Wednesday, 21 December 2011

Pure Nickel - MAN Results 2011

Pure Nickel
(TSX: NIC)(OTCBB: PNCKF)
Basic Shares: 67.8 million
Fully Diluted: 75.5

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Pure Nickel released results today from its extensive summer drilling program that took place on its massive “blue sky” property called MAN in Alaska.

The company and its joint venture partner ITOCHU completed 11 drill holes totalling 2580 metres, 151 line kilometres of ground magnetometer surveys and 6.9 line kilometres of electromagnetic surveys.

Although the various disciplines of exploration did not land the company and its partner a home run this season, there are several key targets now identified for a follow up year of drilling, potentially next summer.

ITOCHU Corporation of Japan has the ability to earn in up to 75% interest in MAN by incurring $40 million of exploration costs by the end of next year. In total today, it has spent $17 million and earned 30% interest.

There are four distinct areas within MAN which is over 70,000 hectares in total (see attached map) and the company has been aggressively exploring it since 2005. Each short season of exploration has left Pure Nickel and now its partner ITOCHU since 2008, something exciting to go back to. This year, mapping and a portion of the drilling took place on an area that had never been drilled called the Rainy complex. Both grab samples and drill assays at Rainy had showings of platinum group elements or PGE’s including one grab sample with 7.9 grams per tonne PGE and 2% nickel.

A full list of assay results can be viewed on Pure Nickel's web site by clicking here...

In 2010, NIC and ITOCHU discovered what looked to be a reef style PGE mineralization on the Alpha complex which was targeted again this year with three drill holes but assays showed it wasn’t what the partners were looking for.

ITOCHU will have a few months to review the extensive amount of data collected this year at MAN and shareholders will have to keep their fingers crossed that there was enough promising data to warrant further investment at MAN by ITOCHU in 2012.

At time of this posting NIC traded 105,000 shares and is holding its stock price around $0.08. The market is valuing the company roughly at only the cash value it currently has in the bank.

Today's full news release can be viewed by clicking here...