VANCOUVER, BC, Jan. 12, 2021 /CNW/ - FPX Nickel Corp.
(TSXV: FPX) ("FPX" or the "Company") is
pleased to highlight the potential for the Company's Baptiste
Project ("Baptiste" or the "Project") in central
British Columbia to produce
refined nickel with a significantly lower carbon footprint than
other sources of production in the global nickel
industry. These findings are based on the Project's recent
Preliminary Economic Assessment ("PEA"), which outlined the
development of a conventional processing facility powered by
low-carbon hydro-electric power for the production of a refined,
high-grade (63% nickel) product capable of bypassing smelting and
being sold directly to end users.
Highlights
- The carbon intensity of Baptiste operations is expected to
average 2.40 tonnes of carbon dioxide ("CO2") per
tonne of refined nickel production ("t CO2/t refined
Ni")
- Baptiste carbon intensity compares very favourably to published
literature estimating the carbon intensity of existing nickel
production from various mineral deposit types:
-
- 7.19 t CO2/t refined Ni for Class 1 nickel
production from sulphide ore
- 27.50 t CO2/t refined Ni for Class 1 nickel
production from laterite ore
- 45.00 t CO2/t refined Ni for ferronickel production
from laterite ore
- 69.00 t CO2/t refined Ni for nickel pig iron
production from laterite ore
- Results summarized herein assume no sequestration of carbon
dioxide in Baptiste tailings
"These results, taken in combination with the recent PEA,
position Baptiste as a truly disruptive project in the global
nickel industry, with the potential to become a significant nickel
producer at both low-cost and low-carbon intensity for the electric
vehicle battery and stainless steel markets," commented
Martin Turenne, FPX's President and
CEO. "Importantly, these estimates of Baptiste's carbon
footprint do not account for the potential sequestration of
CO2 in the Project's tailings, which our ongoing
research collaboration with the University of
British Columbia suggests could act as a sizeable carbon
storage facility and further lower the Project's net carbon
emissions below 2.40 t CO2/t refined Ni. Given the
regulatory push by governments in Europe and elsewhere to impose maximum carbon
footprint thresholds for electric vehicle batteries, we see the
favorable positioning of Baptiste on the global nickel 'carbon
curve' as a key differentiator for the Project going forward."
Based on the diesel and electricity consumption for mining and
processing activities outlined in the PEA, the carbon intensity of
Baptiste operations is expected to average 2.40 tonnes of
CO2 per tonne of refined nickel production over the
Project's 35-year mine life. Figure 1 provides a comparison
of the estimated carbon footprint of Baptiste nickel production
versus industry-wide emissions averages for other major forms of
nickel production, as documented in published independent
studies.
Figure 1 – Estimated Carbon Footprint for Selected Global
Nickel Production
Sources: 1 FPX analysis based on September 2020 PEA; 2 "Life Cycle
Assessment of Nickel Products" (Mistry et al., 2016); 3
"Assessing the Energy and Greenhouse Gas Footprints of Nickel
Laterite Processing" (Norgate et al., 2010); 4
"Ferronickel Life Cycle Data" (Nickel Institute, 2020),
5 "Energy Consumption and Greenhouse Gas Emissions of
Nickel Products" (Wei et al., 2020)
The low carbon intensity of Baptiste nickel production is a
function of several features specific to the Project,
including:
- Low Stripping Ratio: Baptiste has a life-of-mine
stripping ratio of 0.40:1, and thus requires lower consumption of
diesel for the mining fleet compared to other similar-scale
operations with higher overburden and waste content and higher
stripping ratios
- Hydroelectric Power: The Project's processing
facility will be powered by low-carbon hydro-electric power, while
a significant proportion of global nickel operations (e.g.
ferronickel and nickel pig iron) are powered by carbon-intensive
coal-fired plants
- Refined Nickel Product with No Smelting: Given
their high metal content (63% nickel and 30% iron) and low level of
deleterious elements, Baptiste's ferronickel briquettes are
expected to bypass the traditional nickel smelting process and be
sold as a refined nickel product directly to stainless steel
producers, thereby avoiding the carbon emissions associated with
the smelting and refining of typical nickel sulphide
concentrates.
Comparison to Sulphide Nickel Production
Figure 2 provides a breakdown of the estimated carbon footprint
of Baptiste nickel production by mining and processing stage versus
the production of Class 1 nickel from sulphide ores. While the
carbon intensity of mining and concentrate production
(benefication) are similar for both types of operations, the
smelting and refining requirements to produce Class 1 refined
nickel from sulphide concentrates (with typical nickel content of
15%) entails a significant additional carbon burden on
sulphide-derived production as compared to the planned Baptiste
operation.
