M11A Project

Overview:


The M11A North deposit is located 4 kilometres north of the Bucko Lake Nickel Mine and milling operation located near the town of Wabowden, Manitoba.

Xstrata (formerly Falconbridge) had tested a number of areas along an approximate 6 kilometre trend of ultramafic rocks located 2 to 8 kilometres north - northeast of the Bucko Deposit within what had been called the M11A project area. The area is particularly relevant given its close proximity to the Bucko Deposit and the potential of a new deposit at M11A significantly enhancing the economics of the Bucko Deposit as a source of potential satellite feed to the Bucko mill.

At M11A, Xstrata conducted numerous ground geophysical surveys (magnetics, AFMAG EM and IP) from 1959 onwards over the M11A ultramafic. Consolidated Marbenor Limited completed 46 diamond drill holes between 1959 and 1961, with Falconbridge 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 following table gives a representative listing (1) of historical composite assay results from the M11A target (News Release November 9, 2004):

DDH
No.
From
(metres)
To
(metres)
Core
Length
(metres)(2)
Historical Assays
Ni (%)
(4 out of 16 total intersections)
M11A7 130.8139.78.91.11
M11A8195.9205.59.60.76
M11A9213.7214.10.43.90
M11A38227.2227.7 0.51.65



Activities:



2004

Formerly "Crowflight Minerals Inc.", ("CaNickel" or the "Company") (TSX: CML) and its joint venture partner Xstrata had initiated a major exploration program at the Bowden Lake (including M11A target), Halfway Lake and Resting Lake properties in the Thompson Nickel Belt. These properties are part of a large land package surrounding CaNickel's Bucko Deposit (see details in News Release November 9, 2004).

"The primary objective of the 2004-2005 program is to identify significant Nickel, Copper and Platinum Group Metals resources on the Exploration Claims,", stated Robin Adair, Exploration Manager -Nickel (North America), for Noranda/Falconbridge. "We hope to identify new higher Nickel grade which are commonly associated with the type of mineralization and structures encountered at Bowden and Halfway Lake." (News Release November 9, 2004).


2005

M11A Winter drilling started in early January 2005 (News Release January 13, 2005) and - 3 holes (M11A-05-01, 02 and 03) for a total of 1,120 meters had been drilled to test the extension of historic higher Nickel intersections (News Release February 24, 2005).

Drilling during the 2005 winter season encountered some encouraging intersections, including: Hole M11A 05-01 that intersected 9.0 metres grading 0.7% nickel; and Hole M11A 05-02 that intersected 3.3 metres grading 1.3% nickel.

Geophysical surveys conducted as part of the winter program extended the known nickel mineralized ultramafic rocks from 3.5 kilometres (which had undergone historical drill testing) to over 5 kilometres in length. A total of 4 holes were drilled for 1,393 metres including 2 holes which tested new geophysical targets along strike to the north and to the south and 2 holes which tested the continuity of historic, high grade drill intersected nickel mineralization (hole M11A7 grading 1.11% nickel over 8.9 metres and M11A9 grading 3.90% nickel over 0.4 metres). Further drilling will continue to test this mineralization at depth and along strike and was being considered as part of the 2005 summer program. (News Release April 22, 2005)

A MIDAS, high resolution helicopter-borne magnetic geophysical survey was flown over the M11A Project area and other TNB South properties in late December 2005 and was concluded in early January 2006. (refer to press release dated December 20, 2005).


2006

The Company announced on March 28, 2006 (please follow this link: Press Release of March 28, 2006) that Xstrata, as operator of the joint CaNickel -Xstrata regional exploration program, had discovered significant nickel mineralization approximately 3 kilometres north of the Bucko Deposit in the M11A area within the Thompson Nickel Belt South Project Area near Wabowden, Manitoba. Hole M11A 06-06 returned 15.5 metres of 0.97% nickel from 175.5 to 191.0 metres including 2.05 metres grading 1.24% nickel, 3.38 metres grading 1.87% nickel, and 4.46 metres grading 1.16% Ni.

On April 20, 2006 the Company announced assay results from a 75 metre step-out hole drilled along strike and following-up discovery hole M11A 06-06 (please follow this link: Press Release of April 20, 2006). Hole M11A 06-10 was drilled to test for an extension of mineralization intersected in discovery hole M11A 06-06 and intersected 30.2 metres (99.2 feet) grading 1.02% nickel from 155.8 to 186.1 metres including a 7.6 metre interval (24.9 feet) from 178.5 to 186.1 metres grading 2.07% nickel at an approximate 100 metre vertical depth. An individual sample over a 0.3 metre (1 foot) interval within the same hole assayed 11.2% nickel, 0.2% copper and 3 grams per tonne combined PGM's (platinum and palladium).

vActivities recommenced within the TNB South Project Area with follow-up drilling on the newly discovered M11A North and Apex Zones where nickel mineralization was encountered during the winter 2006 program (see press releases dated March 28, 2006 and April 27, 2006). A total of 2,700 metres of drilling was planned through the summer to both follow-up geophysical targets associated with nickel mineralization discovered at the M11A North and the Apex Zones and to test additional targets in close proximity to both zones. All targeted drilling is within 3 to 5 kilometres of the Bucko Lake Nickel Deposit (News Release July 11, 2006).

