Highlights
- Carbon capture test work
confirms ability to store one million tonnes of carbon
annually
- Crawford Project has potential to achieve 7% of Canada's 15 megatonne carbon removal
goal
- Canada Nickel has received approaches from several large
multinational companies seeking carbon storage solutions
TORONTO, June 8, 2023
/CNW/ - Canada Nickel Company Inc. ("Canada Nickel" or the
"Company") (TSXV: CNC) (OTCQX: CNIKF) today announced that test
work for its novel carbon storage process, In-Process Tailings
("IPT") Carbonation, is demonstrating results that are
significantly above expectations.
The Company also announced that its Integrated Feasibility Study
("IFS") is expected to be released in September, following the
completion of final engineering design for IPT Carbonation. All
other engineering work for the Crawford feasibility study has been
successfully completed.
Mark Selby, CEO of Canada Nickel,
said, "We believe the IPT Carbonation process has transformative
potential for the Company. Our test work demonstrates the ability
to efficiently store one million tonnes of CO2 annually
when the project is fully ramped up utilizing a process plant
design of only 6.5 hours of residence time versus an initial design
target of 12-24 hours. These results can help contribute to
delivering this solution at relatively low capital and operating
costs."
Canada Nickel's Crawford Project is hosted in ultramafic rock,
which naturally absorbs and sequesters CO2. Canada
Nickel has developed the novel IPT Carbonation process which
involves injecting a concentrated source of CO2 into
tailings generated by the milling process for a brief period of
time. This simple process captures CO2 geologically in
the tailings while they are still in the processing circuit, rather
than after they have been finally deposited.
"Crawford is poised to be a leader in the energy transition
through the large-scale production of critical minerals, including
nickel and cobalt, and to become the sole North American producer
of chromium, while also supporting Canada's climate objectives through large
scale carbon capture and storage and providing an anchor for a Zero
Carbon Industrial Cluster in the Timmins-Cochrane region," Selby added.
Access to the required testing facilities for pilot scale tests
to confirm the engineering design for IPT Carbonation has been
delayed to this summer and as a result, the integrated feasibility
study for the project is now expected to be delivered in
September 2023. This delay has
no impact on the overall timeline to production as the Company
continues to target receipt of permits by mid-2025 with
construction to follow. Permitting remains on-track and good
progress is being made through the second stage of the federal
permitting process.
"We are very pleased to reach successful completion of the
remainder of the engineering for the Crawford project. Our
decision to incorporate our IPT Carbonation into an integrated
feasibility study has been validated by the multiple approaches
we've received from multinationals pursuing comprehensive carbon
solutions. I am very proud of our team that is taking our IPT
Carbonation process from breakthrough to a feasibility study
engineered design in just 14 months."
The Company believes that the successful incorporation of IPT
Carbonation could potentially allow a portion of the Company's
project capital expenditures to become eligible for the carbon
capture and storage refundable investment tax credits of 37.5% to
60% for years 2022-2030 and 18.75% to 30% for years 2031-2040, as
announced in the 2022 federal budget. The interest received from
multiple large multinational companies pursuing carbon storage
solutions further supports the Company's belief that the mineral
sequestration utilized by the Company may be considered an
effective carbon storage approach that would meet Environment and
Climate Change Canada requirements.
"Canada Nickel has generated significant momentum in 2023 with
the strategic investment by Anglo
American, our successful completion of the first phase of
federal permitting for Crawford, our appointment of Cutfield
Freeman & Co. to support the debt portion of our project
financing team alongside our equity advisors, Scotiabank and
Deutsche Bank, and our ongoing success in our regional exploration
program. We expect this momentum to continue through the rest
of the year with the completion of the integrated feasibility
study, our initial resource estimate and Preliminary Economic
Analysis for potential near-term production at our Texmont Project,
and advancing both the permitting and financing to allow a
construction decision to be made for Crawford by mid-2025, when
permits are expected to be received," said Selby.
IPT Carbonation Test
Work
In the current phase of test work, Canada Nickel has conducted a
series of variability tests to establish the IPT Carbonation
Process engineering design criteria and develop predictive
CO2 storage models. The results have exceeded
expectations. Testing was done on samples based on their brucite
content as well as their location within the deposit with a bias
towards material that is expected to be processed in the initial
project phases. The results received to date have confirmed the
ability to store more than one million tonnes of CO2 per
year.
Qualified Person and Data
Verification
Arthur G. Stokreef, P.Eng (ON),
Manager of Process Engineering & Geometallurgy 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-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
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, drill and exploration results relating to
the target properties described herein (the "Properties"), the
potential of the Crawford Nickel Sulphide Project, the Texmont
Project and the other Properties, timing of economic studies and
mineral resource estimates, 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.
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SOURCE Canada Nickel Company Inc.