Highlights
- $2.5 billion after-tax
NPV8% and IRR of 17.1%; increasing to $2.6 billion after-tax NPV8% and IRR
of 18.3% with projected Carbon Capture & Storage tax
credits
- Crawford is world's 2nd largest nickel reserve and
2nd largest resource1. Initial mineral
reserve of 1.7 billion tonnes of ore grading 0.22% nickel
- Production of 1.6 million tonnes nickel, 24 kt cobalt, 490 koz
palladium & platinum, 58 million tonnes iron and 2.8 million
tonnes chromium over 41-year project life
- Annual EBITDA of $811 million,
free cash flow (FCF) of $546 million,
and 48ktpa of nickel production during peak 27-year period
- One of Canada's largest carbon
storage facilities with 1.5 Mtpa carbon captured and stored during
peak 27-year period
- Crawford is a net negative contributor to global
CO2 footprint – with 30 tonnes of carbon capture and
storage capacity per tonne of nickel remaining after accounting for
project footprint
(All amounts in US dollars, unless otherwise
indicated)
TORONTO, Oct. 12,
2023 /CNW/ - Canada Nickel Company Inc. ("Canada
Nickel" or the "Company") (TSXV: CNC) (OTCQX: CNIKF) today released
results from the Bankable Feasibility Study ("BFS") for its
innovative and wholly-owned Crawford Nickel Sulphide Project
("Crawford"), confirming significantly improved economics from its
Preliminary Economic Analysis ("PEA"), with an after-tax
NPV8% of $2.5 billion and
IRR of 17.1%. The BFS was prepared by Ausenco Engineering Canada
Inc. ("Ausenco") in accordance with National Instrument 43-101 ("NI
43-101").
Crawford, located in Timmins, Ontario,
Canada, is the world's second largest nickel
reserve1. Once in production, it is also expected to
become one of Canada's largest
carbon storage facilities and be a net negative contributor of
CO2 over the project life.
Mark Selby, CEO of Canada Nickel,
said, "This bankable feasibility study is a significant milestone
for Crawford and a major step forward in demonstrating the value of
our Timmins Nickel District and its potential to anchor a Zero
Carbon Industrial Cluster in the Timmins-Cochrane region. Crawford is poised to be a
leader in the energy transition through the large-scale production
of critical minerals, including nickel and cobalt, and is expected
to become the sole North American producer of chromium2,
while also supporting Canada's
climate objectives through industrial-scale carbon capture and
storage."
________________________________
|
1 Source:
Wood Mackenzie, Nickel Cost Service Q3 2023 data
|
2 Source
U.S. Geological Survey, Mineral Commodity Summaries, Chromium
January 2023
|
Mr. Selby continued, "I am very proud of our team for
accomplishing this milestone in a very short `of time. Just four
years ago, Crawford had only five drill holes. Today, we believe it
is a world-class project with tremendous momentum. We are fully
focused on pursuing our next milestones of obtaining permits,
developing a financing package, and moving towards a production
decision by mid-2025, with a goal of first production by the end of
2027."
Crawford 2023 BFS
Highlights
- Robust economics
- After-tax, $2.5 billion
NPV8% and 17.1% IRR; increasing to $2.6 billion NPV8% and 18.3% IRR with
projected Carbon Capture and Storage tax credits
- Large initial mineral reserve anchored by significantly larger
mineral resource
- Proven & Probable reserves of 3.8 million tonnes contained
nickel from 1.7 billion tonnes ore grading 0.22% nickel make
Crawford the world's 2nd largest nickel
reserve3. Reserves are hosted in a Measured &
Indicated resource which increased by 74% (compared to the 2022
resource estimate) to 6.0 million tonnes. With additional Inferred
mineral resources of 3.7 million tonnes contained nickel, Crawford
is the world's 2nd largest nickel
resource3.
- Large scale, low cost, long-life
-
- Annual average nickel production of 83 million pounds
(38k tonnes) over a 41-year life,
with production of 48 ktpa nickel, 0.8 ktpa cobalt, 13 koz
palladium and platinum, 1.6 Mtpa iron and 76 ktpa chrome over
27-year peak period
- Net life-of-mine C1 cash cost of $0.39/lb nickel (by-product basis) place Crawford
in the first quartile of the cost curve3. The net AISC cost,
on a by-product basis, is $1.21/lb
nickel.
- Projected revenue exceeds $48
billion, or more than $1
billion annually over project life.
- Significant improvement in recoveries from PEA:
- Nickel: 10% improvement life-of-mine (41% versus 37% used in
PEA), and a 23% improvement in Phase I/Phase II compared to PEA
(46% versus 37% in the PEA)
- Improvements to life of mine recovery for Iron: 46%, Cobalt:
38%, and Chrome: 5%
- Significant earnings and free cash flow generation
- Projected annual EBITDA of $810
million and FCF of $540
million over peak period, annual EBITDA of $667 million and FCF of $431 million over project life
- Minimization of carbon footprint
- Minimal carbon footprint of 4.8 tonnes CO2/ tonne of
nickel in concentrate,2.3 tonnes CO2/tonne of nickel
equivalent 4("NiEq"); largely due to electrically
powered mining fleet, including trolley-assist trucks, that are
expected to reduce diesel consumption by over 40% compared to
diesel powered equipment.
