VANCOUVER, BC, July 10,
2024 /CNW/ - FPX Nickel Corp. (TSXV: FPX)
(OTCQB: FPOCF) ("FPX" or the "Company") is
pleased to provide an update on value engineering ("Value
Engineering") studies focused on the mineral processing and
infrastructure facilities for the Baptiste Nickel Project
("Baptiste" or "the Project") in central
British Columbia. The
mineral processing and infrastructure Value Engineering studies
have achieved significant value creation through facility
optimization, flowsheet refinement, enhanced operability, and
improvements to the project build strategy and execution basis.
Highlights
- Primary crushing: Changing from a gyratory-type primary
crusher to mineral sizers has reduced earthwork and structural
quantities, improved Phase 1 operability, and eliminated the need
for a second primary crushing circuit in Phase 2
- Concentrator expansion: A new integrated approach to the
Phase 2 expansion has reduced overall quantities, improved Phase 2
operability, and reduced the footprint of process and
infrastructure facilities
- Project phasing: The phased approach and throughput
rates in the preliminary feasibility study ("PFS") have been
validated, while acceleration of the Phase 2 expansion improves
Baptiste's metal production profile
- Execution schedule has been confirmed, further
validating the PFS's estimated three-year construction
duration
"Results from our mineral process and infrastructure Value
Engineering studies have added significant value to the Baptiste
Nickel Project," commented Andrew
Osterloh, the Company's Senior Vice President, Projects
& Operations. "By reducing quantities, improving
operating efficiency, and advancing the project execution plan, we
have enhanced Baptiste's potential as a long life, large-scale,
low-cost, and low-carbon producer of made-in-Canada nickel units. We look forward to
advancing additional engineering studies on the mining and refinery
aspects of the Project in advance of commencing a feasibility
study."
Background
The Baptiste 2023 preliminary feasibility study ("PFS")
demonstrates the potential to develop a high-margin and low-carbon
nickel mine producing an average of 59,100 tonnes per year of
nickel over a 29-year mine life (see the Company's September 6, 2023 news release). Due to
awaruite's properties, Baptiste has the unparalleled flexibility to
produce either a high-grade concentrate (60% nickel) for direct
feed into the stainless steel industry (the "Base Case") or
for further refining into battery-grade nickel, cobalt, and copper
products for the electric vehicle battery supply chain (the
"Refinery Option").
While the PFS presents robust economics, including a Base Case
after-tax NPV8% of US$2.01
Billion and after-tax IRR of 18.6% at US$8.75 /lb Ni, FPX strives to add further value
to Baptiste, focusing on a holistic blend of economics,
constructability, operability, risk and ESG considerations.
The key Value Engineering studies pursued by FPX in 2024
are:
- Mineral processing and infrastructure (described herein)
- Mine planning and engineering (to be completed in the third
quarter of 2024)
- Refinery planning (to be completed in the third quarter of
2024)
Mineral Processing & Infrastructure Value Engineering
Studies
FPX engaged Fluor Canada Ltd. ("Fluor") and Wood Canada
Ltd. ("Wood") to perform detailed reviews of the 2023 PFS
and to conduct mineral process and infrastructure Value Engineering
studies. The consultants identified three primary
opportunities to add further value, which are described in greater
detail hereunder:
- Primary crushing: application of mineral sizers
- Phase 2 concentrator expansion
- Project phasing
As described below, each of the mineral process and
infrastructure Value Engineering studies validated several key
tenets from the PFS and added significant project value through
reduced quantities, improved operability, reduced process operating
costs, and reduced process and infrastructure footprint.
Primary Crushing
The PFS considered a gyratory-type primary crusher. In
re-evaluating the Project's geotechnical and communication
datasets, the Company has identified an opportunity to use mineral
sizers for primary crushing. Taking advantage of the modest
compressive strength and fractured nature of the Baptiste ore,
mineral sizers have added significant value through reduced
earthwork and structural quantities, increased operating
availability, and the complete elimination of the second primary
crushing line for the planned mine expansion from an initial Phase
1 processing throughput of 108,000 tonnes per day ("tpd") to
162,000 tpd in Year 10 ("Phase 2").
Phase 2 Concentrator Expansion
The PFS considered the construction of a standalone processing
facility for the Phase 2 expansion from 108,000 tpd to 162,000 tpd.
A new approach to expansion is based on an integrated
concentrator approach which entails an expansion of the Phase 1
processing facility rather than the construction of a new
standalone facility for Phase 2. This integrated approach results
in a reduced process and infrastructure footprint, improved Phase 2
operability, and reduced Phase 2 work force requirements.
Project Phasing
A Value Engineering study re-evaluated the phased approach to
processing throughput and compared it with a series of single-build
scenarios ranging from 80,000 to 163,000 tpd. Following this
evaluation, the PFS's phased approach has been validated; however,
the Phase 2 expansion has been accelerated to Year 6 from Year 10.
This acceleration in metal production is expected to generate
improved economics versus the PFS, with the Phase 2 expansion
funded from operating free cash flow following the 3.7 year
after-tax payback demonstrated in the PFS.
Project Execution
Both Fluor and Wood were assigned further scope to review the
PFS's execution basis, including the permanent facility layout,
construction sequence, contracting approach, and overall execution
schedule. Note that Fluor and Wood jointly executed the detailed
engineering and construction management of the nearby Mt. Milligan
Mine, which was commissioned in 2013 and is located 80 km east of
Baptiste. Mt. Milligan is of comparable size and complexity to
Baptiste, which uniquely positions Fluor and Wood to provide
relevant context to the Baptiste project execution plan.
Through this additional execution planning effort, numerous
scheduling improvements to the PFS were identified, thereby
improving the constructability, operability, and maintainability of
Baptiste. In addition, increased focus on allowances for
temporary construction facilities has improved execution scope
assurance ahead of the environmental assessment and
permitting processes. Fundamentally, these robust execution
planning efforts further de-risk the Baptiste execution schedule,
including the PFS assumption of a three-year construction
period.
Andrew Osterloh, P.Eng., FPX
Nickel's Qualified Person under NI 43-101, has reviewed and
approved the technical content of this news release.
About the Decar Nickel District
The Company's Baptiste Nickel Project represents a large-scale
greenfield discovery of nickel mineralization in the form of a
sulphur-free, nickel-iron mineral called awaruite
(Ni3Fe) hosted in an ultramafic/ophiolite complex.
The Baptiste mineral claims cover an area of 408 km2
west of Middle River and north of
Trembleur Lake, in central British Columbia. In addition to
the Baptiste Deposit itself, awaruite mineralization has been
confirmed through drilling at several target areas within the same
claims package, most notably at the Van Target which is located 6
km to the north of the Baptiste Deposit. Since 2010,
approximately US $30 million has been
spent on the exploration and development of Baptiste.
The Baptiste Deposit is located within the Baptiste Creek
watershed, on the traditional territories of the Tl'azt'en Nation
and the Binche Whut'en, and within several Tl'azt'enne and Binche
Whut'enne keyohs. FPX has conducted mineral exploration activities
to date subject to the conditions of agreements with First 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 distinctive style of awaruite nickel-iron
mineralization. For more information, please view the
Company's website at https://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.
