Canada Nickel's Crawford Project PGM Drilling Success Boosts Resource Potential

• Canada Nickel reports successful PGM infill drilling campaign at Crawford Project.
• Forty-five (45) holes intersected intervals of >1g/t palladium + platinum, with highest grade of 2.19 g/t Pd+Pt over 76.5m in Crawford Main Zone.
• The results will be incorporated into new PGM Zone resource estimate, adding more value to existing Crawford nickel mine plan.

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's flagship Crawford Nickel-Cobalt Sulphide Project, located in the heart of the Timmins-Cochrane mining camp, anchors its portfolio. Canada Nickel is committed to sustainable practices, pursuing the development of net zero carbon nickel, cobalt, and iron products through its NetZero Nickel™, NetZero Cobalt™, and NetZero Iron™ initiatives.

Drilling Campaign: Unlocking PGM Potential

Canada Nickel's recent announcement of results from its Crawford Project PGM Zone infill drilling campaign has caught the attention of investors in the mining sector. The company successfully completed 45 holes that intersected drill intervals of more than 1g/t palladium + platinum, signaling significant potential for PGM mineralization within the existing Crawford nickel mine plan.

Key intersections from the drilling campaign include:

1. A remarkable 2.19 g/t palladium + platinum over a core length of 76.5 metres in the Crawford Main Zone, including an impressive 3.90 g/t over 13.5 metres.
2. In the Crawford East Zone, results showed 1.15 g/t palladium + platinum over 38.5 metres, with a higher-grade section of 2.94 g/t over 4.5 metres.

These results are particularly significant as they come from areas within the proposed Crawford open pit that were previously considered waste material in the current feasibility study. The potential to convert this material into valuable resources could have a substantial impact on the project's economics.

Strategic Implications: Enhancing Project Value

Mark Selby, CEO of Canada Nickel, emphasized the importance of these findings:

"We are very pleased with the drilling results of the PGM Zones for both the Crawford Main & East Zones, which occur within the existing feasibility study mine plan for Crawford. The opportunity to drill out these zones and to incorporate the findings into a PGM resource estimate have the potential to unlock incremental value from material that was previously unaccounted for, and in fact was treated as waste material within the Crawford feasibility study."

This statement underscores the potential for significant value addition to the Crawford project. By identifying PGM mineralization in areas previously designated as waste, Canada Nickel may be able to enhance the overall project economics without substantially increasing operating costs.

Drilling Program Detail

The PGM zones at Crawford were identified in early drilling campaigns, occurring within a transitional boundary between pyroxenite and peridotite units overlying the nickel-bearing dunites. The recent drilling program, conducted in 2024, consisted of 31 holes - 23 in the East Zone and 8 in the Main Zone - specifically targeting these PGM zones.

The success rate of the program is noteworthy, with Canada Nickel intersecting mineralized peridotite/pyroxenite in 28 of the 31 holes drilled. This high hit rate suggests a potentially consistent and widespread PGM mineralization throughout the targeted areas.

Some of the standout results from the East Zone include:

• Hole CR24-326: 1.15 g/t Pd+Pt over 38.5m, including 2.94 g/t over 4.5m
• Hole CR24-317: 1.09 g/t Pd+Pt over 18.2m, including 2.16 g/t over 6m
• Hole CR24-315: 1.10 g/t Pd+Pt over 15m, including 3.73 g/t over 3m

In the Main Zone, impressive results were also recorded:

• Hole CR24-331: 2.19 g/t Pd+Pt over 76.5m, including 3.90 g/t over 13.5m
• Hole CR22-272: 0.84 g/t Pd+Pt over 39m, including 1.90 g/t over 10.5m

These results demonstrate the potential for significant PGM mineralization across both the East and Main Zones of the Crawford project.

Geological Context & Implications

The PGM mineralization at Crawford occurs within a specific geological setting - the transitional boundary between pyroxenite and peridotite units. This consistent geological control on mineralization is encouraging for future exploration and resource definition efforts.

