VANCOUVER, BC, Dec. 8, 2021 /CNW/ - FPX Nickel Corp. (TSXV: FPX)
(OTCQB: FPOCF) ("FPX" or the "Company") is pleased to
announce results from Phase 1 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. The metallurgical test program is aimed at
validating and optimizing the flowsheet outlined in the Project's
2020 Preliminary Economic Assessment ("PEA"), and to support
the development of a preliminary feasibility study
("PFS").
Highlights
- Phase 1 testwork has confirmed the PEA flowsheet and has
indicated the potential to achieve nickel recoveries up to 5%
higher than the 85% Davis Tube Recoverable ("DTR") nickel recovery
assumed in the 2020 PEA
-
- Comminution testing has confirmed Baptiste material as being
consistent, medium-hard to hard, and mildly abrasive across all
mining phases, pointing toward a consistent grinding requirement in
sync with the PEA basis
- Pilot-scale grinding and primary magnetic separation testing
indicated:
-
- 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 via cyclone
classification
- Cyclone classification may also result in a reduction of
recovered mass in the primary magnetic separation circuit, thereby
reducing regrind requirements
- Pilot-scale cleaner magnetic separation has confirmed the
ability to create a magnetics-only feed to the flotation circuit,
thereby confirming the starting point for previous flotation
testwork and the PEA basis
- Phase 2 testwork is underway, focusing on validation and
optimization of flotation parameters to confirm the production of a
high-grade nickel concentrate, as well as the potential production
of a by-product iron ore concentrate, with results anticipated in
the first quarter of 2022
- Phase 3 testwork will commence shortly, including
hydrometallurgical testwork to validate battery material supply
chain integration, larger-scale pilot testing to crystalize Phase
1's indicated recovery benefits, and variability testing, with
results anticipated in the third quarter of 2022
"The scale-up from bench- to pilot-scale testing has not only
confirmed the effectiveness of Baptiste's PEA flowsheet, but also
revealed the potential to improve nickel recovery by up to 5% over
the PEA basis," commented Martin
Turenne, FPX Nickel's President and CEO. "By introducing
conventional cyclone classification into the process test work, we
can better estimate the expected nickel recovery in a full-scale
operation. In the case of the Baptiste deposit, significant
upside to liberation is observed due to hydro-cyclone
classification and the associated preferential grinding due to the
dense nature of Baptiste's awaruite nickel mineralization. It
is estimated that every percentage point increase in recovery
yields a US$56 million improvement in
after-tax NPV8%, based on PEA metrics."
Three-Phase Metallurgical Testwork Program
Figure 1 shows the Baptiste nickel recovery flowsheet as
presented in the PEA. Highlighted within this figure
are the key work elements from the overall three-phase
metallurgical program.
Figure 1 – Proposed Flowsheet for Baptiste Nickel Recovery
and Upgrading
Phase 1 of the metallurgical testwork program, the results of
which are described herein, had the following key objectives:
- Development of robust comminution criteria to define the best
value comminution technology
- Validation of the primary magnetic separation grade-recovery
relationship to confirm the coarse primary grind size
(P80 of 300 mm) and pre-concentration (rejection of 85%
of fresh plant feed in the primary magnetic separation stage)
- Confirming the ability to create a magnetics-only flotation
feed to validate the PEA's efficient, modestly-sized, 2-stage
flotation process
The objectives of the Phase 2 and 3 metallurgical testwork
programs are described in the final section of this news
release.
Phase 1 Testwork – Description & Results
Phase 1 of the Baptiste metallurgical testwork program was
conducted at several laboratories and overseen by Jeffrey B. Austin, P.Eng., President of
International Metallurgical and Environmental Inc. Table 1
presents a summary of the Phase 1 testwork program, including
general scope assignment by laboratory.
