VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 16, 2016) - North American Nickel Inc. (TSX VENTURE:NAN)(OTCBB:WSCRF)(CUSIP:65704T 108) (the "Company" or "NAN") is pleased to report that assays have been received from two 2016 drill holes completed to test the Spotty Hill target at the Imiak Hill Complex (IHC) on their 100% owned Maniitsoq nickel-copper-cobalt-PGM sulphide project in southwest Greenland. The Company is also pleased to report on the results of the 2016 Induced Polarization (IP) survey carried out in the Spotty Hill area.
- New intersection of stringer sulphides representing an expansion of the Spotty Hill mineralized system:
- MQ-16-121 4.75m @ 1.59% Ni, 0.30% Cu and 0.66 g/t Pt+Pd+Au (1.99% Ni Eq)
- Identification of new moderate to high conductance off-hole borehole electromagnetic (BHEM) anomalies at Spotty Hill
- Successful execution of a test IP survey at Spotty Hill showing good correlation with the known mineralization and resulting in an expanded production survey
- Delineation of new chargeability anomalies between Mikissoq and Spotty Hill as well as south and southeast of Spotty
NAN CEO, Keith Morrison, commented: "This successful long (115 metres) down-plunge step-out extension of the Spotty Hill mineralized system is particularly significant when considered with the close proximity of the Spotty Hill lens to the new mineralization identified at Mikissoq (74.05m of 1.44 Ni Eq, NAN News Release dated October 31, 2016) and the results of the 2016 IP geophysical survey (Figure 4). The chargeability data from this survey indicates possible additional mineralization along an 1800 metre trend from G-4 through Spotty to Mikissoq. NAN's objectives in 2017 will include; determining the size of both the Spotty Hill and Mikissoq lenses; testing for additional mineralized zones along the interpreted IP trend and extending the IP coverage to include the known high grade mineralization at Imiak (1500 metres to the west of Spotty). The extension of the IP survey will provide an effective way to look for a deeper continuation to the Imiak lens. Together this information will provide NAN with an integrated evaluation of the entire Imiak Hill Complex."
Two large step-out holes completed in 2016 have enlarged the footprint of the Spotty Hill mineralized system and have demonstrated that it remains open at depth. In addition, BHEM surveys have identified new moderate to high conductance anomalies down dip of known mineralization which remain to be drill tested. These results, coupled with the recent discovery of a significant new nickel-copper sulphide zone at Mikissoq and with new targets identified from the 2016 IP survey, indicate the strong exploration potential of the norite-pyroxenite trend extending from Mikissoq to south of Spotty Hill. This area is expected to be a focus of drilling in 2017.
Further details of the drilling and IP survey are given below.
Table 1: Drill Collar Information, Spotty Hill Area, IHC
|IP Target btw Spotty and Mikissoq
Notes: Collar coordinates in UTM WGS84 Zone 22N
* Hole MQ-14-044 extended 131.10 metres from 338.00 to 469.10 metres in 2016.
Table 2: Assay Results, Spotty Hill Area, IHC
|**Ni Eq %
|No assay samples
Notes: Intervals represent core lengths.
BDL - Below Detection Limit of 0.005% for Co
NC = Not calculated
* Assay value for Au is between 0.001 and 0.005 g/t, rounds to "0".
**Ni EQ was calculated based on the following formula using London Metal Exchange prices for Ni, Cu and Co on November 11, 2016 and London Bullion Market Association metal prices for Pt, Pd and Au on November 11, 2016 (PM), assuming 100% metal recoveries:
*NiEQ = Ni% + (Cu% x 2.68/5.32) + (Co% x 13.15/5.32) + ((Pt g/t / 10000) x (974*14.5833/5.32)) + ((Pd g/t / 10000) x (685 *14.5833/5.32)) + (Au g/t / 10000) x (1236.45*14.5833/5.32))
(Metal prices are per pound and in $US).
