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North American Nickel Inc
Symbol NAN
Shares Issued 170,014,679
Close 2015-03-02 C$ 0.25
Market Cap C$ 42,503,670
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N.A. Nickel samples 5.6% Ni, 0.4% Cu at Maniitsoq

2015-03-02 19:31 ET - News Release

Mr. Mark Fedikow reports

NORTH AMERICAN NICKEL REPORTS POTENTIAL FOR HIGH NICKEL RECOVERIES AT REGIONAL EXPLORATION TARGETS ON MANIITSOQ PROJECT

North American Nickel Inc. has received a report on the results of mineralogical studies performed by SGS Canada Inc., Burnaby, B.C., on six drill core samples of mineralized norite from the 2014 exploration program at the Maniitsoq nickel-copper-cobalt-platinum-group-element sulphide project in southwest Greenland. The samples were obtained from regional targets P-013, P-030, P-053, P-058 (Fossilik) and P-149 (Pingo). The results of the study indicate that high nickel and copper recoveries are possible under conventional flotation mineral processing.

The objectives of the study were to determine the modal mineralogy, mineral texture, nickel, copper and cobalt deportment, and the liberation, association and exposure of the nickel, copper and iron sulphides of each sample. A copy of the report can be found on the company website.

Report highlights:

  • Sulphide mineral species identified in each sample are pyrrhotite, pentlandite, pyrite and chalcopyrite.
  • Pentlandite is the main nickel-bearing mineral in each sample with nickel contents ranging from 90.1 to 93.1 per cent.
  • Potential pentlandite recoveries range from 96.1 to 97.2 per cent based on liberation, association and exposure characteristics of crushed samples stage pulverized to 90 per cent passing 150 micrometres.
  • Pentlandite D50 (micrometres) grain sizes range from 33 to 43 micrometres.
  • All copper is hosted by chalcopyrite. Chalcopyrite P50 (micrometres) grain sizes range from 22 to 40 micrometres.
  • Potential chalcopyrite recoveries range from 85.4 to 96 per cent based on liberation, association and exposure characteristics of crushed samples stage pulverized to 90 per cent passing 150 micrometres.
  • Pentlandite and pyrite are the main hosts of the cobalt in the samples.

North American Nickel chief executive officer, Keith Morrison, stated: "The study results indicate that the predominant form of nickel mineralization is pentlandite. This may be an advantage to potential future economics as this mineral form traditionally supports very high nickel recoveries from conventional metallurgical processes. This year's results are consistent with the 2013 results from the Imiak Hill complex and confirm favourable mineralogical characteristics at five independent, mineralized, regional targets distributed over a distance of 80 kilometres."

Summary of key study results

Drill testing of exploration targets in 2014 results in the intersection of norite-hosted nickel-copper sulphide mineralization at regional targets P-013, P-030, P-053, P-058 (Fossilik) and P-149 (Pingo). Six representative drill core samples of the mineralization, including two from P-030 and one from each of the remaining target areas, were collected and submitted to SGS to carry out an initial mineral characterization study.

Mineralogical analysis was conducted by quantitative evaluation of minerals by scanning electron microscopy, X-ray diffraction and electron microprobe analysis. Samples were analyzed both as core pieces (for mineral texture) and also crushed to 90 per cent passing 150 micrometres for process mineralogy characteristics (liberation, association and exposure).

Key results of the study are summarized herein. Further details, including quality assurance and quality control, sample preparation, methodology, technical definitions, modal analyses, and details of mineral chemistry, as well as liberation, association and exposure characteristics, can be found in the SGS report posted on the company's website.

