Canada Nickel - Initial Resource at Deloro Project, Expanding Footprints in the Timmins Nickel District

• Canada Nickel announces initial mineral resource for Deloro Nickel Sulphide Project.
• The Deloro resource is estimmated to contain 81 million tonnes of indicated resources at 0.25% Ni, and 357 million tonnes inferred resource at 0.25% Ni.
• CNC's first of seven new nickel resources is expected to be published by Q1 2025.
• Seven exploration rigs are currently active across the Timmins Nickel District.
• Deloro's strategic location near Timmins offers infrastructure advantages for CNC, an advantageous location near both Timmins and the mining and processing infrastructure at the Dome Mill.

Canada Nickel Company Inc. (TSXV:CNC) is at the forefront of developing the next generation of nickel-sulphide projects to meet the growing demand from electric vehicle and stainless-steel markets. The company is committed to sustainable practices, pursuing the development of net-zero carbon nickel, cobalt, and iron products. Canada Nickel's flagship Crawford Nickel-Cobalt Sulphide Project, located in the heart of the Timmins-Cochrane mining camp, anchors its portfolio of low political risk assets in Ontario, Canada.

Initial Deloro Resource Highlights Timmins Nickel District Potential

In a significant milestone for Canada Nickel Company, the firm has unveiled its initial mineral resource estimate for the Deloro Nickel Sulphide Project, marking a crucial step in demonstrating the scale and potential of the Timmins Nickel District. The announcement, made on July 18, 2024, reveals substantial nickel resources that could play a pivotal role in meeting the surging global demand for battery metals.

The Deloro project, situated just 8 kilometers south of Timmins, Ontario, boasts an Indicated Resource of 81 million tonnes grading 0.25% nickel, containing 202,000 tonnes of nickel. Additionally, the Inferred Resource stands at an impressive 357 million tonnes grading 0.25% nickel, representing 885,000 tonnes of contained nickel. These figures, based on a cut-off grade of 0.10% Ni, underscore the project's potential to become a significant contributor to Canada Nickel's growing portfolio.

Strategic Location & Infrastructure Advantages

Deloro's strategic positioning within the prolific Timmins-Cochrane mining camp offers distinct advantages for potential future development. The project benefits from its proximity to well-established infrastructure, leveraging over a century of regional mining activity. Located just 7 kilometers southwest of the Dome Mine-Mill Complex and less than 2 kilometers from existing power lines, Deloro presents an attractive proposition for efficient resource development.

Mark Selby, CEO of Canada Nickel, emphasized the project's favorable attributes, stating,

"Deloro has an advantageous location near both Timmins and the mining and processing infrastructure at the Dome Mill, and benefits from a relatively low overburden of an average of just 9 metres."

This shallow overburden could potentially translate to lower stripping ratios and reduced mining costs, enhancing the project's economic viability.

Exploration Program Momentum

The Deloro resource estimate is part of a broader, ambitious exploration program aimed at unlocking the full potential of the Timmins Nickel District. Canada Nickel currently has seven drill rigs in operation across multiple properties:

1. Four rigs at Mann Central and Mann Northwest
2. Two rigs completing the next phase of drilling at the Reid project
3. One rig targeting the east end of the Reaume project

This aggressive exploration approach underscores Canada Nickel's commitment to rapidly advancing its project pipeline. The company has completed 112 holes totaling 47,482 meters across various projects in 2024, including Crawford, Reid, Texmont, Mann, and Deloro.

Deloro Resource Estimation Details

The initial resource estimate for Deloro utilized data from 8,242 meters of core drilling across 22 drill holes. The resource model comprises three mineralized domains hosted by variably serpentinized ultramafic rocks: a higher-grade core (dunite) and two lower-grade envelopes (peridotite) to the west and east.

Key highlights of the resource estimate include:

1. Cut-off grade: 0.10% Ni
2. Block model: 20m x 20m x 15m
3. Density estimation: Average of 2.62 g/cm³ for dunite, 2.69-2.75 g/cm³ for peridotite
4. Validation: Comprehensive QA/QC procedures, including control charts for blanks, core duplicates, and certified reference materials

The resource estimate also considers potential economic parameters, including metal prices (US$21,000/t nickel, US$40,000/t cobalt) and estimated processing costs for a 60,000 tonnes per day operation, aligning with the initial stage plans for the Crawford project.