The identification of PGM mineralization in these zones adds a new dimension to the Crawford project, which has primarily been focused on nickel. The presence of platinum and palladium, both valuable precious metals with various industrial applications, could significantly enhance the project's economic profile.

Moreover, the fact that these PGM zones occur within the boundaries of the proposed Crawford open pit is particularly advantageous. It means that Canada Nickel may be able to extract these valuable metals with minimal additional infrastructure or operational changes, potentially leading to improved project economics.

Resource Estimate & Mine Plan Integration

Canada Nickel has announced that these PGM results will be included in the development of a Crawford PGM Zone resource estimate. This new resource estimate will then be incorporated into the Crawford nickel mine plan.

This integration could have several positive implications:

1. Increased resource base: The addition of PGM resources could significantly increase the overall metal content of the deposit.
2. Improved project economics: PGMs, being high-value metals, could enhance the revenue potential of the project.
3. Operational synergies: As the PGM zones are within the planned pit, their extraction could be integrated into the existing mine plan with minimal disruption.
4. Extended mine life: If significant PGM resources are defined, it could potentially extend the life of the mine.

Quality Assurance & Technical Expertise

Canada Nickel has demonstrated a commitment to maintaining high standards in its exploration program. The company employs rigorous quality assurance and quality control measures in its sampling and assaying procedures. All drill core samples are analyzed by ISO/IEC 17025 accredited labs, ensuring the reliability of the results.

The technical aspects of the exploration program are overseen by qualified professionals. Stephen J. Balch, P.Geo., VP Exploration of Canada Nickel, serves as the qualified person who has verified and approved the technical information disclosed in the press release.

This level of technical rigor and expertise adds credibility to the reported results and instills confidence in the company's ability to advance the Crawford project effectively.

Market Implications & Investment Perspective

The announcement of these promising PGM results could have several implications for investors:

1. Enhanced project value: The potential addition of PGM resources to the Crawford project could significantly increase its overall value, potentially leading to a re-rating of Canada Nickel's stock.
2. Diversification of metal exposure: While primarily a nickel play, the presence of significant PGM mineralization offers investors exposure to these precious metals as well, providing a hedge against fluctuations in individual metal prices.
3. Improved project economics: If integrated successfully into the mine plan, the PGM resources could enhance the project's cash flow potential and reduce the payback period for capital investments.
4. Increased investor interest: Positive exploration results often attract more investor attention to a company, potentially leading to improved liquidity and valuation multiples.
5. Strategic importance: Given the critical nature of both nickel and PGMs in various high-tech and green energy applications, Canada Nickel's Crawford project could gain strategic importance, potentially attracting partnership or offtake agreement opportunities.

Key Takeaways

For investors looking at Canada Nickel Company, these latest results from the Crawford Project present a compelling narrative. The company has demonstrated the potential to add significant value to its flagship project through the identification of PGM mineralization within the existing mine plan.

The Crawford Project, already positioned as a significant nickel resource, now offers the added potential of PGM production. This diversification could enhance the project's economics and make it more resilient to market fluctuations.

Canada Nickel's focus on sustainable practices, including its commitment to developing net zero carbon metal products, aligns well with growing investor interest in ESG-friendly mining projects. This commitment, combined with the company's strategic location in a low-risk jurisdiction and its focus on metals critical for the green energy transition, positions Canada Nickel favorably in the evolving global metals market.

However, as with all mining exploration projects, investors should be aware that further work is required to fully define the PGM resources and integrate them into the mine plan. The success of this integration and its impact on project economics will be key factors to watch in the coming months.

In conclusion, Canada Nickel's latest announcement adds another layer of potential to an already promising project. For investors seeking exposure to the nickel sector, with the added bonus of PGM upside and a focus on sustainable practices, Canada Nickel presents an intriguing opportunity worthy of close attention.