VANCOUVER, BC, May 3, 2023
/CNW/ - FPX Nickel Corp. (TSXV: FPX) (OTCQB: FPOCF) ("FPX"
or the "Company") is pleased to present results from a
recently completed metallurgical testwork program which confirms
that the Baptiste nickel resource has been comprehensively modelled
for magnetic recovery across all mine phases, thereby achieving a
high degree of confidence for projected magnetic separation
recoveries across the entire mine life. The testwork utilized
representative samples from all production phases of the planned
Baptiste Nickel Project ("Baptiste") mine plan and was
conducted using the process flowsheet and design criteria from the
in-progress Baptiste preliminary feasibility study ("PFS").
Testwork results clearly demonstrate the Davis Tube Recovery
("DTR") assaying procedure is an excellent proxy for
magnetic nickel recovery for Baptiste material, and that the
Baptiste resource is very consistent in terms of magnetic nickel
recovery, therefore providing heightened confidence in the
estimated metal production profile and resultant cash flow across
the entire mine life.
Highlights
- Metallurgical testwork clearly demonstrated consistent magnetic
separation nickel recoveries across all phases of the Baptiste mine
plan
- DTR nickel values are strongly correlated to expected magnetic
separation nickel recoveries, validating the DTR nickel procedure
as a geometallurgical screening tool for the Baptiste resource
estimate
- Variability testwork results complete the metallurgical
testwork database for the concentrator portion of the Baptiste PFS,
with subsequent news releases on hydrometallurgical testwork
results and the final PFS recovery basis to follow in the second
quarter of 2023
"We are very pleased with the results from our PFS variability
testwork program, which have demonstrated near constant magnetic
nickel recovery during the entire Baptiste mine life," commented
Andrew Osterloh, FPX Nickel's Senior
Vice-President, Projects & Operations. "The results
confirm that the Baptiste resource estimate's geometallurgical
basis, founded on DTR nickel, effectively eliminates geological
variability, heightening confidence in the metal production profile
and resultant cash flow in the Baptiste PFS mine plan. As we wrap
up our robust PFS metallurgical testwork campaign, the team is now
fully focused on advancing a mature PFS configuration, with the
overall effort remaining on track for completion in September 2023."
Background
The Baptiste mineral resource estimate (see the Company's
November 14, 2022 news release) is
based on a dataset where every interval of mineralized core has
been assayed for DTR nickel and total nickel, along with a suite of
other elements. DTR nickel analyses measure only the magnetically
recoverable nickel which is hosted in medium- to coarse-grained
awaruite (nickel-iron alloy), whereas "total nickel" analyses
measure both magnetically and non-magnetically recoverable nickel,
the latter being nickel hosted in fine-grained awaruite or nickel
sulphide minerals. The DTR method is the global industry-standard
geometallurgical test for magnetic recovery operations and
exploration projects.
With the reporting of the Baptiste resource in DTR nickel, the
Company is presenting a project basis which has been screened for
any mineralogical variability present at Baptiste which could
influence magnetic separation recovery. An analogy for such a
geometallurgical screened model would be an acid-soluble copper
resource basis in a copper oxide deposit. Presenting the Baptiste
resource in this manner provides heightened confidence in the
estimated metal production profile and resultant cash flow across
the entire Baptiste mine life.
On completion of pilot-scale demonstration of the Baptiste
metallurgical flowsheet in January
2023 (see FPX's January 24,
2023 news release), the Company undertook an additional
testwork program with two key objectives, being (1) to identify any
geological variability in magnetic nickel recovery through the
planned Baptiste mine production phases; and (2) to demonstrate
that the DTR procedure is a proxy for magnetic nickel recovery for
Baptiste material.
Testwork Program
The Company re-engaged Corem (Quebec
City, Quebec), who previously executed bench- and
pilot-scale testwork for Baptiste, to conduct the variability
testwork. Testing involved a series of composites representing all
major phases of the planned mining operation. The grade of the
tested composites were well aligned with the PFS mine plan, which
predicts annual average grades ranging between 0.11-0.15% DTR
nickel (and 0.21 to 0.22% total nickel) over a 30-year mine
life.
A standard variability testwork ("SVT") protocol was
developed to evaluate both the primary and cleaner magnetic
separation stages using the optimum process flowsheet and design
criteria as defined in FPX's testwork database. These parameters
also form the basis of the current PFS process plant design,
including a primary grind size of 250 microns (P80), a
final regrind size of 18 microns (P80), and magnetic
separation using continuously operated low-intensity magnetic
separators ("LIMS"). The SVT tests 20-kilogram samples to
ensure sufficient primary magnetic separation concentrate is
available to accurately test cleaner magnetic separation
performance. Table 1 presents key results from the
variability testwork program.