Following the attractive nickel discoveries from diamond drilling activities of geophysical targets at the Apex and M11A North zones earlier in the spring, it was determined that the geophysical signatures observed at Apex, M11A North and the Bucko Deposit also occurred on open ground located to the west and south of the current the Company-Xstrata property position. The Company started actively staking ground over a six week period in the vicinity of those recent discoveries and near a former producing mine where coincident geophysical signatures were observed (News Release September 05, 2006).


2007

The Company started its regional exploration program (see Press Release of February 06, 2007) to follow-up on two nickel discoveries made last winter at the M11A and Apex Zones in the TNB South Project Area, located only 3 kilometres from the Bucko Deposit (refer to press releases dated March 27, 2006 and April 27, 2006) and test additional high priority targets in both the TNB South Project Area and the TNB North Project Area.

Within the M11A North Zone, 4 holes totalling 1,465 metres were completed (assay results remain pending for 2 holes). Highlight results include drill hole M07 - 01 which intersected 20.8 metres (68.4 feet) grading 0.82% nickel. Assay values up to 9.43% nickel were encountered in drill hole M07 -- 01 (News Release May 08, 2007).


2008

Exploration diamond drilling had intersected what was interpreted to be a new zone of nickel sulphide mineralization located beneath the M11A North deposit, approximately 4 kilometres north of the Bucko Lake Nickel Deposit (Bucko). Of particular note is Hole M08-03 that intersected 26.7 metres (87.5 feet) grading 1.30% nickel including 5.76 metres (16.6 feet) grading 3.06% nickel (News Release April 21, 2008).


2009

An exploration and delineation drilling was completed in December 2009 at M11A North project area. 18 holes drilled in The Winter of 2009-2010 to bring it closer to an indicated resource.


2010

The Company announced the initial assay results from the drilling completed in December 2009 at M11A North project area. Highlights from drilling results received include 8.15 metres grading 1.90% nickel in hole M09-17 as well as several other intervals of potentially mineable widths and grades (News Release February 04, 2010).

The remaining assay results from the drilling completed in December 2009 at M11A North project area were announced. Highlight intersections from the final results include 5.20 metres grading 1.82% nickel in Hole M09-15 and 4.33 metres grading 2.71% nickel in Hole M09-18 (News Release March 04, 2010).


2011

The Company provided the drilling results from the 2011 winter drilling program at the M11A area ("M11A North Deposit") and this drill program focused on infill drilling of the mineralized zones to increase the drill hole density and to increase the size of deposit by extending it along strike to the northeast, southwest and at depth.

A total of 5,202 meters in 12 diamond drill holes was completed, of which 11 holes reached their planned depth with 1,548 samples assayed while one hole was abandoned. This successful winter drilling program demonstrates that the M11A North Deposit can be extended at depth, to the northeast and southwest tying the deposit to mineralization intersected in drill hole M09-17 with several intervals of potentially mineable widths and grades. M11-08 with 14.25 metres grading 1.60% nickel and M11-07 with 14.85 metres grading 1.19% nickel and another intersection of 6.40 metres grading 1.80% nickel has extended the deposit to the northeast. The previously discovered high grade mineralization in M08-03 and M09-12 has been extended further at depth by M11-01 with an intersection of 9.98 metres grading 2.35% nickel.

The M11A North Deposit was discovered by the Company and its partner Xstrata Nickel in 2006 and was followed up by subsequent drilling programs in 2007, 2008 and 2009 (refer to press releases dated July 11, 2006, May 8, 2007, April 21, 2008, May 20, 2008, February 4, 2010 and March 4, 2010). Due to complications with weather and logistics in the 2009 winter drilling program of zones at depth and along strike to the southwest were not able to be tested. The 2011 winter drill program targeted these areas for definition.

2011 drilling was focused on expending the higher grade zone to the South West and bringing the deposit to a proven resource. High light intersections from 2011 drilling results included 9.98 meters grading 2.35% nickel in hole M11-01, 5.40 meters grading 1.53% nickel in hole M11-03, 6.40 meters grading 1.80% nickel and 14.25 meters grading 1.60% nickel (including a section of 7.10 meters grading 2.58% nickel) in hole M11-08. Please see the news release of June 29-2011 for the table of the complete drilling results.


2012

2012 winter drilling program started on January 1, 2012.

There are 13 holes totaling 8030.00 meters of drilling planned for 2012 winter program. 7 holes and approximately 4304 meters of drilling had been completed by the end of the second week of February. Geological and geotechnical logging had been completed for 4 holes (M12-01 to M12-4) and drill core from selected intervals were cut into two halves at that time. One half of the drill cores were prepped and shipped to ALS Lab in Thunder Bay, Ontario for analysis and the other half of them were stored in the original core boxes on site in a secure fenced compound for future references.

The Company is advancing the M11A North Deposit with the expectation that it could eventually provide a source of supplemental feed for the Bucko Mine operations to expand production and extend the life of the operations.


Figure 1
M11A Location Map and Longitudinal Section

 
CANICKEL MINING LIMITED. P.O. Box 35 1655-999 West Hastings Street, Vancouver, British Columbia, Canada V6C 2W2 P: 778-372-1806 F: 604-254-8863 E: