotite
M-01-5	40.2	59.8	19.6	Gabbro
M-01-5	59.8	73.6	13.8	Pyroxenite
M-01-5	73.6	116.9	43.3	Gabbro
M-01-5	116.9	150.0	33.1	Peridotite
M-01-6	–	51.6	51.6	Peridotite
M-01-6	51.6	70.2	18.6	Gabbro
M-01-6	70.2	81.5	11.3	Pyroxenite
M-01-6	81.5	107.9	26.4	Gabbro
M-01-6	107.9	147.5	39.6	Peridotite

Table 4b – Historical Drilling – Mann Northwest Property – Selected Lithologies (continued)

Hole ID	From (m)	To (m)	Length (m)	Rock Type
M-01-6	147.5	156.0	8.5	Gabbro
MAN-87-1	–	9.7	9.7	Gabbro
MAN-87-1	9.7	41.2	31.4	Peridotite
MAN-87-2	–	11.6	11.6	Gabbro
MAN-87-2	11.6	35.4	23.8	Peridotite
MAN-88-1	–	61.6	61.7	Peridotite
MAN-88-1	61.6	64.0	2.4	Gabbro
MAN-88-2	–	61.0	61.0	Peridotite
MAN-88-3	–	60.7	60.7	Peridotite
MAN-91-1	1.8	79.6	77.7	Gabbro
MAN-91-1	79.6	138.9	59.4	Peridotite
MAN-91-1	138.9	155.5	16.6	Gabbro
MAN-91-1	155.5	166.2	10.7	Gabbro
MAN-91-1	166.2	181.9	15.7	Pyroxenite
MAN-91-1	181.9	246.0	64.1	Peridotite
MAN-96-1	1.5	42.1	40.5	Gabbro
MAN-96-1	42.1	107.3	65.2	Peridotite
MAN-96-1	107.3	115.2	7.9	Pyroxenite
MAN-96-1	115.2	227.1	111.9	Peridotite
MAN-96-1	227.1	248.7	21.6	Pyroxenite
MAN-96-1	248.7	279.8	31.2	Peridotite
MAN52-02	96.6	179.0	82.4	Ultramafic
MAN07-01	6.4	37.8	31.4	Peridotite
MAN07-01	37.8	47.7	9.9	Gabbro
MAN07-01	47.7	53.5	5.8	Pyroxenite
MAN07-01	53.5	76.7	23.2	Gabbro
MAN07-01	76.7	102.0	25.3	Peridotite
MAN07-02	14.2	30.0	15.8	Pyroxenite
MAN07-02	30.0	110.0	80.1	Gabbro
MAN07-02	110.0	129.0	19.0	Peridotite
MAN07-03	40.5	41.9	1.4	Gabbro
MAN07-03	41.9	61.7	19.8	Peridotite
MAN07-03	61.7	82.0	20.3	Pyroxenite
MAN07-03	82.0	107.3	25.3	Peridotite
MAN07-04	9.0	21.5	12.5	Peridotite
MAN07-04	21.5	22.3	0.8	Pyroxenite
MAN07-04	22.3	76.8	54.5	Gabbro

Table 4b – Historical Drilling – Mann Northwest Property – Selected Lithologies (continued)

Hole ID	From (m)	To (m)	Length (m)	Rock Type
MAN07-04	76.8	141.0	64.2	Peridotite
MAN08-05	14.5	26.9	12.4	Pyroxenite
MAN08-05	26.9	60.0	33.1	Gabbro
MAN08-06	13.0	25.8	12.8	Peridotite
MAN08-06	25.8	38.3	12.5	Pyroxenite
MAN08-06	38.3	60.0	21.7	Gabbro
MAN08-07	16.0	33.9	17.9	Peridotite
MAN08-07	33.9	46.3	12.4	Pyroxenite
MAN08-07	46.3	54.0	7.7	Gabbro
MAN08-07	54.0	57.5	3.5	Pyroxenite
MAN08-07	57.5	75.0	17.5	Gabbro

Mann Southeast

Mann Southeast is characterized by an arcuate-shaped ultramafic intrusion located in southeast Mann township with approximate dimensions of 6.2 km long and up to 800 metres wide (see Figure 5). Eight widely spaced holes drilled into the anomaly outlined 5 km of serpentinized dunite / peridotite across the anomaly (see Table 5c below).

In 1996, Falconbridge Ltd. drilled 111 metres of strongly serpentinized peridotite (MAN-35-01) with select assays grading: 0.31-0.33% nickel over 3 metre sampled intervals. See Table 5a.

A drill program conducted in 1973 around the southeast Mann ultramafic intersected wide intervals of serpentinized peridotite in five holes, with assays ranging up to 0.29% nickel (see Table 5b below). The southernmost and largest section of ultramafic – 1.2 km by 800 metres – remains untested with no historical drilling reported.

Table 5a – Historical Drilling – Mann Southeast Property – Significant Intersections

Hole ID	From (m)	To (m)	Ni %
MAN-35-01	47.0	50.0	0.33
MAN-35-01	71.0	74.0	0.32
MAN-35-01	101.0	104.0	0.31

Table 5b – Historical Drilling – Mann Southeast Property – Significant Intersections

Hole ID	From (m)	To (m)	Ni %
73-1	41.1	42.7	0.25
73-1	73.2	74.8	0.23
73-1	86.7	88.4	0.22
73-1	103.6	105.2	0.24
73-1	120.4	121.9	0.23
73-1	137.2	138.7	0.22
73-1	153.9	155.4	0.25
73-3	41.1	42.7	0.25
73-3	56.4	57.9	0.28
73-3	73.2	74.7	0.18
73-3	88.4	89.9	0.16
73-3	103.6	105.2	0.20
73-3	120.4	121.9	0.25
73-3	136.2	137.8	0.29
73-3	150.9	152.1	0.29
73-4	69.2	70.7	0.28
73-4	86.0	87.5	0.23
73-4	103.6	105.2	0.23
73-4	120.4	121.9	0.23
73-4	137.5	139.0	0.29
73-6	61.6	63.1	0.27
73-6	76.2	77.7	0.23
73-6	94.5	96.0	0.23
73-6	99.1	100.6	0.22
*Hole 73-2 had assays all below 0.15%

Table 5c – Historical Drilling – Mann Southeast – Selected Lithologies

Hole ID	From (m)	To (m)	Length (m)	Rock Type
73-1	38.4	159.7	121.3	Peridotite
73-2	39.9	166.7	126.8	Peridotite
73-3	36.6	152.1	115.5	Peridotite
73-4	55.2	64.9	9.8	Peridotite
73-4	64.9	144.5	79.6	Peridotite
73-6	12.8	48.5	35.7	Peridotite
73-6	48.5	112.5	64.0	Peridotite
MAN-35-01	38.0	149.0	111.0	Dunite
MAN-45-01	99.0	155.0	56.0	Peridotite
MAN-45-01	195.0	245.0	50.0	Peridotite
MAN-45-02	95.0	211.0	116.0	Peridotite

Reaume

The Reaume Property was acquired through a combination of Purchase and Option Agreements. In one Purchase Agreement Canada Nickel acquired a 100% right to 65 contiguous mining claims with a 2.00% NSR to the vendor and a 1.00% buy-back provision. In a second Option Agreement Canada Nickel has the option to earn a 100% interest in 48 mining claims through work expenditures (2,100 metres of diamond drilling) over a 12-month period. In a third Purchase Agreement Canada Nickel acquired a 100% interest in a group of 201 in-fill claims (surrounding the ultramafic units) with the vendor retaining a 2.00% NSR with a buy-back of 1.00%. In a fourth Purchase Agreement Canada Nickel acquired a small group of claims which have a 2.00% NSR with a 1.00% buy-back.

Reaume is a property approximately 5,800 ha located 54 km north-northeast of Timmins and contains a large ultramafic intrusion having an approximate outline of 3 km (east-west) by 1.8 km (north-south) as defined by its magnetic footprint and historical drilling (see Figure 6). Inco holes 28482 and 28483 returned peridotite/dunite mineralization across the entire core length. Hole 28483 intersected from surface approximately 264 metres of serpentinized peridotite/dunite containing magnetite with some disseminated sulphides. Hole 28482 intersected 108 metres of serpentinized peridotite/dunite with up to 20% magnetite and disseminated sulphides. Both drillholes ended in peridotite/dunite.

Seven drillholes by Falconbridge (1995) intersected thick sections of peridotite and dunite (up to 168 metres of dunite in Hole REA-45-07). These historic holes delineated a peridotite/dunite unit with an east-west extent of approximately 1,200 metres and a north-south extent of 900 metres.

Four of the Falconbridge holes ended in peridotite/dunite. Six of seven holes reported the widespread presence of magnetite as well as disseminated sulphides. No assays were reported; however, the TMI exceeds the peak levels at Crawford Main Zone near the centre of the intrusion and is strongly anomalous across the ultramafic.

