Wednesday, 1 February 2012

Pure Nickel & Partner Rockcliff Start Drilling / Year End Report

Pure Nickel
Basic Shares:67.8 million
Fully Diluted:75.5


Trading of Pure Nickel's stock took a healthy jump on the heels of news that the company's option partner Rockcliff Resources (TSX-V: RCR), has started drilling the promising copper/gold Tower VMS property in Central Manitoba.

The market must have been hungry for news as close to a million shares of NIC traded taking the stock up a couple of pennies to $0.08 - $0.09 where it holds this morning.

The plan is to drill a minimum of 5,000 metres to test the T-3 anomaly and Tower Copper Deposits pictured above from RCR's corporate presentation.

While the T-3 anomaly was identified as a top priority through recent geophysical survey work, the Tower Copper Deposit was defined from past drilling in 2010-2011. It is open in all directions and rich with copper, gold, zinc and silver.

Rockcliff is starting its second year working towards earning a 70% interest in the Tower property. Rockcliff must pay $150,000 in incremental payments to Pure Nickel Inc. over four years and aggregate exploration expenditures totalling $4,000,000 over four years. $2,000,000 must be expended over two years to earn a 50% working interest and a further $2,000,000 to earn a further 20% working interest.

Yesterday's news release can be read here...

Also, an operational highlights and year end release was issued this morning, which can be read here...

2011 Operating Highlights:

• The Company's working capital at year end was strong at $5.5 million. As a side note, cash on a per share basis is equivalent to Pure Nickel's current trading price!

• The Company announced it had reached a final settlement on its Milford Utah copper properties; terms of the agreement included a cash payment of US$3.5 million over 12 months, US$1.0 million already received. In addition the Company was granted a 1% NSR (capped at US$8.0 million).

• The Company announced that its partner on the MAN Alaska property confirmed its continued participation in the joint venture agreement and committed to fund the 2011 exploration program.

• The MAN Alaska 2011 exploration program completed 2,580 metres of drilling in 11 holes and 151 line kilometres of detailed ground magnetometer surveys.