Exploration By Premium Nickel Resources Ltd.

Premium Nickel Resources Ltd. (“PNRL” or “The Company”, formerly, North American Nickel) acquired the property in 2011, and started high quality electromagnetic (EM) and magnetic surveys using helicopter-borne systems that were better suited to the rugged topography of the Maniitsoq Property than the previous fixed wing survey. The Company flew a total of 13,497 line-km of SkyTEM and VTEM between 2011 and 2015. These surveys were focused mainly on the GNB but also included several other prospective sites within the property. Flight line spacing was 100 or 200 m and over two hundred clusters of electromagnetic (EM) anomalies were identified. Selected conductors were drill tested, resulting in the expansion of historic mineralization and the discovery of mineralized noritic intrusions not previously recognized.

Figure 3: Exploration PNRL

The company has progressively implemented new exploration methodologies and tools in an effort to refine targeting at the property and borehole scales. These include the introduction of helicopter-borne electromagnetic and magnetic surveys, modern surface-based electromagnetic, induced polarization, and gravity surveys, application of Worlview-3 satellite imagery, implementation and consistent use of borehole electromagnetic methods, collection of oriented drill core, optical televiewer data and downhole physical properties; structural studies, geochemical studies and 3D modelling. The compilation and integration of data has resulted in a vast improvement in the understanding of the geology of the GNB and it resulted in the discovery of surface and sub-surface nickel-copper sulphide occurrences and the expansion of mineral zones comprising the Mikissoq, Spotty Hill, Imiak Hill, Fossilik, P-008, P-013, and P-053, four of which remain open in one or more directions. In addition, nickel sulphide mineralization has been intersected at a number of other locations throughout the Greenland Norite Belt, including at the P-004, P-013, P-030, P-032, P-053, and Pingo targets (figure 3). Exploration continues to extend known zones of mineralization and provides a framework for future discoveries.

[1] Ni tenor is the concentration of Ni calculated in the 100% sulphide component of the rock assuming a standard magmatic sulphide assemblage of pentlandite, chalcopyrite, and pyrrhotite, with no significant metal in the gangue.

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