Table 1 – Phase 1 Metallurgical Test Program Scope
Assignments
Lab
|
Scope
|
ALS
Metallurgy
Kamloops,
BC
|
SAG milling and Ball
Mill comminution tests
|
UBC
Vancouver,
BC
|
HPGR pilot-scale
testing
|
Corem
Quebec City,
QC
|
HPGR pilot-scale
testing
|
SGS Mineral
Services
Lakefield,
ON
|
Pilot- and
bench-scale magnetic separation testing for nickel
recovery
Sample generation for
the Phase 2 metallurgical testwork program
|
Comminution Testwork
The Company completed diverse test programs on a variety of
representative samples to characterize the performance of Baptiste
material under multiple crushing and grinding scenarios. The
key takeaways from this testwork include:
- SAG mill testing results indicate consistent, medium-hard
material across the deposit, suggesting relatively stable SAG mill
throughput
- Ball mill testing results indicate consistent, medium-hard to
hard material, with an approximately 10% lower hardness profile in
mining phase 1 (first 17 years of mining) versus the later phases
of the mine life
- Abrasion testing results indicate consistent, mildly abrasive
material, thereby reducing operating consumables
- Test results suggest that SAG milling may emerge as the best
value comminution technology for Baptiste, which could lead to
lower capital intensity than the HPGR approach in the PEA
Comminution testwork included grindability testwork conducted at
ALS Kamloops and pilot-scale HPGR testwork conducted at both UBC
and Corem. Grindability testwork utilized six new composite
samples representing the PEA's three major mining phases.
Pilot-scale HPGR testing at UBC and Corem utilized a newly created
life-of-mine master composite created from historic drill core.
SAG Mill Comminution ("SMC") testwork results confirm the
Baptiste material is medium-hard from a SAG milling
perspective. Across all phases of the mine life, Axb values
are tightly-clustered in the range of 41.4-48.0. Similarly,
SAG Circuit Specific Energy ("SCSE") values are
tightly-clustered in the range of 9.1-9.7 kWh/t. There does
not appear to be a discernible trend for SMC values throughput the
resource, supporting the conclusion that the deposit is largely
homogeneous for potential SAG mill throughput.
Ball mill work index testwork results confirm the Baptiste
material is medium-hard to hard from a ball milling
perspective. Phase 1 material represents the first 17 years
of mining and is medium-hard, with tightly-clustered values ranging
from 19.6-20.9 kWh/t. Phase 2 material represent the northern
extension of the deposit along the resource axis and is harder with
values ranging from 22.5-22.9 kWh/t, representing an approximate
10% increase as compared to Phase 1. Phase 3 material is
drawn from an area immediately adjacent to the Phase 1 mining area
and has a similar hardness value of 20.6 kWh/t.
Abrasion index ("Ai") testwork results confirm the
Baptiste material has low abrasivity. Measured Ai values
averaged 0.007, with a maximum value of 0.010. The low
abrasion index value is expected to result in comparable operating
consumable consumption to other existing large-scale SAG mill
circuit processing ultramafic material, which is generally lower
than comparably sized porphyry (or similar) operations.
HPGR specific throughput ("m-dot") values observed in
both the UBC and Corem testing were consistent between the two test
facilities, peaking at approximately 200 ts/hm3.
While the measured values are lower than the PEA's assumed specific
throughput of 300 ts/hm3, they benchmark well with
operating values for other ultramafic ores processed by HPGR.
The Company has initiated a comminution trade-off study to
evaluate the impact of the new comminution data on project design
and project economics. It is anticipated that the Phase
1 results, low cost of power, and low abrasivity will likely see
SAG milling emerge as the best value comminution technology for
Baptiste, which could lead to lower capital intensity than the HPGR
approach in the PEA.
As part of Phase 3, additional comminution testwork will be
conducted in 2022 to further expand the comminution database for
the Baptiste project, with a particular focus on variability in the
first ten years of mining.
