June 28, 2022
Canada Nickel Company Inc. (TSXV:CNC, BUY, C$4.45 target, Timothy Lee) reported assays from two holes at the Reid property near Timmins, Ontario. The Reid property is highlighted by an anomaly measuring 3.3km N-S by 2.1km E-W, based on total magnetic intensity. We note that the two initial holes were drilled from the same pad located on the SE part of the anomaly, and both encountered wide intervals of Ni-bearing ultramafic rocks. These results included 1) hole REI21-02, angled toward the center of the anomaly, which intersected 0.24% Ni over 354m, including 0.39% Ni over 15m and 0.57% Ni over 6m, and 2) hole REI21-01, angled to the south, encountered 0.17% Ni over 102.4m; this transitioned from dunite into other ultramafic material, also encountering a 1.6 g/t Pt+Pd over 4.5m in a pyroxenite layer. As well, mineralogical analysis confirmed that these holes contain the same heazlewoodite-pentlandite-awaruite minerals as the company’s flagship Crawford project. Notably, the mineralization starts close to surface, and hole REI21-02 was mineralized over its entire core length and ended in mineralization. In our view, these are positive results, confirming the presence of Ni-bearing dunite, as well as a PGM-rich layer similar to that at Crawford. We note that Reid has a larger geophysical footprint than Crawford, thus it presents a significant exploration target. Drilling has resumed at Reid in June with a helicopter-supported program. Meanwhile, CNC is expected to report results of an updated resource estimate for Crawford by July 6, 2022. Read more
