Highlights:
- Initial lab scale testing demonstrates that Crawford
tailings have the potential to capture 17.5 kg CO2 per
tonne of tailings - more than 3 times the amount required to offset
the Project's projected carbon footprint. Any amounts in excess of
projected 4.6 kg CO2 per tonne could be sold for carbon
credits.
TORONTO, Nov. 10, 2021 /CNW/ - Canada Nickel Company
Inc. ("Canada Nickel" or the "Company")
(TSXV: CNC)(OTCQX: CNIKF) is pleased to report the results of the
first phase laboratory scale testing, which demonstrates the
potential for carbon sequestration in tailings at its Crawford
Nickel-Sulphide Project ("Crawford" or the "Project") near
Timmins, Ontario.
The laboratory tests were conducted by researchers from Kingston
Process Metallurgy and Queen's University and demonstrate that the
project tailings naturally sequester CO2 into a
mineralized form, which industry research has demonstrated is
permanent. This is a critical foundation of Canada Nickel's NetZero
initiative to become the first zero carbon nickel operation. Canada
Nickel's wholly-owned Net Zero Metals subsidiary has successfully
applied and registered trademarks in various jurisdictions for
NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™ in
expectation that the Company believes it can be successful in
achieving its zero carbon initiatives.
Mark Selby, Chair and CEO of
Canada Nickel commented, "Today's announcement is a critical
demonstration that our tailings have the fundamental capacity to
capture CO2 in amounts that exceed what we believe will
be required to achieve net zero carbon production for our
concentrates. Any CO2 sequestration in excess of the 4.6
kg per tonne of tailings level would be potentially available for
sale as carbon credits. Work is underway on a series of
larger scale tests aimed at demonstrating that Crawford tailings
can be exposed to enough CO2 for a sufficient time
period to achieve the sequestrations levels that were achieved at a
lab scale. We look forward to seeing the results over the
coming year."
What is mineral carbonation
The tailings and waste
rock produced from the Company's Crawford Nickel-Sulphide Project
are anticipated to spontaneously and permanently capture
CO2 when exposed to the atmosphere. Canada Nickel is
developing processes to optimize the carbon capture potential of
the Project to offset project emissions and work towards developing
a potentially carbon negative nickel mining operation in
Timmins, Ontario.
The key minerals that are responsible for this spontaneous
reaction at Crawford are serpentine, olivine and brucite, which
make up more than 80% of the resource material at Crawford. Brucite
is the most reactive mineral, with an average content of 1.9% in
Crawford based on 999 distinct QEMSCAN mineralogy analyses across
the Crawford Main and East Zones as reported in the Preliminary
Economic Assessment ("PEA") dated May 25,
2021. Based on the brucite concentration above, it is
estimated that only 31% of the brucite in Crawford needs to be
carbonated to offset all of the estimated emissions from the PEA to
make the operation carbon neutral.
Evidence of mineral carbonation can be seen on the surface of
drill core over time. Figure 1 shows drill core taken from Canada
Nickel's Crawford Project after one year of storage. The surface of
the drill core has turned white due to carbonation recations with
atmospheric CO2.
Figure 1. Canada Nickel Drill Core – October 2021 vs October
2020 Demonstrating Spontaneous CO2 Capture (white minerals
on surface are carbonated minerals)
Description of Current Results
Based on analysis by
Skarn Associates, Canada Nickel estimates a preliminary emission
intensity of 2.8 tonnes CO2 / tonne of Nickel equivalent
concentrate production using data from the Crawford PEA. In order
to offset all of the estimated Scope 1 and 2 emissions from the
proposed mine and mill, the Company estimates that a carbon capture
rate of 4.6 Kg CO2 per tonne of tailings produced is
required. Figure 2 shows that a sample of Crawford tailings are
surpassing this capture rate in the upper tailings layer after
approximately 14 days. At 112 days, the top layer has achieved
carbon capture of 17.5 kg CO2 per tonne of tailings and
the carbon capture rate of the entire column has nearly surpassed
the 4.6 kg CO2 per tonne threshold. This highlights the
carbon capture potential of the Crawford tailings, the potential
for the generation of carbon credits, as well as the importance of
tailings deposition for optimized mineral carbonation. The next
stage of test work will evaluate on a larger scale sample how much
of this potential can be realized.
