CaNickel to Release 2012 Winter Drilling Results

Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2012) - CaNickel Mining Ltd. ("CaNickel" or the "Company") (CML.TO) is pleased to provide the complete drilling results from the 2012 winter drilling program at the Company's M11A area, a deposit ("M11A North Deposit) of the Company's Thomson Nickel Belt Exploration Project in Manitoba. This deposit is located approximately four kilometers north of the Bucko Lake Nickel Mine and milling operations, near the town of Wabowden, Manitoba. This drill program was designed to extend the deposit to depth and along strike, as well as provide further definition of the existing known mineralization.

A total of 7,157 meters have been completed and 1,519 samples were assayed in this 12 holes drilling program. The drilling result of the first three holes was released on March 5, 2012 and Drill hole M12-02 intercepted 7.3 meters of 2.59% nickel (please refer to our press release dated March 5, 2012 for details). Highlight intersection from drill holes of this drilling program are as follows:

Highlight Intersection from the drill holes include:

  • Hole M12 - 02 intersected 7.3 meters grading 2.59% nickel;
  • Hole M12 - 07 intersected 5.3 meters grading 2.24% nickel;
  • Hole M12 - 08 intersected 10.4 meters grading 1.20% nickel; and,
  • Hole M12 - 09 intersected 12.9 meters grading 1.21% nickel and 12.9 meters grading 1.17% nickel.

Detailed Exploration Results

The following table summarized the drilling results for the 2012 winter drilling program at M11A North Deposit.

Drill Hole From To Length Ni
(m) (m) (m) (%)
M12-01 567.6 568.6 1.0 1.02
         
M12-02 568.0 575.3 7.3 2.59
M12-02 594.4 595.3 0.9 1.41
         
M12-03 445.5 457.4 11.9 1.05
M12-03 468.1 470.2 2.1 5.42
  Including 1.0 metres of 10.25% Ni from 468.05-469.05
M12-03 515.6 518.6 3.0 1.66
  Including 1.6 metres of 2.40% Ni from 517.0-518.6
M12-03 523.0 524.3 1.3 1.05
M12-03 537.1 538.1 0.9 1.56
M12-03 548.3 549.1 0.8 2.89
         
M12-04 525.9 528.9 3.0 1.49
  Including 1.2 metres of 2.30% Ni from 526.65-527.85
M12-04 542.5 543.6 1.0 1.07
         
M12-05 461.3 463.6 2.3 1.26
M12-05 474.0 474.9 0.9 1.20
         
M12-06 530.3 531.4 1.1 4.43
         
M12-07 369.9 370.7 0.8 1.08
M12-07 461.0 466.2 5.3 2.24
  Including 2.55 metres of 3.03 % Ni from 462.45-465
M12-07 472.4 475.4 3.0 1.47
         
M12-08 490.4 494.2 3.8 3.23
  Including 0.90 metre of 12.60 % Ni from 491.9-492.8
  517.4 520.6 3.3 2.17
  Including 0.75 metre of 7.22 % Ni from 518.35-519.10
M12-08 575.0 585.4 10.4 1.20
         
M12-09 418.5 419.3 0.8 1.21
M12-09 427.0 439.8 12.9 1.21
  Including 3.2 metres of 2.15 % Ni from 427.8-431.0
  Including 1.75 metres of 1.64 % Ni from 438.05-439.8
M12-09 440.5 453.4 12.9 1.17
  Including 1.35 metres of 3.45 % Ni from 444.8-446.15
M12-09 465.9 467.4 1.5 1.60
M12-09 473.9 475.2 1.3 1.07
M12-09 476.4 477.3 0.9 1.98
M12-09 492.4 494.3 1.9 2.73
  Including 0.9 metre of 4.16 % Ni from 492.4-493.3
M12-09 516.1 516.9 0.9 1.72
M12-09 519.0 519.9 0.9 1.02
M12-09 534.6 535.8 1.2 1.37
         
M12-10 421.8 422.8 1.0 1.05
M12-10 425.8 430.3 4.5 1.19
M12-10 433.4 434.9 1.5 1.05
M12-10 497.8 498.5 0.7 3.15
M12-10 504.2 504.8 0.6 1.23
         
M12-11 452.1 453.9 1.8 2.37
  Including 0.75 metre of 3.75 % Ni from 452.1-452.85
M12-11 468.0 469.5 1.4 1.10
M12-11 497.7 500.2 2.6 0.88
M12-11 505.7 507.0 1.3 1.06
         
M12-12 403.7 404.5 0.8 4.90
M12-12 425.6 429.1 3.5 0.96
M12-12 431.8 433.8 2.0 1.14
*Intersection intervals reported are core lengths; actual true widths are unknown at this time but are generally 70 to 80% of core length. Once known, true widths are calculated for each intersection. These could vary somewhat from time to time as the zones are re-interpreted, thereby altering the geometry.

At M11A area, Xstrata Nickel (formerly Falconbridge) conducted numerous ground geophysical surveys (magnetics, AFMAG EM and IP) over the M11A ultramafic from 1959 onwards. Consolidated Marbenor Limited completed 46 diamond drill holes between 1959 and 1961, with Xstrata subsequently drilling 11 holes in the 1960's. The M11A ultramafic can be traced for more than 4 kilometres in length, of which less than 2.5 km had been drill tested and that was only by widely spaced holes.

The discovery of significant nickel mineralization at M11A was first announced in 2006 and was followed up by subsequent drilling programs in 2007, 2008, 2009, and 2011 (refer to press releases dated July 11, 2006, May 8, 2007, April 21, 2008, May 20, 2008, January 4, 2010, February 4, 2010 and June 29, 2011). Due to complications with weather and logistics in the 2009 winter drilling program, zones at depth and along strike to the southwest were not able to be tested. The 2012 winter drill program targeted these areas for definition.

The Company is reviewing the results from the drilling programs at M11A and updating resource calculations at M11A area. Upon completion of the resources calculation, further studies at M11A North Deposit might be warranted and the Company expects that M11A North Deposit could eventually provide a source of supplemental feed for the Bucko Lake Mine operations to expand production and extend the life of the operations.

Quality Control

CaNickel executes a quality control program to ensure best practice in sampling and analysis. Samples are cut and split for assay with the remaining sample retained for reference. Samples to be assayed are initially transported in sealed and secure bags for assay preparation at ALS-Chemex Laboratory ("ALS") in Thunder Bay, Ontario for sample preparation. Subsequently ALS then sends pulps to their Vancouver British Columbia, offices for analysis. Fire assays were performed at ALS's laboratory in Vancouver on all the samples for gold and PGEs which undergo an ICP-AES finish and Sodium Peroxide Fusion. All other metals undergo an ICP-AES finish. Standards and blanks are submitted with each sample batch, one for every 25 samples.

James Wong, P.Eng., P.Geo., the Qualified Person as defined under National Instrument 43 - 101, has verified the information and has reviewed and approved the contents of this news release.

ABOUT CANICKEL

CaNickel Mining Limited is a Canadian junior mining company that owns and operates the Bucko Lake Nickel Mine near Wabowden, Manitoba. The Company also holds nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.

Advisory Respecting Forward-Looking Information

This press release contains forward-looking statements under Canadian securities legislation. Forward looking statements include, but are not limited to, statements with respect to plan to review the drilling results and update the resources calculation at N11A North and advance to deposit. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks of the Company described in its annual information form that is available under its profile on SEDAR at www.sedar.com. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

Contact:
CaNickel Mining Limited
Derek Liu
CFO and Corporate Secretary
604-254-8863
778-372-1806
info@canickel.com
www.canickel.com

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