VANCOUVER, BC, July 27,
2022 /CNW/ - FPX Nickel Corp. (TSX-V: FPX) (OTCQB:
FPOCF) ("FPX" or the "Company") is pleased to
present key results from Phase 2 and initial results from Phase 3
of an ongoing three-phase metallurgical test program to support the
continued development of the Company's Baptiste Nickel Project
("Baptiste" or the "Project") at the Decar Nickel District in
central British Columbia. This
release builds on results of Phase 1 metallurgical testing as
released on December 8, 2021. The
overall metallurgical test program is aimed at validating and
optimizing the flowsheet parameters outlined in the Project's 2020
Preliminary Economic Assessment ("PEA"), and to support the
development of the next phase of study.
Highlights
- Mineralogy: Extensive mineralogy work confirms the
benefit in using Davis Tube Recoverable ("DTR") assay method
as both a resource basis and geometallurgical tool, thereby
increasing confidence in the life-of-mine nickel grade profile and
recovery projections for Baptiste
- Flotation: Bench-scale flotation testwork
significantly improves the Company's understanding of awaruite
flotation, including:
-
- Confirming the ability to consistently produce very high-grade
flotation concentrates of greater than 60% nickel
- Indicating the potential for an alternative flotation regime
which can produce excellent metallurgical performance while
reducing flotation operating costs and complexity
- Overall Recovery: Bench-scale and pilot-scale testing
confirms overall metallurgical performance aligned with the 85% DTR
nickel recovery assumed in the 2020 PEA, driven by:
-
- Achieving bench-scale flotation stage nickel recoveries of up
to 91% in batch testing and 87% in locked cycle testing
- Confirming pilot-scale grinding results in preferential
grinding of dense awaruite particles, leading to primary magnetic
separation recovery improvements of approximately 5%
"The strong results of our ongoing three-phase metallurgical
testwork program continue to demonstrate the technical viability of
the Baptiste Nickel Project," commented Andrew Osterloh, FPX Nickel's Vice-President,
Projects. "Our team continues to build a robust database that not
only validates key PEA criteria, but also demonstrates that
Baptiste's DTR-based resource provides heightened confidence in the
Project's life-of-mine grade and recovery projections. Testwork is
demonstrating that the advantages of Baptiste's minerology are not
only centred on the production of very high-grade concentrates, but
also on the potential to use a simple flowsheet with conventional
unit operations, underpinned with improved production
confidence."
Phase 2 Metallurgical Testwork
Campaign
The Company has completed approximately 70% of a three-phase
metallurgical test program aimed at validating and optimizing the
flowsheet parameters outlined in the PEA and to support continued
development of the Project. Phase 2 of the program had the
following key objectives:
- Confirm the mineralogy and speciation of nickel for the
Baptiste resource
- Confirm the ability to produce a high-grade nickel concentrate
by froth flotation
- Confirm flotation stage recovery criteria
- Evaluate an alternative flotation regime to reduce acid
requirements
Figure 1 shows the Baptiste nickel recovery flowsheet as
presented in the PEA. Highlighted within this figure are the unit
operations which are the focus of each respective testwork
phase.
Phase 2 of the metallurgical testwork campaign was overseen by
Jeffrey B. Austin, P.Eng., President
of International Metallurgical and Environmental Inc. Table 1
presents a summary of the Phase 2 testwork program, including
general scope assignment by laboratory.
Table 1 – Phase 2 Metallurgical Test Program Scope
Assignments
Lab
|
Scope
|
ALS
Metallurgy
Kamloops, BC
|
Mineralogy variability
testwork
|
SGS Mineral
Services
Burnaby, BC
|
Bench-scale flotation
testwork
|
Mineralogy Variability
Testwork
The objective of the mineralogy variability testwork was to
improve the understanding of nickel speciation at Baptiste and to
provide insight into the relationship between awaruite grain size
and DTR nickel. Detailed mineralogy was conducted on six mine phase
composites samples representing the 35-year mine life envisioned in
the PEA, as well as other composites from key historical testwork
campaigns.
A key outcome of the testwork was finding that nickel
mineralization at Baptiste is present only as awaruite
(Ni3Fe) or nickel sulphide minerals. This supersedes a
historic understanding that indicated approximately 10% of nickel
was present as solid solution within silicates. The more detailed
mineralogical work involved more exhaustive scanning microprobe
analysis using QEMSCAN tools and longer scanning durations,
confirming that previously reported solid solution nickel is
actually very fine awaruite contained within a silicate matrix.
