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Highlights:
- 5 drill rigs have been operating to complete the planned 20,000-meter drill program in 2023
- Completed resource definition drilling (of 6,151 meters in 21 holes) of the extensions of West Zone and East Zone on Ferguson Lake
- Made significant technical achievements by expanding the mineralized horizons by over 2,700 meters
- Intersected near-surface massive sulphide zones, e.g, 10.0m (from 47.57 – 57.57m) at 0.89% Cu, 0.53% Ni, 0.08% Co, 1.05g/t Pd, 0.12g/t Pt and 0.02 g/t Rh
- Ended the quarter with cash and cash equivalents of $4,816,637, and subsequently raised additional $5,899,548 for exploration
- Awarded $375,000 in grants to-date from the Government of Nunavut's Discover, Invest, Grow ("DIG") program
Canadian North Resources Inc. ("the Company", TSXV: CNRI; OTCQX: CNRSF; FSE: EO0 (E-O-zero)) is pleased to report the operational and financial results for the second quarter ended June 30, 2023.
Dr. Kaihui Yang, the President & CEO of the Company said, "During the spring of 2023, the Company has made significant technical achievements by expanding laterally over 2,700 meters of mineralized horizons at our 100% owned Ferguson Lake nickel, copper, cobalt, palladium and platinum project ("the Ferguson Lake Project", Figure 1)".
"During Q2, 2023, the Company was awarded a $250,000 grant from the Government of Nunavut's Discover, Invest, Grow ("DIG") program for the successful exploration programs at the Ferguson Lake project. The Company also received over $2,150,000 from the early exercise of warrants by KRE Development Co. Ltd ("KRE"), the biggest shareholder of the Company. "
"Subsequent to the end of the quarter, in July 2023, the Company has raised over $5,899,000 from the flowthrough financings to support its aggressive drilling and other exploration programs at the Ferguson Lake project."
"We are highly encouraged by the strong supports from the major shareholders, investors and the government. We continue drilling into the summer to further expand the mineral resources from the current resource model (Refer to "Independent Technical Report, Updated Mineral Resource Estimate, Ferguson Lake Project, Nunavut, Canada, Prepared by Ronacher McKenzie Geoscience Inc. and Francis Minerals Ltd. " filed by the Company to Sedar.com on July 13, 2022), and to test the new targets in the 256.8 km 2 area of mining leases and exploration claims."
Figure 1 The Extensions of West Zone and East Zone defined by the drill holes completed in the springs of 2022 and 2023 in addition to historic drill holes.
- The Company engaged in the following activities in the second quarter:
- On April 3, 2023, the Company announced a 20,000-meter drilling program in 2023 and commenced diamond drilling at its Ferguson Lake Project. This drilling program was based on the results of the 18,144 meter drilling completed in 2022, to further expand the nickel, copper, cobalt, palladium and platinum mineral resources along the 15-km long main mineralized horizon and to test the new identified base metal and PGM targets and the prospects for lithium mineralization within the 256.8 km2 area of mining leases and exploration claims.
- On May 5, 2023, the Company granted to its directors, officers and consultants, options to purchase a total of 650,000 Common Shares of the Company, at an exercise price of $2.45 per share. The options will expire on May 4, 2028. These options vested immediately. the Company granted to consultants options to purchase a total of 500,000 Common Shares of the Company, at an exercise price of $2.45 per share. The options will expire on May 4 2024, In the number of options to consultants, 100,000 options will be vested 6 months after granted, 400,000 options will be vested equally every 3 months after granted.
- On May 8, the Company announced its engagement with Paradox Public Relations Inc. to enhance our investor relations efforts and increase our visibility in the investment community. It was anticipated that their expertise and connections would help the Company to improve the market performance and achieve a fair market value for our shareholders.
- On May 9, 2023, the Company granted to consultants who signed consulting service agreements with the Company, options to purchase a total of 1,600,000 Common Shares of the Company, at an exercise price of $2.45 per share. The options will be vested after December 31, 2023 and will expire on December 31 2024.
- On May 10, The Company began to trade at OCTQX Market, which provides a platform to enhance its visibility and liquidity among U.S. investors. This marks an important step forward for the Company as it continues to expand our reach and engage with investors in North America.
- On May 16, The Company announced that was awarded a $250,000 grant from the Government of Nunavut's Discover, Invest, Grow ("DIG") program for the completion of the exploration programs at the Ferguson Lake project in 2022. It is an honor and a recognition of the exploration achievements to-date for the Ferguson Lake project. The support from Nunavut's Discovery Program further validates the Company's commitment to responsible exploration practices and strengthens its relationship with the local communities and government.
- On May 29, The Company announced it had completed its spring diamond drilling program on ice consisting of 6,151 metres in 21 holes for its 100% owned Ferguson Lake project. The purpose of the spring on-ice program was to test the main mineralized horizon trending across Ferguson Lake with the focus of completing definition drilling of the East Zone 1 and extending it to the west plus, as well, extending the West Zone further to the East to join it to the Central Zone in the lake. The drill program intersected massive sulphides of the main horizon in 16 out of the 21 holes and successfully intersected a second parallel trending disseminated sulphide zone approximately 200 metres south of the Central Zone
- On June 15, 2023, the Company announced that the Company re-started diamond drilling at its 100% owned Ferguson Lake Project ("Ferguson Lake Project") in Nunavut, Canada after a three week pause for regional caribou migration and after completing the first 6,151 metres of drilling on Ferguson Lake during the spring.
