North American Nickel: An Interesting Year Ahead
Richard Mills | May 11, 2014 01:44AM ET
As a general rule, the most successful man in life is the man who has the best information
This year’s program at North American Nickels (TSX.V – NAN) Ni-Cu-Co-PGM Maniitsoq project on Greenland’s south east coast is going to be extremely large, possibly the largest green fields exploration/discovery phase program being done anywhere in the world this year. The company is suggesting over $9 million possibly approaching the $10,000,000.00 mark.
The first holes will pick up where last year’s program finished and expect at least 75% of all holes drilled to be in the Imiak Hill Conduit Complex (IHCC).
“The Imiak Hill Conduit Complex (IHCC) represents the three mineralized norite intrusions (Imiak Hill, Imiak North and Spotty Hill) discovered in the northern part of the Maniitsoq Property (Figures 6 & 7). The complex covers an area of 12 square km at the north end of the GNB. The three mineralized norites occur within a 1.6 km radius. At the present time, mineralization remains open at depth for all zones. The complex is only 25 km from tide water at Kangia Fjord.”
It’s been roughly two weeks since crews hit the ground at Maniitsoq. They are doing geophysics – TDPEM and Gravity.
"Our deepest hole to date at Imiak Hill in the IHCC intersected high-grade massive sulphide nickel-copper mineralization 185 metres below surface. The new geophysical ground surveys are designed to look below that depth and define the extent and shape of our high-grade mineralized zones providing plunge, strike and dip attitudes for the mineralization. The results from these 2014 ground geophysical surveys coupled with the airborne surveys and drill results from 2012 and 2013 will assist with drill targeting at the IHCC.” North American nickelPresident Dr. Mark Fedikow, PGeo
h2 The PEM survey/h2The PEM system operates by placing a large loop of insulated wire on the ground through which a precisely controlled changing current induces magnetic responses from conductors hundreds of meters deep in the ground. It can be used to detect and discriminate between a wide range of conductivities from poor (zinc), to excellent (copper and nickel). Due to its unique transmitted current waveform and its receiver's measuring system, a step-response transformation of the data has been developed which extends this range of detection and discrimination into the extremely high conductance that is seen in nickel exploration. This feature has made the Crone PEM system an important part of the exploration efforts in nickel exploration camps around the world, such as the Raglan camp, Voisey's Bay, Sudbury, Alaska, Tanzania, Western Australia and now Greenland.
h3 The gravity survey/h3
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In addition to the PEM survey, a gravity survey will be carried out by a two-person crew consisting of a gravity operator and a GPS operator. Gravity surveys measure extremely small variations in the Earth's gravitational field, which can be used to locate high-density material such as nickel sulphide-bearing rock.
Expect the first drill to start up in the second week of June. A second drill will be added shortly thereafter. There is an excellent chance of a second phase 2014 drill program starting in early fall and ending in October.
There is north of $5 million in the treasury but with up to a $10m program already announced and with a possible second phase drill program this fall there will be a financing. North American Nickel is planning to raise almost $9.5m and both the Sentient Group (Sentient owns approximately 41.3 per cent of the issued and outstanding common shares of the company) and VMS Ventures TSX.V-VMS (VMS owns approximately 23.9 per cent of the issued and outstanding common shares) will be participating.
There will not be any major mining Co. involvement at this point. Simply not in either group’s favor right now to let this happen.
The Sentient Group are not miners, their payoff comes further down the road when a project sale happens.
VMS Ventures owns almost 24 percent of North American Nickel.
This team are miners as evidenced by their 30/70 joint venture with Hudbay Minerals in the producing high grade Reed Lake copper mine.
h3 West Greenland Current/h3One of the potential priorities after this year’s program will be to permit and build a road.
Look for a support logistics supply line to be started, in less than a year, from the nearby deep sea fjord into where the camp is now located
The southwest region of Greenland, where NAN’s Maniitsoq project is located, has a relatively mild climate with sea travel, and deep sea shipping possible year round.
The East Greenland Current flows south along Greenland’s east coast.
The current mixes with the warmer Irminger and Norwegian currents, at the southern extremity of Greenland (Cape Farewell).
A branch turns to form the West Greenland Current, which flows north along the west coast of Greenland into the Davis Strait, where it joins the Labrador Current.
The West Greenland Current (WGC), a combination of warm North Atlantic waters, keeps the southern west coast free of ice.
h3 Conclusion/h3Greenland is very mining friendly, hugely underexplored and very prospective for mineral discoveries.North American Nickel’s Maniitsoq property is larger than the entire Sudbury Basin, can be worked year round and has access to year round ports for shipping.
It’s my firm belief NAN has definitely got the grade for a mine. With Pentlandite as the main nickel-bearing mineral metallurgy wouldn’t seem to be a problem. The IHCC, where results have been nothing short of amazing, is but a very small part of an extremely large prospective for discovery land package.
This year’s $9m-10m program should go a long ways towards answering retail investors questions as to whether or not the Sentient Group and VMS Ventures have an out.
North American Nickel’s retail investors are going to have a very interesting 2014. So too will shareholders of VMS Venture (VMS).
North American Nickel TSX.V – NAN should be on every one's radar screen. Is NAN on your screen?
If not, it should be.
Legal Notice / Disclaimer: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified. Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report. Both North American Nickel TSX.V-NAN and VMS Ventures TSX.V-VMS are paid sponsors of Richard’s website aheadoftheherd.com. Richard owns shares of North American Nickel.
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