Magnetic Separation Testwork
The Company conducted bench- and pilot-scale nickel recovery
testwork at SGS Mineral Services in Lakefield, Ontario. The objective of
pilot-scale testwork was twofold: to validate bench-scale results
and to evaluate potential process improvements which may be
realized through plant-scale grinding. In particular,
pilot-scale testing was designed to test the view, as described in
the PEA, that full-scale operation of a grinding plant, with
cyclones for classification, will result in significantly better
liberation of dense minerals than what can be achieved at the
bench-scale, owing to the manner in which mineral density impacts
classification sizes at larger processing scales.
Primary grind and magnetic separation testwork at SGS Lakefield
utilized a new 2,400 kg master composite created from crushed assay
rejects. The master composite sample graded 0.118% Davis Tube
Recoverable ("DTR") nickel, compared with the life-of-mine
average 0.123% DTR Ni grade of the processing feed in the 2020
PEA. Note that DTR is an industry standard measure of
quantifying the magnetic mineral content of a sample, and that the
nickel mineral awaruite is strongly magnetic and readily
recoverable in a magnetic separator. Total nickel grades for
the Baptiste resource are consistently in the range of 0.20-0.23%
total nickel.
Bench-Scale Magnetic Separation Testwork
Table 2 provides a summary of primary magnetic separation
testing results at a variety of grind sizes in comparison to the
criteria established in the 2020 PEA.
Table 2 – Bench-Scale Magnetic Separation Test Program
Results
|
Grind Size,
P80 (mm)
|
Recovery, DTR Ni
(%)
|
PEA
Criteria
|
300
|
90.0
|
2021 Met Program,
Bench-Scale
|
152
|
94.5
|
327
|
88.6
|
491
|
87.0
|
These 2021 bench-scale results have confirmed key PEA recovery
criteria. This is an important result, particularly
considering the PEA criteria were based on the 2017/18
metallurgical testwork program which utilized a composite which had
a 0.158% DTR Ni grade, while this 2021 testing utilized the new
master composite which has a 0.118% DTR Ni grade (approximately 25%
lower).
At the same time, mass pulls and concentrate grades were higher
and lower than PEA criteria, respectively. This is likely due
to selectively issues owing to lower-than-optimal magnetic
separator feed rates during bench-scale testing. As such,
increased focus was applied to magnetic separator operating
conditions during subsequent pilot-scale testing (see below).
Pilot-Scale Magnetic Separation Testwork
Pilot-scale testing was conducted to evaluate the upside
recovery potential posed by cyclone classification through
preferential grinding of the dense minerals, including awaruite
(specific gravity of 7.3) and magnetite (specific gravity of
5.4). Preferential grinding of dense minerals in
cyclone classification is common in several mineral processing
operations, including gold, lead, copper and iron
operations.
Two pilot-scale runs were conducted using cyclone classification
in a standard grinding circuit configuration. These
pilot-scale test results showed reduced tailings losses for nickel
when materials are classified with a cyclone. The use of
cyclone classification also demonstrated that circulation of dense
minerals leads to a build-up of magnetite and awaruite within the
milling circuit. This confounded overall metal accounting for the
pilot-scale test run durations; however, it is anticipated that the
longer and higher throughput pilot-scale test runs planned for
Phase 3 of the metallurgical program will resolve this
challenge. A single pilot plant test was also performed
using a classifying screen in place of the cyclone to provide
comparison results.
Key results from pilot scale testing are presented in Table 3
below, including data for pilot operation with classification by
cyclone and screen.
Table 3 – Pilot-Scale Magnetic Separation Test Program
Results
Testing
Method
|
Classification
Method
|
Grind Size,
P80 (mm)
|
Mass
Pull (%)
|
Tail Grade,
DTR Ni (%)
|
Recovery,
DTR Ni (%)
|
PEA
Criteria
|
n/a (batch
ground)
|
300
|
15
|
0.010
|
90.0
|
2021 Met Program,
Pilot-Scale
|
Cyclone
|
245
|
13.2
|
0.005
|
96.3
|
Cyclone
|
133
|
15.8
|
0.006
|
95.7
|
Screen
|
256
|
17.5
|
0.007
|
95.1
|
The observed differences in tailings grades when using different
methods of feed preparation was expected based on past experience
and the observed mineralogical composition of the Baptiste
deposit. Comparing the calculated recoveries in pilot-scale
testwork as compared to PEA recovery criteria, it is likely that
nickel recovery in bench-scale testwork underestimated the
full-scale recovery potential by up to 5% of DTR nickel.
