Canada Nickel Expands Midlothian Nickel Resource with High-Grade Drilling Results

Canada Nickel Reports Exceptional High-Grade Results at Midlothian Property

Canada Nickel Company has announced significant exploration drilling results from its Midlothian nickel sulphide property, revealing consistently high-grade nickel mineralization that ranks among the best in the company’s portfolio of 18 properties across Ontario.

The latest results show remarkable consistency, with drill holes MID25-17A and MID25-18A intercepting nickel grades of 0.30% over 330 meters and 0.29% over 449 meters respectively. These represent the highest-grade intervals the company has encountered across its extensive property holdings, marking Midlothian as a potentially transformative asset in Canada Nickel’s development pipeline.

“The third of our ‘Three Giants’ continues to exceed expectations,” said Mark Selby, CEO of Canada Nickel. “The latest drill assays from Midlothian have delivered the most consistently higher-grade intervals we’ve seen across any of our 18 drilled properties.”

The company has successfully expanded the mineralized zone at Midlothian by 200-300 meters southward, substantially increasing the resource footprint. At 1.7 square kilometers, the Midlothian target area now exceeds the company’s flagship Crawford project footprint by 0.2 square kilometers, positioning it as a substantial asset within Canada Nickel’s growing portfolio.

Midlothian offers several operational advantages that could translate into development efficiencies. Located 70 kilometers south-southeast of Timmins and 25 kilometers west of Matachewan in Ontario, the property benefits from year-round road access, which could significantly reduce development and operational costs. The site also features shallow overburden and near-surface mineralization, with nickel intersections beginning at depths of less than seven meters below surface in some areas.

The 2025 summer drilling campaign comprised six infill drill holes designed to better define the mineralized zone and support upcoming resource estimation work. All six holes successfully intersected long, largely continuous intervals of mineralized dunite, with assay results reported for three holes so far and the remainder pending.

The drilling targeted a geophysical anomaly measuring 2.7 kilometers long and 0.4 to 0.9 kilometers wide. The technical success of this program demonstrates the predictability of the mineralized system and strengthens the company’s confidence in advancing toward a formal resource estimate.

Canada Nickel has committed to producing an initial resource estimate for Midlothian by year-end 2025, utilizing the combined dataset from drilling campaigns conducted over three consecutive years. This timeline positions the company to potentially add a significant nickel resource to its portfolio within the current year, bolstering its position as a major nickel developer in North America.

The Midlothian property operates under a joint-venture structure with Canadian Gold Miner Corp. and Laurion Mineral Exploration Inc. Canada Nickel is in the final year of a four-year agreement and can secure 100% ownership through a final payment of $400,000 and the issuance of 140,000 shares. This represents a relatively modest investment for a property showing substantial nickel potential.

In a separate announcement, Canada Nickel disclosed plans to issue 333,120 common shares valued at approximately $250,000 to satisfy obligations to a service provider, subject to TSX Venture Exchange approval. These shares will be subject to a four-month hold period under applicable securities laws.

This transaction reflects the company’s approach to managing cash flow while advancing its exploration activities across multiple properties. The financial commitment required to complete the Midlothian joint-venture agreement remains small compared to the potential value demonstrated through drilling results.

The consistent high-grade results at Midlothian come at a critical time for the nickel market, which has faced challenges with oversupply from Indonesia and price volatility. However, with growing demand for battery-grade nickel for electric vehicles and renewable energy storage, high-quality sulphide deposits in stable jurisdictions like Canada are increasingly valuable to automakers and battery manufacturers seeking secure supply chains.

Canada Nickel has positioned itself as a significant player in the North American nickel sector, focusing on developing large sulphide nickel deposits that can supply the critical minerals required for the energy transition. The company’s flagship Crawford project, located in the Timmins mining camp, is already recognized as one of the largest undeveloped nickel sulphide resources globally.

The addition of Midlothian as another substantial resource could significantly enhance Canada Nickel’s production profile and strengthen its appeal to investors and potential strategic partners in the EV supply chain. The combination of high grades, favorable operational characteristics, and potential resource size makes Midlothian a key component of the company’s growing nickel portfolio in Ontario.

With an initial resource estimate anticipated before year-end, Midlothian represents an important near-term catalyst that could substantially increase Canada Nickel’s total resource base and support future development planning across its asset portfolio.