Highlights:
- Achieved metal extraction of 96.1 - 98.5% nickel and 96.1 - 97.7% cobalt from bioleaching tests, offering much higher metal recoveries than flotation (29-51% nickel and 48-89% cobalt), significantly increasing the value of current mineral resources.
- Proven high amenability of massive sulfides and rougher sulfide tails suggests bioleaching is a promising, cost-effective, and eco-friendly technology for developing a low-carbon footprint green mine at the Ferguson Lake project.
- Received DIG and CESP grants from the governments for successful exploration and community engagements.
- Carried out airborne LiDAR survey, environmental reconnaissance fieldwork, community engagements, geophysical modeling for resource expansion and studies for potential mine development of the Ferguson Lake Project.
TORONTO, Nov. 28, 2024 (GLOBE NEWSWIRE) -- Canadian North Resources Inc. ("Canadian North" or the "Company") (TSXV: CNRI; OTCQX: CNRSF; FSE: EO0 (E-O-zero)) is pleased to report its operational and financial results for the third quarter ended September 30, 2024.
Dr. Kaihui Yang, President and CEO of the Company, commented: "During the quarter, we expanded metallurgical testing using current and new low-carbon footprint processing technologies. In particular, we are encouraged by the consistent and high extraction rates of 96 - 98% for nickel and cobalt from bioleaching tests, significantly increasing the value of the current Mineral Resources, which were estimated using the flotation process with lower and more variable recoveries of nickel (29-51%) and cobalt (48-89%)."(Refer to "Independent Technical Report on the Mineral Resource Estimate for the Ferguson Lake Project, Nunavut, Canada ("the Technical Report")", prepared by SRK Consulting and Ronacher McKenzie Geoscience Inc., effective March 19, 2024, filed by the Company to SEDAR at http://www.sedarplus.com on May 3, 2024.)."
"The highly efficient metal extraction proves the Mineral Resources are amenable to bioleaching, suggesting the potential to produce nickel/cobalt sulphates on the project site for battery manufacturing, significantly simplifying mineral processing, bypass smelting and refining, and substantially reducing the capital expenses for mine development, energy consumption, and operating costs for production. We believe bioleaching is a promising technology for developing a low-cost, low-carbon footprint, green mine, reinforcing our commitment to sustainable practices at the Ferguson Lake project."
"In addition, we have accomplished various technical programs, including LiDAR survey; upgrading and renewing licenses and permits, environmental reconnaissance field assessments, and remodeling and interpretation of historical geophysical data, as needed for further resource expansion and potential mine development studies at the Ferguson Lake project."
"We continue receiving the exploration grant payments from the Government of Nunavut's Discover, Invest, Grow ("DIG") program for our successful exploration programs completed in 2023. We are honoured to be recognized through the DIG program. This grant further highlights the strong potential of the Ferguson Lake project and reinforces our commitment to responsible, sustainable exploration and mine development in Nunavut."
"We also received a grant for Community Engagement Support Program("CESP"). This support from the Government of Nunavut is pivotal in ensuring that our exploration activities are aligned with the values and expectations of local communities. We remain dedicated to building lasting relationships with local communities and government as we work together toward developing the valuable Ferguson Lake resources."
Quarter 3 of 2024 Highlights:
- The Company engaged in the following activities in the third quarter:
- During the quarter, the Company carried out technical programs including the completion of an airborne LiDAR survey; upgrading and renewing licenses and permits, community engagement, environmental reconnaissance field assessments, expanding metallurgical tests, and re-modeling and re-interpretation of historical geophysical data to generate new targets for drilling. All the programs were planned for resource expansion and potential mine development at Ferguson Lake. The execution of these programs is crucial for the advancement of the Ferguson Lake Project. The LiDAR survey will aid in facilitating precise engineering and infrastructure development, a key milestone for the project. The Company is expanding metallurgical tests with current and new low-carbon footprint technologies. In the field, the Company collected additional samples for ongoing and further metallurgical tests and completed environmental reconnaissance for exploration and development. A geophysical review to generate drilling targets for resource expansion is ongoing. The Company is actively upgrading and renewing the licenses and permits for the next phase of exploration and development of the Ferguson Lake Project.
