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Valuation Commentary: Québec Nickel Corp. (CSE: QNI) (OTCQB: QNICF) (Frankfurt: 71B) is a Canadian-based critical metals exploration company focused on advancing its 100%-owned Ducros Critical Metals (Ni-Cu-Co-PGE-Au) Property in Québec, located in the prolific Abitibi Greenstone belt. The Abitibi region is world renown for world-class gold-copper deposits, however QNI has what is rapidly developing as one of Canada's most exciting nickel sulphide plays, increasingly described in mining circles as a "big unicorn" for the fact it is an outlier with grades ~4 - 5 times what is found in the region for nickel, but also spectacular elevated copper, cobalt, platinum, palladium, and gold.

Québec Nickel Corp. was formed in 2020 to specifically tackle Ducros, its maiden multi-phase drill program began in Q1-2022; QNI completed just over 21,000 metres in 91 holes across the Ducros property. The majority of drilling in 2022 was focused on the Fortin Sill Ni-Cu-PGE Zone which is rapidly developing, starts at surface and appears amenable to a high-grade open pit scenario. The 2022 drill program is now complete, and there remain numerous core assays pending at the lab to report near-term. Besides the Fortin Sill Zone, QNI also looked at targets that are highly prospective for new discovery in other areas of the property (e.g. its Ducros Ultramafic Sill Complex has recently received over 3,650 metres in 10 holes spanning 800 m across the interpreted north-south strike of the regional geological trend (assays are pending)).

Québec Nickel has Kicked off Its 2023 Drilling Program at Ducros, announcing a total of 20,000 metres to be completed at the Fortin Sill Zone, Ducros Ultramafic Sill Complex and Ducros Gabbro targets. Currently the drill rig is at the Ducros Gabbro target where soil samples came back elevated with nickel, copper, and cobalt. The geological team is also expected to venture proximal where work was performed in 1987, here enormous quality bulk tonnage potential exists -- the experienced nickel generation team has a theory on where to punch into the right rock type, looking for a home-run deposit -- the type that takes multiple generations to mine through.

QNI currently has a nominal market cap of ~C$12.5M (~111.24 million shares trading near ~C$0.11). The company is also fully funded for its 2023 exploration program having raised ~C$8.7M over the holiday season; the majority of the company shares are institutionally held, the company is well capitalized to accomplish key objectives thru 2023. The share price of QNI appears poised for upside revaluation as continued news flow occurs, and as the significance of what Québec Nickel Corp. possesses is better appreciated by the market.

The geological team leadership, directors, and board of advisors are an impressive who's-who of nickel expertise with career accomplishments across the spectrum from nickel exploration & discovery, development, and major production (see CV's at the bottom of this article). Gary DeSchutter, M.Sc., P.Geo., is Vice-President of Exploration for Québec Nickel Corp., he started his career with Falconbridge and transitioned to Anglo American for 6 years as part of their global nickel generation team. Gary joined Québec Nickel in February-2022 -- in-short, he picked Québec Nickel because he knows nickel and was attracted by the anomalous Nickel-Copper-Platinum Group Element (PGE) occurrences and elephant-size potential at Ducros.

Québec Nickel Corp. appears on a trajectory with serious potential to yield an impressive first-pass Ni-Cu-PGE resource on its Fortin Sill Zone, possibly after its 2023 drill program -- one look at the recent drill results at the Fortin Sill Zone of the Ducros NI-Cu-PGE Property and it is apparent that the methodical approach of step-outs and following the continuity drilling is paying off...