Table 6 – Historical Drilling – Reaume Property – Selected Lithologies

Hole ID	From (m)	To (m)	Length (m)	Rock Type
28483	37.0	89.0	52.0	Peridotite
28483	89.0	147.0	58.0	Peridotite
28483	147.0	301.0	154.0	Peridotite/Dunite
28482	140.0	158.0	18.0	Peridotite/Dunite
28482	158.0	248.0	90.0	Peridotite
REA-45-03	21.0	89.0	68.0	Peridotite
REA-45-03	89.0	117.0	28.0	Pyroxenite
REA-45-03	117.0	164.0	47.0	Peridotite
REA-45-03	164.0	198.0	34.0	Pyroxenite
REA-45-03	198.0	278.0	80.0	Peridotite
REA-45-03	294.0	335.0	41.0	Pyroxenite
REA-45-04	29.0	99.0	70.0	Dunite

Table 6 – Historical Drilling – Reaume Property – Selected Lithologies (continued)

Hole ID	From (m)	To (m)	Length (m)	Rock Type
REA-45-04	101.1	156.5	55.4	Dunite
REA-45-04	160.3	198.5	38.3	Peridotite
REA-45-04	198.5	344.9	146.4	Dunite
REA-45-05	30.0	123.8	93.8	Dunite
REA-45-05	123.8	223.1	99.3	Peridotite
REA-45-05	238.6	244.4	5.8	Pyroxenite
REA-45-05	244.4	293.0	48.6	Peridotite
REA-45-05	293.0	300.6	7.6	Dunite
REA-45-05	300.6	308.0	7.4	Peridotite
REA-45-06	21.7	320.0	298.3	Peridotite
REA-45-07	45.2	131.1	85.9	Peridotite
REA-45-07	131.1	299.0	167.9	Dunite
REA-45-08	33.0	54.5	21.5	Dunite
REA-45-08	54.5	64.4	9.9	Pyroxenite
REA-46-01	15.0	28.4	13.4	Dunite
REA-46-01	28.4	136.8	108.4	Dunite
REA-46-01	136.8	259.5	122.7	Peridotite
REA-46-01	259.5	310.0	50.5	Pyroxenite
REA-46-01	310.0	337.9	27.9	Peridotite
REA-46-01	350.3	388.5	38.2	Pyroxenite
REA-46-01	388.5	419.4	30.9	Peridotite

Update from September 28th, 2022

Drilling this summer successfully confirmed the presence of ultramafic rocks, dominated by peridotite with nickel mineralization in 6 of 7 drillholes. The peridotite intersected was generally lower grade than the peridotites at Crawford.  Minor pyroxenite and dunite were also intersected (Figure 6). The North half of the target remains untested, due to difficult access outside of winter. Assays are pending for 3 of the 7 holes.

Hole REU22-01, REU22-02 and REU22-03 drilled a fan of drillholes from the same setup, located near the southwest of the target. REU22-01 drilled to the south-southeast, collaring on peridotite at 9.4 metres and stayed in peridotite for 327.7 metres grading 0.14% Ni. After a small gabbro section, the hole intersected and finished in dunite with an average grade of 0.21% Ni over 68.7 metres (Table 3).

Hole REU22-02 drilled to the east, collaring, and finishing in peridotite averaging 0.13% Ni over 242.5 metres with the whole extent displaying moderate to strong serpentinization and minor pentlandite-heazlewoodite mineralization.

Hole REU22-03 drilled to the northeast, and intersected a typical succession of ultramafic differentiation, drilling through peridotite, pyroxenite and gabbro. The pyroxenite here averaged 0.19 g/t Pd and 0.11 g/t Pt over a length of 23 metres.  

Hole REU22-07 is located east of the previous holes and closer to the center of the target. The hole collared in a pyroxenite, continued into peridotite, and finished in peridotite averaging 0.16% Ni over 364.5 metres.

The drilling to date has intersected mostly weakly mineralized peridotite. The more mineralized dunite is expected to occur on the eastern edge of the property to which access is limited to winter months. This will be more directly targeted as exploration at Reaume continues. 

Midlothian

The Midlothian Property was acquired under an Option Agreement with Canadian Gold Miner Corp. (70% interest) and Laurion Mineral Exploration Inc. (30% interest), collectively the vendors. Under the terms of the agreement, Canada Nickel can earn a 100% interest in the property through cash and share payments and a commitment to $500,000 of exploration expenditures within the first twelve months of the agreement. On or before the fourth anniversary, Canada Nickel will complete an exploration program having a cumulative value of $2.5 million (including the first-year expenditures of $0.5 million). Cash and share payments in the first year are $50,000 and 100,000 respectively. In subsequent years payments are $100,000 and 35,000 (18 months), $200,000 and 70,000 (27 months), $300,000 and 105,000 (year 3) and $400,000 and 140,000 (year 4) for total cash payments of $1,050,000 and share issuances of 450,000. The vendors will retain an NSR of 4.00% for gold and 2.00% for nickel with a commercial production payment of $4.0 million. Canada Nickel will retain a 1.00% NSR buy-back right for aggregate payments of $2.5 million. The Option Agreement includes clauses for acceleration of the exploration program and payment in lieu of exploration expenditures.

Midlothian covers an area of 3,257 ha and is located 70 km south-southeast of Timmins. The ultramafic body is defined by a magnetic anomaly 2.7 km long and up to 700 metres wide (see Figure 7 below).  

A total of 30 holes were drilled over the last 50 years by various operators with 23 holes intersecting serpentinized peridotite/dunite and 17 ending while still in the ultramafics.  Six drillholes, each intersected over 100 metres of continuous, uninterrupted dunite/ultramafic, with LM08-01 intersecting 263.8 metres to the end of hole. (See Table 7a).

Seven holes had nickel assays, with the best interval in hole LM08-01 which yielded 0.24% nickel across core length of 345 metres with the final 42 metres grading 0.30% nickel (See Table 7b). Nickel sampling was not continuous down most drillholes.

The above drillholes outline serpentinized dunite/peridotite over a strike distance of 3.1 km long by 670 metres wide.

Table 7a – Historical Drilling – Midlothian Property – Selected Lithologies

Hole ID	From (m)	To (m)	Length (m)	Rock Type
LM08-01	51.6	60.2	8.6	Peridotite/dunite
LM08-01	60.2	135.8	75.7	Serpentinite
LM08-01	136.4	400.2	263.8	Peridotite/dunite
LL1	7.0	165.8	158.8	Dunite
LL2	8.8	163.1	154.3	Dunite
LL3	9.8	160.0	150.3	Dunite
A-121	2.7	48.8	46.0	Dunite
A-126	7.6	37.2	29.6	Dunite
A-126	41.8	92.0	50.3	Dunite
A-126	92.7	152.7	60.1	Dunite
501	133.2	196.3	63.1	Dunite
506	206.0	301.8	95.7	Dunite
507	106.1	280.7	174.7	Dunite
A-131	0.9	13.1	12.2	Dunite
A-131	36.6	39.9	3.4	Dunite
A-131	102.7	106.7	4.0	Dunite
A-131	110.9	113.1	2.1	Dunite
503	3.7	20.4	16.8	Dunite
504	6.7	114.0	107.3	Dunite

Table 7a – Historical Drilling – Midlothian Property – Selected Lithologies (continued)

Hole ID	From (m)	To (m)	Length (m)	Rock Type
MD-17-001	20.5	20.5	0.0	Serpentinite
MD-17-001	20.5	26.1	5.6	Serpentinite
MD-17-001	26.1	29.0	2.9	Dunite
MD-17-002	20.0	29.0	9.0	Serpentinite
MD-17-003	0.0	31.1	31.1	Serpentinite
MD-17-003	0.0	35.0	35.0	Dunite
MD-17-004	18.4	19.9	1.5	Dunite
MD-17-005	41.0	53.0	12.0	Dunite
MD-17-006	32.0	38.0	6.0	Dunite
MD-17-007	28.8	35.0	6.2	Serpentinite
MD-17-007	35.0	67.0	32.0	Dunite
MD-17-008	29.3	38.0	8.8	Serpentinite
514	45.9	52.1	6.2	Dunite
514	52.1	70.7	18.6	Dunite
514	70.7	92.7	21.9	Dunite
514	92.7	107.3	14.6	Dunite
514	117.7	149.4	31.7	Dunite
515	32.6	33.8	1.2	Dunite
515	33.8	78.3	44.5	Peridotite/dunite
515	78.3	86.3	7.9	Dunite
515	86.3	125.6	39.3	Peridotite/dunite
515	125.6	143.3	17.7	Dunite
516	48.5	84.7	36.3	Peridotite/dunite
516	92.0	105.2	13.1	Dunite
516	107.9	119.8	11.9	Peridotite/dunite
516	119.8	137.2	17.4	Dunite

Table 7b – Historical Drilling – Midlothian Property – Significant Intersections

Hole ID	From (m)	To (m)	Length (m)	Ni %
LM08-01	52.0	397.0	345.0	0.24
including	352.0	397.0	45.0	0.30

Reid Nickel Project

The Reid Property was acquired through Purchase Agreements with several different vendors. The Company has committed to conduct a 2,500 m drill program and fly an airborne survey over the Property. The vendor retains a 2.00% NSR on the claims with certain buy-down provisions. In a second Purchase Agreement 14 single cell mining claims were acquired with a 2.00% NSR to the vendor and a 1.00% buy-back. In a third agreement Canada Nickel acquired a 100% interest in 18 mining claims with a 2.00% NSR to the vendor and a 1.00% NSR buy-back.

The Reid Property is located 16 km southwest of Crawford and covers an area of 3,800 ha. The property contains a series of folded ultramafic bodies that measure 3.3 km north-south by 2.1 km east-west based on the TMI.

Only four holes were ever drilled inside or near the edge of the ultramafic (from 1966 to 1972) by three different companies. All four holes collared and ended in ultramafic rocks with the holes ending at depths of 59.7-171.0 metres with intervals of ultramafics ranging from 44.5-123.7 metres. While none of the holes were assayed, all four holes intersected peridotite with up to 5-10% disseminated magnetite noted in each hole (see Table 8 below).

Table 8 – Historical Drilling – Reid Property – Selected Lithologies

Hole ID	From (m)	To (m)	Rock Type
R-22	29.0	106.7	Serpentinized gabbro to peridotite
R-22	125.0	171.0	Serpentinized peridotite
R-18	54.6	96.9	Peridotite
T67-1	20.7	128.3	Serpentinized peridotite
T67-2	15.2	59.7	Serpentinized peridotite

September 28th Exploration update

The ongoing drilling program continues to successfully intersect mineralized dunite, helping define the boundary of the target, confirming a footprint that is already 90% of the footprint of the current Crawford resource, with remarkably similar lithology, mineralogy, and alteration. Partial assays results confirm expected Ni grades. Ni mineralization in serpentinized dunite has been found in all 16 holes drilled to date and stronger mineralization has been intersected in holes REI22-02, REI22-06, REI22-09, REI22-14, and REI22-16. The interpreted thickness of the dunite intersected by REI-22-16 and REI-22-14 at Reid appears to be thicker than the thickest intersection within the Crawford Resource.

