Canada Nickel Files Bankable Feasibility Study For its Crawford Nickel Sulphide Project
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Canada Nickel Files Bankable Feasibility Study
For its Crawford Nickel Sulphide Project
TORONTO, November 24, 2023 - Canada Nickel Company Inc. ("Canada Nickel" or the “Company”) (TSXV:
CNC) (OTCQB: CNIKF), has filed a Bankable Feasibility Study ("BFS") for its wholly-owned Crawford Nickel
Sulphide Project ("Crawford") located in Timmins, Ontario, Canada. The BFS is available on
www.sedarplus.ca and on www.canadanickel.com. The BFS, titled, "Crawford Nickel Sulphide Project NI
43-101 Technical Report and Feasibility Study " was independently prepared by Ausenco Engineering
Canada Inc. (“Ausenco”), in accordance with National Instrument 43 -101 - Standards of Disclosure for
Mineral Projects (“NI 43-101”), as previously announced in a news release dated October 12, 2023.
Crawford, located in the Timmins nickel district, is the world’s second largest nickel reserve 1. Once in
production, it is also expected to become one of Canada’s largest carbon storage facilities and be a net
negative contributor of CO2 over the project life.
The previously announced highlights from the Crawford BFS are listed below (all amounts in US dollars,
unless otherwise indicated).
Crawford 2023 BFS Highlights
• Robust economics
o After-tax, $2.5 billion NPV8% and 17.1% IRR; increasing to $2.6 billion NPV8% and 18.3% IRR
with projected Carbon Capture and Storage tax credits.
• Large initial mineral reserve anchored by significantly larger mineral resource
o Proven & Probable reserves of 3.8 million tonnes contained nickel from 1.7 billion tonnes
ore grading 0.22% nickel make Crawford the world’s 2nd largest nickel reserve1. Reserves
are hosted in a Measured & Indicated resource which increased by 74% (compared to the
2022 resource estimate) to 6.0 million tonnes. With additional Inferred mineral resources
of 3.7 million tonnes contained nickel, Crawford is the world’s 2nd largest nickel resource1.
• Large scale, low cost, long-life
o Annual average nickel production of 83 million pounds (38k tonnes) over a 41-year life,
with production of 48 ktpa nickel, 0.8 ktpa cobalt, 13 koz palladium and platinum,
1.6 Mtpa iron and 76 ktpa chrome over 27-year peak period.
o Net life-of-mine C1 cash cost of $ 0.39/lb nickel (by-product basis) place Crawford in the
first quartile of the cost curve2. The net AISC cost, on a by-product basis, is $1.54/lb nickel.
o Projected revenue exceeds $48 billion, or more than $1 billion annually over project life.
1 Source: Wood Mackenzie, Nickel Cost Service Q3 2023 data
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• Significant improvement in recoveries from PEA
o Nickel: 10% improvement life-of-mine (41% versus 37% used in PEA ), and a 23%
improvement in Phase I/Phase II compared to PEA (46% versus 37% in the PEA)
o Improvements to life of mine recovery for Iron: 46%, Cobalt: 38%, and Chrome: 5%
• Significant earnings and free cash flow generation
o Projected annual EBITDA of $810 million and FCF of $540 million over peak period, annual
EBITDA of $667 million and FCF of $431 million over project life
• Minimization of carbon footprint
o Minimal carbon footprint of 4.8 tonnes CO 2/ tonne of nickel in concentrate,2.3 tonnes
CO2/tonne of nickel equivalent 2(“NiEq”); largely due to electrically powered mining fleet,
including trolley-assist trucks, that are expected to reduce diesel consumption by over
40% compared to diesel powered equipment.
o Implementation of the Company’s proprietary IPT (In-Process Tailings) Carbonation
process is anticipated to allow capture and storage of 1.5 million tonnes CO2 annually
during 27-year peak period, the bulk of which will be sold to third parties.
o Anticipated net negative carbon footprint from carbon capture and storage capacity of
30 tonnes CO2 / tonne of nickel after accounting for project footprint
Qualified Person
Stephen J. Balch P.Geo . (ON), VP Exploration of Canada Nickel and a "qualified person" as such term is
defined by National Instrument 43 -101, has verified the data disclosed in this news release, and has
otherwise reviewed and approved the technical information in this news rel ease on behalf of Canada
Nickel.
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 politi cal 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]
2 Nickel equivalent using prices of $21,000/t Ni, $40,000/t Co, $1,350/oz Pd, $1,150/oz Pt, $325/t Fe (equivalent to $89/t iron
ore price) and $3,860/t Cr; metallurgical recoveries based on average of 41% Ni, 11% Co, 48% Pd, 22% Pt, 53% Fe, 28% Cr.
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Non-IFRS measures
The Company has included certain non -IFRS measures in this press release. The Company believes that
these measures provide investors an improved ability to evaluate the underlying performance of the
project. The non -IFRS measures are intended to provide ad ditional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be
comparable to other issuers.
Net C1 cash costs are the sum of operating costs (including all expenses related to stripping), net of by -
product credits from cobalt, palladium, platinum, iron and chromium per pound of payable nickel. Net
AISC (all in sustaining costs) are C1 cash costs plus royalties plus sustaining capital per pound of payable
nickel. Sustaining and expansion capital are non -IFRS measures. Sustaining capital is defined as capital
required to maintain operations at existing levels. Expansion capital is defined as capital expenditures for
major growth projects or enhancement capital for significant infrastructure improvements at existing
operations. Both measurements are used by management to assess the effectiveness of investment
programs.
NSR (Net Smelter Return) includes gross revenues less refining costs. EBITDA is earnings before interest,
taxes and depreciation, which comprise NSR less royalties and operating costs and for the purpose of
the economic analysis assume all stripping costs following the initial construction period are expensed.
Free cash flow represents operating cash flow less capital expenditures.
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, the
potential of Crawford; potential size of carbon storage facilities and ability to be a net negative carbon
footprint; mineral resource estimates and mineral reserve estimates; ability to realize on projected
economic estimates, including EBITDA, NPV, IRR, all-in sustaining costs, free cash flow and C1 cash costs;
scale, capital costs, operating costs and life of mine projections; potential to commercialize the IPT
Carbonation process ; timing of receipt of permits and commencement of construction and initial
production; eligibility for Canadian federal refundable tax credits; 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 risks, uncertainties, and other factors which
may cause the actual resul ts 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 propert y, environmental
liabilities (known and unknown), general business, 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 informatio n will prove
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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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.