Nickel Deposit Shows ‘Impressive’ Metallurgy
March 17, 2023 (Investorideas.com Newswire) These new data support “our view that the company is defining a nickel camp” in Ontario, Canada, noted a Research Capital Corp. report.
Initial metallurgical results are in for Canada Nickel Co. Inc.’s (CNC:TSX.V;CNIKF:OTCMKTS) Reid property northwest of Timmins, Ontario, and they are “impressive” and “very promising,” reported Research Capital Corp. analyst Adam Schatzker in a March 15 research note. In other news, the mining explorer’s acquisition of the Texmont property, south of Timmins, just closed.
Also important for investors, Canada Nickel offers the potential for significant returns. Currently, with its stock trading at about CA$1.49 per share and Research Capital having a target price on it of CA$3.25, the projected return is about 118%.
Methodology and Grades
For the metallurgical testing, a high-grade, well-serpentinized sample was used, “which likely biases the results to the upside,” noted Schatzker. The same flow sheet design used for testing material from the Crawford project was employed, and only open-cycle tests were performed. Crawford is Canada Nickel’s flagship project, located to the north of Timmins and to the northeast of Reid.
The Reid sample returned these head grades: 0.35% nickel, 0.1% sulfur, and 6.2% iron, Schatzker relayed. When compared to drill results, as no resource estimate exists yet, the nickel grade seems higher than the average.
Recoveries: Reid v. Crawford
The recent testing showed that Reid’s metallurgy, as determined so far, is similar to that of Crawford, Schatzker concluded.
Specifically, metal recoveries from the Reid sample were 63% nickel, 0% cobalt, 31% iron, and 12% chrome. These compare to results from Crawford of 62% nickel, 70% cobalt, 45% iron, and 21% chrome.
The nickel concentrate produced from the Reid sample was “very high grade,” containing 46% nickel and 0.27% cobalt.
“[Canada Nickel] noted that more than half of the nickel concentrate produced graded 60%, which is exceptionally high and was determined using more than 120 open cycle tests,” Schatzker wrote.
In Crawford’s nickel concentrate, there was only nickel at grades of 35% and 12%.
As for the iron concentrate, Reid’s contained 55% iron and 3% chrome versus Crawford’s, showing 54% iron and 4.5% chrome.
More Work To Be Done
Canada Nickel intends to confirm these metallurgical results on the Reid sample using locked cycle testing, Schatzker wrote.
Also, the company will likely test, at some point, different samples of mineralized material from Reid as well to better understand the metallurgy of the entire deposit.
‘Defining a Nickel Camp’
Schatzker highlighted that Canada Nickel is proving Reid to be “a very large deposit,” potentially even bigger than Crawford.
This “reinforces our view that [the company] is defining a nickel camp that may have resources to sustain many, many decades of nickel, iron, chrome, and cobalt production in the future,” the analyst wrote.
He added, “We think it is these characteristics that recently attracted Anglo American (market cap of US$45 billion) as a strategic 9.9% equity holder of Canada Nickel.”
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures For Research Capital Corp., Canadian Nickel Company Inc., March 15, 2023
Analyst Certification: I, Adam Schatzker, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
Relevant Disclosures Applicable to Companies Under Coverage
Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our website at www.researchcapital.ca
The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation (“RCC”) are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.
Company Specific Disclosures
Within the past 12 months, Research Capital has provided investment banking services to the issuer. The Analyst currently owns or is short shares of the issuer, which represents less than 1% of shares outstanding.
Potential Conflicts of Interest
All Research Capital Corporation (“RCC”) Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
RC USA INC.
Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.com.
The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA).
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com