Figure 2 – Estimated Carbon Footprint by Stage of
Production
Sources: FPX analysis, "Life Cycle Assessment of Nickel
Products" (Mistry et al., 2016)
The Baptiste PEA (which was filed September 29, 2020 under the Company's SEDAR
profile) demonstrates the potential for establishing a greenfield
open-pit mine and an on-site magnetic separation and flotation
processing plant, using conventional technology and
equipment. At a throughput rate of 120,000 tonnes per day (or
43.8 million tonnes per year), annual production is projected to
average 99 million pounds (44,932 tonnes) nickel contained in
ferronickel briquettes grading 63% nickel at C1 operating costs of
US$2.74 per pound (US$6,038 per tonne) of nickel.
Cautionary Statement: The PEA is preliminary in nature and
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. Mineral resources are not mineral reserves and do
not have demonstrated economic viability. There is no
certainty that the conclusions or results as reported in the PEA
will be realized.
Investor Relations Engagement
The Company has retained the services of Renmark Financial
Communications Inc. ("Renmark") to assist with its investor
relations activities. In consideration of the services to be
provided, the monthly fees incurred by the Company will be a cash
consideration of up to $8,000 CAD,
starting January 1st, 2021
for a period ending on June
30th, 2021 and monthly thereafter. Renmark does
not have any interest, directly or indirectly, in the Company or
its securities, or any right or intent to acquire such an
interest.
Dr. Peter Bradshaw, P. Eng.,
FPX's Qualified Person under NI 43-101, has reviewed and approved
the technical content of this news release.
About the Decar Nickel District
The Company's Decar Nickel District claims cover 245 square
kilometres of the Mount Sidney Williams ultramafic/ophiolite
complex, 90 km northwest of Fort St.
James in central British
Columbia. The District is a two-hour drive from Fort St. James on a high-speed logging
road.
Decar hosts a greenfield discovery of nickel mineralization in
the form of a naturally occurring nickel-iron alloy called
awaruite, which is amenable to bulk-tonnage, open-pit mining.
Awaruite mineralization has been identified in four target areas
within this ophiolite complex, being the Baptiste Deposit, the B
target, the Sid target and Van target, as confirmed by drilling in
the first three plus petrographic examination, electron probe
analyses and outcrop sampling on all four. Since 2010,
approximately US $24 million has been
spent on the exploration and development of Decar.
Of the four targets in the Decar Nickel District, the Baptiste
Deposit, which was initially the most accessible and had the
biggest known surface footprint, has been the main focus of diamond
drilling since 2010, with a total of 82 holes and over 31,000
metres of drilling completed. The Sid target was tested with two
holes in 2010 and the B target had a single hole drilled into it in
2011; all three holes intersected nickel-iron alloy mineralization
over wide intervals with DTR nickel grades comparable to the
Baptiste Deposit. The Van target was not drill-tested at that time
as rock exposure was very poor prior to logging activity by
forestry companies.
As reported in the current NI 43-101 resource estimate, having
an effective date of September 9,
2020, the Baptiste Deposit contains 1.996 billion tonnes of
indicated resources at an average grade of 0.122% DTR nickel,
containing to 2.4 million tonnes of nickel, plus 593 million tonnes
of inferred resources with an average grade of 0.114% DTR nickel,
containing 0.7 million tonnes of nickel, both reported at a cut-off
grade of 0.06% DTR nickel. Mineral resources are not mineral
reserves and do not have demonstrated economic viability.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development
of the Decar Nickel District, located in central British Columbia, and other occurrences of the
same unique style of naturally occurring nickel-iron alloy
mineralization known as awaruite. For more information, please view
the Company's website at www.fpxnickel.com or contact
Martin Turenne, President and CEO,
at (604) 681-8600 or ceo@fpxnickel.com.
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and
Director
Forward-Looking Statements
Certain of the
statements made and information contained herein is considered
"forward-looking information" within the meaning of applicable
Canadian securities laws. These statements address future events
and conditions and so involve inherent risks and uncertainties, as
disclosed in the Company's periodic filings with Canadian
securities regulators. Actual results could differ from those
currently projected. The Company does not assume the obligation to
update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
SOURCE FPX Nickel Corp.