- Implementation of the Company's proprietary IPT
(In-Process Tailings) Carbonation process is anticipated to allow
capture and storage of 1.5 million tonnes CO2 annually
during 27-year peak period, the bulk of which will be sold to third
parties.
- Anticipated net negative carbon footprint from carbon capture
and storage capacity of 30 tonnes CO2 / tonne of nickel
after accounting for project footprint
_______________________________
|
3
|
Source: Wood Mackenzie,
Nickel Cost Service Q3 2023 data
|
4
|
Nickel equivalent using
prices of $21,000/t Ni, $40,000/t Co, $1,350/oz Pd, $1,150/oz Pt,
$325/t Fe (equivalent to $89/t iron ore price) and $3,860/t Cr;
metallurgical recoveries based on average of 41% Ni, 11% Co, 48%
Pd, 22% Pt, 53% Fe, 28% Cr.
|
Crawford BFS Summary
Crawford will be a conventional open pit mine/mill operation
constructed in two phases. The initial phase, costing $1.9 billion, will have a mill throughput of 60
ktpd. The second phase, planned for commissioning during the fourth
year following 24 months construction, will double mill throughput
to 120 ktpd at a cost of $1.6
billion. The third phase occurs after the pits have been
depleted in Year 30 and the 120 ktpd milling rate is satisfied from
stockpiled lower grade ore.
Crawford Bankable Feasibility Study Results
Mining & Milling
|
|
Unit
|
|
Construction
|
Phase 1
|
Phase 2
|
Phase 3
|
LOM
|
Duration
|
|
|
|
2.5 years
|
3.5 years
|
26.5 years
|
11.25 years
|
41.25 years
|
Mill
Capacity
|
|
Ktpd
|
|
0
|
60
|
120
|
120
|
120
|
|
|
|
|
|
|
|
|
|
Total Mined
|
|
Mt
|
|
103
|
423
|
5,181
|
0
|
5,707
|
Ore Mined
|
|
Mt
|
|
14
|
125
|
1,575
|
0
|
1,715
|
Ore Milled
|
|
Mt
|
|
0
|
73
|
1,157
|
485
|
1,715
|
Strip Ratio
|
|
Waste : Ore
Mined
|
6.17
|
2.37
|
2.29
|
n/a
|
2.33
|
|
|
|
|
|
|
|
|
|
Grade
|
|
|
|
|
|
|
|
|
Nickel Head
Grade
|
|
%
|
|
|
0.26
|
0.24
|
0.17
|
0.22
|
Cobalt Head
Grade
|
|
%
|
|
|
0.013
|
0.013
|
0.012
|
0.013
|
Palladium &
Platinum Head Grade
|
g/t
|
|
|
0.030
|
0.024
|
0.021
|
0.024
|
Iron Head
Grade
|
|
%
|
|
|
6.20
|
6.43
|
6.49
|
6.44
|
Chromium Head
Grade
|
|
%
|
|
|
0.63
|
0.60
|
0.49
|
0.57
|
|
|
|
|
|
|
|
|
|
Recovery
|
|
|
|
|
|
|
|
|
Nickel
Recovery
|
|
%
|
|
|
48 %
|
46 %
|
25 %
|
41 %
|
Cobalt
Recovery
|
|
%
|
|
|
19 %
|
14 %
|
4 %
|
11 %
|
Palladium &
Platinum Recovery
|
%
|
|
|
40 %
|
39 %
|
33 %
|
38 %
|
Iron
Recovery
|
|
%
|
|
|
54 %
|
56 %
|
46 %
|
53 %
|
Chromium
Recovery
|
|
%
|
|
|
28 %
|
29 %
|
26 %
|
28 %
|
|
|
|
|
|
|
|
|
|
Annual Production
|
|
|
|
|
|
|
|
|
Recovered
Nickel
|
|
Ktpa
|
|
|
26
|
48
|
18
|
38
|
Recovered
Cobalt
|
|
Ktpa
|
|
|
0.5
|
0.8
|
0.2
|
0.6
|
Recovered Palladium
& Platinum
|
Kozpa
|
|
|
8
|
13
|
10
|
12
|
Recovered
Iron
|
|
Mtpa
|
|
|
0.7
|
1.6
|
1.3
|
1.4
|
Recovered
Chromium
|
|
Ktpa
|
|
|
37
|
76
|
54
|
67
|
Carbon
Capture
|
|
Mtpa
|
|
|
0.6
|
1.5
|
1.1
|
1.3
|
|
|
|
|
|
|
|
|
|
Revenue & Costs
|
|
|
|
|
|
|
|
|
NSR
|
|
US$ / tonne
milled
|
|
$34.96
|
$32.31
|
$16.96
|
$28.08
|
|
|
|
|
|
|
|
|
|
Mining Opex
|
|
US$ / tonne
milled
|
|
$9.82
|
$6.21
|
$0.62
|
$4.78
|
Milling Opex
|
|
US$ / tonne
milled
|
|
$5.31
|
$5.18
|
$5.19
|
$5.19
|
G&A Opex
|
|
US$ / tonne
milled
|
|
$2.35
|
$1.00
|
$0.50
|
$0.92
|
Total Onsite
Costs
|
|
US$ / tonne
milled
|
|
$17.48
|
$12.38
