Nican begins drilling at Manitoba's Pipy South project

Executive Summary

• Nican Ltd. has commenced Phase I reconnaissance exploration, including diamond drilling and geophysical surveys, at its Pipy South project in the Thompson Nickel Belt, Manitoba.
• The initial program targets two priority areas where historical drilling by INCO Ltd. intersected nickel sulphides, and a third area defined by recent deep-penetrating geophysical data.
• This marks the first drilling on this portion of the Pipe formation in 50 years, aiming to confirm historical mineralization and test for extensions using modern downhole electromagnetic (EM) surveys.

Key Details

• Project Location: Pipy South project, Thompson Nickel Belt, Manitoba, adjacent to the Mystery Lake South deposit and approximately 12 km northeast of the city of Thompson and Vale's Thompson nickel mine.
• Exploration Agreement: The project is identified in Nican's exploration agreement with the Nisichawayasihk Cree Nation (NCN).
• Permitting: The site is permitted for an initial Phase I reconnaissance exploration program.
• Target 1 (North End): Focuses on fold closures at the north end of a folded host sequence (synclinorium). Historical INCO drilling in 1969 reported 8.2 metres of disseminated sulphides with nickel sulphide zones. A second hole 300 metres north intersected 30 metres of ultramafic unit but bottomed in pegmatite.
• Target 2 (Eastern Limb): Focuses on the eastern limb of the Pipy South fold. Historical INCO drilling in 1967 reported 4.39 metres of mineral zone breccia in one hole and 1.3 metres in a second hole, located 800 metres apart on strike within the favourable Pipe formation stratigraphy.
• Historical Data Limitations: Publicly available drill logs for INCO holes do not contain assay data. Historical holes did not leave casing, preventing previous downhole EM surveys.
• Modern Methodology: Nican plans to use downhole EM technology to screen for conductive sulphide bodies up to a 200-metre radius around drill holes. This technology did not exist in the 1960s and will help detect bodies missed by historical drilling and collect data at depths below historical airborne EM penetration.
• Geophysical Reinterpretation: A 2022 high-resolution UAV magnetic survey revealed a more complex structural model than historically believed, comprising two synclines on the east and west edges with an anticline in the middle. Parasitic fold closures are identified as ideal locations to concentrate massive sulphides.
• Geological Context: The project is underlain by an 8 km long folded (synclinal) structure exposing Ospwagan Group sediments, including the Pipe formation. Pipy South is located on the lower limb of a refolded structure (nappe) hosting the Thompson T1 and T3 deposits. The historical Birchtree and Pipe nickel mines are on strike with Pipy South.
• Regional Production Context: Total production from the Birchtree, Pipe, and Thompson mines totals over 150 million tonnes at 2.32% Ni.
• Qualified Person: Stanley Clemmer, PGeo, consultant to Nican, has reviewed and approved the scientific and technical information under National Instrument 43-101.

Notable Quotes

• "We are excited to commence this initial drilling exploration program on the highly prospective Pipy South project in the Thompson area. This will be the first time drilling has been conducted on this portion of the Pipe formation in 50 years." — Brad Humphrey
• "The Pipy South project has excellent access... Pipy South is particularly exciting as historical drill logs indicate the presence of nickel mineralization associated with the Pipe formation, which hosts all the economic nickel mineralization within the Thompson nickel belt." — Brad Humphrey