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Canada Nickel Confirms Large Scale Discovery at Reid, Provides Regional Exploration Update

Press Release

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

TORONTO, September 28, 2022 – Canada Nickel Company Inc. (“Canada Nickel” or the “Company”) (TSXV: CNC) (OTCQX: CNIKF) today confirmed a large-scale discovery at its Reid property, and positive drilling results at other regional targets as a result of its ongoing regional exploration drilling campaign.

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.”

The Company’s Reid, Deloro, Reaume and Bannockburn properties sit within a 100 km radius of the Company’s flagship Crawford Nickel-Sulphide project in the Timmins area. The Company has the right to earn a 100% interest in Reaume and has already acquired a 100% interest in Reid, Deloro and Bannockburn.

Reid Nickel Property

The Reid Property is located just 16 km southwest of Crawford, or 37 km northwest of Timmins, and contains an ultramafic target with a target geophysical footprint of 3.9 km2 (see Figure 1). Our 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 (Figure 2), 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 (Figure 3).

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 (Figure 4). 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 (Table 1).

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.

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

Figure 2 – Plan View of Reid Vs Crawford TMI at the same scale.

Table 1: Reid selected lithology intervals

Hole # From To length Rock Type Hole # From To length Rock Type
REI22-03 58.6 417.0 358.4 Dunite REI22-13 45 99 54.0 Peridotite
48.5 183.5 135.0 Peridotite 99 405 306.0 Dunite
REI22-04 183.5 318.3 134.8 Dunite 27.4 75 47.6 Peridotite
338.0 417.0 79.0 Dunite REI22-14 75 158.8 83.8 Dunite
REI22-05 52.5 462.0 409.5 Dunite 180.6 402 221.4 Dunite
28.8 108.0 79.2 Peridotite REI22-15 60 309 249.0 Dunite
108.0 165.2 57.2 Dunite 309 402 93.0 Peridotite
REI22-06 177.1 197.0 19.9 Dunite REI22-16 30 501 471.0 Dunite
207.2 312.5 105.3 Dunite
360.1 471.0 110.9 Dunite
REI22-07 38.2 60.0 21.8 Dunite
136.5 462.0 325.5 Dunite
57.2 108.0 50.8 Dunite
108.0 128.0 20.0 Peridotite
REI22-08 128.0 139.7 11.7 Dunite
139.7 160.0 20.3 Peridotite
160.0 430.0 270.0 Dunite
29.7 96.0 66.3 Peridotite
REI22-09 96.0 106.6 10.6 Dunite
116.6 429.3 312.7 Dunite
429.3 438.0 8.7 Dunite
REI22-10 60.3 100.6 40.3 Dunite
129.4 405.4 276 Dunite
23.6 100.2 76.6 Dunite
REI22-11 124.0 246.4 122.4 Dunite
261.2 360.6 99.4 Dunite
371.0 402.0 31.0 Dunite
REI22-12 40.0 73.0 33.0 Peridotite
73.0 441.0 368.0 Dunite

Figure 3 – Cross Section of Reid

Figure 4 – Reid – Stronger Mineralization Examples – REI22-14, REI22-16

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