Pure Nickel Reports Operating Highlights and Results for the Third
Quarter Ended August 31, 2012
Pure Nickel
Inc. (TSX: NIC) (the "Company") today released its operating
highlights and financial results for the three- and nine-month periods ended
August 31, 2012.
Operating Highlights
MAN Alaska Property
During the third quarter, exploration on the MAN
Alaska property was underway. The 2012 program ran from the end of May until
September 3, 2012. Approximately US$4.1 million has been spent on drilling,
soil geochemical surveys, ground-based Induced Polarization (IP) geophysical
surveys and geological mapping this year. A total of 2,550 soil samples were
collected and 47 line kilometres of IP surveys on
four grids were completed. The IP surveys were used to follow-up on soil
geochemical anomalies to test for the presence of sulphide
mineralization. A number of new sulphide occurrences
were identified in the Alpha Complex, two of which were tested by subsequent
drilling. Eight drill holes totalling 2,234 metres were completed and assay results are pending. Jon
Findlay, Ph.D., P.Geo is the designated Qualified
Person for this project.
This was the fifth season that Pure Nickel's partner, Itochu Corporation, has
funded exploration. With this year's work program, Itochu has expended
approximately US$21 million and currently holds a 30% interest in the property.
The agreement with Itochu allows for them to earn up to a 75% interest by
incurring US$40 million of exploration expenditures.
Salt Chuck, Alaska
The Company commenced a diamond drilling program on its 100% owned Salt Chuck
property in August, 2012. The Salt Chuck property consists of 146 federal lode
mining claims located on Prince of Wales Island in the Alaskan panhandle. The
island is accessed by ferry service, and direct access to the property is by well maintained U.S. Forest Service roads and by tide
water.
The company is currently completing the fifth hole of its 2,000 metre program. The objective of the drilling is to
determine the source of geochemical and geophysical anomalies previously
identified in the area. Core samples from the program are being shipped via
ferry to Seattle and then by truck to assay facilities in Vancouver. Results
are expected over the next two months. Jon Findlay, Ph.D., P.Geo
is the designated Qualified Person for this project.
William Lake, Manitoba
During July and August, 2012, an initial resampling program was completed on
historic Falconbridge core from the William Lake project. The program was
undertaken to further evaluate the tenor of copper (Cu) and platinum group
elements (PGE) in the nickel-rich mineralization. Falconbridge generally
assayed only for nickel, but their limited historic sampling on a composite of
samples from one prospect showed that PGE grades could be high in the type of
mineralization found on the property. The Falconbridge historic composite
samples returned up to 9.3 g/t Pt and 11.0 g/t Pd, and also 2.1 g/t Rh, 2.9 g/t Ir,
and 10.4 g/t Ru (Technical
Report on the William Lake Property, Grand Rapids, Manitoba, Canada,
November 2007). The results of the current resampling
program are expected in November. Jon Findlay, Ph.D., P.Geo
is the designated Qualified Person for this project.
Tower, Manitoba Property
The Company's partner on the Tower property in central Manitoba, Rockcliff Resources, announced results from the conclusion
of its drilling program. From January to July, 2012, 12 holes totalling 7,145 metres were
completed. Three holes tested the T-3 anomaly and intersected minor iron rich sulphides which did not adequately explain the source of
the T-3 anomaly. Down hole geophysics indicated the
T-3 anomaly depth to be beyond the depth of the existing holes (greater than
700m) and that deeper drilling would be required to properly test the target.
The remaining nine holes expanded the T-1 copper deposit and discovered the T-2
copper zone. Drilling at the Tower property has been within 300 metres of a major all season highway and power line. Ken Lapierre P.Geo., of Rockcliff Resources Inc., is the designated Qualified
Person for this project.
Financial results for nine months ended August 31, 2012
Pure Nickel reported that its net loss was in line with expectations: $80,292
($ nil per share) for the three months ended August 31, 2012, compared to a net
loss of $215,723 ($ nil per share) for three months ended August 31, 2011, and
a net loss of $1.0 million ($0.02 per share) for the nine months ended August
31, 2012, compared with a net loss of $1.1 million ($0.02 per share) in the
prior year. For further information please refer to Pure Nickel's consolidated
interim financial statements and the accompanying management discussion and
analysis on the company's website at www.purenickel.com, on SEDAR at www.sedar.com. (All dollar amounts herein are in
Canadian funds unless otherwise indicated).
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. The Company is currently active on two properties: its flagship MAN
property, which is fully funded under an option agreement with Itochu
Corporation of Tokyo, Japan and the Salt Chuck property in the Alaskan panhandle.
The Company is also re-evaluating historic core from its William Lake property
to determine copper and platinum group metal (PGM) contents in known nickel
mineralization. In addition, the Company is actively pursuing other, non-nickel
properties in North America and overseas.
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 statements.