Figure 1a. (above) Fortin Sill Zone Step-out Drilling hole 28 & 29. These step-outs are ~25 m SE from holes 9, 10, & 11 at the original showing; the geological team is already building a voluminous body of quality material. -- Image source: Company Q3-2022 Presentation, related news release: August 30, 2022 "Québec Nickel Corp Intersects 1.85% Ni, 1.65% Cu and 3.27 g/t Pt-Pd-Au Over 8.43 Metres In Step-out Drilling At The Fortin Sill Zone, Ducros Project, Abitibi, Québec". Seen in the image above are stellar grades (nearly 5% Ni-Cu and 6 g/t Pt-Pd-Au -- these are probably the best grades combined of Ni-Cu + PGEs + Gold in the history of the Abiti region). In image of core seen above you can see the foliation of sulphides with multiple events going on (good for the formation of nickel deposits), the material is running ~35% - 40% sulphides.

[Footnotes: Reported assay intervals seen in image are sample length weighted, the true width of mineralized intervals is not known due to insufficient information, 3E = Pt+Pd+Au]

The following Plan Map from the December 15, 2022 news release shows a sizeable Ni-Cu-PGE zone is being advanced at the Fortin Sill Zone:

Figure 1b. (above) Plan map showing the locations of selected drill holes completed at the Fortin Sill Zone with Ni + Cu assays (%) in relation to the outline of the Fortin Sill discovery outcrop. Drill holes with new assay results reported in the December 15, 2022 news release highlighted in orange i.e. QDG-22-30 through QDG-22-32 and QDG-22-38.

The following Plan Map from March 1, 2023 news release adds a a cluster of new holes collared last year way to the SW of the original outcrop showing, and suggests the zone is open both at depth and along strike. Assays are still pending from several of the drill holes in the cluster.

Figure 1c. (above) Plan Map. Assays are still pending from several of the drill holes in the cluster. Hole QDG-22-63 returned a 4.9-metre-long drill intercept averaging .77% Ni, .56% Cu, 340 ppm Co and .8 g/t Pt-Pd-Au.

The following is a view showing depth.

Figure 1d. (above) Drill section looking 330° azimuth (75 metres thick) showing the locations of selected holes completed at the Fortin Sill Zone during the 2022 drilling program in relation to the Fortin Sill Zone discovery outcrop.

Recent news headlines from Québec Nickel Corp.:

● March 1, 2023 -- "Québec Nickel Intersects Greater Than 1.25% Nickel in Fortin Sill Zone Drilling"

● January 17, 2023 -- "Québec Nickel to Kick off Its 2023 Drilling Program at Ducros"

● December 30, 2022 -- "Québec Nickel Corp. Announces Closing Of The Second Tranche Of Its Previously Announced Private Placement"

● December 15, 2022 -- "Québec Nickel Reports New High-Grade Assay Results From Fortin Sill Zone Drilling Including 1.07% Ni, 1.19% Cu, 364 Ppm Co, 2.70 G/t Pt-Pd-Au Over 4.77 Metres"

● November 17, 2022 -- "Québec Nickel Provides An Update Of Its Work Programs At The Ducros Ni-Cu-Pge Project, Abitibi, Québec"

● October 19, 2022 -- "Québec Nickel Corp Drills Possible Extension Of The Fortin Sill Zone At Depth"

● October 12, 2022 -- "Québec Nickel Corp. Adds Third Drill at Its Ducros Ni-Cu-PGE Project, Abitibi Québec"

● September 20, 2022 -- "Québec Nickel Corp Adds Second Drill Rig To Its Ducros Ni-Cu-PGE Property and Begins a 3,000 Metre Drilling Program at The Ducros Ultramafic Sill Complex"

● August 30, 2022 -- "Québec Nickel Corp Intersects 1.85% Ni, 1.65% Cu and 3.27 g/t Pt-Pd-Au Over 8.43 Metres In Step-out Drilling At The Fortin Sill Zone, Ducros Project, Abitibi, Québec"

● June 13, 2022 -- "Québec Nickel Corp. Provides An Update Of Exploration Activities At Its Ducros Project, Abitibi, Québec"

● June 6, 2022 -- "Continuity Drilling at Québec Nickel Corp’s Ducros Project Intersects 1.49% Ni + Cu, 271 ppm Co and 1.71 g/t Pt-Pd-Au Over 9.0 Metres"

● May 16, 2022 -- "Québec Nickel Corp. Intersects 0.44% Ni, 0.51% Cu and 0.69 g/t Pt-Pd-Au Over 18.50 Metres at its Ducros Project, Abitibi Québec"

● April 27, 2022 -- "Québec Nickel Corp. Receives Final Airborne VTEM Data & Plans To Mobilize A Second Drill To Its Ducros Ni-Cu-PGE Project, Abitibi Québec"

Below is an overview of the project and why investors seeking exposure to nickel as a commodity should consider establishing a long position in Québec Nickel Corp.

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Québec Nickel Corp. Presents Exceptional Opportunity

Nickel is a hot commodity: Nickel is a key component of most lithium ion batteries, enabling more energy density. With EV demand on the rise so is the demand for nickel. The trend has been for increased nickel content in EV batteries as energy density is further optimized by various manufacturers; ~20 kg to 50 kg of Ni is in a typical EV battery, depending on make. There is a shortage of the type of high-grade nickel that’s needed for EV batteries. Russia has traditionally been a source for a lot of this nickel, however it is now considered black-market. There is a lack of western-world domestic sources of nickel. To quote Elon Musk on July 22, 2020 “Any mining companies out there, please mine more nickel ... Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” Currently stainless steel production accounts for the majority (~85% - 90%) of nickel used globally, however demand from battery production is expected to increase steadily. Not all nickel can go into batteries, it has to be clean ‘class-1’, dirty laterite nickel from Indonesia, Australia, Philippines, and Brazil generally does not meet the grade – the purest nickel comes from sulphides (such as that which Québec Nickel Corp. has at Ducros). Trying to upgrade low-grade laterites involves extremely energy-intensive processes such as pressure acid leaching which results in an environmentally destructive CO2 footprint ~20 times more than that can be achieved from sulphide sourced nickel.

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Location -- Mining friendly jurisdiction with exceptional infrastructure.

Figure 2. (above) Location map -- Located in the eastern Abitibi Greenstone Belt, northeast of Val-d'Or Québec. The Abitibi Greenstone Belt is ~700 km long and home to numerous Cu-Au producers. The Timmins area has had several past nickel producers.

● 100% QNI-owned – 282 claims for 15,293 hectares.

 
● Located 80 km northeast of Val-d’Or, between the nearby towns of Lebel-sur-Quévillon and Senneterre (2 towns that are driven by mineral exploration and logging, providing QNI access to workforce and support (e.g. labs and drill contractors). Québec Nickel Corp. rents office space in Val-d'Or and is logging its core there. Additionally, Québec Nickel Corp. is populating a data-room on an ongoing basis to facilitate majors/entities that sign a CA (several have been signed to date [source: Nov. 17, 2022 news release]). Val-d'Or is a huge gold town with 4 operating mills with another 2 set to come online -- no need to sleep in tents and no need for choppers -- the team can hit the property in ~50 minutes from Val-d'Or.

 
● Provincial Highway 113 crosses east side of property + network of logging roads.

 
● CN Rail line and power within five kilometres of property.

● There are 2 small airports ~15 minute drive either side of the property, N & S.

 
● Mining-friendly jurisdiction at the local, provincial and national levels. Québec Nickel Corp. has already begun environmental and community work behind the scenes.

Synopsis/opinion -- where this appears headed: On the side of the road, in mining-friendly Québec, with power and rail (possibly sending to Sudbury) -- Québec Nickel Corp. has, assuming continued exploration success, the ingredients to potentially become one of the lowest cost nickel concentrate producers. Drilling to date has indicated near-surface, high grade and bulk tonnage potential at the Fortin Sill target with significant upside potential as the Fortin Sill trend is +1 km in strike length. There is also similar potential at the other targets at the Ducros project.

