Reid Nickel Sulphide Project: Mineral Resource and Recovery Potential

Source: Canada Nickel Company Inc (2026)
Website: https://canadanickel.com/investors/technical-reports/

Critical Data

Overview

Canada Nickel Company Inc. is advancing the Reid Nickel Sulphide Project, located approximately 38 km northwest of Timmins, Ontario, within the prolific Timmins Nickel District. The project is currently at the exploration and resource definition stage, with no established recovery methods or processing facilities. However, an updated NI 43-101 mineral resource estimate (MRE) with an effective date of January 7, 2026, outlines a significant combined Measured and Indicated resource of 907.3 million tonnes grading 0.24% nickel, 0.012% cobalt, 6.2% iron, 0.68% chromium, and minor platinum group metals. The deposit is hosted in the Reid Ultramafic Complex, a komatiite-hosted nickel sulphide mineralization similar to Mt. Keith-style deposits. While no metallurgical testing has been conducted by the issuer, the company has completed extensive mineralogical studies using QEMSCAN and TIMA analyses on over 1,266 samples. These studies identified the key nickel-bearing minerals as pentlandite, heazlewoodite, awaruite, and millerite. For the conceptual pit optimization used to constrain the MRE, a recovery of 52% for nickel was assumed based on the sulphur-to-nickel ratio and grade profile. The project remains in its early stages, with future work expected to include metallurgical testwork to validate recovery assumptions and develop a viable process flowsheet.

Key Process Stages

• Stage 1: Diamond Drilling and Core Sampling – Three phases of diamond drilling (2022, 2024, 2025) totaling 51,179.4 metres using NQ core tools. Core samples are collected systematically and submitted for assay and mineralogical analysis.
• Stage 2: QEMSCAN Mineralogical Analysis – Over 1,266 samples analyzed using automated scanning electron microscopy (QEMSCAN/TIMA) to quantify mineral phases, liberation characteristics, and identify recoverable nickel minerals such as pentlandite, heazlewoodite, awaruite, and millerite.
• Stage 3: Grade Estimation and Block Modeling – A 20 m x 20 m x 15 m block model with Ordinary Kriging interpolation (Isatis 2024.12) for Ni, Co, Fe, Cr, S, Pd, and Pt. Two mineralized domains (dunite and transitional dunite) were defined based on geological and grade criteria.
• Stage 4: Pit Optimization and Cut-off Grade – A conceptual pit shell was generated using the Lerchs-Grossmann algorithm with parameters including US$21,000/t Ni, US$40,000/t Co, US$325/t Fe, and US$3,860/t Cr. A cut-off grade of 0.10% Ni was applied to define potentially economic material.
• Stage 5: Recovery Assumptions for Resource Constraint – Based on the sulphur-to-nickel ratio and grade distribution, average recoveries of 52% for Ni, 7% for Co, 55% for Fe, 24% for Cr, and 33% for Pt and Pd were assumed for the pit optimization. No actual process flowsheet or testwork data exists yet.

Additional Interesting Data and Summary

The Reid Nickel Sulphide Project is at an early exploration stage, and the provided technical report (26 February 2026) focuses on the initial NI 43-101 compliant mineral resource estimate. In addition to the tonnage and grades summarized in the critical data table, the resource includes a significant inferred component of 1,450.2 Mt at 0.22% Ni. The pit optimization assumed metal prices of US$21,000/t Ni, US$40,000/t Co, US$325/t Fe, US$3,860/t Cr, US$1,350/oz Pd, and US$1,150/oz Pt. Mining costs varied by material type: C$4.04/t for clay, C$2.31/t for sand and till, and C$2.18/t for rock. Processing costs and G&A were estimated at C$8.34/t for a 120 ktpd operation. Recovery assumptions were derived from the range of grade and sulphur-to-nickel ratios, yielding an average nickel recovery of 52%. Environmentally, the project has an active exploration permit (PR-24-000017) for drilling, and surface rights are primarily Crown-held. No social or community impact studies are detailed at this stage. Economically, the project holds promise due to its large tonnage and multiple recoverable metals, but no capital or operating cost estimates have been prepared. Sustainability initiatives are not yet defined. The future outlook includes recommendations by the Qualified Persons to conduct metallurgical testwork, including flotation, magnetic separation, and leaching studies, to confirm recovery assumptions and develop a process flowsheet. Additional drilling is also recommended to upgrade inferred resources to indicated and measured categories. The project’s significance lies in its potential to become a long-life, low-grade nickel producer within a well-established mining district, leveraging existing infrastructure near Timmins. The MRE will serve as a foundation for preliminary economic assessments and pre-feasibility studies.

Key Processes: Gravity Separation

Target Commodities: Copper, Nickel