|
$6.31
|
$10.88
|
Gross C1 Cash
Cost
|
|
US$ / lb
NiEq
|
|
$4.82
|
$3.72
|
$3.64
|
$5.96
|
Net C1 Cash
Cost
|
|
US$ / lb Ni
|
|
$2.67
|
$0.68
|
($2.39)
|
$0.39
|
Net AISC
|
|
US$ / lb Ni
|
|
$2.96
|
$1.54
|
($1.72)
|
$1.21
|
|
|
|
|
|
|
|
|
|
Total
Investment
|
|
US$ millions
|
$1,946
|
$1,602
|
$1,450
|
$159
|
$5,157
|
|
|
|
|
|
|
|
|
|
Cash Flow
|
|
|
|
|
|
|
|
|
Annual
EBITDA
|
|
US$ millions
|
$0
|
$349
|
$811
|
$426
|
$667
|
Annual Free Cash
Flow
|
|
US$ millions
|
($723)
|
$17
|
$545
|
$291
|
$431
|
The Base Case economics includes the Critical Minerals
Investment Tax Credit (ITC), that was outlined during the 2023
federal budget presentation. While it is anticipated that Crawford
would also qualify for the Carbon Capture, Utilization and Storage
(CCUS) ITC, this will be included as an opportunity until approval
to receive the credit has been obtained.
The after-tax project returns are robust: $2.5 billion NPV8% and 17.1% IRR;
increasing to $2.6 billion
NPV8% and 18.3% IRR with projected Carbon Capture and
Storage tax credits. Overall payback is 5.6 years and peak capital
requirement to build both phases is $1.7
billion, less than initial capital cost estimate of
$1.9 billion because of the inclusion
of the Critical Minerals ITC. Government tax credits are
expected to exceed $1 billion over
the project life for the scenario which includes both the Critical
Minerals and expected Carbon Capture tax credits.
Mining
Crawford will mine two separate open pits that contain
approximately equal tonnages of ore. Mine production rates have
been decoupled from the mill, resulting in a 30-year mine life
compared to 41 years for the overall project. While there is an
initial cost associated with stockpiling lower grade ore, economic
impacts are anticipated to be more than offset by treating higher
grade ore in the early years and accelerating cashflows. This
strategy also allows for in-pit deposition of tailings after the
first pit has been depleted in Year 17. Over the life of project,
61% of total tailings production will be impounded in-pit,
significantly reducing Crawford's surficial and environmental
footprint while reducing the cost of impoundment.
Approximately 89% of material mined will be rock, which will be
drilled and blasted before being loaded by electrically powered
rope shovels or large hydraulic excavators into 290 tonne trucks
equipped with trolley assist. Over 70% of uphill hauls by this
fleet will be traveled on trolley, reducing diesel consumption by
approximately 1.5 billion litres while faster speeds will reduce
the fleet by 12 units. The remaining material will be overburden
that will not require drilling and blasting and will be loaded and
hauled with a mixed fleet of smaller equipment.
Mineral Processing
The concentrator will process ore using a conventional milling
circuit. Unit operations include crushing, semi-autogenous and ball
mill grinding, desliming, nickel flotation, magnetic separation on
the flotation tailings and carbon storage using the Company's
proprietary IPT Carbonation technology. The BFS flowsheet has been
optimized from the PEA and is expected to deliver improved
recoveries of all base metals, improved concentrate grades, as well
as large scale carbon storage.