Three holes (REI22-12, REI22-13, REI22-15) were drilled in the north limb with all holes intersecting the targeted mineralized dunite. REI22-13 intersected the typical differentiation sequence, collaring in gabbro and followed by pyroxenite, peridotite and dunite. The hole finished in dunite.

The 13 remaining holes were drilled in the central core of the anomaly, with all of them intersecting consistent moderate to strongly serpentinized dunite, and visible nickel mineralization. Dunite is the lithology predominant in the central core, with only an occasional occurrence of later dykes that crosscut the anomaly in a northwest and southeast direction.

The south limb of the anomaly remains to be drilled and over 50% of the geophysical target remains untested.

Preliminary mineralogy results from first two holes at Reid indicate that mineralogy is consistent with well-serpentenized mineralization found at Crawford containing quantities of magnetite, brucite, and chrome minerals. Nickel mineralization is largely in heazlewoodite and awaruite.

December 1st, Canada Nickel Confirms Higher Grade Interval at Reid

Preliminary assay results from our summer/fall drilling program confirms the presence of mineralized dunite, as well as currently undefined higher-grade sections. Partial assay results confirm expected nickel grades (Table 1). Nickel mineralization in serpentinized dunite was found in all 16 holes drilled to date.

*This release provides an update with assays from five more holes to a total of eight holes with complete assays. True widths are unknown at this point. 

REI22-03 collared in dunite on the east flank of the anomaly and was drilled to the west. The hole intersected 358.4 metres of dunite and finished in dunite, interrupted by a late dyke in the center. The hole shows moderate to strong serpentinization and visible pentlandite-heazlewoodite mineralization averaging 0.24% nickel over 223.1 metres.

REI22-04 collared in peridotite on the east flank of the anomaly 500 metres north of REI22-03, drilling to the northeast. The hole intersected peridotite, followed by dunite only interrupted by minor dykes. The hole averaged 0.19% nickel over 269.8 metres and 0.21% nickel over 79 metres.

REI22-05 collared in dunite and remained in dunite to the end of hole, only interrupted by a small late dyke. The hole was collared near the center of the anomaly and drilled to the west. The hole was strongly serpentinized throughout and averaged 0.24% nickel over 409.5 metres including 0.26% nickel over 55.5 metres.

Hole REI22-07 collared near the center of the anomaly in dunite containing a series of late dykes and remained in a strongly serpentinized, moderate to strongly mineralized dunite to the end of the hole. The hole averaged 0.29% nickel over 325.5 metres, including a wide higher-grade section with 0.35% nickel over 81.5 metres. The hole then continued through mineralized dunite that averaged 0.27% nickel over the last 132 metres of the hole. 

REI22-08 collared in dunite on the same setup as REI22-03 but drilling to the northwest. The hole remained in dunite to the end of the hole, encountering minor peridotite sections. The hole averaged 0.24% nickel over 372.8 metres, including 0.26% nickel over 63 metres.

January 18, 2023 Exploration Update

Assay results from 16 holes continue to confirm nickel mineralization in serpentinized dunite and peridotite. Similar PGM Zone mineralization as Crawford was also observed in hole REI22-13 which was the only hole to test the contact of mineralization. Information on the first 7 holes can be found in the December 1st 2022 release

Highlights

• All 16 holes at Reid intersected multi-hundred metre intervals of mineralization
  with 6 holes in Central Core Area intersecting higher grades
• Holes REI22-14 and REI22-16 confirm mineralization of over 500 metres width – approximately 50% wider than Crawford Main Zone and more than 100% wider than Crawford East Zone
• Reid geophysical target footprint of 3.9 km², is more than two times larger than
  the 1.6 km² footprint of the flagship Crawford Nickel Project resource

Reid – Central Core Area Drilling

Holes REI22-14 and REI22-16 were drilled at the western end of the Central Core area which has a target footprint of 1.6 km2 (1.8km long x 0.9 km width), the same size as the entire Crawford Main & East Zone. The holes delineated mineralization of over 500 metres wide including a higher-grade core. The Central Core remains open in all directions from this section (see Figure 2). The holes were mineralized across their entire core lengths, ending in higher grade mineralization at 402 and 501 metres respectively.

REI22-14 collared in peridotite and ended in higher grade mineralization. The hole averaged 0.20% nickel over 327.0 metres, including 0.30% nickel over 58.5 metres at the end of hole. REI22-16 collared in peridotite approximately 540 metres north of REI22-14. The hole also ended in higher grade mineralization and averaged 0.25% nickel over 471.0 metres, including 0.31% nickel over 60.0 metres at the end of hole (Table 3).

REI22-06 collared in peridotite and transitioned into dunite for the remainder of the hole, only interrupted by a few late dykes. The hole was collared near the western end of the anomaly and drilled to the south. The hole displayed moderate to strong serpentinization throughout. The dunite averaged 0.25% nickel over 97.5 metres and 0.28 % nickel over 110.9 metres, including 0.30% nickel over 54.0 metres.

REI22-09 also collared in peridotite and transitioned into dunite to the end of hole, only interrupted by two late dykes. The hole was collared on the south of the anomaly and drilled to the north. The hole displayed moderate serpentinization throughout with an increase of nickel mineralization at depth. Partial assays contain 0.22% nickel over 226.5 metres, including 0.26% nickel over 67.5 metres.

Figure 1 – Plan View of Reid – Drill results Overlain on Total Magnetic Intensity

Labels: Current Holes “REI22-14”.  Prior holes from the December 2022 release “REI22-05”

Figure 2 – Section View of Reid – REI22-14 and REI22-16 (Section width ~150m)

*True widths are unknown.

Reid – North Limb Area Drilling

The north Limb Area extends northwest for 1.5 kilometres strike length and around 400 metres width, with a target footprint of 0.6 km2. Six drillholes targeted this area, with all intersecting mineralized dunite and peridotite sections.

REI22-10 was collared near the center of the anomaly in a transitioning dunite-peridotite lithology, interrupted by a late mafic dyke. The hole displayed moderate to strong serpentinization. Dunite-peridotite in this hole averaged 0.20% nickel over 275 metres including 0.24% nickel over 125.1 metres.

REI22-11 collared approximately 250 metres west of REI22-10, near the western contact of the anomaly and continued on transitional peridotite-dunite lithology, interrupted by several late dykes. The hole averaged 0.15% nickel over 378.4 metres.

REI22-12 collared in peridotite and into dunite to the end of hole. The hole was collared on the northwest extension of the anomaly and drilled to the southwest. The hole displayed strong serpentinization throughout. Partial assays of the top of the hole contain 0.22% nickel over 306.0 metres.

REI22-13 collared approximately 400 metres northwest of REI22-12 in a gabbro to pyroxenite to peridotite sequence. The hole ended in moderate to strongly serpentinized dunite. Peridotite-dunite averaged 0.19% nickel over 360.0 metres, including 0.24% nickel over 163.5 metres. At the top of the hole, a section of the pyroxenite averaged 1.89 g/t Pt+Pd over 6.0 metres (Table 4).

REI22-15 collared in dunite approximately 640 metres southeast of REI22-12 and ended in peridotite. The dunite averaged 0.20% nickel over 249.0 metres.

With these encouraging results, Canada Nickel plans to resume drilling at Reid in 2023 as the south limb of the anomaly remains to be drilled.

Table 3: Reid exploration drilling results

Hole ID	From	To	Length*	Ni	Co	Pd	Pt	Cr	Fe	S
	(m)	(m)	(m)	( %)	( %)	(g/t)	(g/t)	( %)	( %)	( %)
Central Core
REI22-06	28.8	312.5	283.7	0.19	0.01	0.008	0.008	0.59	7.68	0.06
including	215.0	312.5	97.5	0.25	0.01	0.007	0.005	0.77	7.35	0.07
and	360.1	471.0	110.9	0.28	0.01	0.017	0.007	0.74	6.99	0.07
including	369.0	423.0	54.0	0.30	0.01	0.021	0.007	0.73	7.36	0.07
REI22-09	30.0	105.5	75.5	0.12	0.01	0.007	0.014	0.56	8.23	0.07
and	180.0	406.5	226.5	0.22	0.01	0.008	0.007	0.61	5.92	0.10
REI22-14	27.4	402.0	374.6	0.19	0.01	0.007	0.006	0.60	6.18	0.04
including	286.5	402.0	115.5	0.25	0.01	0.014	0.006	0.68	5.40	0.06
including	343.5	402.0	58.5	0.30	0.01	0.025	0.008	0.71	5.30	0.08
REI22-16	30.0	501.0	471.0	0.25	0.01	0.015	0.009	0.64	6.32	0.04
including	441.0	501.0	60.0	0.31	0.01	0.016	0.009	0.66	5.36	0.04
North Limb
REI22-10	60.3	100.6	40.3	0.25	0.01	0.003	0.005	0.83	5.84	0.11
and	129.4	404.4	275.0	0.20	0.01	0.011	0.014	0.71	7.42	0.06
REI22-11	23.6	402.0	378.4	0.15	0.01	0.010	0.011	0.52	8.59	0.09
REI22-12	40.0	346.0	306.0	0.22	0.01	0.003	0.005	0.86	6.41	0.02
REI22-13	45.0	405.0	360.0	0.19	0.01	0.006	0.007	0.77	6.98	0.03
including	241.5	405.0	163.5	0.24	0.01	0.006	0.006	0.99	6.01	0.04
REI22-15	60.0	309.0	249.0	0.20	0.01	0.003	0.005	0.71	6.25	0.03

*True widths are unknown.

Table 4: Reid selected PGM results

Hole ID	From	To	Length	Pd+Pt	Pd	Pt	Ni	Co	Cr	Fe	S
	(m)	(m)	(m)	(g/t)	(g/t)	(g/t)	( %)	( %)	( %)	( %)	( %)
REI22-13	39.0	45.0	6.0	1.89	0.89	1.00	0.02	0.01	0.31	6.25	0.01
including	39.0	42.0	3.0	2.73	1.28	1.45	0.03	0.01	0.34	6.37	0.02

Adam McCool

The Adam McCool Property was staked directly by Canada Nickel as 72 contiguous mining claims (1,152 ha) with additional claims purchased from local prospectors for a total land package of 2,832 ha consisting entirely of mining claims owned 100% by Canada Nickel. Mining claims purchased by Canada Nickel are subject to a 2.00% NSR, 1.00% of which can be bought-back for $1 million. The claims with an NSR represent about 60% of the property.

