Churchill Reports Balance of 2022 Results and 2023 Drilling Plans for the Taylor Brook and Florence Lake Nickel Projects

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TORONTO, Feb. 13, 2023 (GLOBE NEWSWIRE) — Churchill Resources Inc. (“Churchill” or the “Company”) (TSXV: CRI) is pleased to announce final 2022 results from its work on the Florence Lake and Taylor Brook properties both in Newfoundland and Labrador (NL), Canada.

Paul Sobie, CEO, remarked that “2022 was our first full year working our NL projects and we accomplished much in advancing the high-grade nickel discovery potential on both Taylor Brook and Florence Lake. Drilling and channel sampling of the partially outcropping Layden Intrusive on Taylor Brook has successfully exposed both high-grade massive and net textured nickel-copper-cobalt mineralization at shallow depths over approximately 200m of strike – now we must follow those intersections to depth. In all, CRI has intersected the high-grade nickel zones at Layden and the adjacent Western Dyke with eight drillholes (including hole TB22-30 reported below) with the deepest intersection at ~100m vertical.

Regionally we have now confirmed through age dating, petrography, and geochemistry that the host gabbronorite intrusive to the nickel mineralization at Layden is of the same relative Silurian age as the large adjacent Taylor Brook Gabbro Complex, and that the linear Layden intrusive extends for 5km, with magnetics suggesting at least another 3km of strike. Soil sampling has located a highly anomalous area ~2.5km southeast of Layden along the trend, now designated TBS-1, where mineralization likely outcrops, for early 2023 follow-up.   We are provisionally planning for 5000m of drilling in 2023 that will include Layden targeted drilling focused on the high-grade system, as well as scout holes at new targets.

At Florence Lake we are very encouraged by the large number of nickel-cobalt soil anomalies with coincident VTEM conductors that have been defined. Most have seen little or no work by past explorers and therefore represent potential new discoveries of high-grade nickel mineralization. These types of magmatic system are known to contain multiple deposits at Raglan, Thompson, and Timmins in Canada as well of course as Kambalda, in Western Australia. Work is well along for planning and permitting the camp and a 5000m drill program on the project in the summer, 2023, to be assisted by detailed magnetic and LiDAR surveys this spring.”

Florence Lake Project
The Florence Lake project consists of four map-staked licenses totalling 316 claims (69km²) located approximately 70km west of the coastal community of Postville in central Labrador. CRI entered into a two-year option agreement with Altius Resources Inc. (“Altius”) to acquire a 100% interest in the property, subject to a 1.6% gross sales royalty on any metals produced, in an agreement dated June 24, 2021.

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The property is host to several Raglan-type ultramafic-hosted massive and disseminated sulphide nickel showings, and was last explored by Falconbridge, and latterly Tapestry Ventures, between 1990 and 1997. The CRI work to date has included compilations of all past work, a detailed helicopter VTEM electromagnetic and magnetic survey, and collection of ~2,870 soil samples. Results reported here include 524 additional samples collected and analyzed since the news release on 9 November, 2022. As well the Company has purchased and shipped to Postville much of the heavier items needed for construction of a field camp on the property.

Figure 1 below presents B-horizon soil sample results for Ni along with VTEM conductor axes, nickel showings and past drilling. Based on Ni, Cu, Co, Cr and Mg anomalies from the 2022 soil sampling work, at least twelve new target areas have been identified along with the known showing areas on the CRI grids. Critically, the new targets represent geochemical footprints that are similar-sized to much larger than the known showings; none of the twelve areas have been drilled in past exploration programs. Metal contents at the new targets are anomalously high, ranging between 500ppm Ni up to 0.16% Ni in sample 904061 from new target area #7 – previously unexplored. All these areas are being compiled in detail for drill program planning purposes.

As well at Florence Lake the Company is planning a detailed helicopter-based magnetic gradient and LiDAR surveys, both of which will be integrated into the detailed and regional compilations in progress. Work has commenced on an NI43-101 report on the project, which will provide recommended drilling and ground geophysical programs for the upcoming summer/fall field season.The Company is planning on a 5,000m drilling program, based out of a new camp to be established on Florence Lake, and supported out of Postville and Happy Valley-Goose Bay.