Spotty Hill Drilling (Figures 1 - 3)
Three holes and one deepened hole totalling 1,406 metres were completed in the Spotty Hill area of the IHC which is located in central portion of the Greenland Norite Belt (Figure 1). Assays have been received for two holes which tested for extensions of the Spotty Hill mineralization. Assays are pending for one hole which tested an IP chargeability anomaly located between Spotty Hill and Mikissoq. One previous hole, MQ-14-044, was deepened for the purposes of BHEM surveying for which no assay samples were taken. Drill collar information and a summary of assays are provided in Tables 1 and 2, respectively. A drill plan and composite inclined longitudinal section are shown in Figures 2 and 3. Figures may be viewed using the link provided with this release.
The Spotty Hill mineralization consists of a zone of norite and pyroxenite-hosted disseminated to blebby nickel-copper sulphides containing internal zones of higher grade semi-massive, patchy, stringer and vein sulphides. The mineralization extends from surface to a vertical depth of 240 metres and has been interpreted as comprising two steeply southwest dipping, southeast plunging tabular sulphide lenses ("HW" and "FW" zones) which may converge in a near surface fold nose (Figures 2 and 3). A zone of weakly disseminated sulphides occurs between the HW and FW zones. In 2015, hole MQ-15-075 intersected mineralization grading 1.06% nickel, 0.24% copper and 0.31 g/t Pt+Pd+Au over 15.55 metres, extending the HW zone by 80 metres down plunge (see NAN News Release dated September 2, 2015) for a total plunge extent of 250 metres.
In 2016, hole MQ-14-044 was extended by 131.1 metres to better define a building off-hole BHEM anomaly detected in 2014. The subsequent BHEM survey in the extended hole defined a high conductance off-hole anomaly interpreted to be located down plunge of the known Spotty Hill mineralization. Hole MQ-16-121 tested this anomaly and intersected a 17.0 metre long zone of mineralized norite consisting of an upper interval of weakly disseminated to patchy sulphides and a lower zone of stringer sulphides:
370.00 - 382.25m: 0.17% Ni, 0.06% Cu and 0.08 g/t Pt+Pd+Au over 12.25m
382.25 - 387.00m: 1.59% Ni, 0.30%Cu and 0.66 g/t Pt+Pd+Au over 4.75m
The mineralization is located 40 meters south of, and 110 meters vertically deeper than, the HW zone in hole MQ-15-075. It is interpreted to be an extension of the Spotty Hill mineralized system but lies south of the projected down plunge extension of the HW zone. Due to the large step out distance of MQ-16-121 (115 metres from MQ-15-075 in a general down plunge direction), drilling density is not sufficient to determine if the mineralization correlates with HW zone or represents a separate new sulphide lens. The BHEM results for MQ-16-121 showed a weak in-hole anomaly at 380 metres and two strong high conductance off-hole anomalies at 385 metres which are both located east of the hole. These results indicate the possible presence of additional mineralization in proximity to MQ-16-121 which remains to be drill tested.
Hole MQ-16-119 was drilled 70 metres along strike to the southeast of hole MQ-15-075 and intersected a wide zone of weakly disseminated sulphides grading 0.13% nickel over 69.30 metres from 228.80 to 298.10 metres. The intersection appears to correlate with the expected down plunge position of the HW zone but is more characteristic of weak "halo" mineralization which often occurs proximal to higher grade mineralization. The BHEM survey in MQ-16-119 detected a moderate conductance BHEM anomaly located down plunge to the southeast which is untested.
IP Survey (Figure 4)
One of the Company's goals in 2016 was to conduct initial IP surveys to determine if this geophysical method could be effectively used to image trends of disseminated mineralized norite stratigraphy and also identify extensions to mineralized zones. Drilling at multiple zones across the Maniitsoq property has shown that the footprint of the mineralization is typically larger than the original EM target. This is attributed to the style of mineralization which typically comprises:
- High nickel tenor disseminated to blebby sulphides which are electrically disconnected and do not respond well to electromagnetic (EM) geophysical methods and
- High grade remobilized stringer and vein sulphides which are well imaged by EM methods
An initial IP test survey was conducted by Insight Geophysics of Oakville, Ontario at Spotty Hill. The survey was successful in proving the collection of good quality data in a challenging environment and in identifying a chargeability anomaly that correlated well with the known Spotty Hill sulphide zone (see Figure 4). Based on this success, a gradient array survey was expanded to include the area south of Spotty Hill to the G-004 target and northwest to the Mikissoq target to help map mineralized trends. A northwest striking trend of elevated chargeability values was defined over a distance of 1.8 kilometres, extending from G-004 in the south to Mikissoq in the north. Several discrete chargeability highs were detected including one located halfway between Spotty Hill and Mikissoq and one coincident with the G-004 target south of Spotty Hill.
