TORONTO, Oct. 10, 2012 (GLOBE NEWSWIRE) -- 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.
The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.