The mineralogical analysis indicated that awaruite accounts for
85-92% of total nickel content across the six mine phase composite
samples. The balance of the nickel mineralization (8-15%) occurs as
nickel sulphide minerals, most notably heazlewoodite and
pentlandite. This confirms that awaruite is the dominant nickel
mineralization across the Baptiste deposit, and that this mineral
occurrence is relatively homogenous across all mine phases. The
high content of awaruite, and the processing advantages associated
with this style of mineralization, is the result of the virtual
lack of sulphur in the host rock at the time of alteration.
Assay analysis of the composites indicated a range of 0.20-0.25%
total nickel, with 50-70% of the total nickel reporting as DTR
nickel. Comparing these assay results with the mineralogical
results indicated the difference between DTR nickel (50-70% of
total nickel) and awaruite speciation (85-92% of total nickel)
correlates strongly with the percentage of very fine awaruite (less
than 5 microns). This result was expected as the DTR test is
essentially a metallurgical test to identify the proportion of
awaruite of sufficient grain-size to be collected by magnetic
separation.
The strong correlation between DTR nickel and awaruite grain
size is shown in Figure 2. It is noteworthy that the PEA's starter
pit ("PEA Testwork" and "Mine Phase 1AB" datapoints) has the lowest
proportion of fine awaruite within the resource, which aligns with
the higher DTR nickel grades during the early years of operation.
This provides confidence in the selection of the Baptiste starter
pit location, which provides increased nickel production in the
early years of operation due to the generally coarser, more readily
recoverable awaruite.
![Figure 2: Relationship of DTR Nickel and Awaruite Grain Size (CNW Group/FPX Nickel Corp.) Figure 2: Relationship of DTR Nickel and Awaruite Grain Size (CNW Group/FPX Nickel Corp.)](https://mma.prnewswire.com/media/1866825/Fig_2.jpg)
In addition to improving the understanding of the Baptiste
mineralogy, these results also demonstrate the value of using the
DTR assay method as a geometallurgical tool. Very fine awaruite and
nickel sulphides are not captured in the DTR test, nor are they
currently targeted for recovery in the PEA flowsheet (though both
represent future recovery opportunities). This finding helps
validate that the DTR nickel grade filters a significant portion of
metallurgical variability from the Baptiste resource. As such,
projected metallurgical recoveries on a DTR nickel basis will be
significantly less variable than recoveries on a total nickel
basis, thereby increasing the confidence in the basis of the
Baptiste resource and the associated recovery projections.
Bench-Scale Flotation
Testwork
As reported in the summary of the Phase 1 metallurgy testwork
campaign (see the Company's December 8,
2021 news release), magnetic concentrate (principally
containing awaruite and magnetite) was produced from pilot testing
material approximately representative of the Baptiste resource.
This pilot plant utilized closed circuit grinding with cyclone
classification which, as planned, resulted in preferential grinding
of the dense awaruite particles. While this preferential grinding
tangibly lowered magnetic separation tailings grades, it also
resulted in the significant hold-up of awaruite within the grinding
circuit, resulting in a lower-than-expected flotation feed grade
(2.2% observed versus 2.6-2.7% expected).
Batch and locked-cycle flotation testwork has demonstrated the
ability to produce high-grade flotation concentrates, routinely
exceeding 60% nickel, with select tests achieving grades of up to
68% nickel, despite the lower flotation feed grade. These
high-grade concentrates are possible due to high nickel tenor in
awaruite (Ni3Fe).
Metallurgical recoveries in optimized open circuit roughing
tests yielded nickel recoveries of up to 91%, while locked cycle
testing yielded nickel recoveries of 87% to the cleaner concentrate
with nickel concentrate grades ranging from 60 to 66%. Flotation
conditions were largely comparable to historic metallurgical
testwork, validating the PEA flotation conditions.
While recovery values are less than the PEA flotation stage
recovery criteria of 94%, the current SGS flotation results were
impacted by the lower feed grade owing to the hold-up of nickel in
the pilot plant grinding circuit. As comparable flotation tailings
grades were observed across the current and historic flotation
programs, and previous testwork indicated that coarse, liberated
awaruite is readily recoverable in flotation, it is anticipated
recovery estimates would increase if the flotation feed material
was more representative.
In addition to affirming the PEA flotation reagent regime, Phase
2 testing included an alternative flotation regime targeting higher
flotation slurry pH conditions, therefore requiring reduced acid
addition rates. Optimized bench tests under the alternative
flotation regime showed positive results with near identical
recoveries and concentrate grades, but with a 25% decrease in acid
consumption, thereby indicating a potential for reducing flotation
operating costs versus the 2020 PEA.
Given the results described above, the scope and duration of
Phase 2 testwork has been extended to pursue opportunities to
further improve the flotation regime and overall results; results
of this expanded portion of the Phase 2 testwork program are
anticipated in the fourth quarter of 2022.