Adam McCool was staked directly by Canada Nickel and covers 2,832 ha. The property is located 92 km east of Timmins. The main intrusion was identified by its anomalous TMI and is estimated to have dimensions 4.6 km long by up to 800 metres wide (see Figure 9).

Mid-North Engineering Ltd. drilled three holes in McCool Township in 1963, intersecting serpentinized dunite in all three holes at shallow depths (to 495 ft or 151 m). See Table 9. No assays were provided.

Table 9 – Historical Drilling – Adam McCool Property – Selected Lithologies

Hole ID	From (m)	To (m)	Length (m)	Rock Type
1-63	33.5	121.9	88.1	Serpentinized Dunite
1-62	38.1	150.9	112.8	Serpentinized Dunite
1-63	3.0	33.8	30.8	Serpentinized Dunite
1586-1	48.6	139.7	91.1	Peridotite
1586-1	139.7	153.3	13.6	Gabbro
D-1	29.3	279.5	250.2	Serpentinite

Powell

The Powell Property was acquired through a Purchase Agreement with a single vendor. The vendor retains a 2.00% NSR with a 1.00% buy-back for $1 million.

The Powell Property is located 74 km southeast of Timmins and consists of several single cell mining claims totaling approximately 1,000 ha. The mining claims cover an ultramafic intrusion having dimensions of 1.4 km by 1.0 km showing a highly anomalous TMI. Two shallow holes drilled off the southeast edge of the anomaly were described as containing a pervasive mafic metavolcanic unit with high concentrations of magnetite and intervals of fracture-filling sulphide, which is more typical of serpentinized ultramafics. See Figure 10.

Moody

The Moody Property covers an area of 1,940 ha and was staked by Canada Nickel. The claims are located 72 km east of the Crawford Project and within 3 km from an all-weather mining road. Mistango River Mines Limited drilled a total of 34 diamond drillholes in the search for ultramafics. While the drilling results were reported by Utah Mines Ltd. in 1964, the location of the drillholes and drill results have not been provided on the Mining Lands Administration System (“MLAS”). The ultramafic is interpreted to have dimensions of 4.2 km long by up to 700 metres wide.

The Utah Mines Ltd. program consisted of reverse circulation drilling of several holes in 1984 (only seven were reported to MLAS) and core was not recovered. At the overburden-bedrock interface the rock was often described as being dark green and mafic.

Mortimer

The Mortimer Property includes two ultramafic intrusions that cover a total distance of 10 km, in an area staked by Canada Nickel totaling 2,732 ha. The main intrusion has dimensions of 1.8 km long, up to 400 metres wide and has never been intersected by drilling. The secondary intrusion, although longer in strike extent, does not show the same high intensity in the TMI but does have three locally high responses within the intrusion, none of which appears to have been drilled. The property is easily accessed by an all-weather logging road. See Figure 12.

Stimson

The Stimson Property covers 1,491 ha and encompasses a weakly magnetic ultramafic having a strike length of at least 2 km and with a higher amplitude TMI of 400 metres long. The ultramafic is interpreted to be a more distal extension of more strongly magnetic ultramafics found in Mortimer and Moody Townships, staked by Canada Nickel at the same time. See Figure 13.

Stimson-Mortimer-Moody

The Stimson, Mortimer and Moody Properties were staked directly by Canada Nickel as single cell mining claims and are not subject to an NSR. The total cost for staking was $10,750. There are 215 mining claims totaling 3,440 ha. Each mining claim is 16 ha. Claims are valid for two years and require an exploration expenditure of $400/claim thereafter to be renewed annually.

Purchase and Option Agreements

The Company has negotiated 18 agreements to acquire the properties described in the release. On signing, the Company will pay a combined $371,500 in cash and 2,044,000 shares. $25,000 of this cash has already been paid and 125,000 shares have already been issued.

Table 10 – Consolidated Summary of Cash & Share Consideration: 18 transactions

	Cash	Shares
On Signing	$371,500	2,044,000
Year 1	$350,000	926,000
Year 2	$200,000	35,000
Year 3	$600,000	425,000
Year 4	$500,000	140,000
Total	$2,021,500	3,570,000

2022 Exploration, Acquisitions and Advancements

*In this section we will retrace the progress the company made in 2022 with links back to more detailed information on each update.

On January 24th, Canada Nickel put out results of exploration drilling done in Deloro, Dargavel, Mahaffy, MacDiarmid and Kingsmill.

Highlights include:

• First hole in recently acquired properties intersects 480 metres of dunite at Deloro using a sixth drill rig acquired at start of year.
• All nine holes from Dargavel, Mahaffy, MacDiarmid, Kingsmill intersected multi-hundred metre intersections of mineralization with best interval from first hole at Dargavel of 162 metres of 0.30% nickel including 0.34% nickel over 28.5 metres.
• Completion of Crawford feasibility study expected by fourth quarter of 2022 and formal start of permitting process in first quarter of 2022.
• Announces management additions in engineering and environment to support Company efforts to advance Crawford through feasibility and subsequent steps towards development.

For more information on this explroation update visit
https://insidexploration.com/canada-nickel-announces-successful-drill-results-from-recently-acquired-deloro-target-and-provides-corporate-update/

On February 15th, Canada Nickel announced Metallurgical Improvements to the Flow sheet.

Highlights:

• Second locked cycle test confirms recovery gains, improved concentrate quality from latest flowsheet improvements
• Total nickel recovery of 63% from low nickel feed grade of 0.19% nickel
• Nickel sulphide concentrate grade of 46% nickel, believed to be highest grade nickel sulphide concentrate produced in locked cycle test based on published studies

Mark Selby, Chair and CEO said, “I am very pleased with the first two tests achieving nickel recoveries in excess of 60%.  This latest test is further confirmation of both significant recovery and excellent nickel sulphide concentrate grades particularly from a low-grade sample.  Results from this latest phase of testing are indicating that we can achieve grades of 40-50% for the high grade nickel concentrate, well above the current 35% target for this product.  While we will test a broad range of samples during the upcoming phase of feasibility study work and expect a range of recovery results from 30% to 60+%, this second locked cycle test further demonstrates the potential to deliver improvements in nickel recovery substantially higher than the 4-5 percentage point improvement in nickel recovery the Company is targeting for the feasibility study. Each percentage point of improvement in nickel recovery would yield a US$92 million improvement in the value of the NPV_8% of the project, based on the Preliminary Economic Analysis (“PEA”) metrics.”

For more information visit
https://insidexploration.com/canada-nickel-continues-to-demonstrate-substantial-improvement-in-metallurgical-performance-and-provides-corporate-update/

In late February, Russia invaded Ukraine which sent the price of nickel skyrocketing.

April 4th, Canada Nickel announced the completion of drilling at Crawford and reported the highest grade interval at Crawford up to that point.

Highlights

• Best Crawford high-grade interval to date; core length of 64.5 metres of 0.71% nickel from 472.5 metres including 6 metres of 1.04% nickel from East Zone High Grade Core
• Main Zone mineralization successfully drilled to a depth of 1 kilometre
• East Zone mineralization successfully infilled and extended by a further 33% to strike length of 2.8 kilometres
• PGM Zone continues to expand – 1.4 g/t PGM over 11.4 metres core length including 2.5 g/t PGM over 3 metres core length

Mark Selby, Chair and Chief Executive Officer said, “We are very excited to reach this key milestone of completing this phase of infill drilling at Crawford to support the feasibility study. The Crawford drilling program continued to deliver strong results, with this phase yielding the highest-grade interval to date, a 33% increase in strike length of East Zone mineralization to 2.8 kilometres, and further testing of Main Zone at depth to more than one kilometre. With more than 200 holes now completed – more than three times the drilling utilized in the Preliminary Economic Analysis (“PEA”) – we are well-positioned to deliver a resource increase by mid-year to support the feasibility study expected by the end of this year.”

For the full drill tables and additional information visit
https://insidexploration.com/canada-nickel-completes-current-phase-of-crawford-drilling-announces-highest-grade-interval-to-date/

April 5th, Canada Nickel closed a $51.6 million dollar financing which doubled from the initial offering of $25 Million announce in late February.

See here for details of the financing
https://insidexploration.com/canada-nickel-announces-closing-of-51-6-million-bought-deal-public-offering/

May 10th, Canada Nickel announced a new nickel discovery at Reid, which has a larger footprint than their flagship, Crawford Project.

Also, within the same release , a number of results were announced from various other properties as drilling continued in order to highlight the district scale opportunity the company had identified. These holes were mainly focused on the acquisitions from Noble Minerals in Reid, Deloro, Nesbitt and Reaume.

Highlights

• Reid Property – second hole of new discovery intersected dunite across entire 354 metre core length including an 84 metre highly mineralized interval.
• All 21 holes drilled at Deloro, Reaume, and Nesbitt properties intersected target mineralization.  

Mark Selby, Chair and Chief Executive Officer said, “Our regional exploration program intended to highlight the potential for multiple Crawford-sized discoveries has taken several big steps forward. 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 Crawford Higher Grade Core. We extended the discovery at Deloro and intersected target mineralization at Reaume – all of which confirm the success of our geophysical targeting model. We are further encouraged by these results as they represent targets we can easily access and are not our highest potential targets. We expect to have access to the full target base through this year and we are looking forward to exploring their potential.”

For more details on drilling, including maps, tables and geological description please visit
https://insidexploration.com/canada-nickel-announces-new-nickel-discovery-at-reid-with-larger-footprint-than-flagship-crawford-property-main-zone-provides-update-on-regional-exploration/

May 12, 2022 – Canada Nickel announced the submission of the preliminary draft of the Initial Project Description to the Impact Assessment Agency of Canada,

This was a follow up to the related signing of ground-breaking Impact Assessment Process Agreements with the Taykwa Tagamou, Matachewan, and Mattagami First Nations.