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Background/Property acquisition: The project originated from what was originally known about an outcrop that has since become the Fortin Sill discovery zone. The showing had been known since the 70s and 80s; the outcrop returned anomalous chip samples from prospectors, and the prospectors made a deal with Golden Valley Mines which was a Glenn Mullan company. Back in 2008 Glenn Mullan drilled two holes in the area of the showing and came back with ~20 m of ~.3 Ni, ~.4 Cu + Platinum and Gold. That was 2008 and the market went south resulting in the project laying dormant for the next ~13 years. The now CEO of Québec Nickel Corp., David Patterson, recognising the coming demand for nickel and potential of the anomalous land package, contacted Glenn in 2020 and made a deal; essentially for a 9.9% equity position once public plus a 1.5% NSR -- they struck a deal and the company was created.

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Claims Map - Property Geology and Exploration Zones/Targets

Figure 3. (above) Claims Map - Property Geology and Exploration Zones/Targets. The image above has been annotated / augmented (inset & description on right) by Mining MarketWatch Journal. The Fortin Sill Zone is the anchor, where a deposit of significance is being advanced, working/expanding from the known to the unknown with great success. Then off to the west  of Fortin at the Ducros Sill, back in 1987, there was a series of 5 holes drilled by operators looking for elements other than nickel, records indicate they hit the right rock types; they hit dunite rock from from top to bottom, also ultramafics were intersected -- important ingredients for what QNI is looking for. They were not targeting geophysical anomalies as QNI is doing now. Also note that this sits next to a sulphur resource that was drilled off in the late 50s (Note: sulphur is an important ingredient for creating a nickel deposit). The purple squiggly lines are what the Québec Goverment has interpreted to be the right rock types (ultramafic intrusive rocks). Note that ultramafic sills and dykes all intrude into the light blue package of sulphide bearing meta-sediments -- again more encouraging ingredients to bake in a Ni-Cu-PGE deposit. Québec Nickel Corp. will be the first to put a drill hole into areas that are highly prospective for discovery.

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VTEM^TM Airborne Geophysics & Geology

Figure 4. (above) VTEM^TM Airborne Geophysics & Geology, with inset of channel dug at striped expression of outcrop at Fortin Sill Ni-Cu-PGE zone. In addition to geophysics completed earier in 2022 the VP of Exploration Exploration, Gary DeSchutter, also recently had high-resolution magnetics flown from drones in key areas to zoom-in and see micro structures in incredible detail. The geological team has in-depth magnetic imagery overlaying the geology with in-house lines representing its guess of large faults and structures; essentially translating to "X marks the spot" in some cases. Numerous high-quality coincident electromagnetic-magnetic anomalies have been identified throughout the project. 2-D and 3-D inversion modelling of the VTEM^TM and magnetic data are now being used to guide the drilling program.

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Advancing the Fortin Sill Ni-Cu-PGE zone -- building quality 3-dimensional volume of material

NOTE: Now consider that step-outs 28 & 29 (not shown above) are ~25 m away to the SE (from holes 9, 10, & 11 at the original outcrop), the geological team is already building a 3-dimensional volume of material.

Figure 7. (above) Section at Fortin Sill Ni-Cu-PGE zone at outcrop looking ~NW. The colour red represents over 1% combined Ni-Cu. Holes 9 is Québec Nickel's confirmation hole stemming from the 2008 (historical) hole that Glenn had done at the outcrop; the geological team simply continued and drilled a hole ~45° and tilted the head and drilled two more holes (hole 10 & 11) on the expression of the stripped outcrop, yielding quality results of higher and higher grades.

Table 2. (above) excerpt of summary of assay results returned from selected holes completed at the Fortin Sill Zone -- Table sourced from October 12, 2022 news release entitled "Québec Nickel Corp Adds Third Drill At Its Ducros Ni-Cu-PGE Project, Abitibi Québec"

Figure 8. (above) -- Drill section showing the locations of selected holes completed at the Fortin Sill Ni-Cu-PGE Zone in relation to historical hole GCF-08-07 and the Fortin Sill Zone discovery outcrop.