        MINERALIZED SAMPLES FROM MANIITSOQ REGIONAL EXPLORATION TARGETS
                  USED IN THE MINERAL CHARACTERIZATION STUDY

Sample name    Target area    Hole No.  Ni (%)  Cu (%)  Co (%)      Comments

Box 12: MQ-2014-                                                Semi-massive
070: 53.40-                                                         sulphide
53.50 m                                                          stringer in
                     P-030  MQ-12-070    3.69    0.52    0.11         norite
Box 17: MQ-2014-
054: 71.10-          P-058                                           Massive
71.26 m          (Fossilik) MQ-12-054    5.60    0.40    0.15  sulphide vein
Box 21: MQ-2014-                                                Disseminated
041: 88.90-          P-149                                      sulphides in
89.00 m             (Pingo) MQ-12-041    0.74    0.43    0.02         norite
Box 22: MQ-2014-                                                Disseminated,
071: 94.35-                                                       patchy and
94.50 m                                                             stringer
                                                                sulphides in
                     P-053  MQ-12-071    1.35    0.11    0.04         norite
Box 28: MQ-2014-                                                      Coarse
070: 119.90-                                                 disseminated to
120.00 m                                                              patchy
                                                                sulphides in
                     P-030  MQ-12-070    1.05    0.47    0.04         norite
Box 30: MQ-2014-                                                Semi-massive
066: 133.90-                                                    sulphides in
134.00 m             P-013  MQ-12-066    2.71    0.31    0.08         norite

Nickel, copper and cobalt values are from analyses performed for each 
sample by SGS Canada. Analyses were completed by potassium pyrosulphate 
fusion and X-ray fluorescence.

Modal analyses

The modal mineral abundances were determined in both drill core pieces and in crushed samples. Sulphide minerals comprise pyrrhotite, pentlandite, pyrite and chalcopyrite, and the main silicate minerals are orthopyroxene, amphibole, clinopyroxene and feldspars. The presence of talc (less than 5 per cent) was confirmed by XRD analysis for the sample from target P-013.

Grain size

The D50 (micrometres) passing values determined on the crushed samples are presented in the attached D50 cumulative grain size distribution table. (The D50 (micrometres) value is defined as the medium-grain size within the sample, where 50 per cent of the particles are coarser and 50 per cent of the particles are finer than 50 micrometres.)

                  D50 CUMULATIVE GRAIN SIZE DISTRIBUTION
                                (micrometres) 

                                       Sample ID
                Box 12: MQ-  Box 17: MQ- Box 21: MQ- Box 22: MQ- Box 28: MQ- Box 30: MQ-
                  2014-070:    2014-054:   2014-041:   2014-071:   2014-070:   2014-066:
                     53.40-       71.10-      88.90-      94.35-     119.90-     133.90-
                   53.50 m      71.26 m     89.00 m     94.50 m    120.00 m    134.00 m

Pentlandite             40           35          35          43          33          35
Chalcopyrite            22           24          40          23          31          24
Fe sulphides            47           40          48          50          48          39
Hard silicates          64           37          60          49          58          45
Soft silicates          16           25          34          19          20          26
Carbonates              20           22          18          16          22          15
Oxides                  14           15          15          13          14          30
Particle                55           39          59          50          56          44

Nickel, copper and cobalt deportment

Elemental deportment for nickel, copper and cobalt in each sample was calculated using the Empa and Qemscan data and is shown in the attached summary of nickel, cobalt and copper deportment table. On average, pentlandite carries 92 per cent of the nickel, pyrrhotite 6 per cent and pyrite very trace amounts (less than 0.5 per cent). Silicates account for trace to minor amounts of nickel ranging from less than 0.5 per cent to approximately 6 per cent. Chalcopyrite carries 100 per cent of the copper. Pentlandite and pyrite are the main carriers of cobalt. Cobalt abundances in each of these two minerals vary from sample to sample, but average 63 per cent in pentlandite and 37 per cent in pyrite.

                SUMMARY OF NICKEL, COBALT AND COPPER DEPORTMENT

                               Box 12: MQ-2014- Box 17: MQ-2014- Box 21: MQ-2014-
                                    070: 53.40-      054: 71.10-      041: 88.90-
Element       Mineral name             53.50 m          71.26 m          89.00 m

Nickel (Ni)   Pentlandite                 93.1             91.2             91.8
              Pyrrhotite                  6.25             8.69             1.75
              Pyrite                      0.04             0.03             0.07
              Orthopyroxene               0.45             0.01             3.40
              Clinopyroxene               0.04             0.00             0.04
              Amphibole                   0.09             0.02             2.06
              Biotite/phlogopite          0.03             0.05             0.83
              Talc                        0.01             0.00             0.06
              Chlorite                    0.00             0.04             0.00
Cobalt (Co)   Pentlandite                 64.5             69.6             48.7
              Pyrite                      35.5             30.4             51.3
Copper (Cu)   Chalcopyrite               100.0            100.0            100.0 