- On June 26, 2023, the Company announced that the Company was granted Depository Trust Company (DTC) eligibility, a significant milestone that will enhance the accessibility and efficiency of the Company's shares for investors in the United States.
- For the quarter ended June 30, 2023, the Company reported a net loss of $92,556 or $0.00 per share.
Subsequent to Quarter 2, the Company achieved the following:
- On July 5, 2023, the Company announced that KRE Development Co. Ltd ("KRE"), the biggest shareholder of the Company has elected to exercise their warrants ahead of the scheduled expiration of December 31, 2023. KRE exercised 1,437,198 share purchase warrants (each a "Warrant" to purchase one share at $1.50) for aggregate proceeds of $2,155,797 on June 30, 2023. Warrants were issued in connection with the Company's offering of units completed prior to listing.
- On July 18, 2023, the Company reported the assay results for the 6,151 metres in 21 holes of diamond drilling completed during the spring. The assay results confirmed the near-surface mineralization along the east extension (strike length 1.2 km) of West Zone and the west extension (strike length 1.5 km) of East Zone across Ferguson Lake.
- On July 27, 2023, the Company announced the closing of non-brokered private placement of common shares ("Flow-Through Shares") on a flow-through basis pursuant to the Income Tax Act (Canada), of which 1,031,425 Flow-Through Shares were issued at a price of $2.70 per share for gross proceeds of $2,784,847.50 (the "Flow-Through Offering").
- On August 2, 2023, the Company announced, further to its news release issued on July 27, 2023, the closing of the first tranche of its non-brokered private placement of 1,082,621 common shares ("Charity Flow-Through Shares") on a flow-through basis pursuant to the Income Tax Act (Canada) at a price of $2.877 per share for gross proceeds of $3,114,700.62 (the "Charity Flow-Through Offering").
- On August 9, 2023, 30,000 share options that were issued on April 5, 2022 were exercised. The Company issued 30,000 common shares.
- On August 17, 2023, the Company announced that it had received an additional grant of $125,000 from the Government of Nunavut's Discover, Invest, Grow ("DIG") program. This grant comes on the heels of the $250,000 received in May and June 2023, reaffirming the Company's commitment to advancing mineral exploration in the emerging mining region of Nunavut. The Company also announced that it had granted to certain officers options to purchase a total of 110,000 Common Shares of the Company at an exercise price of $2.35 per share. The options will expire on August 18, 2028.
For the quarter end financial statements and Management's Discussion and Analysis, please see the Company website at www.cnresources.com or on SEDAR.
Qualified Person:
The technical contents of this news release have been reviewed by Dr. Trevor Boyd, P.Geo., a qualified person as defined by Canadian National Instrument 43-101 standards.
About Canadian North Resources Inc.:
Canadian North Resources Inc. is an exploration and development company focusing on the critical metals for the clean-energy, electric vehicles, battery and high-tech industries. The company is advancing its 100% owned Ferguson Lake nickel, copper, cobalt, palladium, and platinum project that covers an area of 253.8 km 2 of mining leases (96.9 km 2 ) and surrounding exploration claims (156.9 km 2 ) in the Kivalliq Region of Nunavut, Canada.
The Ferguson Lake mining property contains substantial resources in compliance with NI43-101 standards, which include Indicated Mineral Resources of 24.3 million tonnes containing 455 million pounds (Mlb) copper at 0.85%, 321Mlb nickel at 0.60%, 37.5Mlb cobalt at 0.07%, 1.08 million ounces (Moz) palladium at 1.38gpt and 0.18Moz platinum at 0.23gpt; Inferred Mineral Resources of 47.2 million tonnes containing 947Mlb copper at 0.91%, 551.5Mlb nickel at 0.53%, 62.4Mlb cobalt at 0.06%, 2.12Moz palladium at 1.4gpt and 0.38Moz platinum at 0.25gpt. The resource model indicates significant potential for resource expansion along strike and at depth over the 15 km long mineralized belt. (Refer to "Independent Technical Report, Updated Mineral Resource Estimate, Ferguson Lake Project, Nunavut, Canada, Prepared by Ronacher McKenzie Geoscience Inc. and Francis Minerals Ltd" filed by the Company to Sedar.com on July 13, 2022). In addition, the Company has identified the pegmatites with lithium potential at the Ferguson Lake project.
Further information please visit the website at www.cnresources.com , or contact:
Dr. Kaihui Yang, President and CEO
Phone: 905-696-8288 (Canada) 1-888-688-8809 (Toll-Free)
Email: info@cnresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements.
These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company believes that the expectations reflected in the forward-looking statements contained in this news release and the documents incorporated by reference herein are reasonable, but no assurance can be given that these expectations will prove to be correct. In addition, although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b3f3ac10-c761-493e-abae-5a813a3fa114