Figure 9 a. (above) -- Plan map showing the locations of selected drill holes completed at the Fortin Sill Zone in relation to the Fortin Sill discovery outcrop. Assay results for holes QDG-22-30 through QDG-22-33 are pending. The location of hole QGD-22-28 has been moved approximately two (2) metres to the SE from its actual collar location for illustrative purposes. Image sourced from Oct. 12/22 news release.

Assays pending on extension at depth

Figure 9 b. & c. (above) Plan map and drill section showing the locations of selected holes completed at the Fortin Sill Ni-Cu-PGE Zone. from October 19, 2022 news release "Québec Nickel Corp Drills Possible Extension Of The Fortin Sill Zone At Depth"; "The abundance, composition and texture of the sulphides in this portion of QDG-22-38 appear very similar to the mineralization encountered in hole QDG-22-09 earlier this year" ... "As previously reported, assay results from hole QDG-22-09 returned a 31 metres-wide intercept averaging 0.37% Ni, 0.40% Cu and 0.55 g/t Pt-Pd-Au that includes higher grade sub-intervals of 0.44% Ni, 0.51% Cu and 0.69 g/t Pt-Pd-Au over 18.50 and 0.55% Ni, 0.86% Cu and 0.86 g/t Pt-Pd-Au over 5.0 metres" ... "The sulphide-bearing ultramafic unit encountered in QDG-22-38 occurs approximately 60 metres below and 50 metres to the southwest of the currently known extents of the Fortin Sill Ni-Cu-PGE Zone".

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2022 Drill Program Highlights at Fortin Sill Zone (presented in order progress occurred):

Figure 10c. (above) -- A 0.50 m sample of semimassive to net texture sulphides from QDG-22-09: contains 1.31 % Ni, 0.38 % Cu, 413 ppm Co and 2.12 g/t Pt-Pd-Au.

Table 3. (above) Grades for the above 0.50 m sample from QDG-22-09.

Follow-Up Continuity Drilling: (click here for related June 6, 2022 release)
 
QDG-22-10
 

29.0 metres @ 0.36% Ni, 0.41% Cu, 167 ppm Co, 0.95 g/t Pt-Pd-Au, including high-grade subintervals:

 
 ● 9.0 m @ 0.70% Ni, 0.79% Cu, 271 ppm Co, 1.71 g/t Pt-Pd-Au over 9.0 m, and

 ● 4. 0 m @ 0.90% Ni, 1.01% Cu, 324 ppm Co and 2.39 g/t Pt-Pd-Au

QDG-22-11
 

32.67 metres @ 0.33% Ni, 0.32% Cu, 170 ppm Co and 0.57 g/t Pt-Pd-Au, including a high-grade
subinterval:

 
● 6.0 m @ 0.62% Ni, 0.60% Cu, 256 ppm Co and 1.01 g/t Pt-Pd-Au

Fortin Sill Zone Step-out Drilling: (click here for related August 30, 2022 release)

QDG-22-28

Hole QDG-22-28 cored through a 29.90 metre interval averaging 0.30% Ni, 0.31% Cu, 167 ppm Co, and 0.45 g/t Pt-Pd-Au which includes a higher-grade subinterval containing 0.46% Ni, 0.64% Cu, 209 ppm Co and 0.72 g/t Pt-Pd-Au over 3.24 metres.

 
QDG-22-29

QDG-22-29Hole QDG-22-29 intersected a 11.80 metre interval containing 1.44% Ni, 1.49% Cu, 461 ppm Co and 2.79 g/t Pt-Pd-Au which includes a higher-grade subinterval assaying 1.85% Ni, 1.65% Cu (3.50% Ni + Cu), 576 ppm Co and 3.27 g/t Pt-Pd-Au over 8.43 metres.

QDG-22-30, Hole QDG-22-31, & QDG-22-38 (click here for related December 15, 2022 release)

• Magmatic Ni-Cu-PGE sulphides encountered in three new holes collared to the southeast of the Fortin Sill Zone discovery outcrop.

