Shares in Manitoba-focused NiCAN (TSXV: NICN) surged 266.6% Wednesday on new assay results showing its longest zone of nickel-equivalent mineralization to date at its Wine property in west-central Manitoba.
Diamond drill hole Wine 23-29 cut 31.5 metres averaging 1.9% copper and 1.92% nickel (2.31% nickel-equivalent) from 36.5 metres depth, the company reported. The hole included 9.6 metres grading 2.2% copper and 1.56% nickel from 4.2 metres, in what NiCAN calls the Upper zone. Hole wine 22-6 returned 9.8 metres of 2.09% copper and 1.23% nickel from 7.4 metres in that zone.
The results were from NiCAN’s third phase of exploration at Wine, completed last year. The campaign comprised 2,209 metres of drilling across 17 holes, designed to test the main Wine target and greenfield targets throughout the Wine gabbro. The company initially targeted only 1,700 metres, but improved drill productivity allowed the addition of 500 metres, NiCAN said.
“We are happy to report the results from the additional drilling at the Wine Occurrence, expanding the mineralized zones and allowing for a significant improvement in interpretation,” said NiCAN president and CEO Brad Humphrey. “[The] Upper zone is significant and further work is required to determine the full extent of the zone.”
The program followed up on results from drilling completed in last year’s first quarter, when a new nickel bearing horizon inside the Wine gabbro was discovered.
NiCAN said it believes the mineralization hosted by the Wine gabbro might resemble the nickel-copper deposits in the Lynn Lake area, north of Wine, where the historic Farley mine produced about 22.2 million tonnes grading 1% nickel and 0.5% copper.
The company was formed in April 2022 with a vision for nickel-copper exploration projects situated in known mineral belts in low-risk jurisdictions. Just months after it was established, NiCAN reported highlight drill results at Wine including 27.3 metres at 2.01% nickel, 1.81% copper, 0.09% cobalt, 0.2 gram gold per tonne and 0.28 gram palladium (or 2.61% nickel equivalent) from 43 metres depth.
The 56.8-sq.-km Wine property is located 50 km southwest of Snow Lake – about 680 km north of Winnipeg – in a suture zone between the Flin Flon and Snow Lake greenstone belts.
Northeast of Wine, NiCAN also holds the 24-sq.-km Pipy project, inside the Thompson nickel belt, beside Vale’s (NYSE: VALE) Thompson mine.
Company shares traded at C$0.16 on Wednesday at mid-day in Toronto, touching the ceiling of its 52-week range of C$0.04 and C$0.16. It has a market capitalization of C$11.4 million.