Comparison of Key Metrics for BFS vs PEA
|
|
|
|
Crawford FS
|
Crawford
|
Variance: FS vs PEA
|
Mining & Milling
|
|
units
|
|
Phase1 -2
|
LOM
|
PEA
|
Phase1 -2
|
LOM
|
Life
|
|
years
|
|
30
|
41
|
25
|
+20 %
|
+64 %
|
Ore Mined
|
|
Mt
|
|
1,700
|
1,715
|
907
|
+87 %
|
+89 %
|
Ore Milled
|
|
Mt
|
|
1,230
|
1,715
|
907
|
+36 %
|
+89 %
|
|
|
|
|
|
|
|
|
|
Recovery
|
|
|
|
|
|
|
|
|
Nickel
Recovery
|
|
%
|
|
46 %
|
41 %
|
37 %
|
+23 %
|
+10 %
|
Cobalt
Recovery
|
|
%
|
|
14 %
|
11 %
|
8 %
|
+69 %
|
+38 %
|
Palladium &
Platinum Recovery
|
%
|
|
39 %
|
38 %
|
n/a
|
|
|
Iron
Recovery
|
|
%
|
|
56 %
|
53 %
|
36 %
|
+54 %
|
+46 %
|
Chromium
Recovery
|
|
%
|
|
29 %
|
28 %
|
27 %
|
+8 %
|
+5 %
|
|
|
|
|
|
|
|
|
|
Annual Production
|
|
|
|
|
|
|
|
|
Recovered
Nickel
|
|
Ktpa
|
|
45
|
38
|
34
|
+33 %
|
+12 %
|
Recovered
Cobalt
|
|
Ktpa
|
|
0.7
|
0.6
|
0.4
|
+89 %
|
+55 %
|
Recovered Palladium
& Platinum
|
Kozpa
|
|
13
|
12
|
n/a
|
|
|
Recovered
Iron
|
|
Mtpa
|
|
1.5
|
1.4
|
0.9
|
+70 %
|
+65 %
|
Recovered
Chromium
|
|
Ktpa
|
|
71
|
67
|
59
|
+22 %
|
+14 %
|
Carbon
Storage
|
|
Mtpa
|
|
1.4
|
1.3
|
n/a
|
|
|
Crawford will produce two concentrates with life-of-mine average
concentrate grades as follows:
- Nickel concentrate: 34% nickel, 0.7% cobalt and 4.1 g/t
combined Palladium and Platinum
- Iron ore concentrate: 55% iron, 0.3% nickel, 2.6% chromium
It is believed the nickel concentrate is believed to be the
highest-grade concentrate in the global market and thus has a wide
range of potential markets, including both the stainless steel and
the battery metal sector. The iron ore concentrate contains three
of the key ingredients for 300 series stainless and alloy steel
market and it is expected to be a suitable direct feed for North
American production of that product.
IPT Carbonation
Crawford, and the Company's other properties in the Timmins
Nickel District, are hosted in ultramafic rock, which contain
minerals such as brucite that naturally absorb and sequester
CO2. Canada Nickel has developed the novel IPT
Carbonation process which involves injecting a concentrated source
of CO2 into tailings generated by the milling process
for a brief period of time. This simple process stores
CO2 chemically in the tailings while they are still in
the processing circuit, rather than after they have been finally
deposited. The interest already received from multiple large
multinational companies pursuing carbon storage solutions further
supports the Company's belief that this process is expected to be
an effective carbon storage approach that would meet Environment
and Climate Change Canada requirements to allow the Company to
utilize the CCUS ITC.
Location &
Infrastructure
Crawford is located within an established mining camp,
approximately 40 kilometres north of Timmins. The project thus has access to
infrastructure that has been developed over the past century to
service the industry's requirements including, but not limited to,
energy, water, equipment, logistics and skilled human
resources.
Crawford will require connection to the electrical grid. Canada
Nickel has entered into an agreement with a local First Nations
service provider, Transmission Infrastructure Partnerships 1
(TIP1)5, that will be responsible for costs, executing
the work and powerline maintenance. These costs will be
recovered from Crawford over a 25-year period.
Other infrastructural requirements form part of the project
scope, including those related to the realignment of Highway 655
and a 500kV power line, which currently cross the property. The
realignment will total approximately 27.5 kilometres. A portion of
this distance will be equipped with a new rail spur that will
facilitate delivery of consumables to, and shipment of concentrates
from Crawford.
_______________________________
|
5 See Canada
Nickel press release dated December 16, 2020
|
Mineral Resources
Crawford's Measured and Indicated Resources with an effective
date of August 31, 2023 have grown by
74% since the previous resource update in May 2022 (mineral resources are inclusive of
reserves).