Figure 2. Carbon Sequestration Potential of Crawford
Tailings
These results are the product of experimental work that was
completed at Queen's University to measure the effect of time and
tailings deposition depth on the progress of mineral carbonation
reactions using tailings produced from Canada Nickel's
metallurgical test program. Figure 3 outlines the experimental set
up that was used for this first set of tests, as well as the amount
of carbon captured for each layer of tailings within the column
with no active effort to accelerate the rate of mineral
carbonation.
This first column cell test, which was completed on a sample
with typical brucite concentration and with no active effort to
accelerate the reactions, show a maximum carbon sequestration rate
of 17.5 Kg CO2 /tonne of tailings in the upper 1 cm
layer of tailings, an average carbonation rate of 9.2 Kg
CO2 /tonne of tailings in the upper 4 centimetres of the
column and an average of 4.2 Kg CO2 /tonne of tailings
throughout the entire column after 112 days in laboratory setting.
Mineral carbonation reactions decrease with depth in the
experimental cell because there is less CO2 transported
to the mineral reaction site. Canada Nickel is developing
strategies to inject CO2 laden off-gases into the
tailings storage facility as well as other opportunities, to
increase the supply of CO2 to the mineral site and in
turn the carbon capture of the tailings.
Figure 3. Carbon Capture Rate according to depth in column
cell tests after 112 days
Description of Current Test Program
Canada Nickel is
working with Kingston Process Metallurgy and Queen's University to
optimize the carbon sequestration potential of waste rock and
tailings that will be potentially produced from Crawford. Our
approach to optimizing the mineral carbonation potential of the
project is to complete techno-economic evaluations of various
strategies to accelerate mineral carbonation and pursue the options
that are thought to be viable from a capital and operating cost
perspective at current carbon prices. Our integrated
academic-industrial team has identified a number of opportunities
to accelerate the mineral carbonation reactions which will be
tested in two stages of pilot studies starting in 2022.
In addition to the experimental work that is being completed,
Canada Nickel is conducting an aggressive mineralogy program to map
out the key economic minerals of the deposit and understand the
areas of the deposit that have the highest potential for carbon
sequestration. To date, more than 1500 distinct samples have been
characterized mineralogically across the breadth of Crawford. The
mineralogy results will eventually be incorporated into the block
model so that the carbon sequestration potential of extracted
material can be incorporated into the mine schedule.
Description of Future Test Program
Canada Nickel is
planning two larger scale pilot tests to continue to evaluate the
carbon sequestration potential of tailings produced from the
company's metallurgical test program, as well as to test various
strategies for accelerated mineral carbonation. Pilot scale testing
will be completed in two phases starting in the first quarter of
2022, with a tote test loaded with 1-tonne of tailings and then
followed by an approximately 25 tonne test starting in the second
half of 2022, which will be completed in a dynamic, outdoor
environment in Timmins, Ontario
near to the project site. Canada Nickel has already started the
design of the 1-tonne tote test and has produced the tailings
required for this. The 25-tonne pilot test will require a mineral
processing pilot plant to generate the tailings which provides the
additional opportunity to demonstrate the metallurgical flowsheet
at scale and generate bulk concentrate for testing in flowsheet
development efforts aimed at the downstream processes. The larger
scale pilot test is being planned for the second half of 2022.
Cautionary Statement
The test results described herein are preliminary in nature and may
not be representative of conditions or results in an operating
environment, particularly as it pertains to the representativeness
of mineralization, moisture content, changes in weather conditions,
process water chemistry and tailings emplacement configuration,
including the rate at which tailings are covered with fresh
material, among other parameters. There is no certainty that the
results reported herein will be realized in an operating
environment. Further studies are recommended to expand the scale of
testing to better understand the potential for carbon sequestration
to be realized in an operating environment.
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 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.