Toronto, Ontario--(Newsfile Corp. - May 30, 2019) - Pure Nickel Inc. (TSXV: NIC) (the "Company" or "Pure Nickel") announces that it has filed a Technical Report, as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, for the Neal Project ("Neal"). The Company is Eric Sprott's 51% partner in the Neal Development Limited Partnership ("Neal LP") which holds a lease to operate Neal (see Pure Nickel press release dated April 30, 2019). The Neal mine area, located 27 kilometers southeast of Boise, Idaho, is a high-grade vein gold project comprised of five patented and seven unpatented lode claims.
Pure Nickel President and CEO, Mr. R. David Russell, notes: "With Pure Nickel transitioning away from the nickel business, management has chosen Neal as our first gold project for the following reasons: 1) high-grade underground gold potential, 2) non-refractory sulfide mineralization amenable to gravity and flotation, 3) private patented land base with a current mining permit, 4) easy access and logistics from nearby Boise, and 5) the availability of multiple processing options."
The Neal Technical Report, entitled: "NI 43-101 Technical Report: Property Report for the Neal Project, Elmore County, Idaho", was prepared by Thomas H. Chadwick, CPG, an independent Qualified Person under NI 43-101. Mr. Chadwick has reviewed, verified and approved the technical content of this news release.
Highlights of the NI 43-101 Technical Report include:
Project Location and Access:
- The Neal Project is located in Elmore County, Idaho in rolling hills just east of Boise. Access is a short 25-minute commute from the Boise Airport via paved roads for most of the way.
- Power and water are available nearby and could be furnished to the project as needed.
Neal Land Status:
- All historic and modern mining and exploration has been confined to five patented (private property) claims that make up the core of the Neal property.
- An additional seven unpatented lode mining claims provide further mineral rights along trend in both directions from the patented property. These claims are located on federal lands administered by the U.S. Forest Service.
- Gold mineralization at the Neal Project and elsewhere in the Neal Mining District was discovered in 1889 by Arthur Neal. Total reported District lode gold production through 1941 has been estimated at around 30,000 ounces, with most of this production coming from the Neal Project area in the 1889-1915 time frame1.
- The Neal Project area contains three historic underground gold mines: Hidden Treasure, Homestake and Daisy. These mines were eventually connected underground and were at peak production from 1902-1915.
- Neal was explored in the late 1980's for open pit, heap leach potential with a reverse circulation drilling program consisting of 208 holes totaling 47,000 feet.
- Modern bulk sampling from an open cut in 2015-2016 produced a stockpile of mineralized material estimated to contain around 13,900 tons at 0.132 ounces per ton (oz/t) gold2. The stockpile is not part of the NIC Neal transaction and remains with Sprott Mining.
Vein & Mineralization Description: (historic geology & mining from 1Bennett, 2001 and 3Lindgren, 1898)
- Neal gold mineralization is hosted in north-easterly striking veins that average around N70E, and dip to the south at 60-45 degrees. Vein widths range from 2-13 feet.
- Historically mined "mineralized" shoots averaged around 0.5 oz/ton gold, with reported strike lengths of 75-125 feet and 350 feet of dip development at Homestake, whereas the Hidden Treasure reported 450 feet of strike development with 165 feet of dip.
Geology and Mineralization:
- Neal area veins are hosted entirely in intrusive rocks, with the primary host a Cretaceous-aged biotite granodiorite of the Idaho Batholith.
- Fault zones that host the veins are frequently intruded by lamprophyre dikes in the Neal area, as well as by rhyolitic dikes. Other dike-like intrusives are also common and can be compositional and/or textural variations of the granodiorite. The lamprophyres at Neal are sometimes minor hosts to mineralization.
- The approximate N70E trend of the Neal vein system can be offset locally by northerly trending faults.
- Neal veining consists of one or two primary veins, but other veins have been identified with roughly parallel strikes and dips. A total of five veins have been identified to date.
- Veins consist of quartz-white mica-clay-pyrite alteration and mineralization and can be subtle to identify in the field. Quartz textures are indicative of higher temperature mesothermal environments, and quartz content is modest overall. Near surface, iron oxides after pyrite are often direct indicators of gold mineralization. Other associated minerals include minor to trace amounts of galena and sphalerite.