Expanding the Timmins Nickel District

Canada Nickel's vision extends beyond Deloro, with the company planning to publish six additional resources by the end of the first quarter of 2025. This ambitious timeline includes:

1. An initial resource for the Crawford PGM Zone
2. An initial resource for the Texmont project
3. Five additional resources from other properties in the district

This systematic approach to resource delineation across multiple properties demonstrates Canada Nickel's commitment to establishing the Timmins Nickel District as a world-class nickel mining region.

Metallurgical Studies & Future Development

As Canada Nickel moves forward with the Deloro project, the company plans to conduct mineralogical studies and metallurgical testwork through the fourth quarter of 2024. These studies will be crucial in determining the most effective processing methods and potential recovery rates for nickel and associated metals.

Additionally, the company intends to conduct infill drilling to further upgrade the resource classification, potentially increasing the confidence level of the mineral estimate and supporting future economic studies.

Market Implications & Investor Considerations

The announcement of the Deloro resource estimate comes at a time of increasing global focus on securing critical minerals, particularly nickel, for the clean energy transition. With nickel playing a crucial role in electric vehicle batteries and stainless steel production, Canada Nickel's expanding resource base in a stable jurisdiction like Canada could attract significant investor interest.

Key Considerations for Investors

• Resource Growth Potential: The initial Deloro resource, coupled with planned resource estimates for other properties, suggests substantial growth potential for Canada Nickel's overall resource base.
• Strategic Location: The Timmins Nickel District's established infrastructure and Canada Nickel's growing land package could lead to operational synergies and cost efficiencies.
• Sustainability Focus: The company's emphasis on net-zero production aligns with global trends towards sustainable mining practices, potentially attracting environmentally conscious investors and off-takers.
• Diversification: With multiple projects in various stages of development, Canada Nickel offers investors exposure to a diversified nickel portfolio within a single company.
• Market Timing: As global demand for nickel in battery applications continues to grow, Canada Nickel's expanding resource base positions it to potentially capitalize on favorable long-term market dynamics.

Risks & Challenges

While the Deloro resource estimate and broader exploration program present compelling opportunities, investors should also consider potential risks:

• Resource Development Timeline: Advancing from resource estimation to production can be a lengthy and capital-intensive process.
• Metal Price Volatility: The project's economics will be sensitive to nickel price fluctuations, which can be volatile.
• Technological Challenges: Achieving net-zero production goals may require innovative technologies, introducing technical and financial risks.
• Regulatory Environment: Changes in mining regulations or environmental policies could impact project development timelines and costs.
• Financing Requirements: Advancing multiple projects simultaneously may require significant capital raises, potentially leading to dilution for existing shareholders.

Conclusion

Canada Nickel's announcement of the initial Deloro resource marks a significant milestone in the company's journey to establish the Timmins Nickel District as a premier nickel mining region. The substantial resource base, strategic location, and the company's focus on sustainable production methods position Canada Nickel as a noteworthy player in the evolving nickel market.

For investors looking at Canada Nickel Company, the Deloro project adds another dimension to an already compelling story. The company's multi-pronged approach to resource development, coupled with its strategic focus on the Timmins Nickel District, offers potential for long-term value creation. As global demand for nickel continues to rise, driven by the electric vehicle revolution and stainless steel production, Canada Nickel's growing resource base in a stable jurisdiction could provide an attractive investment proposition.

The company's ability to efficiently advance its project pipeline, secure necessary financing, and navigate regulatory and technical challenges will be crucial in realizing the full potential of its asset portfolio. As Canada Nickel progresses with its ambitious exploration and development plans, including the publication of additional resource estimates, investors should closely monitor project milestones, metallurgical results, and the company's success in advancing its net-zero production goals.

With a solid foundation in the Deloro resource and a clear strategy for growth, Canada Nickel Company presents an intriguing opportunity for those looking to gain exposure to the dynamic nickel sector.