                               Box 22: MQ-2014- Box 28: MQ-2014- Box 30: MQ-2014-
                                    071: 94.35-     070: 119.90-     066: 133.90-
Element       Mineral name             94.50 m         120.00 m         134.00 m

Nickel (Ni)   Pentlandite                 90.1             91.1             92.6
              Pyrrhotite                  7.43             5.24             6.44
              Pyrite                      0.02             0.07             0.03
              Orthopyroxene               0.57             2.48             0.28
              Clinopyroxene               0.09             0.03             0.11
              Amphibole                   1.67             0.84             0.44
              Biotite/phlogopite          0.12             0.19             0.02
              Talc                        0.02             0.06             0.13
              Chlorite                    0.00             0.00             0.00
Cobalt (Co)   Pentlandite                 74.6             46.7             71.7
              Pyrite                      25.4             53.3             28.3
Copper (Cu)   Chalcopyrite               100.0            100.0            100.0

Potential recovery of pentlandite and chalcopyrite

The potential recovery characteristics of pentlandite and chalcopyrite for the sample suite are summarized in the attached summary of potential recovery for pentlandite and chalcopyrite table. Potentially recoverable pentlandite ranges from 96.1 to 97.2 per cent. Potentially recoverable chalcopyrite ranges from 85.4 to 96 per cent.

Potential recovery is the percentage of the mineral (not value metal) that can potentially be recovered through flotation. It is calculated using liberation, association and exposure of the grains (on a two-dimensional surface area) and is used as a predictive tool. The attached results are based on the mineralogical analysis, do not reflect other recovery factors that could occur in the actual metallurgical processes and should only be used as a guide to the metallurgical performance.

       SUMMARY OF POTENTIAL RECOVERY FOR PENTLANDITE AND CHALCOPYRITE

                                Box 12: MQ-2014- Box 17: MQ-2014- Box 21: MQ-2014-
                                     070: 53.40-      054: 71.10-      041: 88.90-
Mineral       Potential recovery        53.50 m          71.26 m          89.00 m

Pentlandite   Potentially
              recoverable                  97.2             96.1             96.8
              Non-recoverable              2.76             3.87             3.15
Chalcopyrite  Potentially
              recoverable                  85.4             93.9             95.2
              Non-recoverable              14.6             6.10             4.77

                                Box 22: MQ-2014- Box 28: MQ-2014- Box 30: MQ-2014-
                                     071: 94.35-     070: 119.90-     066: 133.90-
Mineral       Potential recovery        94.50 m         120.00 m         134.00 m

Pentlandite   Potentially
              recoverable                  96.5             96.8             96.1
              Non-recoverable              3.54             3.21             3.92
Chalcopyrite  Potentially
              recoverable                  85.4             96.0             90.3
              Non-recoverable              14.6             3.97             9.68

Seqi port

On Jan. 19, 2015, the company announced that it entered into an exclusivity agreement with Minelco AS that provides the company the opportunity to acquire 100-per-cent ownership of Minelco's deepwater Seqi port in southwestern Greenland.

Further to that announcement, North American Nickel has been granted an extension by Minelco until the end of March, 2015, to undertake due diligence of the Seqi port and to conclude the final assignment terms. The successful completion of this transaction would provide the company with the flexibility of a secure operational hub. In addition to the technical due diligence, North American Nickel is continuing to evaluate the potential direct cost benefits, as well as the reduction in project time, cash flow management and risk surrounding the deepwater all-year access facilitated by the Seqi port, for any future economic development of nickel sulphide deposits at their Maniitsoq project.

Qualified person

Expert services relating to the mineral characterization study were provided by SGS Canada in Vancouver, B.C., under the supervision of Anastassios Grammatikopoulos (PhD, PGeo) and Sarah Prout (PhD), both senior mineralogists with SGS. The information in this release related to the mineral characterization study was reviewed and prepared under the direction of Patricia Tirschmann, PGeo, vice-president of exploration for North American Nickel, who is a qualified person as defined by National Instrument 43-101.

We seek Safe Harbor.

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