- On August 22, the Company reported receiving a grant for its Community Engagement Support Program("CESP") from the Government of Nunavut, represented by the Minister of the Department of Economic Development & Transportation (EDT). The CESP aims to support the Company's ongoing community engagement activities in Nunavut through contributions to cover costs associated with engagement and consultation work required during the permitting and regulatory stages of an exploration project. Under CESP, the Company has signed the CESP Contribution Agreement ("the Agreement") that the Government of Nunavut will contribute $98,875, with an initial payment of $49,437.50, which has been received. The balance is expected upon the submission of a final report to be completed on January 31, 2025. Canadian North is committed to building strong, respectful, and productive relationships with the people of Nunavut. This support from the Government of Nunavut is pivotal in ensuring that our exploration activities are aligned with the values and expectations of local communities.
- On August 27, 2024, the Company reported filing of the financial and operational results during the second quarter ended June 30, 2024. During the 2nd quarter, the Company completed the filing and completion of the new National Instrument 43-101 Technical Report that defines the large and high-grade Mineral Resources at the Ferguson Lake Project. 80% of the Indicated Mineral Resource is Open Pit, which provides a solid Mineral Resource base for initial development studies for a potential large mine. The technical team started working with the consultants on reprocessing of historic geophysical data to generate new exploration targets with significant resource upside potential along strike and down dip of the 15 km long main mineralized horizon and on additional satellite zones including M-Zone, A51-Zone, West Zone Extension, West Zone South and South Discovery Zone. Based on the new Technical Report, the Company planned new metallurgical tests, community engagement programs and economic evaluation, infrastructure and environmental studies for low-carbon footprint mine development at the Ferguson Lake Project.
- On September 24, 2024, the Company announced that following the signing of a Community Engagement Support Program ("CESP") agreement with the Government of Nunavut, represented by the Minister of the Department of Economic Development & Transportation ("EDT"), the Company has strengthened its community engagement and consultation, with a focus on the communities of Baker Lake and Arviat, in the Kivalliq Region of Nunavut. The Company organized a site visit for the community council members, elders and their families from Baker Lake to the camp and historic sites of great importance to the community. Carrying out this program has reinforced the strong community support for the exploration and potential mine development of the Ferguson Lake Project. Strengthening our relationships with the communities and deepening our understanding of historically significant areas will be key to responsible resource development in the region.
Subsequent Events:
- On October 1, 2024, the Company announced that it received the final $125,000 payment of the $250,000 exploration grant from the Government of Nunavut's Discover, Invest, Grow ("DIG") program. This grant was awarded to the Company for its successful exploration programs completed in 2023. This grant further highlights the strong potential of the Ferguson Lake project and reinforces our commitment to responsible, sustainable exploration and mine development in Nunavut. We remain dedicated to building lasting relationships with local communities and government as we work together toward developing this valuable resource.
- On October 8, 2024, the Company reported the progression of technical programs for the Ferguson Lake copper, nickel, cobalt, palladium and platinum project ("the Ferguson Lake Project") during the 2024 summer season. The technical programs include the completion of the LiDAR survey; upgrading and renewing licenses and permits, environmental reconnaissance fieldwork, expanding metallurgical tests, and re-modeling and re-interpretation of historical geophysical data. The Company opened the Ferguson Lake field camp for maintenance of living quarters and heavy equipment, support field working programs and visit by the council members, elders and families from local communities, as well as the site visit by the RPC engineer for the collection of sample material for bioleaching tests.
- On October 21, 2024, the Company reported the preliminary results from the technical evaluation of bioleaching technology for its Ferguson Lake copper, nickel, cobalt, palladium and platinum project ("the Ferguson Lake Project"). The bioleaching tests were conducted by the New Brunswick Research and Productivity Council ("RPC") at its laboratory in Fredericton, New Brunswick. The initial results indicated metal extraction of 96.1 - 5% nickel and 96.1 - 97.7% cobalt from bioleaching tests. Bioleaching could offer much higher metal recoveries than flotation (29-51% nickel and 48-89% cobalt), significantly increasing the value of current mineral resources. Both massive sulphides and rougher sulphide tails from flotation tests on the massive sulfides are amenable to bioleaching, potentially producing nickel/cobalt sulphates onsite for battery manufacturing. On-going metallurgical testing is being expanded to include the goal of achieving high recoveries of copper and precious metals (palladium, platinum, gold, etc.) and are being completed in conjunction with follow-up flotation tests by SGS Canada. The Management believes that bioleaching is a promising, cost-effective, and eco-friendly technology for developing a low-carbon footprint green mine at the Ferguson Lake project.
