Canada Nickel Files Bankable Feasibility Study For its Crawford Nickel Sulphide Project

Rhea-AI Summary

Canada Nickel Company Inc. (CNC), a leading nickel mining company, has filed a Bankable Feasibility Study (BFS) for its Crawford Nickel Sulphide Project. The BFS, independently prepared by Ausenco Engineering Canada Inc., highlights robust economics, large initial mineral reserves, large scale, low cost, long-life production, significant improvement in recoveries, significant earnings and free cash flow generation, and minimization of carbon footprint. The project is expected to become one of Canada's largest carbon storage facilities and be a net negative contributor of CO2 over the project life.

Positive

• Robust economics with after-tax $2.5 billion NPV8% and 17.1% IRR
• Large initial mineral reserve of 3.8 million tonnes contained nickel
• Annual average nickel production of 83 million pounds over a 41-year life
• Net life-of-mine C1 cash cost of $0.39/lb nickel
• Projected revenue exceeds $48 billion over project life
• Significant improvement in recoveries from PEA
• Projected annual EBITDA of $810 million and FCF of $540 million over peak period
• Minimization of carbon footprint with 4.8 tonnes CO2/ tonne of nickel in concentrate

Negative

• None.

TORONTO, Nov. 24, 2023 /PRNewswire/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQB: CNIKF), has filed a Bankable Feasibility Study ("BFS") for its wholly-owned Crawford Nickel Sulphide Project ("Crawford") located in Timmins, Ontario, Canada. The BFS is available on www.sedarplus.ca and on www.canadanickel.com.  The BFS, titled, "Crawford Nickel Sulphide Project NI 43-101 Technical Report and Feasibility Study" was independently prepared by Ausenco Engineering Canada Inc. ("Ausenco"), in accordance with National Instrument 43-101  - Standards of Disclosure for Mineral Projects ("NI 43-101"), as previously announced in a news release dated October 12, 2023.

Crawford, located in the Timmins nickel district, is the world's second largest nickel reserve1. Once in production, it is also expected to become one of Canada's largest carbon storage facilities and be a net negative contributor of CO₂ over the project life.

The previously announced highlights from the Crawford BFS are listed below (all amounts in US dollars, unless otherwise indicated).

Crawford 2023 BFS Highlights

• Robust economics
  • After-tax, $2.5 billion NPV_8% and 17.1% IRR; increasing to $2.6 billion NPV_8% and 18.3% IRR with projected Carbon Capture and Storage tax credits.
• Large initial mineral reserve anchored by significantly larger mineral resource
  • Proven & Probable reserves of 3.8 million tonnes contained nickel from 1.7 billion tonnes ore grading 0.22% nickel make Crawford the world's 2^nd largest nickel reserve[1]. Reserves are hosted in a Measured & Indicated resource which increased by 74% (compared to the 2022 resource estimate) to 6.0 million tonnes. With additional Inferred mineral resources of 3.7 million tonnes contained nickel, Crawford is the world's 2^nd largest nickel resource¹.
• Large scale, low cost, long-life
  • Annual average nickel production of 83 million pounds (38k tonnes) over a 41-year life, with production of 48 ktpa nickel, 0.8 ktpa cobalt, 13 koz palladium and platinum, 1.6 Mtpa iron and 76 ktpa chrome over 27-year peak period.
  • Net life-of-mine C1 cash cost of $0.39/lb nickel (by-product basis) place Crawford in the first quartile of the cost curve². The net AISC cost, on a by-product basis, is $1.54/lb nickel.
  • Projected revenue exceeds $48 billion, or more than $1 billion annually over project life.
• Significant improvement in recoveries from PEA
  • Nickel: 10% improvement life-of-mine (41% versus 37% used in PEA), and a 23% improvement in Phase I/Phase II compared to PEA (46% versus 37% in the PEA)
  • Improvements to life of mine recovery for Iron: 46%, Cobalt: 38%, and Chrome: 5%
• Significant earnings and free cash flow generation
  • Projected annual EBITDA of $810 million and FCF of $540 million over peak period, annual EBITDA of $667 million and FCF of $431 million over project life
• Minimization of carbon footprint
  • Minimal carbon footprint of 4.8 tonnes CO₂/ tonne of nickel in concentrate,2.3 tonnes CO₂/tonne of nickel equivalent [2]("NiEq"); largely due to electrically powered mining fleet, including trolley-assist trucks, that are expected to reduce diesel consumption by over 40% compared to diesel powered equipment.
  • Implementation of the Company's proprietary IPT (In-Process Tailings) Carbonation process is anticipated to allow capture and storage of 1.5 million tonnes CO₂ annually during 27-year peak period, the bulk of which will be sold to third parties.
  • Anticipated net negative carbon footprint from carbon capture and storage capacity of 30 tonnes CO₂ / tonne of nickel after accounting for project footprint

