Highlights:
- 20% increase in primary grind size accomplished with no loss in
recovery – results in increased throughput and lower energy costs
per tonne
- Release of Preliminary Economic Assessment (PEA) delayed until
April 30, 2021 to include these
significant improvements
TORONTO, March 4, 2021 /CNW/ - Canada Nickel Company Inc.
("Canada Nickel" or the "Company") (TSXV: CNC)
(OTCQB: CNIKF) is pleased to announce further positive results
from its latest metallurgical testing on its 100% owned Crawford
Nickel-Cobalt Sulphide project ("Crawford Project").
"These latest results demonstrated that a 20% increase in
grind size resulted in no material change in recovery. For
large scale, lower grade projects such as Crawford, this
significant improvement in primary grind requirements reduces the
amount of energy needed to grind each tonne of material by 15%,
which would allow for both higher throughput and lower costs per
tonne," said Mark Selby, Chair
& CEO. "While the Company is eager to publish our PEA
as soon as possible, it is important we include these significant
improvements as they contribute to the overall project economics.
Therefore, we now intend to release the PEA by the end of
April 2021. In addition, work
on the Kidd Creek smaller start-up option for Crawford is
progressing well – our review of related capital and operating
costs were in line with our expectations."
These latest open cycle metallurgical tests were completed at
both XPS Expert Process Solutions, a Glencore Company ("XPS") and
Corem, a center of expertise and innovation in mineral
processing. Each of the tests compared changes in recovery
performance for coarser primary grind sizes of 165 microns and 180
microns using a different combination of reagents versus the 150
microns reported in the third locked cycle test (see Canada Nickel
press release dated January 25,
2021).
The open cycle tests confirmed that the improved combination of
reagents and change in grind size resulted in no change in
recovery. As coarser primary grind utilizes less energy per
tonne, it has the double benefit of lowering energy costs per tonne
of material milled and increasing throughput for a given primary
grind configuration.
Given the scale of improvement, this change in flowsheet design
will now be confirmed in subsequent locked cycle tests and a
broader set of variability samples as metallurgy testing
continues. The flowsheet design utilizes a typical nickel
sulphide ultramafic flowsheet of two stages of grind-deslime-float
with magnetic separation to support recovery of magnetic minerals.
Subsequent testing during 2021 will continue to optimize various
flowsheet parameters towards a final flowsheet for the feasibility
study expected by year-end 2021.
The Crawford Project is located in the heart of the prolific
Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to
well-established, major infrastructure associated with over 100
years of regional mining activity. Canada Nickel has launched
wholly-owned NetZero Metals Inc. with the aim to develop
zero-carbon production of nickel, cobalt, and iron at the Crawford
Project. The Crawford Project is expected to produce among the
highest-grade nickel sulphide concentrates in the world, providing
maximum flexibility for potential partners and offtake parties,
including the battery and stainless steel markets.
Phase II Metallurgy Testing
The initial results from this phase of testing confirmed the
potential of coarser grind sizes and changes in reagents could
provide overall improvements for the Crawford flowsheet, which were
highlighted in a previous press release dated January 25, 2021. The results were
not intended to provide overall recovery and concentrate grades
that can only be meaningfully demonstrated through locked cycle
tests.
Metallurgy testing during 2021 has two key areas of focus. The
first area of focus will be further optimization of both the
recovery and concentrate grades and the amount of grinding and
reagents utilized to produce these concentrates. The second area of
focus will be the further optimization of recovery from using
coarser grind sizes and more aggressive desliming as well as the
potential to improve nickel recovery from the slimes portion of the
material produced A broad base of test samples will be developed,
which are essential given the wide range of mineralogy in these
types of deposits which typically results in nickel recoveries for
a specific block ranging from 10-15% to as much as 60%.
Qualified Person and Data Verification
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 Company Inc.
About Canada Nickel Company
Canada Nickel Company Inc. is advancing the next generation of
nickel-cobalt sulphide projects to deliver nickel and cobalt
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 NickelTM,
NetZero CobaltTM, NetZero IronTM 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 and cobalt 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.
Cautionary 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 timing of the PEA and feasibility study for
the Crawford Nickel-Cobalt Sulphide Project, drill results relating
to the Crawford Nickel-Cobalt Sulphide Project, the potential of
the Crawford Nickel-Cobalt Sulphide Project, timing of economic
studies and resource estimates, strategic plans, including future
exploration and development results, and corporate and technical
objectives. Forward-looking information is necessarily based upon a
number of 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 as a result of new
information, future events or otherwise, except as required by
law.
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SOURCE Canada Nickel Company Inc.