NiCAN issued work permit for drilling at Pipy south nickel project

NiCAN (TSXV: NICN; OTCQB: NILTF) has received a work permit for its initial exploration program at the Pipy south project in the Thompson area of Manitoba. The work permit includes diamond drilling to test the nickel mineralization potential of the Pipy south property.

Brad Humphrey, CEO of NiCAN, commented, "NiCAN is extremely pleased to be able to commence exploration work, including diamond drilling, on the highly prospective Pipy south project. We are finalizing our exploration plans so we can commence drilling soon. No drilling has been conducted on the property for the last 50 years."

Humphrey added, "The project area has excellent access, with paved roads cutting across the property, and is located just north of the city of Thomspon, which hosts Vale's long producing, Thompson nickel mine. Historical drill logs indicate that nickel mineralization has been intersected on the property, which is underlain by the essential Pipe formation. The Pipe formation is known to host all the economic nickel mineralization within the Thompson nickel belt."

The Pipy properties consist of three project areas, Pipy south, Pipy north, and Pipy west, totaling 39.1 km² in the Thompson area. Initial exploration activities will focus on the Pipy south project, which is adjacent to the Mystery Lake south area, located about 12km northeast of the city of Thompson and Vale's Thompson nickel mine, with attractive road access and local infrastructure.

Other companies explored in the Pipy south area in the late 1950s, through the early 1970s. There are seventy-one historical drill holes, forty-eight of which were drilled by INCO in 1967 and 1968. Much of the early drilling was shallow and appears to be testing conductors.

The assessment files only contain summary drill logs for the 1967 INCO drilling with more detailed logs for nine of the twelve drill holes drilled in 1968. Importantly, eight drill holes mention significant intervals of disseminated sulphides, including short intervals of massive sulphides or sulphide breccia and five drill holes mention pentlandite. Several drill holes intersected intervals of ultramafic rock. None of the historical INCO drill logs included any assay information.

The company has identified a number of drill targets because of the re-interpretation of the historical drilling data and the new structural model developed for the Pipy south property.

More information is posted on www.NicanLtd.com.