|
|
Tonnage
|
|
Grade
|
|
Contained Metal
|
|
|
(Mt)
|
|
Ni (%)
|
Co (%)
|
Pd (g/t)
|
Pt (g/t)
|
Fe (%)
|
Cr (%)
|
Bruc (%)
|
|
Ni (kt)
|
Co (kt)
|
Pd (koz)
|
Pt (koz)
|
Fe (Mt)
|
Cr (kt)
|
Higher Grade Main Zone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
253
|
|
0.30
|
0.013
|
0.027
|
0.012
|
6.40
|
0.59
|
1.73
|
|
770
|
33
|
219
|
96
|
16.2
|
1,503
|
Indicated
|
|
296
|
|
0.28
|
0.013
|
0.023
|
0.012
|
6.93
|
0.57
|
1.36
|
|
830
|
39
|
218
|
112
|
20.5
|
1,694
|
Mea+Ind
|
|
549
|
|
0.29
|
0.013
|
0.025
|
0.012
|
6.68
|
0.58
|
1.53
|
|
1,600
|
72
|
437
|
207
|
36.7
|
3,197
|
Inferred
|
|
212
|
|
0.28
|
0.013
|
0.018
|
0.011
|
6.91
|
0.56
|
1.21
|
|
587
|
28
|
123
|
73
|
14.6
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower Grade Main Zone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
280
|
|
0.22
|
0.013
|
0.011
|
0.009
|
6.89
|
0.59
|
1.15
|
|
607
|
37
|
96
|
79
|
19.3
|
1,646
|
Indicated
|
|
698
|
|
0.21
|
0.013
|
0.011
|
0.009
|
7.10
|
0.57
|
1.07
|
|
1,465
|
92
|
249
|
207
|
49.6
|
3,998
|
Mea+Ind
|
|
978
|
|
0.21
|
0.013
|
0.011
|
0.009
|
7.04
|
0.58
|
1.10
|
|
2,072
|
129
|
346
|
285
|
68.9
|
5,644
|
Inferred
|
|
1324
|
|
0.21
|
0.013
|
0.010
|
0.009
|
7.20
|
0.57
|
0.94
|
|
2,772
|
174
|
420
|
386
|
95.4
|
7,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Higher Grade East Zone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
394
|
|
0.26
|
0.012
|
0.015
|
0.009
|
5.92
|
0.65
|
3.10
|
|
1,022
|
49
|
185
|
119
|
23.3
|
2,546
|
Indicated
|
|
300
|
|
0.26
|
0.013
|
0.011
|
0.007
|
5.85
|
0.63
|
3.19
|
|
774
|
38
|
103
|
69
|
17.5
|
1,887
|
Mea+Ind
|
|
694
|
|
0.26
|
0.013
|
0.013
|
0.008
|
5.89
|
0.64
|
3.14
|
|
1,795
|
87
|
287
|
188
|
40.9
|
4,432
|
Inferred
|
|
112
|
|
0.26
|
0.013
|
0.010
|
0.007
|
5.90
|
0.62
|
2.89
|
|
289
|
14
|
37
|
25
|
6.6
|
695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lower Grade East Zone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured
|
|
169
|
|
0.16
|
0.013
|
0.011
|
0.009
|
7.25
|
0.54
|
0.40
|
|
279
|
21
|
57
|
49
|
12.3
|
908
|
Indicated
|
|
172
|
|
0.17
|
0.012
|
0.011
|
0.009
|
7.11
|
0.52
|
0.93
|
|
289
|
21
|
61
|
52
|
12.2
|
886
|
Mea+Ind
|
|
341
|
|
0.17
|
0.012
|
0.011
|
0.009
|
7.18
|
0.53
|
0.67
|
|
568
|
43
|
119
|
102
|
24.5
|
1,794
|
Inferred
|
|
45
|
|
0.17
|
0.013
|
0.010
|
0.008
|
7.11
|
0.54
|
0.55
|
|
78
|
6
|
14
|
12
|
3.2
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Crawford Resource
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mea+Ind
|
|
2562
|
|
0.24
|
0.013
|
0.014
|
0.010
|
6.67
|
0.59
|
1.69
|
|
6,035
|
330
|
1,189
|
783
|
170.9
|
15,066
|
Inferred
|
|
1693
|
|
0.22
|
0.013
|
0.011
|
0.009
|
7.08
|
0.57
|
1.09
|
|
3,726
|
222
|
594
|
496
|
119.9
|
9,674
|
Mineral Resources have an effective date of August 31, 2023. Mr Scott
Jobin-Bevans with Caracle Creek International Consulting Inc
at the time of preparation of the estimate, is the Qualified Person
responsible for the Mineral Resource Estimate. Mineral Resources
are inclusive of Mineral Reserves. Mineral Resources are not
Mineral Reserves and do not have demonstrated economic viability.
Mineral resources are contained within a Lerchs-Grossmann pit shell
using prices of $20,000/t nickel,
$48,500/t cobalt, $1350/oz palladium, $1,150/oz platinum, $290/t iron (equivalent to $80/t iron ore price) and $2,290/t chromium; metallurgical recoveries based
on test work, open pit mining costs ranging from C$1.35 – C$3.17/t
mined, depending upon depth and size of equipment, mill + G&A
costs of C$7.54/t milled and
royalties to 4.1% of NSR. The QP is not aware of any environmental,
permitting, legal, title, taxation, socio‐economic, marketing,
political, or other relevant issues that could potentially affect
this Mineral Resource Estimate.