Phase 3 – Initial Results from
Large-Scale Pilot-Scale Testwork
Building on the results of Phase 1 piloting, Phase 3 of the
metallurgical testwork campaign includes larger-scale pilot
processing, with the intent to both optimize the PEA flowsheet and
to produce a significant quantity of high-grade awaruite
concentrate for hydrometallurgical testwork. The pilot testwork is
being conducted at Corem in Quebec
City. Progress to date includes bench- and pilot-scale
testing of the primary grind/magnetic separation and
regrind/magnetic separation unit operations. Key initial findings
of Phase 3 pilot testing are presented below, and the full results
are expected to be released in the fourth quarter of 2022.
As noted above and previously released by the Company, the
initial pilot-scale testing in Phase 1 indicated potential DTR
nickel recoveries up to 5% higher than those observed in previous
bench-scale testing, owing to the preferential grinding of the
deposit's dense awaruite nickel mineralization using cyclone
classification. However, due to the feed rate and duration of this
Phase 1 initial piloting, substantial hold-up of nickel (estimated
20-40%) was witnessed within the grinding circuit. As such, this
led the Company to undertake larger-scale piloting, utilizing
higher feed rates and longer operating duration in order to reach
steady state operation.
The Phase 3 primary grind and magnetic separation campaign
processed a total of 16 tonnes of feed material over a cumulative
duration of 80 hours (as compared to Phase 1 piloting which
processed 3.6 tonnes over a cumulative duration of 23 hours).
Similar to Phase 1 piloting, Phase 3 piloting saw significant
hold-up of dense awaruite, and it took an estimated 11 tonnes of
material over a cumulative period of 54 hours to reach steady state
operation, indicated by equivalent DTR nickel grades in the fresh
mill feed and the cyclone overflow.
At steady state, the DTR nickel recirculating load was
approximately 700%, compared to the overall mill recirculating load
of 300%. Once steady-state conditions were reached, a clear
preferential grinding benefit of dense awaruite particles in closed
circuit grinding was observed with a 5% DTR nickel recovery
increase relative to open circuit grinding on the same sample.
Consistent with the results of the Phase 1 program, these new
results continue to indicate the potential to achieve nickel
recoveries up to 5% higher than the 90% DTR nickel primary magnetic
separation stage recovery assumed in the 2020 PEA. Better
liberation seen in the pilot plant work, due to cyclone
classification, is also contributing to a reduction in the mass
recovery during magnetic separation at comparable or better nickel
recoveries.
As a further optimization opportunity, additional pilot plant
trials with modestly increased magnetic separation field strength
demonstrated that a further 1-4% nickel recovery could be realized
with a relatively low increase in mass recovery. Further testing
and evaluation of varying magnetic intensities is planned during
the remainder of the Phase 3 program. Complete results will be
presented when the pilot campaign is complete.
In addition to the results described above, remaining aspects of
the Phase 3 testwork program include the following:
- Completing pilot testing, from primary grind and magnetic
separation through to flotation
- Conducting suitable variability testwork, to confirm the
homogeneity of the Baptiste resource and further validate the
process design criteria and design factors
- Demonstrating a robust and efficient integration into the
battery material supply chain by optimizing previous leach testwork
and conducting solvent extraction and nickel sulphate
(NiSO4) crystallization testwork
- Evaluating the potential for producing a saleable iron ore
product, which represents a potential new product stream which was
not included in the 2020 PEA
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 claims cover 245
km2 of the Mount Sidney Williams ultramafic/ophiolite
complex, 90 km northwest of Fort St.
James in central British
Columbia. The district is a two-hour drive from Fort St. James on a high-speed logging
road.
Decar hosts a greenfield discovery of nickel mineralization in
the form of a naturally occurring nickel-iron alloy called awaruite
(Ni3Fe), which is amenable to bulk-tonnage, open-pit
mining. Awaruite mineralization has been identified in four target
areas within this ophiolite complex, being the Baptiste Deposit,
and the B, Sid and Van targets, as confirmed by drilling,
petrographic examination, electron probe analyses and outcrop
sampling on all four targets. 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, which was initially the most accessible and had the
biggest known surface footprint, has been the focus of diamond
drilling since 2010, with a total of 99 holes and 33,700 m of drilling completed. The Sid target
was tested with two holes in 2010 and the B target had a single
hole drilled in 2011; all three holes intersected nickel-iron alloy
mineralization over wide intervals with DTR nickel grades
comparable to the Baptiste Deposit. In 2021, the Company executed a
maiden drilling program at Van, which has returned promising
results comparable with the strongest results at Baptiste.
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.