FPX Nickel Reports Metallurgical Testwork Results, Validating Mineralogical Understanding and Strong Recovery for Production of High-Grade Nickel Concentrate at Baptiste Project
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Vancouver, BC Canada V6E 2P4
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FPX Nickel Reports Metallurgical Testwork Results, Validating
Mineralogical Understanding and Strong Recovery for Production
of High-Grade Nickel Concentrate at Baptiste Project
Vancouver, July 27, 202 2 – 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:
o Confirming the ability to consistently produce very high -grade flotation concentrates of
greater than 60% nickel
o 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:
o Achieving bench-scale flotation stage nickel recoveries of up to 91% in batch testing and
87% in locked cycle testing
o 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 Proje ct,” 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.
Figure 1 – Baptiste Flowsheet for Nickel Recovery
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 ni ckel 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
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 metallurgica l 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, wi th 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 yield ed 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 fl otation 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 cons umption, 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 Phas e 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, a dditional pilot plant trials with modestly increased magneti c
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 prepa red in accordance with Canadian
regulatory requirements set ou t 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 km 2 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 Baptist e 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 $2 8 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 o f 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
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 con ditions 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.