Canada Nickel Reports Excellent Initial Metallurgical Results from Texmont

Canada Nickel Company Inc. (TSXV:CNC) (OTCQX:CNIKF) announced the initial results from preliminary metallurgical test work on the first set of samples from the Texmont Nickel Sulphide Project, which demonstrates a range of grades could be processed using a simple process flowsheet. Recoveries met or exceeded historical results.

Highlights

Yields exceeded expectations producing high-grade concentrates:
- Nickel recoveries of 79 – 84%
- Cobalt recoveries of 77 – 83%
- Final concentrate grades of 18 – 28% nickel with up to 0.7% cobalt
Simple process can be used and would provide significant flexibility for potential toll milling opportunities, bringing on production faster.
Company acquired 403 additional mining claims covering 20 kilometres of strike length with the potential to host Texmont style mineralization, supporting a longer mine life.
Preliminary Economic Assessment for Texmont planned by end of year. Potentially will support permitting in 2024 and production in 2025, with cashflow contributing to buildout costs for Crawford, one of the largest planned nickel mines in the world.

Texmont continues to deliver excellent results, with initial metallurgy yielding nickel and cobalt recoveries and concentrate grades exceeding our expectations. Further, these results were achieved with a simple flowsheet which will maximize potential opportunities to toll mill our initial production. I look forward to the next phases of work while we complete our initial resource on Texmont and complete a Preliminary Economic Analysis (“PEA”) by year-end.Mark Selby, CEO, Canada Nickel

Figure 1. Preliminary Metallurgy Work – Texmont Recovery Performance

Description of Results

The Texmont property is a past producing mine, located approximately 36 kilometres south of Timmins, that contains a large ultramafic body. Through analysis of historic drill data and supported by new drilling (refer to news release June 1, 2023), Canada Nickel has identified a near surface, high grade zone of > 1% nickel wrapped within a moderate-high grade zone of 0.6 to 1.0% nickel. The company is evaluating the potential for near term production from Texmont through open pit mining of this moderate-high grade
material.

Given our success at Texmont, we capitalized on the opportunity to acquire regional mining claims, consolidating 20 kilometres of property with the potential to find more Texmont-style deposits. We have signed a total of 10 agreements which consolidate 9,520 hectares of mining claims. We view this as an important and highly prospective addition to our Timmins Nickel District.Mark Selby, CEO, Canada Nickel

Table 1 summarizes the results of open circuit testing completed at XPS (A Glencore Company), on three samples from Texmont, with head grades ranging from 0.67 – 1.52% nickel. The samples were selected to represent the moderate-high grade zone of the deposit and were tested using a simple flowsheet with samples ground to 100 microns, that does not require desliming, and which offers flexibility for toll milling.

Nickel recoveries were in the range of 79 to 84%, while cobalt recoveries were similarly high, ranging from 77 to 83%. The mineralization shows excellent upgrading potential, with final cleaner concentrate grades between 18 to 28% nickel and 0.44 to 0.70% cobalt, which is considered a high-grade concentrate for material with pentlandite style mineralization. The company is very encouraged by these results, which are in line with and exceeding the historical results documented in the 2007 Fletcher Nickel NI 43-101
report, supporting the potential for a near term open pit operation.

Table 1. Open Circuit Metallurgical Test Results at Texmont

1 The grades and recoveries in Table 1 are from open cycle tests and should be considered indicative of
what could be achieved in a locked cycle test. Final results will be determined by completing locked cycle
testing in the next phase of metallurgical work.

Next Steps in Metallurgical Testing

Through the summer months, Canada Nickel expects to finalize the metallurgical flowsheet by conducting locked cycle and metallurgical variability tests. This test program will be used to define recovery equations for the Texmont PEA, which is expected to be released by the end of 2023.

Canada Nickel’s results increase the potential of Texmont to be a near-term source of nickel production. A resource and PEA is scheduled to come through by year-end. The company would look to permit during 2024 and bring Texmont to production in 2025, if the PEA is successful.

Acquisition of Texmont Trend

Canada Nickel, through a series of ten Purchase and Sale Agreements(including one previously announced for 54,000 common shares) has acquired 403 additional mining claims within the Texmont ultramafic trend. They will issue a total of 515,400 common shares (461,400 and 54,000) and make cash payments totaling $300,550. Each of the foregoing issuances of common shares are subject to the prior approval of the TSX Venture Exchange, and the shares will be subject to a four-month hold period under
Canadian securities laws from the date of the respective issuance.

Figure 2. Texmont Ultramafic Trend

Qualified Person and Data Verification

Arthur G. Stokreef, P.Eng. (ON), Manager of Process Engineering & Geometallurgy and a “qualified person” as such term is defined by National Instrument 43-101, has reviewed and approved the technical information in this news release on behalf of Canada Nickel Company Inc.

Duane Hope

Duane Hope is a Partner at Capital 10X, he brings over 15 years of communications and research experience to the firm. His research and writing has appeared in publications for North American, European and Asian audiences.