TORONTO: 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:
Neal Land Status:
Vein & Mineralization Description: (historic geology & mining from 1Bennett, 2001 and 3Lindgren, 1898)
Geology and Mineralization:
Metallurgy and Mining:
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.
For further information:
Pure Nickel Inc.
R. David Russell
Chairman and CEO
T. (416) 644-0066
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.