Mark Selby, Chair & CEO of Canada Nickel said, “This is an important first step in the permitting process for Crawford. Since the founding of the Company, our approach has been to work with Indigenous communities and local stakeholders as partners in order to create shared value through economic opportunities, while also being respectful and responsible stewards of the natural environment. These ground-breaking Impact Assessment Agreements foster full participation of Indigenous Communities in the federal Impact Assessment process for the development of the Crawford Nickel Project.”

“Taykwa Tagamou Nation is proud of the partnership we have with Canada Nickel. This innovative model of applying Traditional Knowledge through a land use study enables our community to both understand the project’s impacts through all stages of its life cycle, while ensuring that, as the stewards of our Traditional Territory, development is conducted in an environmentally sustainable manner”, said Chief Bruce Archibald.

“True Indigenous partnerships, such as ours with Canada Nickel, provide certainty for proponents, along with economic opportunity for Northern Ontario and impacted Indigenous communities,” said Deputy Chief Derek Archibald. “With this certainty, Taykwa Tagamou Nation is meaningfully participating in the project’s economic development from beginning to end”.

Chief Chad Boissoneau, of Mattagami First Nation, commented “Agreements of this nature, built upon honest and genuine relationships, benefit both the First Nation and the Proponent. First Nations can fully participate in the Impact Assessment of a major project on our Traditional Land, while supporting Canada Nickel in making properly informed, sustainable, and respectful decisions about a project that stands to be of great benefit to our community.”

See To learn more about the permitting process visit
https://insidexploration.com/canada-nickel-takes-important-step-in-crawford-nickel-project-permitting-process/

June 7th, Canada Nickel aquired additional properties

Building on their already robust land package. In this announcement CNC acquired acquire a 100% interest in the Bannockburn Nickel Property located near Matachewan Ontario from Grid Metals Inc. and in a separate deal acquired the Newmarket project adjacent to Mann.

Mark Selby, Chair and Chief Executive Officer said, “The acquisition of Bannockburn is highly complementary to our southern cluster of properties at Sothman, Midlothian, and Powell. The Bannockburn “B” zone has already been successfully tested for 600 metres of its total 1.3 kilometre strike length with multiple intervals in excess of 0.3% nickel and has smaller, higher grade potential at other zones on the property. Historical mineral processing work confirmed presence of heazlewoodite, similar to Crawford, and the ability to generate a 35% nickel concentrate.”

Let’s take a look at the properties.

Bannockburn Property

The Bannockburn Property is located 100 kilometres south of Timmins and consists of 125 contiguous unpatented mining claims totaling 2,700 hectares.  Bannockburn is in close proximity to the Company’s Sothman, Midlothian, and Powell properties. The property contains at least two ultramafic units with the larger one representing the “B” Zone, a large, lower-grade mineralized ultramafic measuring 1.3 kilometres along strike by up to 700 metres across strike (based on its magnetic response) that had yielded similar intervals to Canada Nickel’s Crawford Deposit.

The “B” Zone was drilled in 2021 by Grid to a depth of 340 metres, with the best hole, GBN21-03, intersecting 342 metres of 0.28% nickel. Previous drilling by Outokumpu Oyj (“Outokumpu”) intersected 203 metres of 0.33% nickel in MBB4-09 and 25 metres of 0.46% nickel in BN-19-98.   Preliminary mineral processing testing in 2005 on the “B” Zone showed that a 0.33% nickel grade sample indicated a recovery of 52% to a 35% nickel concentrate.

Previous drilling within the high-grade zones intersected up to 5% nickel in the “C” Zone, which averages 2.5 metres in true thickness, 0.85% nickel over 4.27 metres in the “D” Zone, which remains open and up to 4.54% nickel in the “F” Zone with widths ranging from 0.25 metres to 17.6 metres.

There is an existing 2.0% net smelter return royalty with Outokumpu, which can be purchased for two million common shares of the Company

Table 1 – Grid Metals Historical Drilling – Bannockburn Property

Hole ID	From	To	Length	Ni
(m)	(m)	(m)	(%)
GBN21-01	71.5	232.4	160.9	0.24
including	103.0	125.6	22.6	0.30
with	118.0	125.6	7.6	0.38
GBN21-02	40.5	337.0	296.5	0.28
including	98.0	210.0	112.0	0.32
with	147.0	195.0	48.0	0.34
GBN21-03	39.3	381.0	341.7	0.28
including	256.5	321.0	64.5	0.30
GBN21-04	115.5	309.0	193.5	0.31
including	133.5	162.0	28.5	0.40
and	225.0	247.5	22.5	0.41
GBN21-05	49.7	219.0	169.3	0.20
including	79.5	105.0	25.5	0.27
GBN21-06	60.0	247.5	189.0	0.27
including	133.5	174.0	40.5	0.30
and	210.0	235.5	25.5	0.31
GBN21-07	36.0	405.0	369.0	0.24
including	160.5	273.0	112.5	0.27
with	231.0	273.0	42.0	0.29
GBN21-08	72.0	303.0	231.0	0.24
including	132.0	258.0	126.0	0.28

*True thicknesses are estimated to be approximately 70% of the reported interval lengths.

Newmarket Property

The Newmarket Property is located 34 kilometres east of Canada Nickel’s Crawford Deposit and consists of 93 contiguous mining claims totaling 1,488 hectares. The property is thought to contain the extension of an ultramafic sill located in Mann Township that Canada Nickel previously optioned from Noble Mineral Exploration. The ultramafic in Newmarket Township measures approximately 8.4 kilometres along strike and up to 600 metres across strike (as estimated from its magnetic footprint).

Exploration of the ultramafic within Newmarket dates to 1947 when International Nickel Co. drilled a series of six short holes to a maximum length of 488 feet (149 metres) and intersected serpentinized ultramafic rocks (no assays provided). In 1995, Falconbridge Ltd. conducted ground geophysics and drilling. Hole MAN35-01 drilled just off the edge of Newmarket property intersected serpentinized ultramafic across entire core length to end of hole. Three three-metre assays at 47, 71, and 105 metres yielded nickel intervals in excess of 0.31% nickel. Hole NEW22-01 intersected a coarse-grained peridotite with an assay value of 0.248% nickel over 3 metres reported by the Ontario Geological Survey.

Consideration for the acquisition of the Newmarket property was included in the property transactions press released on November 22, 2021.

Mr. Selby, “This transaction, in combination with our acquisition of the Newmarket property – another very large ultramafic target adjacent to our Mann properties, conclude our consolidation of large Crawford-type targets in the Timmins region. We have been very pleased with our ongoing regional drilling program and look forward to sharing results on these regional properties through the year as assays become available.”

There were a few minor land claim deals as well in this release but not worthy of notation in this report. More details can be found at
https://insidexploration.com/canada-nickel-completes-additional-property-acquisitions/

2022 Updated Mineral Resources Estimate

July 6th, Canada Nickel announced the Updated Mineral Resource Estimate

The updated resource more than doubled the to 1.4 billion tonnes grading 0.24% nickel with an additional 670 million tonnes of Inferred resources grading 0.23% nickel. This updated resource was based on a combined total of 113 drillholes or 56,286 metres of drilling. Consistent with previously reported resources, a cut-off grade of 0.15% nickel was used and as you can see, it now ranks #5 largest Nickel Sulphide deposit on the planet with just Crawford alone.

Updated Minerals Resource Estimate Table

Mark Selby, Chair and Chief Executive Officer said, “We are very pleased with our continued exploration success at Crawford. Our overall Measured & Indicated resource has more than doubled, driven in large part by outstanding exploration success in our East Zone. In less than three years from initial discovery, we believe Crawford has quickly become the fifth largest nickel sulphide resource globally. When combined with the potential for zero carbon production, Crawford is expected to become an important source of nickel for electric vehicle and stainless-steel producers. With additional potential from a number of holes still pending assays at the resource cut-off date, we expect the final feasibility study resource to support the upper end of our mine plan target of 1.3 to 1.8 billion tonnes.”

Additional details can be found @
https://insidexploration.com/updated-mineral-resource-estimate-doubles-measured-indicated-resources-at-canada-nickels-crawford-nickel-sulphide-project/

Before we go any further, we need to talk about Carbon Credits as this is becoming a large part of the story with several new advancements that have come since the release I’m about to share.

Carbon Credits

Carbon credits, sometimes reffered to as carbon offsets, are credit or permits that allow the holder to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of one ton of carbon dioxide or the equivalent in other greenhouse gases.

In a nut shell, Companies that pollute are given credits that allow them to continue to pollute up to a certain limit, which is reduced periodically. They may take these credits and sell any that go unused to another company that needs them. Thus creating new revenew streams for companies who can capture more carbon than they produce. The idea is to incentivize private companies to reduce greenhouse emissions. Proponents of the carbon credit system say that it leads to measurable, verifiable emission reductions from certified climate action projects, and that these projects reduce, remove, or avoid greenhouse gas emissions.

In saying that, our government has adopted the system with no signs of slowing down. Currently, Carbon Credits are valued at $50 CAD per ton and projected to reach $180 CAD in the coming years. Therefore, the next development we share has great significance to the overall economics of the project. Later in the report we will cover CNC’s initiatives for NetZero in more detail but lets move on to the the update.

On July 20th, Canada Nickel announced a new method for accelerated CO2 capture.

Highlights

• Simple carbon capture approach could allow production of NetZero nickel and generation of 21 tonnes of CO₂ credits per tonne of nickel produced after offsetting all emissions
• Demonstrates potential to turn a nickel mine into a generator of carbon credits rather than generator of carbon emissions
• Crawford Project could produce an estimated average of 710,000 tonnes of CO₂ credits annually and 18 million total tonnes of CO₂ credits over expected life of mine

The lab scale test program demonstrated that the accelerated carbon capture process could allow Crawford tailings to absorb enough CO₂ to achieve NetZero carbon emissions within 36 hours, and generate up to 21 tonnes of CO₂ credits per tonne of nickel produced within just six days, rather than the multiple months involved in existing passive tailings approaches.  At Canada Nickel’s Crawford Project, this translates into an average of approximately 710,000 tonnes of CO₂ credits per year and 18 million total tonnes of CO₂ credits over the Preliminary Economic Assessment life-of-mine.  

