Impact: Positive
Canada Nickel announced assays from 13 holes, part of its ongoing drill program at its Reid Ni project located ~37km NW of Timmins. All 34 holes completed to date have encountered the target mineralized dunite unit. The broader intervals of mineralization from the recent batch of assays contained a weighted average grade of 0.24% Ni over an average width of 499m. Nine holes were within the Central Core area, with all encountering mineralized intervals >514m, and the remaining four holes were drilled within the Central Dyke corridor, which cuts across the Central Core. Notably, average widths in the Central Core area are significantly higher than those at CNC’s flagship Crawford project. CNC has seven drill rigs operating on five projects in the Timmins area, including one at Reid. Drilling at Reid is expected to be completed by the end of August and the company anticipates completion of an initial resource estimate at Reid in Q4/24, pending assays. In our opinion, these are positive results that demonstrate the large size potential at Reid. Importantly, numerous holes contain significant intervals grading >0.3% Ni, including one interval of 0.51% Ni over 40.5m. The size of the mineralized footprint and central corridor of higher-grade mineralization bodes well for the economic potential of Reid.