Taylor Brook Project
The Taylor Brook Project consists of eight map-staked licenses containing 685 claims totalling 171.25 km², of which six licenses totaling 166.5km² are 100% Churchill owned, and two totalling 4.75km² are in the 2^nd year of 3-year options to earn 100%. Altius retains a 1.6% gross sales royalty on the Churchill licenses.

CRI’s regional work at Taylor Brook is focused on following a magnetic trend hosting a near-surface linear intrusive body thought to be the conduit to the Ni-Cu-Co-bearing Layden gabbronorite body which has been drilled and channel sampled by the Company over the past 12 months. Examples of massive, net-textured and breccia-type mineralization have been intersected with initial results announced in a news release dated October 11^th, 2022.

Highlights of the soil sampling results from the first 1888 samples collected on 100m spaced lines were announced on November 9^th, 2022, are augmented by an additional 1617 samples collected during October and November, 2022; the entire dataset are shown in Figure 2.

The 2022 soil sampling results continue to emphasize the anomalous nickel (plus cobalt, chromium and magnesium) values associated with the Layden Intrusive Trend, and critically point to several areas with much more anomalous nickel in soil results then the known outcropping Layden Showing mineralization – all to the southeast and towards the Taylor Brook Gabbro Complex. Line-cutting was completed at the TBS-1 anomaly before operations ceased due to heavy snowfall in mid-November. The Company is excited by anomaly TBS-1 which lies on the Taylor Brook South licenses which were added to the original Altius property in 2022. Stripping and trenching will follow detailed prospecting in the Spring.

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The balance of the Company’s 2022 drilling campaign included eleven additional holes beyond the nine holes announced on October 11^th, 2022, all tabulated below in Table 1. The highlight from the additional drilling was hole TB22-30 which was drilled to intersect a small BHEM plate within the high-grade southern area of the Layden Intrusive. The hole intersected 1.79% Ni, 0.24% Cu and 0.04% Co over 1.46m at 124.57m representing one of the deeper intersections of high-grade mineralization. Most of the later holes in the 2022 program were drilled for geological purposes to better delineate the Layden gabbronorite intrusive as well as the contained mineralized breccia unit within where low-grade nickel, copper and cobalt values have been

Table 1 – Summary of 2022 Drilling at Taylor Brook

intersected over 100+ metres in multiple holes. The Company continues to interpret the breccia unit as proximal and possibly coalescing at depth mineralization to the higher-grade massive sulphides, with interesting metal tenors.  

Plans for 2023 at Taylor Brook include completing the NI43-101 report in progress, ground CSAMT surveys over Layden and along the trend, and 5000m of drilling, roughly split between deeper holes chasing the high-grade mineralization at Layden to depth, and scout holes into anomalous areas like TBS-1.

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The technical and scientific information in this news release has been reviewed and approved by Dr. Derek H.C Wilton, P.Geo., FGC, who is a “qualified person” as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects and independent of the Company. The soil samples were placed in labelled, sealed kraft paper bags and delivered to Eastern Analytical of Springdale, NL, an ISO/IEC 17025 certified facility. OREAS Standards and blanks were inserted in the sample batches. The samples were analysed using ICP 34 (inductively coupled plasma) analytical protocols. Samples with over limit Ni contents were re-assayed using Eastern’s Ore Grade Assay (multi acid digestion) overlimit method. Quality control results, including the laboratory’s control samples, were evaluated immediately.

About Churchill Resources Inc.

Churchill is managed by career mining industry professionals and currently holds four exploration projects, namely Taylor Brook in Newfoundland, Florence Lake in Labrador, Pelly Bay in Nunavut, and White River in Ontario. All projects are at the evaluation stage, with known mineralized Nickel-Copper-Cobalt showings at Taylor Brook, Florence Lake and Pelly Bay, and significantly diamondiferous kimberlitic intrusives at White River and Pelly Bay. The primary focus of Churchill is on the continued exploration and development of the Taylor Brook and Florence Lake Nickel Projects.

Cautionary Note Regarding Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “proposed”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, the Company’s objectives, goals and exploration activities conducted and proposed to be conducted at the Company’s properties; future growth potential of the Company, including whether any proposed exploration programs at any of the Company’s properties will be successful; exploration results; and future exploration plans. These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected benefits to the Company relating to the exploration conducted and proposed to be conducted at the Company’s properties; failure to identify any additional mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company’s properties; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; ongoing uncertainties relating to the COVID-19 pandemic; and those factors described in the most recently filed management’s discussion and analysis of the Company. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

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