With improved magnetic separator operating conditions, mass
pulls aligned with PEA criteria, at approximately 15%. This
result, in tandem with the lower tailings grade during the
pilot-scale tests, suggests the potential to achieve similar mass
pulls and concentrate grades as those assumed in the PEA.
Building on these positive pilot plant results, additional
pilot-scale testwork will be conducted in Phase 3 of the
metallurgical testwork program. This testwork will utilize
higher throughput rates and longer durations to ensure steady
state, repeatable conditions are realized. In tandem with a
bench-scale variability program, validation of the favourable
pilot-scale results should confirm an improved DTR recovery basis
for use in a PFS for the Project.
Regrind & Cleaner Magnetic Separation Testwork
As noted in the PEA, and as demonstrated in bench-scale testwork
conducted in 2017-18, regrinding of the primary magnetic separation
concentrate and additional magnetic separation upgrading can
produce a high-grade concentrate of magnetite and awaruite.
This serves as an ideal feed to the two-stage separation flotation
process as presented in the PEA.
Approximately 60 kilograms of high-grade magnetic concentrate
was produced for use in detailed flotation testwork at SGS Mineral
Services in Burnaby, B.C.
This concentrate graded approximately 2.2% nickel and 54% iron,
which is comparable to samples used for the PEA's flotation
testwork.
While the use of cyclone classification indicates increased
nickel recovery, it will also likely alter the mineralogical
characteristics of the primary magnetic separation concentrate and
the subsequent regrind requirements for upgrading magnetite and
awaruite. Investigative testwork has shown that recovery of
more fine awaruite-containing material requires finer regrinding to
maintain the high-grade nature of the magnetic concentrate prior to
flotation.
As described below, Phase 3 testwork will better define the
regrind requirements during larger-scale pilot testing.
During this testing, it is anticipated the same preferential
classification witnessed in pilot-scale primary grinding will
similarly prove beneficial to regrind requirements.
Phase 2 Testwork
Phase 2 of the metallurgical testwork program commenced in
November, and it is expected that results will be reported in the
first quarter of 2022. Phase 2 will focus on:
- Confirming the production of a high-grade nickel concentrate by
froth flotation. The initial flotation tests will focus on
validating PEA criteria, followed by subsequent flotation tests to
optimize flotation conditions
- Evaluating the potential for producing a saleable iron ore
concentrate, which represents a potential new product stream which
was not included in the 2020 PEA
Phase 3 Testwork
Phase 3 of the metallurgical testwork program is scheduled to
commence in December, and it is expected that results will be
reported in the third quarter of 2022. Phase 3 will focus
on:
- Confirming Phase 1 recovery opportunities through larger-scale
pilot testing, for both primary grind and magnetic separation, as
well as regrind and cleaner magnetic separation
- Demonstrating a robust and efficient integration into the
battery material supply chain by optimizing previous leach testwork
and conducting solvent extraction and NiSO4
crystallization testwork
- Conducting suitable variability testwork with a focus on the
first 10 years of mining, confirming Baptiste homogeneity and
informing PFS criteria and design factors
Qualified Person
The metallurgical information in this news release has been
prepared in accordance with Canadian regulatory requirements set
our 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
km2 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 Baptiste Deposit,
and the B, Sid and Van targets, as confirmed by drilling in the
first three plus petrographic examination, electron probe analyses
and outcrop sampling on all four. Since 2010, approximately
US $28 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 82 holes and over 31,000 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. The Van
target was not drill-tested at that time as bedrock exposures in
the area were very poor prior to more recent logging
activity.
In 2021, the Company executed a very successful 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
of 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.
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 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.