Canada Nickel Makes New Discovery at Mann Northwest Property

About Canada Nickel Company

Canada Nickel Company Inc. (TSXV: CNC) is a Canadian mineral exploration and development company focused on nickel assets. The company is headquartered in Toronto and its shares trade on the TSX Venture Exchange.

Canada Nickel's primary focus is advancing its flagship Crawford nickel-cobalt sulfide project located in the Timmins mining district of Ontario. The 100% owned Crawford project contains substantial nickel resources amenable to bulk tonnage open pit mining. The company is currently working toward a feasibility study at Crawford with a target of initial production by 2027.

Beyond Crawford, Canada Nickel has assembled a district-scale land package of properties in the Timmins region totalling over 300 square kilometers. The company is utilizing geophysical analysis and systematic exploration drilling to identify additional nickel-bearing targets across its properties. The latest discovery at Mann Northwest demonstrates the upside potential within its broader Timmins Nickel District.

Mann Northwest Exploration Results

The Mann Northwest property is located just 22 kilometers from Crawford, with year-round road access and nearby infrastructure. Canada Nickel has the right to earn an 80% interest in the property from Noble Mineral Exploration.

The first phase of exploratory drilling at Mann Northwest consisted of eight widely spaced holes testing geophysical anomalies. All eight holes intersected zones of nickel-bearing ultramafic rock averaging 200-400 meters thick.

Highlights from the initial drill results include 210 meters at 0.26% nickel in hole MAN23-02, which finished in 29 meters at 0.52 g/t platinum+palladium. Hole MAN23-03 hit 291 meters at 0.23% nickel, while MAN23-05 returned 366 meters at 0.20% nickel including 11 meters at 0.44 g/t platinum+palladium.

The dimensions of the mineralized zone at Mann Northwest measure approximately 2.7 kilometers long by at least 500 meters wide. It remains open along strike and at depth, with a total exploration target measuring 6 square kilometers based on geophysics. For context, the current footprint of the resource at Crawford is just 1.6 square kilometers.

Analysis of Exploration Results

According to CEO Mark Selby, the early success at Mann Northwest provides proof of concept for Canada Nickel's regional exploration strategy within its Timmins Nickel District holdings. The company has already identified eleven properties that exhibit larger geophysical targets than Crawford, demonstrating the significant upside potential.

The grades and widths of nickel mineralization intercepted at Mann Northwest are encouragingly similar to the values seen at Crawford during its early drilling. This suggests Mann Northwest may represent a new nickel sulfide discovery on par with some of the best recent nickel projects in stable mining jurisdictions. Additional drilling will aim to confirm continuity of the mineralization and sufficient size for a standalone mining operation.

Investment Thesis

For investors, Canada Nickel represents a unique way to gain exposure to the nickel market through assets located in mining-friendly Ontario. With nickel demand growth expected from the electric vehicle and stainless steel sectors, Canada Nickel's timing in advancing Crawford and exploring its district-scale land package is ideal.

The recent Mann Northwest discovery provides further demonstration of the exploration upside across the company's Timmins properties. As Canada Nickel continues exploration drilling and completes a feasibility study at Crawford in 2023, the company offers multiple value-creating catalysts in the near to medium term. The current share price may represent an attractive entry point given the significant leverage to higher nickel prices once the Crawford mine is built.

5 Takeaways for Investors

1. Large land package with exploration upside: Canada Nickel controls over 300 square kilometers of land in the prolific Timmins mining district. Recent exploration success at Mann Northwest demonstrates the potential for additional discoveries.
2. Flagship asset advancing toward production: The Crawford nickel-cobalt project contains substantial resources amenable to open pit mining. A feasibility study is underway targeting initial production in 2027.
3. Leverage to nickel demand growth: Nickel demand is forecast to surge from the electric vehicle and stainless steel markets. Canada Nickel provides leveraged exposure to higher nickel prices once Crawford comes online.
4. Mining-friendly jurisdiction: The company's assets are located in the established Timmins mining camp in Ontario, Canada which has excellent infrastructure and community support.
5. Multiple upcoming catalysts: Investors can expect a steady news flow over the next 12-18 months including exploration results, resource expansion at Crawford, and the feasibility study. The current share price may represent an attractive entry point.