VANCOUVER, BC, Sept. 16,
2024 /CNW/ - FPX Nickel Corp. (TSXV: FPX) (OTCQB:
FPOCF) ("FPX Nickel" or the "Company") is
pleased to provide an update on value engineering ("Value
Engineering") studies that have substantially improved the
operating margin and reduced the risk profile for an awaruite
concentrate refinery to produce battery-grade nickel sulphate.
Building on this improved business case and incorporating results
from the ongoing pilot-scale hydrometallurgical testwork program,
FPX has commenced the development of a standalone refinery study
which will be completed in the first quarter of 2025.
Highlights
- Value engineering studies highlight the strategic opportunity
for FPX Nickel to develop North
America's largest battery metals refinery, with the capacity
to produce 32,000 tonnes of nickel in nickel sulphate per year,
enough to build about 450,000 electric vehicles annually
- Building on previous engineering work outlined in the 2023
Baptiste Nickel Project ("Baptiste") preliminary feasibility
study, optimization of the purification flowsheet has substantially
improved the refinery operating margin while reducing waste
handling and disposal risk
- Pilot-scale testwork of the refinery flowsheet, with
funding support from the Government of Canada, is well progressed and results will be
reported in October 2024
- FPX has commenced a standalone scoping study for the battery
metals refinery, which will include a detailed technical and
economic analysis, for publication in the first quarter of
2025
"Our refinery Value Engineering studies have substantially
improved the business case and reduced the risk profile for a
standalone refinery to convert awaruite concentrate into
battery-grade nickel sulphate," commented Andrew Osterloh, the Company's Senior Vice
President, Projects & Operations. "Awaruite presents an
unparalleled opportunity to significantly expand North America's battery material supply chain,
all without the need to either displace or add smelting capacity.
As we close-out our Value Engineering for Baptiste, we are excited
at the new value basis for our large-scale, long-life, high margin,
and low-carbon project."
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 a high-grade concentrate (60% nickel) for either direct
feed into the stainless steel industry (the "Base Case") or
for further refining into battery-grade nickel and cobalt 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 continues to strive towards
adding 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 (see the Company's July 10, 2024 news release)
- Mine planning and engineering (see the Company's July 30, 2024)
- Refinery planning (described herein)
Refinery Engineering Studies
To demonstrate Baptiste's strategic flexibility to also produce
nickel and cobalt for the battery material supply chain, the
Refinery Option in the 2023 PFS envisioned the development of a
standalone refinery to produce battery-grade nickel from awaruite
concentrate. Located in an urban setting in central British Columbia, the refinery would benefit
from the infrastructure, services, and labour which would be
available at an integrated battery material processing hub, such as
those being developed in eastern Canada and other locations worldwide.
Earlier this year, FPX commissioned a detailed technical review
of the 2023 PFS Refinery Option, and executed refinery Value
Engineering studies. No major risks were identified in the review
of the PFS Refinery Option, and several tangible opportunities were
highlighted for further evaluation during both the Value
Engineering and subsequent study stages.
Most notable of the identified near-term opportunities was the
refinery reagent scheme. The PFS Refinery Option assumed the
use of caustic (a.k.a. sodium hydroxide, NaOH) as the neutralizing
base, with caustic accounting for approximately 60% of the total
operating cost. The use of caustic generates sodium sulphate
(Na2SO4) as a byproduct, which is a low value
commodity, has limited industrial uses, and is projected to be in
significant over-supply as the battery material supply chain
further develops.
Following a review of all potential reagent schemes, an
ammonia-based flowsheet was selected as the best value for further
evaluation. The ammonia-based flowsheet is similar to the sodium
hydroxide flowsheet, except ammonia gas (or ammonium hydroxide when
dissolved in water) is the reagent used in the process plant in
solvent extraction operations. A similar flowsheet is used in
Terrafame's nickel sulphate refinery in Finland. See Figure 1 for a block flow diagram
of the new refinery flowsheet.
Modifying the refinery flowsheet to an ammonia-based reagent
scheme results in an immaterial increase to capital costs, but a
material decrease in operating costs (given the significantly lower
consumption rate for ammonia versus caustic). Additionally, the
waste product of sodium sulphate, for which zero value was
ascribed in the PFS Refinery Option, is now replaced by ammonium
sulphate, a valuable fertilizer product. In addition to generating
a significant new value source with a more stable future market
outlook, the production of ammonium sulphate eliminates the
previous waste handling/disposal risk associated with sodium
sulphate production. Overall, this change results in a significant
improvement to the operating margin and reduction in the project
risk profile.
Refinery Testwork with Funding Support from Natural Resources
Canada
The previously announced pilot-scale testwork of the refinery
flowsheet (see the Company's April 30,
2024 news release) is progressing well, with results
forecast for release to the market in October 2024. In addition to
pilot-scale testwork of the leaching circuit, batch-scale
testwork will be completed of the purification flowsheet up to
production of nickel sulphate.
The pilot testing campaign was funded in part by a $725,000 grant from Natural Resources Canada
("NRCan") under the Government of Canada's Critical Minerals Research,
Development and Demonstration ("CMRDD") program, which is
advancing the commercial readiness of processing technologies that
will support the development Canada's EV battery material supply chain.
Refinery Scoping Study
Incorporating results of the refinery Value Engineering and
testwork programs, FPX has commenced the preparation of a
standalone awaruite refinery scoping study. Considering current
off-take rights that have been granted to strategic investors, the
refinery will have a capacity of 32,000 tonnes per year of
contained nickel in battery-grade nickel sulphate. For the purposes
of this study, the refinery location will continue to consider an
urban location within central British
Columbia.
Along with the improved business case and reduced risk profile,
the standalone study will better present the strategic opportunity
to meaningfully increase North
America's battery material supply chain capacity without the
need to construct new smelting or complex primary refining
capacity. The scoping study, which will contain a detailed
evaluation of capital, operating costs and the overall economics of
the awaruite refinery, will be published in the first quarter of
2025.
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 territories, keyohs,
and consultative boundaries of the Tl'azt'en Nation, Binche
Whut'enne, Yekooche First Nation, and Takla
Nation.
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.
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and
Director
Email: ceo@fpxnickel.com
Phone: 604-681-8600
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.
