Its Ferguson Lake property covers 96.9 square kilometres (km2) of mining claims and 156.9 km2 of surrounding exploration claims. A 2024 updated mineral resource estimate (MRE) shows the Project having an Indicated resource of 66.1 million tonnes (Mt) containing 1.093 billion pounds of copper grading 0.75%. There is also an estimated 678 million pounds of nickel with an average grade of 0.47% in the Indicated category.
Furthermore, the resource has an estimated 2.34 million Indicated ounces of palladium at 1.1 grams per tonne (g/t). It also shows 79.3 million pounds of cobalt at 0.05% along with 419,000 ounces of platinum at 0.19 g/t.
At spot prices, the Indicated resource is valued at almost US$14 billion and the Inferred resource adds 25.9 Mt at higher grades to increase the overall value of the project. Perhaps more importantly, CNRI says 80% of the Indicated resource can be extracted by open-pit mining. This should result in a significantly reduced production cost.
The potential exists to build a large mine, as the Company’s model shows the possibility for resource expansion. This would be along strike and at depth over a mineralized belt spanning 15 kilometres. The Ferguson Lake project also contains several undefined mineralization zones and promising exploration areas, according to CNRI.
FIGURE 1: Mineral Resource Estimate (MRE) for the Ferguson Lake Project
Bio-Leaching Could Significantly Boost the Economics of Its Ferguson Lake Project
The Company recently kicked off an extensive metallurgical program at Ferguson Lake following successful bio-leaching tests done in 2024. This was an important step in developing a proven mineral processing flowsheet, designed to simplify processing. It will reduce mine capital expenditures significantly by avoiding metals refining and smelting. The process would also lessen the impact on the environment.
CNRI expects bio-leaching will boost the percentage of the metals extracted from the rock. This would increase the value of the resource as lower-grade materials could potentially be processed economically. The Company achieved a 97.8% to 98.9% nickel extraction rate along with a 96.0% to 97.7% rate of cobalt extraction from tests conducted in 2024. Initial copper extraction rates of 73.6% to 75.4% from massive sulphides were also realized, which the Company called “encouraging”. It believes the copper extraction rate can be improved with further testing.
Additionally, CNRI received $125,000 as the final payment of a $250,000 exploration grant from the Government of Nunavut. The Company won the grant based on its exploration efforts in 2023. About $49 million has been raised for the Project since 2022 and, at year-end, it reported cash and cash-equivalent of $1.6 million, sufficient to continue advancing the Ferguson Lake Project.
Looking ahead, CNRI plans to advance toward a Pre-Feasibility Study following additional resource expansion, technical studies, and securing the necessary funding. The Company continues to collect samples for additional metallurgical testing and completed environmental reconnaissance as part of its exploration and development activities last summer as well as a geophysical review to identify drill targets to expand its resource.
Furthermore, the licensing and permitting process at Ferguson Lake has advanced for the next exploration and development phase. These activities demonstrate the Company’s commitment to responsibly advancing the project in line with Nunavut’s regulatory framework and stakeholder expectations, helping to reduce future permitting risks.
Final Thoughts
At its current stage, CNRI appears to offer investors a potentially undervalued entry point into a large undeveloped copper-nickel-PGM asset. With a 2024 MRE of 66.1 Mt Indicated and 25.9 Mt Inferred, Ferguson Lake compares favorably with peer-stage projects in North America. CNRI also expects to upgrade the total resource to 100 Mt.
Many similar-stage nickel and PGM projects with comparable grades trade at higher valuations relative to resource size. Canadian North’s upcoming catalysts, such as additional metallurgical testing results, environmental baseline studies, and continued drilling success, could act as triggers for a potential re-rating.
The Company also noted that over C$190 million had been invested in exploration, infrastructure upgrades, and metallurgical testing at the Ferguson Lake project up to the end of 2023. This makes CNRI appealing for a joint venture partnership or even as an acquisition target.
As the market places increasing emphasis on securing critical minerals for the clean energy transition, Ferguson Lake’s size, grade, and jurisdiction may enhance its strategic attractiveness, whether for a joint venture, strategic investment, or potential acquisition.
FIGURE 2: Comparable Critical and PGM Projects
Other articles, reports, and videos on Canadian North Resources (TSXV: CNRI):
- Article: Exploring Canada’s North: Mining Companies to Watch at PDAC
- Video: Chris Thompson of eResearch talks about the Update Report on Canadian North Resources
- Update Report: Ongoing Drilling Continues to Expand & De-risk Advanced-Stage Canadian PGM & Base Metal Resource
- Initiation Report: CNRI – Advanced-Stage Canadian PGM & Base Metal Resource Ready for the North American Clean Tech Industry
FIGURE 3: CNRI 1-Year Stock Chart
Notes: All numbers in CAD unless otherwise stated. The author of this report, employees, consultants, and family of eResearch may own stock positions in companies mentioned in this article. eResearch may have been paid by a company mentioned in the article or research report. eResearch offers no representations or warranties that any of the information contained in this article is accurate or complete. Articles on eresearch.com are provided for general informational purposes only and do not constitute financial, investment, tax, legal, or accounting advice, nor do they constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this information should consult with a financial advisor. The article may contain “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are based on the opinions and assumptions of the Company’s management as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein. Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate, and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Please read eResearch’s full disclaimer.