Mark Selby, Chair and CEO of Canada Nickel commented, “These lab scale test results demonstrate a potentially transformative process to turn a nickel mine into a net generator of carbon credits rather than a generator of carbon emissions.  Our active and accelerated process has the potential to operate at least 8-12 times faster than current passive approaches, delivering carbon capture at a multiple of what industry leaders are currently able to achieve.  Our process also allows easier quantification and verification of the amount of carbon captured.”

Learn more about the IPT Carbon Sequestration process by visiting
https://insidexploration.com/canada-nickel-identifies-new-method-for-accelerated-co2-capture/

On August 8th, Canada Nickel Initiated the Federal Permitting Process for the Crawford Nickel Project.

Mark Selby, Chair and CEO of Canada Nickel. “The relationships we have built since the earliest days of the project have been crucial in facilitating these conversations, and by continuing to collect, reflect upon, and integrate the comments, concerns, questions, and suggestions we receive, Canada Nickel hopes to build a project that maximizes benefits to all communities in the region.”

For more Details visit
https://insidexploration.com/canada-nickel-company-initiates-federal-permitting-process-for-crawford-nickel-project/

On August 17th, Results came back from exploration drilling done at Deloro which marked the second discovery outside of the CUC.

Highlights

• Second significant discovery from newly acquired regional properties – Reid and Deloro.
• Assay results at Deloro confirmed expected grades over entire core length of 487 metres of 0.25% nickel including 91 metres of 0.28% nickel.
• Mineralization successfully defined over 1.1 kilometres of strike length by 100 – 400 metres wide to a depth of 420 metres.

Mark Selby, Chair and Chief Executive Officer said, “We are very pleased with the results from Deloro where we successfully delineated our target mineralization and grades throughout the intended geophysical target. Deloro now joins Reid as another significant, sizeable nickel discovery and we look forward to continued success as we continue exploration around our regional properties, developing what we believe has the potential to be one of the world’s leading nickel districts. We will provide further updates on drilling and our regional plans in September.”

*Detailed notes from this release are noted above in the Deloro Nickel Project section above

For more information visit
https://insidexploration.com/canada-nickel-company-announces-assay-results-and-confirms-discovery-at-deloro-property/

On Agust 23rd, Canada Nickel filed the technical report on the Crawford updated mineral resource

A copy of the Report is available under the Company’s profile page at www.sedar.com.

For more information follow the link
https://insidexploration.com/canada-nickel-files-technical-report-on-the-crawford-nickel-sulphide-project/

On September 28th, Canada Nickel Confirmed their discovery at Reid.

Highlights

• Current drilling confirms large scale discovery at Reid – delineated mineralized footprint already 90% of Crawford footprint of 1.6 km² which contains the fifth largest Measured & Indicated sulphide resource globally of 3.5 million tonnes of contained nickel
• Regional drilling continues to validate geophysical targeting approach highlighting potential from 42 km² of geophysical targets
• Latest assays from Deloro include DEL22-05 intersecting 394 metres of 0.26% nickel

Mark Selby, Chair & CEO of Canada Nickel, “These results are very exciting for several reasons.  First, our current drilling has delineated a mineralized footprint at Reid already 90% of the size of Crawford, which we believe is the world’s fifth largest nickel sulphide resource. Second, the results at Reid, Deloro, and Reaume with 33 of 34 holes hitting target mineralization and the historic drilling at Bannockburn, continue to reinforce the success of our geophysical targeting approach and increase the probability of success at our other over 20 properties within the 42 km² of geophysical targets.”

*Detailed notes from this release are noted above in the Deloro, Reid and Reaume sections above

For more information please visit
https://insidexploration.com/canada-nickel-confirms-large-scale-discovery-at-reid-provides-regional-exploration-update/

On November 8th, Canada Nickel Announces Improvements to Accelerated CO2 Capture Process

Highlights

• Recent test work accelerates carbon capture by three times and achieves majority of carbon capture in just 24 hours
• Simple carbon capture approach could allow production of Net Zero Nickel and generation of 21 tonnes of CO₂ credits per tonne of nickel
• Crawford Project could produce an estimated average of 710,000 tonnes of CO₂ credits annually and 18 million total tonnes of CO₂ credits over expected life of mine

Mark Selby, Chair and CEO of Canada Nickel commented, “These lab scale tests advance our understanding of how to operationalize this process to turn a nickel mine into a net generator of carbon credits rather than a generator of carbon emissions.  In our latest testing, we were able to triple the amount of carbon captured in 24 hours versus our prior test work.  Our goal is to develop a process which would utilize existing plant equipment and processes to operationalize our IPT Carbonation process, which is at least 8-12 times faster than current passive approaches and what industry leaders are currently able to achieve, with easier quantification and verification of the amount of carbon captured.”

*More details can be found below in the NetZero section of this report

For more information on this release please visit
https://insidexploration.com/canada-nickel-announces-improvements-to-accelerated-co2-capture-process/

November 15th, Canada Nickel Announces Improved Iron and Chromium Recoveries from Pilot Plant Testing

Highlights

• Initial phases of pilot plant testing successfully completed
• Testing confirms significant improvements in both recovery and product quality from updated magnetite circuit
  • 18% improvement in iron recovery and 15% improvement in chromium recovery
  • 16% improvement in iron grade to 55%
• Discussions underway with multiple stainless and ferroalloy producers on downstream processing partnership

Mark Selby, Chair and CEO of Canada Nickel commented, “Our updated magnetite flowsheet has delivered outstanding improvements in both product quality and iron and chromium recoveries which we believe could add substantial additional value to the project.  The pilot plant performance to date has exceeded our expectations in terms of operability and production and we look forward to the completion of the work on the final phase of nickel concentrate production.”

Selby continued “Today’s work highlights the potential of this project to be an important producer of multiple critical minerals – nickel, cobalt, palladium, platinum and the only North American producer of chromium. We are already in multiple discussions with leading North American and European stainless and ferroalloy producers on downstream processing partnerships for processing this material who are excited by the structural advantages of our project location with its substantial infrastructure, regional history of downstream processing, access to low carbon electricity, and most importantly, the potential to capture carbon emissions using Crawford’s In Process Tailings (“IPT”) Carbonation Process which would facilitate zero carbon production of downstream steel and ferroalloy products”

For more details please visit
https://insidexploration.com/canada-nickel-announces-improved-iron-and-chromium-recoveries-from-pilot-plant-testing/

December 19th, Canada Nickel Acquires Past Producing Texmont Mine, Highlights High Grade Potential of Regional Land Package

Highlights

• Provides potential for near-term open pit production from near-surface high grade mineralization at Texmont.
• High grade potential of regional package already demonstrated at multiple properties – Texmont, Sothman, Bannockburn. Mineralization outcrops at all three properties
  • Texmont – Historic resource¹ of 3.2 million tonnes of 0.9% nickel hosted within bulk tonnage target.
  • Sothman – Historic resource² of 190,000 tons grading 1.24% nickel
  • Bannockburn – Historic drilling with multiples intervals greater than 2%
• Crawford PGM zone results include two holes with core length of 30 metres of 1.82 g/t palladium + platinum and 15.0 metres of 1.88 g/t platinum + palladium

Mark Selby, Chair & CEO of Canada Nickel Company, “The acquisition of the Texmont property provides near-term smaller scale production potential and is highly complementary to our large-scale Crawford and regional nickel sulphide projects. We are excited by the potential for leveraging the understanding of the geology at Texmont and additional high-grade areas at Sothman and Bannockburn and applying these learnings to our large regional property package.  In our discussions with nickel consumers for the battery market, many of them are keen to have new nickel production that could come to market by 2025. Similarly, a number of investors have expressed interest in financing near-term production.”

Transaction terms

The Company has entered into a binding agreement to acquire a 100% interest (subject to certain third-party 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 $2.5 million at the Company’s option. The property has a legacy ownership interest of 15% and net profits interest of 10%. The Company intends to determine whether these interests are still valid. The Company had previously acquired 14 claims surrounding these mining leases in 2022 as part of its regional property consolidation.

Texmont Nickel Project

The Texmont Property is located 36 kilometres south of Timmins and contains an ultramafic body with a target geophysical footprint approximately 1.2 kilometres long by 150 metres wide with a historic resource estimate of 3.2 million tonnes grading 0.9 % nickel was reported. A mine and mill operated on the site from July 1971 to December 1972 at a rated capacity of 500 tons per day. The total amount milled cannot be confirmed as the data and final stope plans are not available. The mine targeted narrow nickel mineralization in excess of 1.0%. Canada Nickel believes that this high-grade mineralization is contained within a larger bulk tonnage deposit that extends to surface. Initial drilling results from the ongoing drilling program confirms the presence of high-grade mineralization in ultramafic rock, as well as currently undefined lower grade, wider intervals, that were disregarded during previous mining. To date, Canada Nickel has drilled four drill holes, all intersecting significant intervals of mineralization within the target ultramafic

From 2006-2008, Fletcher Nickel drilled 28,883 metres and filed a technical report published June 25^th, 2009, which has not been incorporated into a resource estimate. Drilling continues at Texmont with several holes planned for winter 2023, with the goal of producing a current resource estimate using historic and new data, as the basis for an open pit mine plan to support a potential restart by 2025 or provide a source of higher-grade feed for the Crawford Nickel Sulphide project.

Texmont Historic Drilling

Drilling in the 2000’s intersected well mineralized and serpentinized ultramafic rocks described as predominantly komatiites-peridotites. The drilling produced several significant intersects. For example, hole TEX07-13 intersected 1.23% nickel over 28.0 metres, including 2.45% nickel over 7.0 metres. A sample of historical drill results is shown in Table 3. Groundwork performed by Canada Nickel has followed up on the location of this high-grade intersections, with the sampling on surface of strongly mineralized horizons.