Mineral Reserves
Mineral reserves are contained within an engineered pit design
that has been based on a Lerchs-Grossmann (LG) pit optimization run
at a Revenue Factor (RF) 65% of the base case prices; or
$13,650/t Ni, $26,000/t Co, $58/t
iron ore, $2,500/t Cr, $878/oz Pd and $748/oz Pt. Mineral reserves include unplanned
dilution of 0.4%
Mineral Reserves Statement (effective date Aug 31 2023)
|
|
Ore
|
|
Grade
|
|
Contained Metal
|
Mt CO2
|
|
|
(Mt)
|
|
Ni %
|
Co %
|
Pd g/t
|
Pt g/t
|
Fe %
|
Cr %
|
Bruc %
|
|
Ni (kt)
|
Co (kt)
|
Pd (koz)
|
Pt (koz)
|
Fe (Mt)
|
Cr (kt)
|
Capture
|
HG Main Zone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven
|
|
208
|
|
0.31
|
0.013
|
0.027
|
0.011
|
6.23
|
0.60
|
1.78
|
|
641
|
27
|
180
|
74
|
13
|
1,249
|
8
|
Probable
|
|
64
|
|
0.29
|
0.013
|
0.023
|
0.012
|
6.47
|
0.54
|
1.98
|
|
185
|
8
|
47
|
24
|
4
|
348
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG Main Zone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven
|
|
213
|
|
0.21
|
0.013
|
0.011
|
0.009
|
6.69
|
0.58
|
1.15
|
|
445
|
27
|
75
|
58
|
14
|
1,226
|
6
|
Probable
|
|
368
|
|
0.18
|
0.013
|
0.011
|
0.009
|
6.82
|
0.53
|
1.03
|
|
678
|
47
|
133
|
106
|
25
|
1,961
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HG East Zone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven
|
|
375
|
|
0.26
|
0.012
|
0.014
|
0.009
|
5.92
|
0.64
|
2.84
|
|
965
|
47
|
170
|
112
|
22
|
2,418
|
18
|
Probable
|
|
148
|
|
0.25
|
0.012
|
0.009
|
0.007
|
5.83
|
0.63
|
2.87
|
|
369
|
18
|
44
|
32
|
9
|
926
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LG East Zone
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven
|
|
198
|
|
0.15
|
0.012
|
0.011
|
0.011
|
7.00
|
0.50
|
0.32
|
|
295
|
24
|
73
|
67
|
14
|
998
|
1
|
Probable
|
|
141
|
|
0.15
|
0.011
|
0.012
|
0.010
|
6.54
|
0.47
|
0.60
|
|
212
|
16
|
53
|
46
|
9
|
659
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Crawford
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven
|
|
994
|
|
0.24
|
0.013
|
0.016
|
0.010
|
6.37
|
0.59
|
1.75
|
|
2,345
|
125
|
498
|
311
|
63
|
5,892
|
33
|
Probable
|
|
721
|
|
0.20
|
0.012
|
0.012
|
0.009
|
6.53
|
0.54
|
1.41
|
|
1,444
|
89
|
278
|
208
|
47
|
3,895
|
22
|
Proven + Probable
|
|
1,715
|
|
0.22
|
0.013
|
0.014
|
0.009
|
6.44
|
0.57
|
1.61
|
|
3,789
|
215
|
777
|
519
|
110
|
9,787
|
54
|
The Mineral Reserve Estimate was prepared in accordance with CIM
Definition Standards for Mineral Resources and Mineral Reserves
(CIM, 2014) by QP Dave Penswick, P.Eng who is an independent
consultant. Mineral Reserves are included within the reported
Mineral Resources. Mineral reserves are contained within a
Lerchs-Grossmann pit shell using prices of $15,650/t nickel, $26,000/t cobalt, $878/oz palladium, $748/oz platinum, $211/t iron (equivalent to $58/t iron ore price) and $2,500/t chromium; metallurgical recoveries based
on test work, open pit mining costs ranging from C$1.35 – C$3.17/t
mined, depending upon depth and size of equipment, mill + G&A
costs of C$7.54/t milled and
royalties to 4.1% of NSR. The QP is not aware of any environmental,
permitting, legal, title, taxation, socio‐economic, marketing,
political, or other relevant issues that could potentially affect
this Mineral Resource Estimate.
Crawford is now the world's 2nd largest nickel reserve
6.
Capital Cost
Total Capital
|
|
units
|
Phase
1
|
Phase
2
|
Sustaining
|
LOM
|
Mining
|
|
|
US$ millions
|
$499
|
$420
|
$1,304
|
$2,222
|
Process
Plant
|
|
US$ millions
|
$721
|
$726
|
$0
|
$1,447
|
TMF & Water
Management
|
US$ millions
|
$98
|
$84
|
$103
|
$285
|
Infrastructure
|
|
US$ millions
|
$205
|
$93
|
$74
|
$372
|
Indirects
|
|
|
US$ millions
|
$235
|
$132
|
$0
|
$367
|
Contingency
|
|
US$ millions
|
$185
|
$145
|
$0
|
$330
|
Closure and
Other
|
|
US$ millions
|
$0
|
$0
|
$134
|
$134
|
Total
|
|
US$
millions
|
$1,943
|
$1,600
|
$1,615
|
$5,157
|
Notes:
|
1. Indirect Costs for
Process Plant only. Indirect costs for Mining, Off-Site
Infrastructure and TMF within those areas
|
The bankable feasibility study capital cost estimates are
consistent with AACE Class 3 standards and include an
allowance for growth averaging 6% within the direct estimate of
applicable construction activities. In addition, a contingency
averaging 11% has been applied to all direct and indirect items in
the two phases of the project.
The capital estimate does not include escalation or
interest.
