Canada Nickel Files PEA for Crawford - suggests 25 year mine life
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.
Canada Nickel Company Inc. has filed a Preliminary Economic Assessment for its wholly-owned Crawford Nickel Sulphide Project ("Crawford") located in Timmins.
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.
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