Qualified Person 

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.

About Canada Nickel
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™, 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 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, CEO
Phone: 647-256-1954
Email: info@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 cobalt, palladium, platinum, iron and chromium 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. Sustaining and expansion capital are non-IFRS measures. Sustaining capital is defined as capital required to maintain operations at existing levels. Expansion capital is defined as capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations. Both measurements are used by management to assess the effectiveness of investment programs.

NSR (Net Smelter Return) includes gross revenues less refining costs. EBITDA is earnings before interest, taxes and depreciation, which comprise NSR less royalties and operating costs and for the purpose of the economic analysis assume all stripping costs following the initial construction period are expensed. Free cash flow represents operating cash flow less capital expenditures.

Cautionary Note and 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 potential of Crawford; potential size of carbon storage facilities and ability to be a net negative carbon footprint; mineral resource estimates and mineral reserve estimates; ability to realize on projected economic estimates, including EBITDA, NPV, IRR, all-in sustaining costs, free cash flow and C1 cash costs; scale, capital costs, operating costs and life of mine projections; potential to commercialize the IPT Carbonation process; timing of receipt of permits and commencement of construction and initial production; eligibility for Canadian federal refundable tax credits; the ability to sell marketable materials; strategic plans, including future exploration and development results; and corporate and technical objectives.  Forward-looking information is necessarily based upon several 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 because of new information, future events or otherwise, except as required by law.  Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

_____________________________

1	Source: Wood Mackenzie, Nickel Cost Service Q3 2023 data
2	Nickel equivalent using prices of $21,000/t Ni, $40,000/t Co, $1,350/oz Pd, $1,150/oz Pt, $325/t Fe (equivalent to $89/t iron    ore price) and $3,860/t Cr; metallurgical recoveries based on average of 41% Ni, 11% Co, 48% Pd, 22% Pt, 53% Fe, 28% Cr.

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SOURCE Canada Nickel Company Inc.

FAQ

What is the ticker symbol for Canada Nickel Company Inc.?

The ticker symbol for Canada Nickel Company Inc. is CNC.

Where is the Crawford Nickel Sulphide Project located?

The Crawford Nickel Sulphide Project is located in Timmins, Ontario, Canada.

What are the highlights of the Bankable Feasibility Study for Crawford Nickel Sulphide Project?

The highlights include robust economics, large initial mineral reserves, large scale, low cost, long-life production, significant improvement in recoveries, significant earnings and free cash flow generation, and minimization of carbon footprint.

Who prepared the Bankable Feasibility Study for Crawford Nickel Sulphide Project?

The BFS was independently prepared by Ausenco Engineering Canada Inc.

What is the projected annual EBITDA for the Crawford Nickel Sulphide Project?

The projected annual EBITDA is $810 million over the peak period and $667 million over the project life.

What is the net life-of-mine C1 cash cost of nickel for the Crawford Nickel Sulphide Project?

The net life-of-mine C1 cash cost of nickel is $0.39/lb.

How much is the projected revenue for the Crawford Nickel Sulphide Project?

The projected revenue exceeds $48 billion over the project life.

What is the carbon footprint of the Crawford Nickel Sulphide Project?

The project has a minimal carbon footprint of 4.8 tonnes CO2/ tonne of nickel in concentrate.