______________________________
|
6 Source:
Wood Mackenzie, Nickel Cost Service Q3 2023 data
|
Operating Cost
Operating Cost
|
units
|
Phase1
|
Phase2
|
Phase3
|
LOM
|
Labour
|
|
average
FTE1
|
1,057
|
851
|
305
|
720
|
Labour
|
|
US$/t milled
|
$4.36
|
$1.74
|
$0.60
|
$1.53
|
Consumables
|
US$/t milled
|
$4.12
|
$3.70
|
$2.41
|
$3.35
|
Maintenance
|
US$/t milled
|
$2.64
|
$2.19
|
$0.65
|
$1.78
|
Fuel
|
|
US$/t milled
|
$1.90
|
$1.26
|
$0.09
|
$0.96
|
Power
|
|
US$/t milled
|
$2.47
|
$2.62
|
$2.24
|
$2.50
|
Other
|
|
US$/t milled
|
$1.97
|
$0.87
|
$0.31
|
$0.76
|
TOTAL
|
|
US$/t
milled
|
$17.47
|
$12.38
|
$6.31
|
$10.88
|
Note:
1. Full Time Equivalent
|
Operating costs were developed using a zero-based model and
benchmarked against existing operations. Crawford will achieve low
labour costs through the benefits of scale and utilization of
proven technologies, such as trolley-assisted truck haulage. These
technologies will also keep expenditure on fuel low. As a result of
Crawford's low site costs, it is expected the EBITDA margin will
average 57% over the life of project. It is expected that Crawford
will also be positioned in the lower half of the first quartile of
Net C1 Cash Costs.
Source: Wood Mackenzie, Nickel Cost Service Q3 2023 data
Long-term price Assumptions (2023 real basis)
- Ni Price: $21,000/t ($9.53 /lb)
- Co Price: $40,000/t ($18.14 / lb)
- Pd Price: $1,350/oz
- Pt Price: $1,150/oz
- Iron Price: $325/t (equivalent to
iron ore price of $89/t)
- Chromium Price: $3,860/t
($1.75/lb)
- C$:$US: $0.76
- Oil Price: $70/bbl
Sensitivities
|
|
|
Delta NPV 8% ($ MM)
|
Delta IRR (%)
|
Delta Net C1 Cash Cost
($/lb)
|
Item
|
|
|
+10 %
|
-10 %
|
+10 %
|
-10 %
|
+10 %
|
-10 %
|
Nickel Price ± 10%
($18,900 - $23,100)
|
|
$508
|
($504)
|
1.8 %
|
(1.8 %)
|
$0.00
|
$0.00
|
Iron Price ± 10% ($80 -
$98)
|
|
$142
|
($141)
|
0.5 %
|
(0.5 %)
|
($0.30)
|
$0.30
|
Chrome Price ± 10%
($3,474 - $4,246)
|
|
$108
|
($106)
|
0.4 %
|
0.4 %
|
($0.22)
|
$0.22
|
Cobalt Price ± 10%
($36,000 - $44,000)
|
|
$12
|
($12)
|
0.0 %
|
(0.0 %)
|
($0.02)
|
$0.02
|
Oil Price ± 10% ($63 -
$77)
|
|
($44)
|
$44
|
(0.2 %)
|
0.2 %
|
$0.06
|
($0.06)
|
Nickel Recovery ± 10%
(37% - 45%)
|
|
$505
|
($501)
|
1.8 %
|
(1.8 %)
|
($0.03)
|
$0.04
|
Initial Capex ±
10%
|
|
|
($99)
|
$101
|
(0.8 %)
|
1.0 %
|
$0.00
|
$0.00
|
Expansion Capex ±
10%
|
|
|
($39)
|
$42
|
(0.3 %)
|
0.3 %
|
$0.00
|
$0.00
|
Opex ± 10%
|
|
|
($339)
|
$343
|
(1.2 %)
|
1.3 %
|
$0.60
|
($0.60)
|
Returns are most sensitive to a variation in the price or
recovery of nickel, with a 10% variation in price leading to a 20%
variation in NPV, or 2.0x the variation to input. Returns are also
sensitive to operating costs, at 1.4x the variation to input.
Returns are less sensitive to the iron or chrome prices, at 0.6x
and 0.4x the variation to input, respectively. Returns are
relatively insensitive to variation in the cobalt price while
variation in palladium or platinum prices has less than a 0.1%
impact on NPV. The sensitivity to initial capex (0.4x input) is
double that of expansion capex (0.2x), which equals the sensitivity
to fuel prices.
Next Steps
In parallel with the completion of the BFS, Canada Nickel is
actively pursuing the work needed to obtain all necessary federal
and provincial permits, and to develop a financing package with its
advisors Scotiabank, Deutsche Bank, and Cutfield Freeman by
mid-2025. This would be followed by a decision to initiate
construction of Crawford with a target of first production by end
2027. In order to support this process and as part of its intention
to responsibly originate materials to power the energy transition,
Canada Nickel will use the BFS results to feed its ongoing
innovative engagement strategy focussed on fostering meaningful and
productive relationships with its Indigenous partners as well as
with the surrounding communities. A technical report in support of
the BFS will be filed with the Canadian securities regulatory
authorities on SEDAR+ within 45 days of this news release.
