TORONTO, Feb. 1, 2012 /CNW/ - Pure Nickel Inc. (TSX: NIC) (the
"Company") today released its operating highlights and its financial
results for the year ended November 30, 2011. (All dollar amounts
herein are in Canadian funds unless otherwise indicated.)
2011 Operating Highlights
The Company's working capital at year end was strong at $5.5 million.
The Company announced it had reached a final settlement on its Milford
Utah copper properties; terms of the agreement included a cash payment
of US$3.5 million over 12 months, US$1.0 million already received. In
addition the Company was granted a 1% NSR (capped at US$8.0 million).
The Company announced that its partner on the MAN Alaska property
confirmed its continued participation in the joint venture agreement
and committed to fund the 2011 exploration program.
The MAN Alaska 2011 exploration program completed 2,580 metres of
drilling in 11 holes and 151 line kilometres of detailed ground
Pure Nickel's option partner on the Tower Property continued a second
phase of drilling, completing 18 holes with many intersections of high
grade copper-gold mineralization.
Milford Utah Copper Properties
The Company reported that it had signed a final settlement agreement
with Skye Mineral Partners and CS Mining LLC ("Skye") with respect to
its Milford Utah properties. Terms of the agreement consist of a series
of payments from Skye to Pure Nickel including:
Payment of US$1.0 million immediately upon signing - Funds have been
Payment of US$1.0 million 180 days after signing.
Payment of US$1.5 million 12 months after signing.
In addition, Skye has granted to Pure Nickel a 1% Net Smelter Royalty
(NSR) on all properties acquired by Skye and its partners. The NSR is
subject to a royalty cap of US$8.0 million. As part of the agreement,
both parties have filed documentation dismissing pending litigation,
claims and counter claims against each other.
The MAN Alaska property was one of the main exploration focuses in 2011.
In early 2011, our project partner Itochu Corporation formalized the
funding of our exploration program at the MAN Alaska property. During
the year, US$4.1 million ($4.2 million) was expended on the program.
Itochu has earned a 30% interest in the property and to date has funded
approximately US$17 million ($18 million) of exploration costs since
2008. Itochu may earn up to a 75% interest by incurring US$40 million
($41 million) of exploration expenditures on the MAN property by 2013.
A total of 2,580 metres in 11 holes was completed along with 151 line
kilometres of detailed ground magnetometer surveys and 6.9 kilometres
of ground EM surveys. Work completed in 2011 has been very valuable in
developing new models for mineralization on the property, several key
target areas have been identified for follow-up work. Interpretation
of results and planning for the 2012 work program is ongoing. The
Company expects notification from Itochu about its 2012 commitment by
early March. Jon Findlay, Ph.D, P.Geo. is the designated Qualified
Person for this project.
Salt Chuck Alaska
The permitting process for the Salt Chuck property has been initiated
and plans for a 2012 exploration program are being readied. The
property is located on Prince of Wales Island on the Alaskan Panhandle.
The property consists of 146 contiguous federal lode mining claims. The
Salt Chuck mine produced approximately 300,000 metric tonnes of ore,
reported by US government summaries (1948) to be 0.95 % copper, 1.96
g/t palladium, 1.12 g/t gold and 5.29 g/t silver. The mine was the
largest producer of palladium in the USA during its era of production.
Jon Findlay, Ph.D. P.Geo. is the designated Qualified Person for this
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 continued its drilling program in
2011 (6 holes were completed in Q4 2010) with the completion of 18
holes which encountered numerous high grade copper gold mineralized
intersections. In addition to the drilling, a DPEM geophysical survey
has identified potential extensions to the mineralization and a new
massive sulphide anomaly adjacent to it. Drilling in 2012 has recently
commenced and a minimum of 5,000 metres of drilling is scheduled.
Rockcliff Resources has an option to earn up to 70% interest in the
property. Ken Lapierre, P.Geo. is the designated Qualified Person for
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 exploration success
and decisions regarding divestiture are made. In 2011 Pure Nickel,
along with its partner Manicouagan Minerals, relinquished the Forgues,
Quebec claims. The Company also dissolved its joint venture with
Crowflight Minerals on the Manibridge, Manitoba property and the joint
venture claims have reverted back to the original owners.
2012 Pure Nickel Business Objectives
In 2012, Pure Nickel will continue to seek joint venture partners to
develop its properties as well as identify and acquire additional
properties. The Company is committed to advance projects that have
significant potential and to continue to exploit the nickel and PGE
potential at the MAN Alaska property, including previously unexplored
Results for the Year Ended November 30, 2011
Pure Nickel reported that at November 30, 2011, it had cash and
short-term investments on hand of $3.0 million. The Company reported
that its net loss was in line with expectations: $1.3 million ($0.02
per share) for the year ended November 30, 2011, compared to a net loss
of $2.3 million ($0.03 per share) for the prior year. Total cash flows
used in operating activities were $3.9 million in 2011, compared to
$1.1 million in the prior year. For the three months ended November 30,
2011, the net loss was $0.2 million ($0.003 per share), compared to
$0.8 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's discussion and
analysis on the Company's website at www.purenickel.com, and on SEDAR at www.sedar.com.
About Pure Nickel Inc.
Pure Nickel is a mineral exploration company with a diverse collection
of Nickel, Copper and Platinum Group Element exploration projects in
North America. With approximately $5.5 million working capital, Pure
Nickel is in a strong position to advance its property portfolio.
Forward Looking Statements
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.
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