Canada Nickel Announces Carbon Storage Testing Results Better than Anticipated; Integrated Feasibility Study Expected in September
Canada Nickel Announces Carbon Storage Testing Results Better than Anticipated;
Integrated Feasibility Study Expected in September
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 – 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 pilo t scale tests to confirm the engineering design for IPT
Carbonation has been delayed to this summer and a s 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 incor poration 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% f or years 2022-2030 and 18.75% to 30% f or
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 th e 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 progra m. 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 CO 2 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: [email protected]
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 r isks, 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 bu siness, 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.