Canada Nickel Company Inc · TSXV:CNC
Canada Nickel — Investor Presentation (November 2020)
26 slides from Canada Nickel's investor presentation, Nov 5, 2020
Slide 1: Introduction to Canada Nickel Company
Introduction to Canada Nickel Company Delivering the Next Generation of Nickel Sulphide Projects TSX-V: CNC November 5, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation about Canada Nickel Company Inc. (“CNC”). Forward-looking information includes statements about strategic plans, including futu
Slide 3: Why Invest in Canada Nickel?
Why Invest in Canada Nickel? Canada Nickel (CNC) owns 100% of the Crawford Nickel-Cobalt Sulphide project: A new nickel discovery with large scale potential in an established mining camp adjacent to existing infrastructure north of Timmins, Ontario, Canada. - Updated resource in the top 10 nickel su
Slide 4: Board and Management Team
Board and Management Team David Smith • Senior VP, Finance and CFO of Agnico Eagle Mark Selby • Previous CEO of Royal Nickel Corporation Director Mines Limited; Chairman, CEO • Corporate development, strategy, business P.Eng., C.Dir. • Chartered Director, Director of Sprott Resource B.Comm. planning
Slide 5: Nickel Demand A Leader Among Metals
Nickel Demand A Leader Among Metals Nickel demand a leader among metals over the last decade (5%) driven by continued strong growth in stainless steel (5.4%) with little contribution from electric vehicles to date. Base Metals & Other Metals Demand CAGR% (2007 - 2017) 5.4% 5.2% 5.0% 4.2% 3.8% 2.4% 2
Slide 6: Electric Vehicles to Drive Significant Additional Demand
Electric Vehicles to Drive Significant Additional Demand Recent Glencore presentation highlights massive growth expected in nickel demand from electric vehicles 6
Slide 7: Nickel Demand: EVs Going to Multiply Demand Requirements
Nickel Demand EVs Going to Multiply Demand Requirements By 2025, EV + 4% trend demand growth (slower than 5% trend) requires nearly 1 Mtpa of new supply. By 2030, 2.5 million tonnes (or double today) is required. 2.5 Mt would require (at best) – $50-$75 billion of new investment this decade. Increme
Slide 8: Tesla: "Please mine more nickel…"
Tesla: “Please mine more nickel…” “…please mine more nickel... Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” – Elon Musk, Co-Founder and CEO, Tesla Earnings Call July 22, 2020 Estimated Carbon Footprint (tonnes
Slide 9: Nickel Supply – Significant Political Risk
Nickel Supply – Significant Political Risk Is there an ONEC in our future ?? Nickel supply facing increasing political risk as Indonesia now dominates nickel supply growth. Just 3 countries are expected to control as much of the nickel supply as OPEC did of global oil supply at its peak in 1973 Nick
Slide 10: Crawford Nickel-Cobalt Sulphide Project
Crawford Nickel-Cobalt Sulphide Project One of largest nickel-cobalt sulphide resources located in a well established mining camp with infrastructure. • World-class jurisdiction in Ontario, Canada • Established Timmins mining camp with 100-year history of mining • Access to all major infrastructure
Slide 11: Part of Relatively Underexplored Property
Part of Relatively Underexplored Property Why Crawford undiscovered until now? • A few drill holes by Inco in 1960s in each large anomaly • Minimal exploration in 1970/1980s • Land owned by forestry company for several decades until acquired by Noble in 2011 • Little outcrop on land package 11
Slide 12: Updated Mineral Resource - Crawford
Updated Mineral Resource - Crawford Crawford’s updated resource ranks as one of the 10 largest nickel sulphide resources globally • Higher grade core of M&I Resource of 281 Mt at 0.31% Ni, 0.013% Co, and 0.037 g/t Pd + Pt • Within an overall M&I resource of 657 Mt at 0.26% Ni and 0.013% Co • Higher
Slide 13: Updated Mineral Resource - Crawford
Updated Mineral Resource - Crawford East Zone Discovery and Main Zone resource more than doubles the known extent of nickel resource to more than 4 kilometres Crawford Nickel-Cobalt Project Main Zone & East Zone Nickel Resources – Plan View Current Resource overlain on total field magnetic intensity
Slide 14: Updated Mineral Resource - Crawford
