TORONTO, July 12, 2021 /CNW/ - Canada Nickel
Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC)
(OTCQB: CNIKF), has filed a Preliminary Economic Assessment ("PEA")
for its wholly-owned Crawford Nickel Sulphide Project ("Crawford")
located in Timmins, Ontario,
Canada. The PEA is available on www.sedar.com and on
www.canadanickel.com.
The PEA, titled "Crawford Nickel Sulphide Project NI 43-101
Technical Report and Preliminary Economic Assessment" was
independently prepared by Ausenco Engineering Canada Inc., in
accordance with National Instrument 43-101 ("NI 43-101"), as
previously announced in a news release dated May 25, 2021. Canada Nickel is advancing the
project to a feasibility study, which is expected to be completed
by mid-2022.
Highlights of the PEA
The PEA indicates a 25-year mine plan based on a phased 120,000
tonnes per day open pit mine and processing operation using
conventional nickel sulphide concentrator, producing nickel
concentrates and magnetite concentrate.
Over the 25-year mine life Crawford is expected to produce
842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million
tonnes of chrome valued at $24
billion using long-term price assumptions. Annual average
nickel production of 75 million pounds (34,000 tonnes) with peak
period annual average of 93 million pounds (42,000 tonnes), with
significant iron and chrome by-products of 860,000 tonnes per annum
and 59,000 tonnes per annum, respectively.
- After-tax, $1.2 billion
NPV8% and 16% IRR at long-term price assumptions (Note
1)
- Large scale, low cost, long-life
- Significant iron and chrome by-products of 860,000 tonnes per
annum and 59,000 tonnes per annum, respectively
- Life-of-mine net C1 cash cost of $1.09/lb and net AISC of $1.94/lb on a by-product basis (1st quartile)
(Notes 2 and 3)
- Life-of-mine production of 25 years with 842,000 tonnes of
nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome
valued at $24 billion using long-term
price assumptions (Note 1)
- Significant earnings and free cash flow generation. Annual
EBITDA of $439 million and annual
free cash flow of $274 million (Notes
1 and 3)
- Minimization of carbon footprint through use of autonomous
trolley trucks and electric shovels, which reduces diesel use by
40%. Optimization of the carbon sequestration potential of tailings
and waste rock.
Notes and Assumptions
- All dollar figures are in United
States ("US") dollars. US metal prices used in the PEA were
$7.75/lb nickel, $1.04/lb chromium, and $290/tonne iron. A US dollar exchange rate of
0.75 was applied.
- Source for 1st quartile costs – Wood Mackenzie and
S&P Capital IQ; Priced as of May 20,
2021.
- C1 cash cost, AISC, EBITDA and cash flow data are non-IFRS
measures. Refer to Non-IFRS measures.
- A full copy of the Technical Report and PEA, including material
assumptions, notices and cautions, can be found on the Company's
profile at www.sedar.com.
Considering the positive outcome of the PEA, the Company is
advancing the Crawford Project through additional studies including
exploration programs aimed at in-fill drilling to upgrade current
resources to the measured category; additional metallurgical
studies and a feasibility study.
The PEA is preliminary in nature, it 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, and there is no certainty
that the results of the PEA will be realized.
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 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 TM , NetZero Cobalt TM , NetZero Iron TM
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 Sulphide Project in the
heart of the prolific Timmins-Cochrane mining camp. For more information,
please visit www.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
chromium and iron ore 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.
EBITDA is earnings before interest, taxes and depreciation,
which comprise net smelter returns less royalties and operating
costs and for the purpose of the economic analysis assume all
stripping costs are expensed. Free cash flow represents operating
cash flow less capital expenditures.
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 results of Crawford's PEA, including
statements relating to net present value, future production,
estimates of cash cost, proposed mining plans and methods, mine
life estimates, cash flow forecasts, metal recoveries, estimates of
capital and operating costs, timing for permitting and
environmental assessments, realization of mineral resource
estimates, capital and operating cost estimates, project and life
of mine estimates, ability to obtain permitting by the time
targeted, size and ranking of project upon achieving production,
economic return estimates, the timing and amount of estimated
future production and capital, operating and exploration
expenditures and potential upside and alternatives. Readers should
not place undue reliance on forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Canada Nickel to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. The PEA
results are estimates only and are based on a number of
assumptions, any of which, if incorrect, could materially change
the projected outcome. There are no assurances that Crawford will
be placed into production. Factors that could affect the outcome
include, among others: the actual results of development
activities; project delays; inability to raise the funds necessary
to complete development; general business, economic, competitive,
political and social uncertainties; future prices of metals or
project costs could differ substantially and make any
commercialization uneconomic; availability of alternative nickel
sources or substitutes; actual nickel recovery; conclusions of
economic evaluations; changes in project parameters as plans
continue to be refined; accidents, labour disputes, the
availability and productivity of skilled labour and other risks of
the mining industry; political instability, terrorism, insurrection
or war; delays in obtaining governmental approvals, necessary
permitting or in the completion of development or construction
activities; mineral resource estimates relating to Crawford could
prove to be inaccurate for any reason whatsoever; additional but
currently unforeseen work may be required to advance to the
feasibility stage; and even if Crawford goes into production, there
is no assurance that operations will be profitable.
Although Canada Nickel has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Canada Nickel disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/canada-nickel-files-preliminary-economic-assessment-for-crawford-nickel-sulphide-project-301331409.html
SOURCE Canada Nickel Company Inc.