Highlights:
- Achieves 61% nickel recovery and produces 37% nickel
concentrate from lower grade sample of 0.22% nickel and 0.08%
sulphur
- Nickel recovery 19 percentage points or 45% higher than the PEA
model
- Iron recovery of 63% was 15 percentage points or 31% higher
than the PEA model
TORONTO, Dec. 2, 2021 /CNW/ - Canada Nickel
Company Inc. ("Canada Nickel" or the "Company")
(TSXV: CNC) (OTCQX: CNIKF) is pleased to announce further results
of metallurgical testing at its Crawford Nickel Sulphide Project
that continue to demonstrate significant improvements in metal
recoveries relative to the Preliminary Economic Assessment
("PEA").
The latest metallurgical test work results are from a sample
taken from the South Low Grade region of the Crawford Main Zone.
The achievement of 61% nickel recovery from a low grade sample is
consistent with results from other samples in the news release
dated October 5, 2021. The Company is
commencing the first phase of metallurgical variability testing for
the feasibility study to better understand metallurgical
performance from samples taken throughout the Crawford
resource.
Mark Selby, Chair and CEO said,
"These metallurgical testing results continue to demonstrate the
potential from our flowsheet optimization program to deliver
improvements in recovery well in excess of the 4-5 percentage point
improvement that we are targeting for our feasibility study.
Each percentage point improvement in nickel recovery would yield a
US$92 million improvement in the
value of the NPV8% of the project, based on the PEA
metrics. While we continue to expect a broad range of
recoveries from the samples which will be tested during the
variability program, the ability to achieve 60+% recovery from
samples from the lower grade portion of the resource is an
excellent outcome."
Description of Current Results
This open circuit test
("OCT") was completed at COREM on a heazlewoodite dominant sample
with a head grade of 0.22% nickel, 6.8% iron and a sulphur to
nickel ratio of 0.36. The sample was selected from the South Low
Grade region of the Crawford Main Zone and achieved a nickel
recovery of 61%, which is 19 percentage points higher than what was
modelled for this type of sample in the PEA. In addition to the
excellent nickel recovery, the iron and chromium recoveries were
also 15 and 18 percentage points higher than what was modelled in
the PEA respectively.
This test used the same flowsheet that was used in the news
release dated October 5th,
2021, which demonstrated nickel recovery improvements that were
more than 5% higher than what was modelled in the PEA on four
samples from the high grade core. The result presented in the
current release shows that recovery gains of more than 5% using the
new flowsheet are also being achieved in the lower grade portions
of the resource.
Table 1 – Open Circuit Test - Summary of Results Compared to
the PEA Model
|
Recovery
(%)
|
Concentrate Grades
(%)
|
Final Nickel
Concentrate
|
Magnetite
|
Concentrate
|
|
Ni
|
Co
|
Fe
|
Cr
|
Ni
|
Co
|
Fe
|
Cr
|
Actual
|
61
|
5.2
|
63
|
45
|
37
|
0.2
|
51
|
3.1
|
PEA
Modelled
|
42
|
4.4
|
48
|
27
|
35
|
-
|
47.5
|
3.3
|
Difference
|
+19
|
+0.8
|
+15
|
+18
|
+2
|
-
|
+3.5
|
-0.2
|
As expected, all of the nickel recovered to the nickel
concentrate was to the high grade concentrate, because
heazlewoodite was the primary nickel sulfide mineral in this
sample. The sample also contained quantities of
awaruite which, as expected, reported to the magnetite concentrate.
The nickel concentrate grade of 37% is 2% higher than our target
35% grade for this product and highlights the Company's ability to
produce the one of the highest grade concentrates on the market. As
anticipated, the cobalt recovery for this sample was low because
cobalt does not typically associate with the mineral
heazlewoodite.
Sample Location
This sample was taken from drill hole
CR21-167 from the South Low Grade Zone of the Crawford Main Zone.
The average nickel grade of this zone of the deposit is 0.21%
nickel and the sample head grade was 0.22% nickel. The company is
encouraged by nickel recoveries in excess of 60% by lower grade
samples such as the one used in this test, which is attributed to
the optimization and development work completed by the Company
since issuing the PEA. In the next phase of metallurgical test
work, Canada Nickel will complete variability testing on samples
from the Crawford Main and East Zones starting with samples from
the East Zone.
For further details, including key assumptions, parameters and
methods used to estimate the results of the PEA, and data
verification, please refer to the "Crawford Nickel-Sulphide Project
National Instrument 43-101 Technical Report and Preliminary
Economic Assessment", with an Effective Date of May 21, 2021, as filed July 12, 2021, and available for viewing on the
Company's website www.canadanickel.com.
Qualified Person and Data Verification
Arthur G. Stokreef, P.Eng (ON), Project
Metallurgist of Canada Nickel and a "qualified person" as such term
is defined by National Instrument 43-101, has reviewed and approved
the technical information in this news release on behalf of Canada
Nickel Company Inc.
About Canada Nickel
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
successfully registered and applied for trademarks in various
jurisdictions for 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 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.
For further information, please contact:
Mark Selby, Chair and CEO
Phone: 647-256-1954
Email: info@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 metallurgical results, the
timing and results of the feasibility study, 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, carbon footprint and sequestration levels, 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.
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SOURCE Canada Nickel Company Inc.