Updated Mineral Resource - Crawford Key objective of extending and better defining higher grade zone was achieved Plan View of Main Zone – Comparison of Current and Prior Mineral Resource & Grade Shells Prior Main Zone Current Main Zone
Slide 15: Higher Grade Core – Crawford Main Zone Clearly Defined in Resource
Higher Grade Core – Crawford Main Zone Clearly Defined in Resource A higher grade core of 201 Mt of 0.34% Ni including 58 Mt at 0.36% was defined within resource. Remains open to the west. The higher grade core has been defined for: • 1.8 km long • 150-220 m wide • Up to 650 m deep • Infill hole CR2
Slide 16: Third New Discovery Reinforces Geophysical Understanding
Third New Discovery Confirms Reinforces Geophysical Understanding • All four drill holes intersected mineralized dunite across width of 800 m, strike length of 425 m in 2.5 km by 400-800 m wide geophysical anomaly approximately 850 m northwest of Main Zone. • Fourth hole ended in mineralization (0.3
Slide 17: Very Encouraging Initial Mineralogy Results
Very Encouraging Initial Mineralogy Results Crawford’s initial mineralogy results have been positive Initial Mineralogy Results Higher Grade Lower Grade Core Zones # samples 44 45 • 89% of the nickel in the Higher % Ni in nickel sulphide and Grade Core of the resource is 89% 59% nickel-iron alloy mi
Slide 18: PGM Zone – Significant Potential
PGM Zone – Significant Potential PGM Zone adjacent to both Main and East Zones tested from near surface to depth of 400+ metres across multi-kilometre strike length. Recent drilling yielded multiple PGM Zones and highest grade intersections to date: 2.6 g/t Pd + Pt over 7.5 m from 123 metres. Plan V
Slide 19: NetZero Metals Carbon Production Potential
NetZero Metals NetZero Carbon Production Potential A number of key technologies are being explored to develop a Zero-Carbon footprint operation Mining • Utilization of electric rope shovels and trolley trucks which utilize electricity, rather than diesel fuel, as a power source wherever possible • D
Slide 20: Crawford is Largest Nickel Sulphide Discovery Since Early 70s
Crawford is Largest Nickel Sulphide Discovery Since Early 1970s ? Crawford Source: Vale presentation at the Metal Bulletin 3rd International Nickel Conference , London, April 29, 2015 20
Slide 21: Significant Exploration Potential: >50% Crawford Remaining + 7 New Targets
Significant Exploration Potential >50% Crawford Remaining + 7 New Targets 7 separate nickel-bearing target structures 30km of total strike length and 150 - 600m wide on option properties • For reference, the Crawford Main Zone resource is 1.7 km long and 225-425 metres wide Historic drilling yielded
Slide 22: Canada Nickel Undervalued Versus its Peers
Canada Nickel Undervalued Versus its Peers 450 903 400 350 317 300 Market Cap (C$ M) 250 200 166 168 150 136 100 90 92 88 67 63 44 50 - GIGA Metals St George Garibaldi Estrella Cassini FPX Nickel Centaurus Talon Metals Canada Legend Chalice Gold Mining Resources Resources Resources Nickel Mining Com
Slide 23: New Nickel Sulphide Discoveries Acquired at Significant Valuations
New Nickel Sulphide Discoveries Have Been Acquired at Significant Valuations Multiple Nova Voisey’s Bay Cosmos Mines Bollinger Acquisition C$4.5 B A$3.1 B C$6.8 B A$1.8B Value & Year (1996) (2007) (2007) (2015) Share Price Accumulation 37x 58x 6.5x 15x Reserve (Mt) 0.9 0.09 1.4 0.27 Resource (Mt) 2.
Slide 24: Ownership Structure
Ownership Structure The Company is well-funded to achieve its next milestone, with a $13 million bought deal financing closed on October 14, 2020. Pro Forma Capital Structure Common Shares (M) 79.8 Warrants (M) 3.0 Options / RSUs (M) 6.6 Fully Diluted Shares (M) 89.1 Management and Board members own
Slide 25: Why Invest in Canada Nickel?
Why Invest in Canada Nickel? Canada Nickel (CNC) owns 100% of the Crawford Nickel-Cobalt Sulphide project: A new nickel discovery with large scale potential in an established mining camp adjacent to existing infrastructure north of Timmins, Ontario, Canada. - Updated resource in the top 10 nickel su
Slide 26: Corporate Office
Corporate Office 130 King St West Suite 1900 Toronto ON M5X 1E3 TSX-V: CNC +1 (647) 256-1954 info@canadanickel.com Twitter: @CanadaNickel
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