Recent Activity

The following provides an update with logging information from the first four holes in the ongoing drill program at Texmont. True widths are unknown at this point. 

The first three holes intersected mineralization immediately after overburden, confirming its continuation to surface. Higher sulphide mineralization was intersected as expected over intervals of 16.0-25.0 metres in all three holes within overall mineralized intervals of whole core lengths, and was found in outcrop.

Holes TXT22-01 and TXT22-02 collared on the same setup with both holes drilling to the west. TXT22-01 collared in ultramafic containing strongly disseminated, blebby nickel sulphide mineralization, to the end of hole at 249 metres. TXT22-02 drilled at a shallower angle (-45) on the same section and intersected moderate to strongly mineralized ultramafic to the end of hole at 126 metres. Both holes were interrupted only by minor late gabbro dykes.

TXT22-03 drilling to the east, collared in peridotite at 1.7 metres and continued in mineralized peridotite for 150 meters to the end of hole. Mineralization consisted of moderate to strongly disseminated, blebby nickel sulphide mineralization.

TXT22-04 collared off the anomaly in mafic volcanics with the target of delineating the potential wider resource envelopes of low to moderate grade. The hole targeted to cut across all hanging wall and footwall stratigraphy to gain an understanding of geology, structure, and grade variation outside of the higher-grade core. The hole intersected a mineralized peridotite at 127.3 metres and continued in variably mineralized peridotite to 308 metres with only minor intervening dykes. The hole ended in volcanic footwall rock at 343 metres.

Table 2: Texmont Selected Logged intervals

Hole #	From (m)	To   (m)	Length (m)	Mineralization*
TEX22-01	7.0	249.0	242.0	Average 2% sulphides
including	22.0	31.1	9.0	2-5% sulphides
including	49.0	94.3	45.3	2-5% sulphides
including	111.0	127.5	16.5	5- 10% sulphides
including	148.5	165.5	17.0	5-10% sulphides
TEX22-02	6.0	126.0	120.0	Average 1% sulphides
including	24.0	51.0	27.0	2-5% sulphides
and	71.3	126.0	54.7	~ 1% sulphides
TEX22-03	1.0	150.0	149.0	Average 2% sulphides
including	129.3	145.0	15.7	5-10% sulphides
TEX22-04	127.3	325.0	197.7	Average 2% sulphides
including	127.8	147.3	19.5	5-10% sulphides
	181.0	214.0	33.0	2-5% sulphides

Table 3: Historical Drilling – Texmont Selected intervals

Hole ID	From	To	Length	Ni	Co
	(m)	(m)	(m)	( %)	( %)
TEX06-01	9.0	129.6	120.6	0.41	0.01
Including	23.0	38.0	15.0	1.02	0.02
TEX06-02	44.6	67.5	22.9	0.42	0.01
Including	54.0	67.5	13.5	0.52	0.01
TEX06-04	65.0	84.4	19.4	0.46	0.02
Including	78.0	84.4	6.4	0.66	0.02
TEX06-05	33.5	64.4	30.9	0.62	0.02
Including	47.0	52.5	5.5	1.15	0.03
and	81.0	140.0	59.0	0.35	0.01
TEX06-07	56.0	113.7	57.7	0.44	0.02
Including	67.0	81.0	14.0	0.95	0.03
TEX07-13	302.5	401	98.5	0.53	–
Including	321.0	349.0	28.0	1.23	–
Including	338.0	345.0	7.0	2.45	–
TEX08-32	341.0	428.0	87.0	0.63	–
Including	345.0	374.0	29.0	1.24	–
Including	351.0	361.0	10.0	2.23	–
TEX08-112	193.1	210.5	17.4	0.51	–
Including	202.0	209.0	7.0	0.95	–
TEX08-113	231.0	271.3	40.3	0.91	–
Including	231.9	251.0	19.1	1.44	–

2023 Exploration, Aquisitions and Advancements

To kick off 2023, it was anticipated that CNC would deliver a feasibility study for the Crawford Nickel Sulphide Project. However, with recent developments in the IPT Carbon capture process, the company felt that it was important to incorporate it into the feasibility study as then the value of the carbon credit portion of CNC could be better brought to light and add substantial value. Not only does the project benefit from a new revenue stream or their ability to be ZeroCarbon at a time when the world demands better from the mining industry, but having the ability to capture the amount of carbon that they can becomes very attractive on a government level and give CNC negotiating leverage when it comes time to request for grants. In our opinion, this was a ver savy move on their part.

On January 4th, Canada Nickel Announces Integration of Carbon Capture & Storage into Crawford Nickel Sulphide Project

Highlights

• Latest test work confirms ability to incorporate carbon capture and storage into Crawford project plant design    
• Crawford Nickel Project has potential to become sole large scale carbon storage facility in Ontario and one of largest facilities in Canada
• Integrated Feasibility Study expected to be released in second quarter

“We are developing Crawford in a manner aligned with the government’s priorities regarding electric vehicles, critical minerals and climate change.  The Company is exploring its eligibility for tax credits as well as other government funding programs related to the Critical Minerals Strategy that have the potential to improve overall project value and, most importantly for the Company shareholders, further reduce any potential dilution to finance it,” said Selby.

“We look forward to continuing our positive momentum in 2023 as we complete this integrated feasibility study for Crawford, continue to successfully advance the Crawford permitting process, work with our recently appointed financial advisors to advance its overall financing package, and aggressively advance our recently acquired Texmont property with its potential for near-term production.  We are also excited by our successful tests of the regional exploration potential at Reid, Deloro, Sothman, and Reaume which, as they are hosted in the same mineralization as Crawford, offer the same potential for integrated carbon capture and storage – setting the stage for a Zero Carbon Industrial Cluster in the Timmins-Cochrane region.”

Learn more at
https://insidexploration.com/canada-nickel-announces-integration-of-carbon-capture-storage-into-crawford-nickel-sulphide-project/

On January 18th, Canada Nickel Confirms Major Discovery at Reid

Highlights

• All 16 holes at Reid intersected multi-hundred metre intervals of mineralization
  with 6 holes in Central Core Area intersecting higher grades
• Holes REI22-14 and REI22-16 confirm mineralization of over 500 metres width – approximately 50% wider than Crawford Main Zone and more than 100% wider than Crawford East Zone
• Reid geophysical target footprint of 3.9 km², is more than two times larger than
  the 1.6 km² footprint of the flagship Crawford Nickel Project resource

Mark Selby, Chair & CEO of Canada Nickel Company, said “Today’s results confirm Reid as a major discovery with a target footprint larger than our flagship Crawford discovery and a mineralized core that is 50% wider than our Crawford Main Zone. Grades and mineralization are consistent with what the Company has observed at the Company’s East Zone deposit. The success of this initial drilling, targeted solely with our team’s proprietary approach using provincial geophysical data, highlights the significant potential of our total regional land package with over 42 km² of target geophysical footprint which is more than 20 times larger than our flagship Crawford project.”

*Additional details are posted under Reid above.

For more details visit
https://insidexploration.com/canada-nickel-confirms-major-discovery-at-reid-provides-financing-update/

*This section will be updated as information becomes available throughout the year

Strategic Investor

In a huge turn of events, Canada Nickel recieved a huge endorsement from industry giants Anglo American with a $24 Million dollar investment making them a 9.9% owner of the comapany. As you will see in the highlights below, this deal is not just an endorsement but a collaborative working agreement between the two with the intention of extracting maximum value out of the ore at CNC.

But before you dive into the details of the agreement, take a minute to learn about Anglo American and watch this video explaining their vision of Futuresmart mining.

Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers.

Our strategy is to secure, develop and operate a portfolio of high quality and long life resource assets, from which we will deliver leading shareholder returns. We achieve this through innovative practices and technologies – in the hands of our world-class people – towards a common purpose.

On February 8th, Canada Nickel Announces $24 million Investment from Anglo American

Highlights

• Another key milestone for advancing Crawford Nickel Project towards production
• Anglo American to become a 9.9% shareholder – Subscription Agreement, Offtake Term Sheet and Material Transfer and Technology Testing Agreement signed and Investor Rights Agreement to be signed

Upon completion of the private placement, Anglo American will own 9.9% of the Company’s issued and outstanding Common Shares on a non-diluted basis. In addition, Canada Nickel has entered into an Offtake Term Sheet with Anglo American pursuant to which the Company has granted to Anglo American an exclusive right to purchase up to ten per cent (10%) of recoveries of nickel concentrate, iron and chromium contained in the magnetite concentrates and any corresponding carbon credits from the Company’s Crawford Nickel Project. Canada Nickel has also entered into a Material Transfer and Technology Testing Agreement with Anglo American to assess opportunities to add value to Crawford from its FutureSmart Mining technology program.

“We are very pleased to welcome Anglo American, a leading global mining company, as a cornerstone investor in Canada Nickel. Today’s announcement is another key milestone as we advance Crawford towards production.” said Mark Selby, Chair & CEO of Canada Nickel. “Our team is looking forward to working with Anglo American to identify opportunities to apply their industry leading mining innovation technology to add additional value to Crawford.”

Here are a few added notes from the agreement.

Material Transfer and Technology Testing Agreement

This agreement addresses the collaboration between Canada Nickel and Anglo American to identify opportunities to utilize Anglo American’s FutureSmart Mining program to improve processing recoveries and reduce the project’s overall water, energy and emission footprint.  This Agreement will remain in force until 12 months after the delivery of a sample of ore in an amount of at least one hundred (100) tonnes by Canada Nickel to Anglo American, expected by 2024.  For the duration of this agreement, Canada Nickel agrees to deal exclusively with Anglo American in those areas where FutureSmart Mining technologies apply.

Offtake Term Sheet

This binding term sheet grants offtake rights to Anglo American for approximately 10% of the Company’s metal production and carbon credits from the Crawford project until the delivery of 65kt of nickel or a term of 15 years, whichever is later.  The offtake is based on customary marketing terms and will be based on market terms for the specific products produced.  If Canada Nickel utilizes any of the Anglo American technologies, Anglo American shall have the offtake rights to 100% of the incremental quantity of nickel products, related products, and carbon credits produced utilizing these technologies.