- No bottom to the mineralized vein system has been identified, and little exploration or mining has been conducted along strike beyond the known mining limits.
Metallurgy and Mining:
- Historic mining records for Neal and other districts in the region indicate that gold was commonly recovered from both near surface and deeper sulfide mineralization by gravity and flotation, although some cyanidization was used in the early 1900's.
- Several modern studies have been conducted on mixed oxide-sulfide material at Neal that suggest strong gold recoveries of up to 90% can be achieved using a mill with a combined gravity and flotation circuit. Neal sulfide material does not appear to be refractory.
- NIC plans to explore the Property for higher grade strike extensions of the Neal veins and to determine deeper down-dip potential in, and around, the known mines.
- The Technical Report recommends a drill-oriented exploration program for the 2019-2020 field seasons of approximately US$ 1 million. This program proposes a dual reverse circulation and diamond (core) drilling approach to locate and confirm vein targets at Neal.
About the Neal LP and Sprott Mining Partnership
On April 29, 2019 Pure Nickel signed an Agreement ("Agreement") with 2176423 Ontario Ltd., a company controlled by Eric Sprott ("Sprott") to acquire an operating and controlling interest in the Neal LP. Under terms of the Agreement, the Company acquired 51% of the Neal LP from Sprott in consideration of the issuance to Sprott of 10,221,732 shares of the Company. The closing of the transaction was announced May 13, 2019 and Sprott now holds 13% of the currently issued and outstanding shares of the Company. In addition, the Company has an earn-in option to acquire an additional 27% of the Neal LP, along with seven unpatented mining claims by raising between US$ 1-1.5 million for an exploration drilling program. Upon completion of this future financing, Pure Nickel has the option to pay Sprott US $84,706 to exercise its option to acquire the remaining 27%. Upon completion of this earn-in option, Pure Nickel will own 78% of Neal LP, Sprott will retain 20% and a separate party will continue to hold the remaining 2%. The transaction is more fully outlined in the Company's press release dated April 30, 2019.
About the Neal Project
The Neal Project is a high-grade gold-dominant vein system with at least five veins known to date. It is located near Boise, Idaho and has excellent access via 20 kilometers of improved gravel and dirt roads from Interstate-84. The Project consists of five private patented mining claims covering approximately 22.4 hectares (55.38 acres) and another seven unpatented lode claims covering about 52.6 hectares (130 acres) located on U.S. Forest Service administered public lands.
1Bennett, Earl H., 2001. The Geology and Mineral Deposits of Part of the Western Half of the Hailey 1o x 2 o Quadrangle, Idaho, USGS Bulletin 2064-W, prepared with Idaho Geological Survey, Idaho State University and the University of Idaho: with a section on the Neal Mining District by Thor H. Kiilsgaard and Earl H. Bennet (pp 24-29).
2Russell, R. D., 2017-2018. Neal Average Assay for Stockpile (A to H), Atlanta Gold internal spreadsheet and supporting lab work of Neal stockpile material, 2017.
3Lindgren, Waldemar, 1898. The Mining Districts of the Idaho Basin and the Boise Ridge, Idaho; Department of the Interior, US Geological Society; Extract from the 18th Annual Report of the Survey 1896-1897, Part III, Economic Geology; Washington, Government Print Office (pp 609-703).
About Pure Nickel
Pure Nickel is a mineral exploration and development company. With the acquisition of a controlling and operating interest in the Neal Project in Idaho, the Company has made the first key strategic step to expand its focus from nickel to include gold and silver exploration and development.
The technical information contained in this news release has been reviewed and approved by Thomas H. Chadwick, BSc., CPG, a Qualified Person under National Instrument 43-101 Disclosure Standards for Mineral Projects.
Forward Looking Statements
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, expectations, plans, and objectives of Pure Nickel are forward-looking statements that involve various risks. The following are important factors that could cause Pure Nickel's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future exploration activities and cash flows, and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Pure Nickel undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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