• Hole QDG-22-30 cored through 0.58% Ni, 0.60% Cu, 230 ppm Co and 1.26 g/t Pt-Pd-Au over 13.77 metres, including 1.07% Ni, 1.19% Cu, 364 ppm Co and 2.70 g/t Pt-Pd-Au over 4.77 metres.

• Hole QDG-22-31 returned a 14.56 metre interval containing 0.43% Ni, 0.33% Cu, 193 ppm Co and 0.57 g/t Pt-Pd-Au and includes a higher-grade subinterval assaying 0.65% Ni, 0.88% Cu, 243 ppm Co and 0.99 g/t Pt-Pd-Au over 1.74 metres.

• Highly anomalous results were also returned from hole QDG-22-38 at depth and to the southwest of the Fortin Sill Zone proper and include 0.64% Ni + Cu, 164 ppm Co and 0.66 g/t Pt-Pd-Au over a seven-metre core length.

DG-22-63 (click here for related March 1, 2023 release)

• Hole QDG-22-63 returned a 4.90-metre-long drill intercept averaging 0.77% Ni, 0.56% Cu, 340 ppm Co and 0.80 g/t Pt-Pd-Au which includes a higher grade three-metre-long subinterval of 1.06% Ni, 0.77% Cu, 447 ppm Co and 1.09 g/t Pt-Pd-Au.

• Individual one-metre-long samples from the reported intersection returned up to 1.27% Ni, 1.21% Cu, 559 ppm Co and 1.46 g/t Pt-Pd-Au.

• The drill intercept occurs approximately 60 metres below and 55 metres to the southwest of the known extents of the Fortin Sill Zone and suggests the zone is open both at depth and along strike.

• Assay results from five additional holes completed from the same drill pad as QDG-22-63 are pending.

• Follow-up exploration, expansion and definition drilling are planned for this winter and spring at the Fortin Sill Zone.

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Fortin Sill Zone Discovery Outcrop Channel Sampling:

Figure 11a. (above) Results from 2022 channel sampling program at the Fortin Sill discovery outcrop. Channel sample assay results were draped on a georeferenced Fortin Sill discovery outcrop drone image (oblique view looking 345° Az and down 30°).

Also seen in the image is Table 4. (above) -- Summary of assay results from the Fortin Sill discovery outcrop channel sampling program completed [Reported assay intervals are sample length weighted]. When Québec Nickel first acquired the project the team stripped as much as it could, exposing the full expression of the outcrop -- essentially the whole outcrop is mineralized.

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Updated Exploration Model for the Fortin Sill Zone
 
An analysis of all the data collected at the Ducros property this year has resulted in a refined geological/exploration model for the Fortin Sill Zone (Figure 2). A review and integration of relevant geophysical data (VTEMTM, drone magnetics, airborne gravity), along with historical and QNI drilling results in addition to recent surface geological mapping indicates the Ni-Cu-Co-PGE-Au mineralization at the Fortin Sill Zone occurs at or near the footwall contact of a large west-southwest-dipping embayment structure within the larger mafic to ultramafic Fortin Sill. The overall Fortin Sill intrusive body is interpreted to span several hundred metres or more in an approximate northwest-southeast trend and is characterized by the occurrence of a large blow-out, or embayment, at the Fortin Sill Zone. The conceptual geologic model is supported by several lines of evidence including:

• Hanging wall and footwall contacts between the Fortin Sill and host country rocks identified during detailed surface geological mapping completed this past summer.

• The observation of large blocks (xenoliths) of country rock basalts and sediments within the Fortin Sill intrusion, as seen in the discovery outcrop, regional mapping and within drill core.

• Identification of a gradation in composition of the host rocks at the Fortin Sill Zone from ultramafic pyroxenitic (PXT) rocks at the footwall side of the embayment, through varitexture gabbronoritic rocks in the centre of the embayment (GBNOR), to more evolved gabbroic rocks (GBRO) at the hanging wall side of the structure.

