Highlights

• Hole CR20-33 extended East Zone nickel and PGM mineralization along strike by 400 metres to the east (to 2.1 kilometres) and yielded another higher grade intersection with elevated PGM grades – 38 metres of 0.37% nickel and 0.17 g/t palladium + platinum (0.12 g/t Pd, 0.05 g/t Pt) within 315 metres of 0.25% nickel from 120 metres downhole.
  
  
• Hole CR20-32 extended Main Zone nickel mineralization by 1.5 km along strike to the north (to 3.2 km) and yielded 243 meters of 0.25% nickel and 0.013% cobalt from 390 metres downhole and ended in mineralization with the final 57 metres grading 0.30% nickel and 0.013% cobalt. (Assays from PGM portion of this hole were announced in Canada Nickel press release dated May 19, 2020.)

TORONTO, May 27, 2020 /PRNewswire/ - Canada Nickel Company Inc. (TSX-V:CNC) ("Canada Nickel" or the "Company") today announced the results from the latest drill holes at its Crawford Nickel-Cobalt Sulphide project, including a third hole, CR20-33, into the newly discovered East Zone, which extends nickel mineralization a farther 400 metres east, and the nickel assays from the previously reported hole CR20-32, which extend Main Zone nickel mineralization by 1.5 kilometres to the north. 

The new East Zone discovery has been tested for 2.1 km of its overall 2.8 km interpreted strike length and the original Main Zone remains open for several kilometres to the west.

"We are very pleased with the latest significant nickel mineralization step-outs – extending our Main Zone by 1.5 kilometres and our East Zone discovery by 400 metres. Importantly, this is the second of three holes on the East Zone with a higher grade interval (0.37% nickel over 38 metres) that also contained elevated palladium and platinum grades," said Mark Selby, Chair and CEO of Canada Nickel. 

"Our latest drilling results further reinforce our belief that Crawford is one of the leading next generation nickel-cobalt sulphide and palladium projects. " 

The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.

Nickel Mineralization Extensions – Main Zone, East Zone Nickel Discovery

Table 1 – East Zone Nickel Drilling Results, Crawford Nickel-Cobalt Sulphide Project

Figure 1a – Plan View of East Zone Nickel - Drilling Results overlain on total field magnetic intensity, Crawford Nickel-Cobalt Sulphide Project, Ontario.

Figure 1b – East Zone - Cross-Section View - Drilling Results overlain on total field magnetic intensity, Crawford Nickel-Cobalt Sulphide Project, Ontario.

PGM Zone – East Zone Extension

Similar to the PGM Zones previously defined on the East Zone and Main Zone nickel-palladium resource, hole CR20-33 intersected 2 zones of palladium-platinum mineralization located at the north contact between the peridotite and pyroxenite layer directly to the north of the nickel structure, returning 1.04 g/t  palladium + platinum (0.54 g/t Pd, 0.50 g/t Pt) over 3 m from 454 metres and 1.5 metres of 1.36 g/t palladium + platinum (0.66 g/t Pd, 0.70 g/t Pt) over 1.5 m from 521 metres.  See Figure 2 for location of the PGM Zone.

Table 2 – PGM Zone – Drilling Results, Crawford Nickel-Cobalt Sulphide Project, Ontario

Figure 2 – Plan view of PGM Zone - Recent drilling overlain on total field magnetic intensity, Crawford Nickel-Cobalt Sulphide Project, Ontario.

Table 3 – Drill Hole Orientation, Crawford Nickel-Cobalt Sulphide Project, Ontario

Assays, Quality Assurance/Quality Control and Drilling and Assay Procedures

William E. MacRae, MSc, P.Geo., a "qualified person" as defined by NI 43-101, is responsible for the on-going drilling and sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5 metre lengths and cut with a diamond blade saw. Samples are bagged with QA/QC samples inserted in batches of 35 samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC 17025 accredited lab. Analysis for precious metals (gold, platinum and palladium) are completed by Fire Assay while analysis for nickel, cobalt, sulphur and 17 other elements are performed using a peroxide fusion and ICP-OES analysis. Certified standards and blanks are inserted at a rate of one QA/QC sample per 32 core samples making a batch of 35 samples that are submitted for analysis.

Qualified Person and Data Verification

Stephen J. Balch P.Geo. (ON), VP Exploration of Canada Nickel and a "qualified person" as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel Company Inc.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high growth electric vehicle and stainless steel markets.  Canada Nickel provides investors with leverage to nickel and cobalt in low political risk jurisdictions.  Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, drill results relating to the Crawford Nickel-Cobalt Sulphide Project, the potential of the Crawford Nickel-Cobalt Sulphide Project, strategic plans, including future exploration and development results, and corporate and technical objectives. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future  demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the property, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Canada Nickel disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE Canada Nickel Company Inc.