Ontario cobalt/nickel/PGMs explorer/developer Canada Nickel has not only been busy working hard at its flagship Crawford Project near Timmins, Ontario, but the company has recently identified seven separate nickel-bearing target structures with more than 30 kilometers of total strike length ranging from 150 to 600 meters wide in its newly acquired option properties.
Canada Nickel will be updating its resource estimate for Crawford by the end of July, which will still leave Canada Nickel with more than 1/2 of Crawford left to be explored. In addition, seven nickel-bearing target structures over more than 30km of total strike length will keep CNC busy drilling well into 2021. Canada Nickel also plans to deliver a maiden PEA by year end 2020.
Canada Nickel Chair & CEO Mark Selby offered the following comments:
"This initial review highlights the nickel-cobalt sulphide potential of the overall land package we have assembled in addition to our Crawford project: seven different structures ranging in size from 2.2 kilometres long by 375-600 metres wide (Kingsmill), and 8 kilometres long by 200-500 metres wide (Mahaffy-Aubin), and each structure yielding historical drill intersections indicating that the geophysical targets identified are nickel bearing....We have already defined a large resource, yet we believe we are just scratching the surface of the nickel-cobalt sulphide potential of the property. Even with our upcoming resource update, we still have more than half of Crawford left to explore in addition to all of these new properties, which we will evaluate further once we complete the geological work necessary to deliver our Preliminary Economic Analysis (PEA) by year-end."
CNC shares have been consolidating near C$1.00 for several weeks, awaiting the next catalyst for an upside breakout:
CNC.V (Daily)
I expect that we will see CNC shares begin to lift as anticipation for the resource update and additional exploration results come into full view.
Meanwhile, EUR/USD looks to me like it is building energy for an upside breakout on longer time frames:
EUR/USD (Weekly)
Above $1.14 and EUR/USD can easily reach $1.18+. The technicals are aligning with a theory that we are about to see the Fed/Treasury intervene in some form or another in order to devalue the USD against other global currencies.
The US economy is not healthy and the Fed is missing by miles on both of its mandates (full employment and stable 2% inflation). Moreover, as the US Congress prepares for another multi-trillion dollar stimulus bill it becomes increasingly important that the government begins to take gradual measures to devalue its debt burden by weakening the currency in which those debts are denominated.
All of this should continue to be very positive for precious metals and mining shares.
Disclosure: The author owns CNC.V shares and may choose to buy or sell at any time without notice. The author has been compensated for marketing services by Canada Nickel Resources Ltd.
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