• The Fortin Sill intrusion and corresponding embayment structure is identifiable within the various geophysical datasets, specifically in the recently collected drone magnetic data as well as within some of the historical datasets.

Figure 11b. Plan view sketch map showing a conceptual geological model for the location and emplacement of the Fortin Sill Zone within the larger mafic to ultramafic Fortin intrusion. Shown is the gradational nature of the Fortin Sill Zone host rocks from an ultramafic footwall base (PXT = pyroxenite), through a mafic/ultramafic mid-zone (GBNOR = gabbronorite) to a mafic hanging wall top (GBRO = gabbro).

This refinement in the exploration model is being used to plan the next phase of work at Fortin Sill Zone and will likely include the drill testing of the newly modelled footwall contact along its entire surface, both along strike and at depth.

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Other Noteworthy Target Areas - 2023 target areas shown in areas with dashed lines...

Figure 12 (above) -- Plan map of Québec Nickel’s Ducros property (red outline) showing the merged total field VTEMTM and drone magnetic data sets overlain on top of Québec Government geology. 2023 drilling target areas are indicated by dashed outlines. Drill targets comprise coincident geophysical anomalies (VTEM conductive features +/- magnetic highs responses +/- gravity features).

Ducros Sill Complex 

 
As announced on September 19, 2022, exploration drilling began in the central portion of the Ducros property at the Ducros Ultramafic Sill Complex (DUSC). The objective of the Phase I drill program at the DUSC was to obtain the first ever geological information from this ~2 kilometres wide by ~10 kilometres long exploration target area. This area is interpreted to be underlain by significant volumes ultramafic to mafic dikes and sills that have been injected into an extensive package of sulphide-bearing clastic metasediments and metavolcanics. As the target area is covered by variable thicknesses of overburden and contains little to no outcrop exposure, the current geological interpretation of the DUSC target area is derived from Québec Government geology maps that are in turn based on interpretations of historical airborne geophysical datasets.
 
The Company is happy to report its Phase I drilling program at the DUSC target has been successfully completed and the drill contractor has demobilized from the area. Over 3,650 metres in 10 holes were drilled along an east-west fence. This fence of holes spans more than 800 metres across the interpreted north-south strike of the regional geological trend. These holes targeted strong magnetic high geophysical features with well-defined flanking and/or coincident electromagnetic conductive anomalies, as highlighted by the VTEMTM airborne survey completed in Q2 2022 (see news release from April 27, 2022 for reference) and further refined by high-resolution drone magnetic surveys (refer to news release from June 13, 2022). All drill holes encountered rock types that support the geological interpretation of the DUSC, including but not limited to thick mafic to ultramafic intrusive units, graphitic metasedimentary seams, sulphide +/- oxide facies iron formation, felsic to intermediate metavolcanics and related breccias as well as sequences of silicified +/- sulphide-bearing exhalative/volcanogenic/volcanoclastic rock units. Core logging and sampling is in progress and assay results from the Phase I DUSC drilling will be reported when available.
 
As previously reported, due to the saturated ground conditions along portions of the existing access trail into the DUSC target area, the Company engaged the services of Northern Mat & Bridge (NM&B) to facilitate the mobilization of the drill and support equipment to the work area. NM&B, a Canadian company with an office in Montreal, Québec, specializes in providing safe, environmentally benign, and cost-effective temporary access solutions to otherwise impassable terrain for reasons such as poor ground conditions, weather, sensitive farm/grass lands and traditional land use areas. Utilizing the expertise and services of NM&B supports Québec Nickel’s philosophy of minimizing the impact of its work programs on the environment. NM&B have returned to the Ducros project and have begun the process of removing the temporary environmental matting along the access trail into the DUSC target area.
 
Ducros Gabbro

 
● Poorly exposed ~ 5 km X 5 km mafic intrusion largely inferred from regional magnetic data.

 
● Interpreted to be emplaced along intersecting deep-seated regional structures (regional magnetics).

 
● Magnetic data suggest the body is layered and/or multi-phased.

 
● Never drilled

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