For more details please visit
https://insidexploration.com/canada-nickel-announces-24-million-investment-from-anglo-american/

On February 8th, Canada Nickel Announces C$20 Million Bought Deal Public Offering and Concurrent Private Placement

For more details visit
https://insidexploration.com/canada-nickel-announces-c20-million-bought-deal-public-offering-and-concurrent-private-placement/

NetZero Metals^TM

While driving an Electric Vehicle in fact does produce zero emission, the plants that process the nickel for the batteries used in EV can put out enough carbon to counteract those benefits. Just to build a car battery, weighing 500 kilograms for a sport-utility vehicle, would emit up to 74% more CO₂ than producing an efficient conventional car if it is made in a factory powered by fossil fuels. Therefore, car manufacturers are looking to nickel producers outside of China and Indonesia, as these are the producers who are very reliant on coal powered plants to refine the nickel for use in Electric Vehicles.

In the June 2020 quarterly results investor call for Tesla Motors, CEO and founder Elon Musk called out to nickel miners to find more eco friendly ways to mine nickel. He went as far as to say on the call that there would be “a large contract offered to anyone who can mine nickel in a more environmentally friendly way”. His comments reverberated around the world with nickel miners and Canada Nickel was very quick to respond by engaging Elon through social media. Naturally, this created a bit of a stir that saw CNC’s share price triple in a matter of days.

Little did everyone know that Canada Nickel had already been working on a process by which they could reach a net zero carbon foot print due to the mineralogy of their deposit. On July 27, 2020, Canada Nickel announced the creation of a wholly-owned subsidiary called NetZero Metals, to begin the research and development of a processing facility that would be located in the Timmins, Ontario region with the goal of utilizing existing technologies to produce zero-carbon nickel, cobalt and iron products. They have also had the foresight to apply for the trademarks “NetZero Nickel”, “NetZero Cobalt” and “NetZero Iron”.

As noted above, the Crawford Nickel-Cobalt Sulphide mineralogy is favorable, as the tailings will naturally absorb CO2 once exposed to air due to the high serpentine content in the ore body. This is a monumental advantage that omits the need for carbon sequestration of the tailings material as it does it naturally. They can also take the CO2 produced from the refining process and re route it to filter through the tailings, thus reducing CO2 emissions even further. Additionally, the Crawford Nickel Cobalt project is conveniently located near hydroelectricity generation, which will supply the power needs of an all electric fleet of mining equipment such as electric trolley trucks, scoops and dump trucks in place of diesel powered vehicles. Furthermore, Canada Nickel plans to build the refinery near their operations, thus omitting transportation costs, inefficiencies and further lowering the operation’s impact on the environment.

Recent laboratory tests were conducted by researchers from Kingston Process Metallurgy and Queen’s University and demonstrate that the project tailings naturally sequester CO₂ into a mineralized form, which industry research has demonstrated is permanent. This is a critical foundation of Canada Nickel’s NetZero initiative to become the first zero carbon nickel operation. Canada Nickel’s wholly-owned Net Zero Metals subsidiary has successfully applied and registered trademarks in various jurisdictions for NetZero Nickel, NetZero Cobalt and NetZero Iron in expectation that the Company believes it can be successful in achieving its zero carbon initiatives.

“This is a critical demonstration that our tailings have the fundamental capacity to capture CO₂ in amounts that exceed what we believe will be required to achieve net zero carbon production for our concentrates. Any CO₂ sequestration in excess of the 4.6 kg per tonne of tailings level would be potentially available for sale as carbon credits.  Work is underway on a series of larger scale tests aimed at demonstrating that Crawford tailings can be exposed to enough CO₂ for a sufficient time period to achieve the sequestrations levels that were achieved at a lab scale.  We look forward to seeing the results over the coming year.” said Mark Selby, Chair and CEO of Canada Nickel.

IPT Carbonation Process

Canada Nickel’s Crawford Project is hosted in ultramafic rock, which naturally absorbs and sequesters CO₂. The potential to actively capture and sequester carbon was a key consideration in Canada Nickel’s acquisition of the 42 km² of target ultramafic rocks in Timmins area which could anchor a zero-carbon industrial cluster in Timmins. The challenge has been to develop a process that speeds up the naturally occurring carbon absorption process. Canada Nickel has developed a simple active process that utilizes tailings as generated in the milling process and injects a concentrated source of CO₂ for a brief period of time.   This novel process for accelerated mineral carbonation is called In Process Tailings Carbonation or IPT Carbonation, which fixes CO₂ geologically while the tailings are still in the processing circuit, rather than after they have been finally deposited.

While Canada Nickel’s IPT Carbonation process has only been demonstrated at the lab scale and on a limited number of samples, the Company believes that, given its relative simplicity, this process could be scaled up with availability of concentrated (rather than atmospheric) sources of CO₂. This CO₂ could potentially be delivered by downstream processing of Crawford concentrates, a wide range of industrial processing activities, green hydrogen production, carbon capture facilities, or natural gas power generation.  The process clearly demonstrates the potential to produce NetZero Nickel^TM and NetZero Cobalt^TM for the EV industry, NetZero Iron^TM and chromium for the stainless steel industry and generate  substantial carbon credits during the process. The Company believes that the need for a concentrated source of CO₂ for this process and the substantial CO₂ capture capacity potential of its ultramafic land position could form the basis for an entire zero carbon industrial cluster in the Timmins region.

The IPT Carbonation process utilizes tailings directly from the mineral processing circuit and conditions them with CO₂  for a brief period of time.  After this conditioning, the tailings achieved the Net Zero carbon capture target in less than 36 hours and achieved gross carbon capture rates of at least 26 tonnes of CO₂ / tonne of nickel (5 times the amount necessary to achieve Net Zero metal production) in just six days and  could produce an estimated average of 710,000 tonnes of CO₂ credits annually and 18 million total tonnes of CO₂ credits over expected life of mine based on the Crawford preliminary economic assessment (“PEA”) (see news release dated May 25, 2021).  The experimental method and results for IPT Carbonation were initially completed at XPS, Expert Process Solutions, a Glencore Company, and the mechanism was then reproduced at a second independent lab, Kingston Process Metallurgy, adding confidence to the process. No further information is being provided on the method at this time and work is underway to test a wide range of variables to optimize the process.

IPT Carbonation, which is an active process, has benefits over passive mineral carbon capture as the method for quantifying and verifying CO₂ capture is expected to be much simpler. Using a standard carbon balance in the mineral processing facility, the CO₂ captured from IPT Carbonation can be quantified before tailings are discharged into the permanent tailings storage facility such that carbon offsets can be quantified in real time as part of a standard metallurgical accounting system. Canada Nickel expects industry standards to be developed for quantifying CO₂ capture through passive methods as well.

Management and Board

In only 2.5 years since listing on the TSX Venture, Mark Selby and his team have taken this project from 5 holes to the point of having over 200 holes, a PEA, Improved met work and near 20 individual assets to compliment Crawford. They have the support of 3 first nations groups, city council in 3 districts, the former mayor and current Minister of Mines in Ontario, and both the Provincial and Federal Governments are informed and could potentially help see Crawford through to production. Those relationships don’t just happen! It takes a lot of work and I think people should recognize the dedication That Mark Selby puts into his company. Not only is he out there telling the story and making those deals, Mark is also putting large sums of his own capital back into the project, which is rare. In our opinion Mark has performed admirably as the CEO of Canada Nickel and he has insulated himself with a fantastic team to see this project through to production.

For more information on Canada Nickels Management team please visit https://canadanickel.com/

Conclusion

Long life deposits are more sought after today than ever before and since Canada Nickel’s inception a short time ago, they have already garnered an awful lot of attention. Timmins is in need of a major mining operation with Glencore’s Kidd Creek Mine scheduled for closure in the near future, CNC is proving very quickly that Nickel may have a role to play in the Timmins mining camp’s future. Being that the Crawford Nickel-Cobalt Sulfide Project is located within a stones throw of this mining friendly jurisdiction with access to the abundance of local infrastructure, it makes CNC’s project incredibly attractive, especially if they can achieve their strategy of also having a Net Zero Carbon footprint.

Building projects like Canada Nickel aren’t just about people making money, its about communities, its about creating sustainable jobs, its about mining with reduced environmental impacts, and meeting the demands for materials that can save our planet. This project is important to not just northern Ontario! This project can have a positive effect on people all around the world. They can be an example, a role model if you will of responsible mining. Using their IPT process they will capture more carbon than they produce and they have made this process available for anyone to use in hopes of encouraging others to tap into carbon sequestration options.

For all the aforementioned reasons, Canada Nickel is a very attractive mining operation for battery makers or car manufacturers like Tesla who are in search of eco friendly solutions with long life potential to feed their growing demand for class 1 nickel sulphate. It is also perfectly suited to supply the stainless steel industry as the deposit holds iron and chome, making it the ideal mix. As the world becomes more conscious about our impact on the environment, future mining operations like the one Canada Nickel is proposing to develop will set a new benchmark for best practice sustainable mining across the globe. Going green is not a fad that will come and go like bell bottom jeans, it is a necessity to preserve our way of life for generations to come and what better place for something like this to surface than in Canada.  

For more information please visit the Canada Nickel Company profile @ Insidexploration.com/cnc/ or visit the Company’s website @ https://canadanickel.com/

Twitter – https://twitter.com/CanadaNickel
LinkedIn – https://www.linkedin.com/company/canada-nickel/
Facebook – https://www.facebook.com/CanadaNickel

Disclosure

Canada Nickel is a Sponsor of Insidexploration, however the thoughts and opinions expressed are the authors and do not represent that of the company. The Author may also buy and sell the stock at any point in time without warning.

Disclaimer

Insidexploration has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate, but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. We are not registered financial advisors and one should always do your own due diligence and consult a licensed investment adviser prior to making any investment decisions. Always reference www.SEDAR.com for important risk disclosures.

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