Bankable Feasibility Study
Conference Call
Canada Nickel will be hosting a webcast and conference call
today, (Thursday, October 12, 2023)
at 11:00 a.m. Eastern Time to discuss
the Bankable Feasibility Study.
Conference Call Details:
Date: Today
(Thursday, October 12, 2023)
Time: 11:00 a.m. ET
Participants may join the webcast and call as
follows:
Audience URL:
https://app.webinar.net/0Nly476d2WO
Dialing local
Toronto: 416-764-8688
Dialing North American Toll Free: 888-390-0546
Dialing International Toll Free:
Australia: 1800076068
Germany: 08007240293
Switzerland: 0800312635
South Africa: 0800994942
UK (England): 448006522435
For those unable to participate, a web-based archive of the
conference call will be available for playback at the same Audience
URL used to access the live webcast.
Qualified Person
In Stephen J. Balch P.Geo. (ON),
VP Exploration of Canada Nickel and a "qualified person" as such
term is defined by National Instrument 43-101, has verified the
data disclosed in this news release, and has otherwise reviewed and
approved the technical information in this news release on behalf
of Canada Nickel.
About Canada Nickel
Canada Nickel Company Inc. is
advancing the next generation of nickel-sulphide projects to
deliver nickel required to feed the high growth electric vehicle
and stainless steel markets. Canada Nickel Company has applied in
multiple jurisdictions to trademark the terms NetZero Nickel™,
NetZero Cobalt™ and NetZero Iron™ and is pursuing the development
of processes to allow the production of net zero carbon nickel,
cobalt, and iron products. Canada Nickel provides investors with
leverage to nickel in low political risk jurisdictions. Canada
Nickel is currently anchored by its 100% owned flagship Crawford
Nickel-Cobalt Sulphide Project in the heart of the prolific
Timmins-Cochrane mining camp. For more information,
please visit www.canadanickel.com.
For further information, please contact:
Mark Selby, CEO
Phone: 647-256-1954
Email: info@canadanickel.com
Non-IFRS measures
The Company has included certain non-IFRS measures in this press
release. The Company believes that these measures provide investors
an improved ability to evaluate the underlying performance of the
project. The non-IFRS measures are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. These measures do not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to other
issuers.
Net C1 cash costs are the sum of operating costs (including all
expenses related to stripping), net of by-product credits from
cobalt, palladium, platinum, iron and chromium per pound of payable
nickel. Net AISC (all in sustaining costs) are C1 cash costs plus
royalties plus sustaining capital per pound of payable nickel.
Sustaining and expansion capital are non-IFRS measures. Sustaining
capital is defined as capital required to maintain operations at
existing levels. Expansion capital is defined as capital
expenditures for major growth projects or enhancement capital for
significant infrastructure improvements at existing operations.
Both measurements are used by management to assess the
effectiveness of investment programs.
NSR (Net Smelter Return) includes gross revenues less refining
costs. EBITDA is earnings before interest, taxes and depreciation,
which comprise NSR less royalties and operating costs and for the
purpose of the economic analysis assume all stripping costs
following the initial construction period are expensed. Free cash
flow represents operating cash flow less capital expenditures.
Cautionary Note and Statement
Concerning Forward Looking Statements
This press release contains certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward looking information includes, but
is not limited to, the potential of Crawford ; potential size of
carbon storage facilities and ability to be a net negative carbon
footprint; , timing and results of economic studies, including
the BFS; mineral resource estimates and mineral reserve
estimates; ability to realize on projected economic estimates,
including EBITDA, NPV, IRR, all-in sustaining costs, free cash flow
and C1 cash costs; scale, capital costs, operating costs and life
of mine projections; potential to commercialize the IPT Carbonation
process; timing of receipt of permits and commencement of
construction and initial production; eligibility for Canadian
federal refundable tax credits; the ability to sell marketable
materials; strategic plans, including future exploration and
development results; and corporate and technical objectives.
Forward-looking information is necessarily based upon several
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors which may cause
the actual results and future events to differ materially from
those expressed or implied by such forward-looking information.
Factors that could affect the outcome include, among others: future
prices and the supply of metals, the future demand for metals, the
results of drilling, inability to raise the money necessary to
incur the expenditures required to retain and advance the property,
environmental liabilities (known and unknown), general business,
economic, competitive, political and social uncertainties, results
of exploration programs, risks of the mining industry, delays in
obtaining governmental approvals, failure to obtain regulatory or
shareholder approvals, and the impact of COVID-19 related
disruptions in relation to the Company's business operations
including upon its employees, suppliers, facilities and other
stakeholders. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information
contained in this press release is given as of the date hereof and
is based upon the opinions and estimates of management and
information available to management as at the date hereof. Canada
Nickel disclaims any intention or obligation to update or revise
any forward-looking information, whether because of new
information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Canada Nickel Company Inc.