- In late October - early November, the Company presented at the 2024 International Mining and Resources Conference ("IMARC") in Sydney, Australia. The Company joined as part of the Ontario Mining Mission, organized by the Government of Ontario in partnership with the Canadian Consulate General in Sydney. The mission provided visibility and access to potential partners across Australia and the Asia-Pacific region. The event brought together more than 600 leaders and experts from across the industry. Dr. Kaihui Yang, CEO of Canadian North Resources, delivered a presentation at the Section of Investment Mining Spotlight on Wednesday, October 30th at 10:15 AM (local time). Dr. Yang's presentation focused on the Company's flagship Ferguson Lake Project in Nunavut, Canada, highlighting its abundant and high-grade copper, nickel, cobalt, and platinum group metals. Dr. Yang provided an overview of the resource potential, project development, and how Canadian North Resources is positioning itself in the global battery metals and clean energy supply chains. Dr. Yang also communicated with investment bankers, investors and major mining companies in Australia, who showed a lot of interest in Canadian North's recent technical achievements, especially the preliminary results of the bioleaching tests for the Ferguson Lake project.
- On November 1, the Company announced the resignation of Rick Brown from the Board of Directors due to his other engagements. On November 14, the Company announced the appointment of Henderson Tse as a new Director.
For the quarter ended September 30, 2024, The Company ended the quarter with cash and cash equivalents of $2,856,848 and reported a net loss and comprehensive loss of $1,641,416 or $0.01 per share.
For the quarter end Financial Statement and Management's Discussion and Analysis, please see the Company website at www.cnresources.com or on SEDAR.
Qualified Person:
Dr. Trevor Boyd, P.Geo. and Technical Advisor for Canadian North Resources, a qualified person as defined by Canadian National Instrument 43-101 standards, has reviewed the technical content of this news release and has approved its dissemination.
About Canadian North Resources Inc.
Canadian North Resources Inc. is an exploration and development company focusing on the critical metals for the clean-energy, electric vehicles, battery and high-tech industries. The company is advancing its 100% owned Ferguson Lake nickel, copper, cobalt, palladium, and platinum project in the Kivalliq Region of Nunavut, Canada.
The Ferguson Lake mining property contains a substantial National Instrument 43-101 compliant Mineral Resource Estimate announced on March 19 2024, which include Indicated Mineral Resources of 66.1 million tonnes (Mt) containing 1,093 million pounds (Mlb) copper at 0.75%, 678Mlb nickel at 0.47%, 79.3Mlb cobalt at 0.05%, 2.34 million ounces (Moz) palladium at 1.10g/t and 0.419Moz platinum at 0.19g/t; and Inferred Mineral Resources of 25.9Mt containing 558Mlb copper at 0.98%, 333Mlb nickel at 0.58%, 39.6Mlb cobalt at 0.07%, 1.192Moz palladium at 1.43g/t and 0.205Moz platinum at 0.25g/t. In particular, 80% of the Indicated Mineral Resources is Open Pit with 52.7Mt at 0.65% Cu, 0.43% Ni, 0.05% Co, 0.97g/t Pd and 0.17g/t Pt, which provides a solid Mineral Resource base for the initial development of a potential large mine. The Mineral Resource model indicates significant potential for resource expansion along strike and at depth over the 15 km long mineralized belt and a number of undefined mineralization zones and prospective areas. (Refer to "Independent Technical Report on the Mineral Resource Estimate for the Ferguson Lake Project, Nunavut, Canada ("the Technical Report")", prepared by SRK Consulting and Ronacher McKenzie Geoscience Inc., effective March 19, 2024, filed by the Company to the System for Electronic Document Analysis and Retrieval ("SEDAR+") through the Internet at https://www.sedarplus.ca/landingpage/ on May 3, 2024. The Technical Report has also been posted on the Company's website at www.cnresources.com.)
For further information please visit the website at www.cnresources.com, or contact:
Dr. Kaihui Yang, President and CEO
Phone: 905-696-8288 (Canada) 1-888-688-8809 (Toll-Free)
Email: info@cnresources.com
Neither 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.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.
These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company believes that the expectations reflected in the forward-looking statements contained in this news release and the documents incorporated by reference herein are reasonable, but no assurance can be given that these expectations will prove to be correct. In addition, although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.
