Giga Metals to Pursue MHP Production at Turnagain Nickel Project
June 15, 2021 TSX.V – GIGA
Giga Metals to Pursue MHP Production at
Turnagain Nickel Project
Vancouver, B.C. – Martin Vydra, President of Giga Metals Corp. (TSX.V: GIGA)
(OTCQB: HNCKF) (FSE: BRR2) announced today that the Company is investigating
expansion of processing at the Turnagain Ni/Co project to include Mixed Hydroxide
Precipitate (MHP) production in its next phase of studies. MHP is a chemical form of nickel
and cobalt that is experiencing rapid demand increase for its role i n the supply chain for
lithium ion batteries.
“MHP is quickly establishing itself as the intermediate of choice by the battery industry in
the manufacturing of metal salts (NiSO 4 and CoSO 4) and is being pursued to directly
produce precursors and cathode ac tive materials.” said Mr. Vydra. “We know from
previous testwork and engineering that Turnagain concentrate is amenable to processing
into high quality MHP.”
Currently MHP is produced globally at four commercial facilities: Ramu, VNC -Goro,
Ravensthorpe an d Gordes. All of these operations utilize high pressure acid leaching
(HPAL) of laterite ores and the current annual global supply capacity is estimated at
125,000 tonnes of Ni contained in MHP.
Additionally, six projects have been announced, five of which are in Indonesia, which are
expected to bring MHP production capacity to 400,000 tonnes per year of contained Ni by
2025. This would rival the market of Class I briquettes, powder and oxides, which are
currently the major source of raw material for battery grade NiSO4 production, and implies
a compound annual growth rate (CAGR) of 33% in MHP production compared to
estimated CAGR of 4% for nickel and 8% for cobalt, according to a McKinsey study.
Historical hydrometallurgical testwork was on Turnagain concentrates of lower grades
compared to the current high-grade concentrate as shown in the table below.
Concentrate Grades for Past Testwork and PEA Results
Ni % Co % Fe % S % Mg % Cu %
Historical 4.5 - 10 0.2 – 0.5 20 - 45 10 - 25 5 - 19 0.2 – 0.3
2020 PEA Concentrate (Table 13.8) 20 1.2 32 26 4.4 0.5
As summarized in the 2020 PEA, 17 historical tests indicated high extractions of nickel
and cobalt (>97.5%) at both low and high -temperature pressure oxidation conditions, and
in both sulphate and chloride systems. Testwork further demonstrated the ability to process
-2-
the resulting leach solutions to recover copper and produce high-quality MHP. Due to the
superior quality of the solutions from a sulphide pressure oxidation compared to HPAL
laterite leach liquors, the MHP produced was a higher-grade product with lower manganese
(Mn) content than currently commercially available . Manganese is considered a
deleterious element in MHP.
Mixed Hydroxide (MHP) Grades for Commercial Product and Turnagain Results
Ni+Co % Mg % Mn % Cu+Fe %
HPAL Commercial Product (3 Projects) 40-43 1.8 – 2.8 2.8 – 6.1 0.1 – 0.2
HPAL Commercial Product (Average 3 Projects) 41 2.3 4.6 0.14
New Indonesia Project1 (expected) 44 0.4 7.3 0.27
Turnagain MHP (historical sample) 49 1.4 0.2 <0.1
“There are more than 30 facilities that are, or are capable of processing MHP to produce
NiSO4 and CoSO4 in Asia alone and that number is growing,” said Mr. Vydra. “We also
understand that processing of MHP to produce precursors and cathode active materials
(PCAM/CAM) directly, bypassing NiSO 4 and CoSO4 production, is becoming a focus in
an effort to reduce manufacturing steps in the lithium ion battery supply chain and decrease
costs. According to Benchmark Mineral Intelligence, MHP payables have been averaging
over 87% for nickel and well above 75% for cobalt in 2021. We think that MHP is evolving
into a liquid and transparent market that will continue to offer higher payables than
smelters. As the only large scale North American greenfields nickel project solely focused
on the battery materials market, we feel it is important to dem onstrate to investors and
potential partners the ability to deliver a product that is increasingly becoming recognized
as the standard for raw material supply to this industry.”
On behalf of the Board of Directors,
“Martin Vydra”
PRESIDENT,
GIGA METALS CORPORATION
Tel – 604-681-2300
Qualified Persons
The technical content of this news release has been prepared and reviewed by Lyle Trytten,
P.Eng., a Qualified Person under NI 43-101 standards.
About Giga Metals Corporation
Giga Metals Corporation is focused on metals critical to modern batteries, especially those used in
Electric Vehicles and Energy Storage. The Company’s core asset is the Turnagain Project, located
in northern British Columbia, which contains one of the few significant undevelop ed sulphide
nickel and cobalt resources in the world . Turnagain is the only undeveloped Canadian nickel
project of this scale that is focussed on the battery market rather than the steel market.
1 High pressure acid leaching: a newly introduced technology in Indonesia; Gultom T and Sianipar A –
Harita Nickel; IOP Conf Ser: Earth Environ Sci; 413 012015 (2019)
-3-
Forward-looking Statements
Certain statements in this news release are forward -looking statements, which reflect the
expectations of management regarding the Turnagain Project. Forward-looking statements consist
of statements that are not purely historical, including any statements regardin g beliefs, plans,
expectations or intentions regarding the future. Such statements include, but are not limited to,
statements with respect to the future financial or operating performance of the Company and its
mineral projects, the estimation of mineral resources and mineral prices, the payabilities of Mixed
Hydroxide Precipitates, steps to be taken towards commercialization of the resource, the timing
and amount of estimated future production and capital, operating and exploration expenditures.
Such statements are subject to risks and uncertainties that may cause actual results, performance
or developments to differ materially from those contained in the statements. No assurance can be
given that any of the events anticipated by the forward-looking statements will occur or, if they do
occur, what benefits the Company will obtain from them. These forward-looking statements reflect
management's current views and are based on certain expectations, estimates and assumptions
which may prove to be incorrect, including the list of additional work prior to requisitioning a Pre-
feasibility study, and statements relating to future exploration and development of the Project and
mineral resource and mineral reserve estimations relating to the Project. A number of risks and
uncertainties could cause our actual results to differ materially from those expressed or implied by
the forward -looking statements, including: (1) the mineral resource estimates relating to the
Project could prove to be inaccurate for any reason whatsoever, (2) Giga is unable to finance the
Project, (3) prices for nickel and cobalt or project costs could differ substantially and make any
commercialization uneconomic, (4) inferred and indicated resources may not materialize, (5)
permits, environmental opposition, government regulation, cost overruns or any of many other
factors may prevent the Company from commercializing the Turnagain Project, (6) additional but
currently unforeseen work may be required to advance to the pre-feasibility stage, and (7) even if
the Project goes into production, there is no assurance that operations will be profitable. These
forward-looking statements are made as of the date of this news release and, except as required by
applicable securities laws, the Company assumes no obligation to update these forward -looking
statements, or to update the reasons why actual results differed from those projected in the forward-
looking statements. Additional information about these and other assumptions, risks and
uncertainties are set ou t in the "Risks and Uncertainties" section in the Company's most recent
MD&A filed with Canadian security regulators.
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.
Suite 203 – 700 West Pender St., Vancouver, BC, Canada V6C 1G8
T: 604-681-2300 E: [email protected] W: www.gigametals.com