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Ocean Equities year ahead 2013, North American Nickel Report


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Ocean Equities year ahead 2013, North American Nickel Report

  1. 1. North American Nickel ~Re-discovering a Large Nickel Target in Greenland OCEAN EQUITIESThis marketing communication is directed to professional investors only and is non-independent research. As such, it has not been prepared in accordance with the legal requirementsdesigned to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of research.Investment Opportunity Nickel - GREENLAND 16th January 2013While North American Nickel has a diverse portfolio of nickel exploration assets in the Market Cap C$11.6mhistorically important nickel producing regions of North America, our main interest is Listing:Ticker TSX:NANin the Company’s Maniitsoq project in an ice-free part of southwestern Greenland. The Share Price C$0.15 Shares o/s 77.76mlatest drill results include an intersection of 124m at 0.81% nickel, 0.21% copper, 52 week High/Low C$0.30/0.120.03% cobalt and 0.26g/t platinum group metals demonstrating that the target has Cash ~C$1mscale and robust nickel and by-product metal grades.Maniitsoq has some very attractive features, paramount of which is the scale of theproject which has a mineralised footprint of over 1,000km2 known as the Greenland 0.4 Volume (m) Stock Price (A$)Norite Belt. The mineralisation is associated with norite intrusions (a coarse mafic 11.0 North American Nickel (NAN:TSX) 0.3intrusive rock, similar to a Gabbro) spread across the mineralised footprint giving 0.3 9.0North American Nickel an exploration focus. There are abundant signals in the area Volume (m) 0.2 7.0that there is a deep root to the intrusive bodies which include kimberlite dykes and a 0.2 5.0carbonatite. The most interesting aspect of the project is a theory about how it was 0.1 3.0formed. Geologists from the Danish and Greenland Geological Societies published a 0.1 0.0 1.0paper on the possible petrogenesis of the area and put forward a compelling case for Jan-11 May-11 May-12 Sep-11 Jan-12 Sep-12 Jan-13Maniitsoq having been formed or reworked in the same way that the world-classSudbury deposit was formed, through a meteorite impact. There are several 35,000 30,000indications that Maniitsoq was formed by an impact but the most compelling case in Nickel Price (US$/t) 25,000the view of the authors is that there are no standard orogenic (mountain building) 20,000processes that could be used to explain the geological features of the area. The paper 15,000does not make the case for Maniitsoq being an exact replica of Sudbury or any other 10,000impact related nickel deposits, but it does point to many similarities. 5,000 0 Sep-10 Sep-11 Sep-12 Jan-10 Jan-11 Jan-12 Jan-13 May-10 May-11 May-12The history of the Sudbury region is well understood and we stress that there is along journey ahead of North American Nickel to test the full potential of Maniitsoq, but Source: Bloombergthe early signs are clear from the most recent drill holes that the Company has atleast two significant nickel targets within its portfolio.Year in ReviewThe highlight of the year for North American Nickel were the results from a 9hole/1,550m drill programme that tested some high priority targets identified fromthe 3,000 line km geophysical survey flown across the norite belt earlier in the year.Using helicopter borne time domain electromagnetic survey equipment NorthAmerican Nickel has been able to add a lot more detail to previous geophysical surveymaps. Previous surveys were constrained by the use of fixed wing aircraft that wereunable to fly close enough to the sharp topography of the area. Ground basedgeophysical tools have also enabled the Company to differentiate disseminated andmassive sulphide mineralisation. Targeting these zones will allow the Company todefine zones of high grade mineralisation on a first pass as oppose to identifyingzones of variable mineralisation. This result also suggests that the Company will beable to construct a robust resource model for the project based on combinedgeophysical and drilling data. Analysts Christopher WelchYear Ahead +44 (0) 20 7786 4377 American is currently planning a 6,000m drilling campaign at more of the high Adam Lucas +44 (0) 20 7786 4382priority targets as well as a further 450 line km of geophysical surveying. We expect Matt Greene +44 (0) 20 7786 4387step out drilling around the Spotty Hill, Imiak Hill and Fossilik II targets on the Lisa Coate +44 (0) 20 7786 4388Maniitsoq property to be included in the drill programme. Drill results at Fossilik IIduring 2012 showed interesting mineralisation at 0.3% Ni and 0.13% Cu but theseresults did not match historical drill results of 2.24% Ni plus 0.63% Cu. It is expected Disclosures & Disclaimerthat inclusion of ground based geophysical survey results will help the Company to Ocean Equities is seeking investment business from North American Nickelcapture more of the high grade mineralisation with future drilling. North American This report must be read with the disclaimer andNickel also intersected kimberlite in the drilling at Fossilik. Samples have been sent disclosures on the final page that forms part of this report. Ocean Equities Limited. Authorised and Regulated by thefor micro-diamond and kimberlite indicator mineral analysis with results expected in Financial Services Authority. Member of the London Stockearly 2013. Exchange. 22