Pure Nickel Reports Operating Highlights and Results for the Quarter Ended
February 28, 2013
TORONTO, April 4, 2013 (GLOBE NEWSWIRE) -- Pure Nickel Inc. (TSX:NIC) (the
"Company") today released its operating highlights and its financial results
for the quarter ended February 28, 2013. (All dollar amounts herein are
expressed in Canadian funds, unless otherwise indicated.)
First quarter operating highlights
MAN Property, Alaska
Pure Nickel's partner on the MAN Alaska property, ITOCHU Corporation,
confirmed its continued participation in the project with a commitment to fund
US$3.5 million of exploration between May and August this year, as announced
on March 27, 2013.
This is the sixth season that Pure Nickel and ITOCHU will work together on the
MAN project; ITOCHU has earned a 30% ownership interest in the property and
has funded roughly US$21 million in exploration to date. ITOCHU may earn up to
a 75% interest by incurring US$40 million of exploration expenditures. The
bulk of the 2013 budget will be focused on drilling in the Alpha complex. Jon
Findlay, Ph.D, P.Geo. is the designated Qualified Person for this project.
Salt Chuck Property, Alaska
During the first quarter we released the results from the 2012 exploration
program at the Salt Chuck property in Alaska (see press release dated December
11, 2012).The drilling program identified high grade gold mineralization in a
previously unknown gold-bearing structure in the western part of the property,
an area known locally as North Pole Hill. High grade intersections from drill
hole NPH-12-04 include: 29.1 g/t Au, 12.1 g/t Ag and 0.79 % Cu over 2.58
metres apparent width, including 127.8 g/t Au, 57.6 g/t Ag and 2.78% Cu over
0.35 metres apparent width.
The Salt Chuck property is located on Prince of Wales Island on the Alaskan
Panhandle. The property consists of 146 contiguous federal lode mining claims.
The historic Salt Chuck mine produced approximately 300,000 metric tonnes of
ore, reported by US government summaries (1948) to grade 0.95 % copper, 1.96
g/t palladium, 1.12 g/t gold and 5.29 g/t silver. The mine was the largest
producer of palladium in the USA during its era.Jon Findlay, Ph.D. P.Geo. is
the designated Qualified Person for this project.
Tower Property, Manitoba
During the quarter our joint venture partner at Tower, Rockcliff Resources
Inc., announced the filing of an NI 43-101 compliant technical report entitled
"Independent Technical Report, Tower Property, Grand Rapids, Manitoba"
providing an initial resource estimate for the T-1 copper deposit (see press
release dated December 6, 2012 and January 24, 2013).
Most recently, Rockcliff Resources completed a five hole drilling program on
the property in which two holes encountered additional high grade copper
mineralization in an area to the south of the known high grade copper zone
that constitutes the T-1 deposit's Indicated Resource (see press release dated
March 19, 2013). This area had not previously been drilled, but lies within
the lower grade Inferred Resource portion of the deposit.
The Tower property is contiguous with Pure Nickel's William Lake claims in the
Thompson Nickel Belt, and is currently under option to Rockcliff Resources
Inc. In 2012, Rockcliff Resources exercised its option to earn a 50% interest
in the property by making the required expenditures of $2,000,000 on
exploration and $90,000 in option payments to Pure Nickel over the past two
years. Rockcliff can earn an additional 20% in the property by spending an
additional $2,000,000 in exploration and $60,000 in option payments over the
next two years.
Results for the three months ended February 28, 2013
Pure Nickel reported that at February 28, 2013, it had net working capital of
$3.0 million and operating results were consistent with expectations: a net
loss of $0.3 million ($ nil per share) for the quarter ended February 28,
2013, compared to a net loss of $0.5 million ($0.01 per share) for the same
quarter in the prior year.Total cash flows used in operating activities were
$0.1 million in the three months ended February 28, 2013, compared to $0.5
million for the same quarter in the prior year.For further information please
refer to Pure Nickel's unaudited condensed interim consolidated financial
statements and the accompanying management's discussion and analysis on the
Company's website at www.purenickel.com, or on SEDAR at www.sedar.com.
About Pure Nickel Inc.
Pure Nickel is a TSX listed mineral exploration company with a premium
collection of properties in North America. The Company has been actively
exploring its two Alaskan Properties, MAN and Salt Chuck. In 2012 the Company
announced a gold discovery at Salt Chuck and completed a US$4.2 million
exploration program at MAN, which was fully funded by its option partner. 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.
CONTACT: For further information:
CHF Investor Relations
T. (416) 868-1079 x 231
The Howard Group Investor Relations
T. (888) 221-0915
Pure Nickel Inc.
President and CEO
T. (416) 644-0066
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