One hole, MQ-16-125, was completed to test the gradient array chargeability anomaly located between Spotty Hill and Mikissoq. This hole tested 235 metres vertically below the peak of the anomaly and intersected a mixed sequence of orthogneiss, mylonite zones and mafic intrusive rocks. While the mafic intrusive rocks locally contain minor disseminated sulphides for which assays are pending, the intersected lithologies did not adequately explain the IP anomaly. End of season timing issues prevented the collection of detailed IP section data in 2016 and the Company plans to collect this additional data to provide a better depth estimate prior to re-testing this target in 2017.
In the G-004 area, peridotite, pyroxenite, norite and gossans are exposed at surface in the area of the chargeability anomaly and past grab samples have returned grades of up to 0.89% nickel and 0.37% copper. This area is viewed as a potential high priority drill target.
Based on the success of the Spotty Hill IP survey, the Company plans to extend the survey in 2017 and also collect selected detailed section data to provide depth estimates for the purpose of drill hole targeting.
The drilling was completed by Boart Longyear Canada utilizing two Boart LF-70 diamond drill rigs. Drill core samples (40.54 mm BQTK and 47.6 mm NQ) are cut in half by a diamond saw on site. Half of the core is retained for reference purposes. Samples are generally 1.0 to 1.5 metre intervals or less at the discretion of the site geologists. Sample preparation is completed at the ALS Minerals preparation lab in Öjebyn, Sweden. Sample pulps are sent by air courier to ALS Minerals analytical laboratory in Loughrea, Ireland. Blank samples and commercially prepared and certified Ni sulphide analytical control standards with a range of grades are inserted in every batch of 20 samples or a minimum of one per sample batch. Analyses for Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES finish (ME-ICP81). Analyses for Pt, Pd, and Au are by fire assay (30 grams nominal sample weight) with an ICP-AES finish (PGM-ICP23).
Technical Information; Qualified Person
The Company is not aware of any legal, political, environmental or other risks that could materially affect the potential development of the project other than those set out in its annual information form filed on www.sedar.com. Please see below under the heading "Cautionary Note Regarding Forward-looking Statements" for further details regarding risks facing the Company.
All technical information in this release has been reviewed and approved by Patricia Tirschmann, P.Geo, who is the Qualified Person for the Company and Vice President Exploration, North American Nickel Inc.
About the Company
NAN is a mineral exploration company with 100% owned properties in Maniitsoq, Greenland and Sudbury, Ontario.
The Maniitsoq property in Greenland is a Camp scale project comprising 2,985 square km covering numerous high-grade nickel-copper sulphide occurrences associated with norite and other mafic-ultramafic intrusions of the Greenland Norite Belt (GNB). The >75km-long belt is situated along, and near, the southwest coast of Greenland accessible from the existing Seqi deep water port (See NAN News Release dated January 19, 2015) with an all year round shipping season and abundant hydro-electric potential.
The Company's Post Creek/Halcyon property in Sudbury is strategically located adjacent to the past producing Podolsky copper-nickel-platinum group metal deposit of KGHM International Ltd. The property lies along an interpreted extension of the Whistle Offset embayment structure. Such geological structures host major Ni-Cu-PGM deposits and producing mines within the Sudbury Camp.
Cautionary Note Regarding Forward-looking Statements
This press release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the success of exploration activities; impact of mineralogy, estimation of mineral resources at mineral projects of the Company; the future economics of minerals including nickel and copper; synergies and financial impact facilities; the benefits of the development potential of the properties of the Company and currency exchange rate fluctuations. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include variations in metal grades, changes in market conditions, variations in recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, and other risks of the mining industry, including but not limited to the failure of plant, equipment or processes to operate as anticipated. The Company cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed.
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term defined in the Private Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbours created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from the expected results.
ON BEHALF OF THE BOARD OF DIRECTORS
Mark Fedikow, President
North American Nickel Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
North American Nickel Inc.
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