Simply over 20 months after exploration drilling commenced at its Crawford nickel sulphide asset, Canada Nickel Firm (TSX: CNC; US-OTC: CNIKF) has accomplished a preliminary financial evaluation for the mission, 40 km north of Timmins, Ontario.
The PEA envisioned a standard open pit mine and mill that can produce each nickel and magnetite concentrates over a mine lifetime of 25 years, and the corporate is fast-tracking the mission on to a feasibility examine, which it expects to finish by the center of subsequent 12 months.
“These outcomes are simply the tip of the iceberg,” says Mark Selby, Canada Nickel’s chairman and CEO. “We’re speaking district-scale potential that might make this the most important base steel mine in Canada as soon as it’s ramped up. And we’d be the most important single nickel sulphide mine on this planet outdoors Russia. We’ll be larger than Voisey’s Bay. This can be a fairly important mission.”
Crawford would produce a complete of 842,000 tonnes of nickel, 21 million tonnes of iron and 1.5 million tonnes of chrome over its mine life, with common annual manufacturing of 75 million lbs of nickel, 860,000 tonnes of iron and 59,000 tonnes of chrome at internet all-in sustaining prices of US$1.94 per lb. nickel on a by-product foundation.
A concentrator will produce three merchandise: a high-grade focus estimated at 35% nickel; a normal grade focus estimated at 12% nickel; and a magnetite focus estimated at 48% iron and three% chromium.
The early stage financial examine outlined preliminary capex of US$1.19 billion, an after-tax internet current worth at an 8% low cost price of US$1.2 billion and an after-tax inside price of return of 16%. As soon as in manufacturing, annual earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) would are available in at US$439 million with free money move of US$274 million.
Crawford has measured and indicated assets of 653.5 million tonnes grading 0.26% nickel, 0.60% chromium, 6.58% iron, and 0.013% cobalt. Inferred assets stand at 497.2 million tonnes grading 0.24% nickel, 0.61% chromium, 6.74% iron and 0.013% cobalt.
In January, the corporate signed a non-binding memorandum of understanding (MOU) with Glencore (LSE: GLEN) to evaluate the potential of utilizing the commodity large’s Kidd concentrator and metallurgical web site in Timmins.
Embedded within the PEA is a downstream processing idea, which sees a 3rd occasion constructing a chrome steel plant, probably in Timmins, one that might be fed by Crawford’s high-grade product, based on Selby.
Crawford is positioned “in probably the greatest locations you may think about,” he mentioned. “Creating a big base steel mission simply outdoors Timmins is a large plus. The realm has an extended historical past of mining operations. The native infrastructure provides us quick access to energy — clear, hydroelectric energy — plus we’re near the key finish customers of chrome steel, within the auto trade, each within the U.S. and in Canada.”
Crawford’s output can feed into the burgeoning electrical automobile battery sector, Selby provides.
As the corporate commenced exploration work, it additionally started discussions with three close by First Nations concerning the mission, ensuing within the signing of MOUs with every that present Indigenous assist for Crawford.
One purpose for this assist is the corporate’s dedication to creating the mine a “internet zero mission” with a significantly lowered carbon footprint.
“We expect we will obtain a internet zero carbon nickel product and a internet zero iron focus,” Selby says. “And I believe it will hopefully be the beginning of a zero-carbon cluster within the Timmins space.”
The mission will likely be powered by zero-carbon electrical energy and use trolley vans and electrical rope shovels as a part of its efforts to reduce its carbon footprint by lowered diesel consumption.
“Folks suppose we’re going into one other supercycle with nickel. And I do know from expertise that the most important problem is at all times making an attempt to get traders inquisitive about a nickel mission. Prior to now they weren’t eager on the steel and simply didn’t put money into it, so that they ignored it. However all the pieces’s modified within the final three or 4 years and now nickel is a favorite base steel. This a mission that’s going to be nice for northeastern Ontario, nice for Canada and nice for nickel.”
At presstime, Canada Nickel was buying and selling at $3.11 inside a 52-week vary of 78¢ and $4.54. The corporate has simply over 85 million widespread shares excellent for a market cap of $265 million.