TORONTO, Feb. 2 /CNW/ - Pure Nickel Inc. (TSX: NIC, OTCBB: PNCKF) (the
"Company") today released its operating highlights and its financial
results for the year ended November 30, 2010. (All dollar amounts
herein are in Canadian funds unless otherwise indicated.)
2010 Operating Highlights
The Company announced that its partner on the MAN Alaska property
exercised its option to vest a 30% interest in the property. Pure
Nickel received a vesting fee of US$500,000 and the budget for the 2010
summer program was set at US$7.5 million. The Company remains the
operator of the project and earns a 10% management fee.
Results from the MAN exploration season were very encouraging with the
discovery of stratiform Platinum Group Element (PGE) horizons and
intersections of narrow, high grade nickel-copper massive sulphide
The Rainbow, Nunavut property was expanded by 19 claims which increased
the property size eight-fold to a total of 19,850 hectares. A Mobile
Metal Ion (MMI) geochemistry soil sampling program was conducted in
autumn to test its effectiveness for detecting buried gold and nickel
occurrences. Results of the survey show that the MMI survey was able to
identify the location of a historic gold intersection (13.15g/t Au over
2.14 m) and that it has proved to be an effective tool for exploring
Pure Nickel's option partner on the Tower Property commenced drilling
and completed six holes with intersections of high grade copper-gold
The Company continued to evaluate the properties in its portfolio based
on claim maintenance cost and property potential for future exploration
dollars. In 2010 Pure Nickel relinquished two properties; Harp Lake,
Newfoundland and SR1, Quebec (one of the Raglan properties).
The MAN Alaska property was one of the main focuses due to the breadth
of the 2010 program. ITOCHU Corporation confirmed its confidence in
the property by vesting a 30% interest in the property and committing
to a US $7.5 million exploration program. Exploration included a
helicopter-supported two drill program and extensive geophysical
surveys. The program ran until the end of September with a total of
approximately 6,700 metres being completed. Analysis of over 3,400
assays revealed stratigraphic horizons in the Alpha and Beta Complexes
that had elevated platinum and palladium values strongly suggesting
that stratiform PGE mineralization is present and similar to that found
in other Platinum Group Element (PGE) bearing complexes elsewhere in
the world. As the 2011 exploration program continues to evolve, pending
ITOCHU's decision to continue funding exploration, the Company will be
focusing on the new horizons. Larry Hulbert, D.Sc., P.Geo is the
designated Qualified Person for this project.
Pure Nickel expanded its Rainbow property by 19 claims in the second
quarter. The property covers an anomaly which was discovered by
Falconbridge-Noranda during a nickel exploration program in 2004, and
was found to host several gold occurrences. One of the historic drill
intersections assayed 13.1 grams of gold per tonne (g/t) over 2.14
metres. At the beginning of September Pure Nickel performed a small
geochemistry soil sampling field exercise which proved its
effectiveness for detecting buried gold and nickel occurrences. Pure
Nickel is currently designing an exploration and prospecting field
program for 2011. Dallas Davis, P.Eng, is the designated Qualified
Person for this project.
Tower Extension, Manitoba
The Tower property is contiguous with Pure Nickel's William Lake claims
in the Thompson Nickel Belt, and is currently under option to Rockcliff
Resources Inc. Rockcliff Resources completed a six hole diamond drill
program which encountered numerous high grade copper gold
mineralization including 7.0 % Cu, 2.0 g/t Au, 1.3% Zn and 32.2 g/t Ag
across 2.65metres. Rockcliff Resources plans to continue drilling the
Tower property in 2011. Ken Lapierre, P.Geo., is the Qualified Person
for this property.
On a semi annual basis the Company continues to evaluate the properties
in its portfolio. An analysis is performed taking into account the
claim maintenance costs and property potential for future exploration
dollars and decisions regarding divestiture are made. In 2010 Pure
Nickel relinquished two properties: Harp Lake, Newfoundland and SR1,
Quebec (one of our Raglan properties).
2011 Pure Nickel Business Objectives
Pure Nickel is committed to broaden the scope of mineral opportunities
and advance the projects that have a strong potential within its
existing portfolio of mineral exploration projects. The Company expects
to continue to exploit the PGE potential at MAN Alaska and at the same
time explore parts of the property with gold potential. Pure Nickel has
had success in coupling its properties with effective partners which
has resulted in the advancement of its portfolio. In 2011 Pure Nickel
will look to secure joint venture partners to optimize the number of
properties in active status as well as identify and acquire
opportunities that would increase the scale of the Company.
Results for the Year ended November 30, 2010
Pure Nickel reported that at November 30, 2010, it had cash and
short-term investments on hand of $4.1 million. The company reported
that its net loss was in line with expectations: $2.3 million ($0.03
per share) for the year ended November 30, 2010, compared to a net loss
of $1.4 million ($0.02 per share) for the prior year. Total cash flows
used in operating activities were $1.1 million in 2010, compared to
$1.5 million in the prior year. For the three months ended November 30,
2010, the net loss was $0.8 million ($0.01 per share), compared to $0.5
million ($0.01 per share) in the same quarter in the prior year. For
further information please refer to Pure Nickel's consolidated
financial statements and the accompanying management discussion and
analysis on the company's website at www.purenickel.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov/edgar/searchedgar/companysearch.html.
About Pure Nickel Inc.
Pure Nickel is a mineral exploration company with a diverse collection
of mineral exploration projects in North America.
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
The TSX Exchange does not accept responsibility for the adequacy or
accuracy of this release.
SOURCE Pure Nickel Inc.
For further information:
The Howard Group Investor Relations
T. (888) 221-0915
CHF Investor Relations
T. (416) 868-1079
Pure Nickel Inc.
President and CEO
T. (416) 644-0066