Canada Nickel (CNC.C) has released an updated resource calculation on the Reid zone of its Crawford Nickel Project. That zone now hosts a total measured and indicated resource of approximately 908 million tonnes, at an average grade of 0.23% nickel (with a 0.012% cobalt credit and very low values of palladium and platinum. The latter elements could be interesting to potentially source funding through a streaming or royalty deal. On top of that, the inferred resource category also contains an additional 1.45 billion tonnes of rock at an average grade of 0.22% nickel, a cobalt grade similar to the grade in the measured and indicated resource and some palladium and platinum as well.
It’s also interesting to see the updated resource calculation has greatly reduced the strip ratio, which dropped to 1.19 tonnes of mining waste per tonne of mineable ore. And as the average overburden is less than 30 meters thick, the economics of the project have also improved with this updated resource calculation.
Canada Nickel has also highlighted an additional exploration target as it expects/hopes to add an additional 0.5-1.4 billion tonnes of rock at an average grade of 0.21-0.22% nickel. The grade should be pretty consistent considering the Reid project is a large continuous deposit.
Disclosure: The author currently has no position in Canada Nickel. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