Table 1 – Variability Testwork Results
|
Head
Grade,
% DTR
Ni
|
Primary
Mag
Sep
DTR Nickel
Recovery1
|
Cleaner
Mag
Sep
DTR Nickel
Recovery
|
Overall
Mag
Sep
DTR Nickel
Recovery2
|
PEA Mine Phase
1A-D
PEA Mine Phase
1C/D
PEA Mine Phase
1E
PEA Mine Phase
2ABC (NE)
PEA Mine Phase
2ABC (NW)
|
0.157
0.125
0.141
0.109
0.128
|
92%
93%
93%
93%
93%
|
99%
99%
100%
98%
99%
|
91%
92%
93%
92%
92%
|
Notes:
|
1.
|
Bench-scale DTR nickel
recovery; does not include any consideration for preferential
grinding as witnessed during pilot-scale testing
|
2.
|
Total magnetic
separation recovery may not be the direct product of primary and
cleaner recovery due to rounding
|
As seen in Table 1, the variability testwork program
demonstrated near constant DTR nickel recovery in magnetic
separation testwork over the range of head grades expected in the
Baptiste mine plan. This clearly demonstrates that nickel recovered
using the DTR nickel analytical method directly correlates to
nickel recovered in the SVT procedure. This relationship confirms
that the DTR method is an excellent proxy for expected magnetic
nickel recovery from the Baptiste deposit, validating the Baptiste
mineral resource estimate as a comprehensively geometallurgically
screened model. Using DTR nickel results as the basis for the
Baptiste resource, instead of total nickel values, effectively
incorporates expected magnetic separation performance and heightens
confidence in Baptiste's metal production profile during the entire
mine life.
As footnoted in Table 1, as the SVT procedure is conducted on
batch ground material, there is no consideration included for the
preferential grinding benefit witnessed during pilot-scale testing
(see the Company's January 24, 2023
news release). The difference between SVT results (92-93% DTR
nickel recovery in the primary stage) and pilot-plant results (94%
DTR nickel recovery in the primary stage) is consistent with the
estimated preferential grinding benefit at the primary grind size
selected for the PFS (P80 of 250 microns).
Combined with the previously reported pilot-scale magnetic
separation and results from the extensive flotation program on a
representative life-of-mine composite, the variability testwork
results complete the metallurgical testwork database for the
concentrator portion of the Baptiste PFS. Later in the second
quarter of 2023, following completion of the PFS process design,
the Company plans to issue another news release summarizing the
final recovery basis for Baptiste based on the PFS concentrator
design. Testwork on the hydrometallurgical refinery for the
production of cobalt mixed hydroxide precipitate ("MHP") and
battery-grade nickel sulphate is nearing completion and results are
forecast for release in the first half of May 2023.
Qualified Person
The metallurgical information in this news release has been
prepared in accordance with Canadian regulatory requirements set
out in National Instrument 43-101 Standards of Disclosures for
Minerals Projects of the Canadian Securities Administrators ("NI
43-101") and supervised, reviewed, and verified by Jeffrey B. Austin, P.Eng., President of
International Metallurgical and Environmental Inc., a "Qualified
Person" as defined by NI 43-101 and the person who oversees
metallurgical developments for FPX Nickel.
About the Decar Nickel
District
The Company's Decar Nickel District represents a large-scale
greenfield discovery of nickel mineralization in the form of a
naturally occurring nickel-iron alloy called awaruite
(Ni3Fe) hosted in an ultramafic/ophiolite complex. FPX's
mineral claims cover an area of 245 km2 west of the
Middle River and north of Trembleur Lake, in central British Columbia. Awaruite mineralization has
been identified in several target areas within the ophiolite
complex including the Baptiste Deposit and the Van Target, as
confirmed by drilling, petrographic examination, electron probe
analyses and outcrop sampling. Since 2010, approximately US
$28 million has been spent on the
exploration and development of Decar.
Of the four targets in the Decar Nickel District, the Baptiste
Deposit has been the focus of increasing resource definition (a
total of 99 holes and 33,700 m of
drilling completed), as well as environmental and engineering
studies to evaluate its potential as a bulk-tonnage open pit mining
project. The Baptiste Deposit is located within the Baptiste Creek
watershed, on the traditional and unceded territory of Tl'azt'en
Nation and Binche Whut'en First Nation, and within several
Tl'azt'enne and Binche Whut'enne keyohs. FPX has conducted mineral
exploration activities to date subject to the conditions of our
agreements with the Nations and keyoh holders.
About FPX Nickel Corp.
FPX Nickel Corp. is focused on the exploration and development
of the Decar Nickel District, located in central British Columbia, and other occurrences of the
same unique style of naturally occurring nickel-iron alloy
mineralization known as awaruite. For more information,
please view the Company's website at www.fpxnickel.com or
contact Martin Turenne, President
and CEO, at (604) 681-8600 or ceo@fpxnickel.com.
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and
Director
Forward-Looking
Statements
Certain of the statements made and information contained
herein is considered "forward-looking information" within the
meaning of applicable Canadian securities laws. These statements
address future events and conditions and so involve inherent risks
and uncertainties, as disclosed in the Company's periodic filings
with Canadian securities regulators. Actual results could differ
from those currently projected. The Company does not assume the
obligation to update any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
SOURCE FPX Nickel Corp.