VANCOUVER, BC, Sept. 7,
2022 /CNW/ - FPX Nickel Corp. (TSX-V: FPX) (OTCQB:
FPOCF) ("FPX" or the "Company") is pleased to
announce the results of an internal engineering scoping study
("the Study") evaluating the production of nickel sulphate
for the electric vehicle ("EV") battery supply chain from
the high-grade awaruite nickel concentrate to be produced by the
Company's Baptiste Nickel Project ("Baptiste" or "the
Project") in central British Columbia. The Study
highlights FPX's potential to develop the world's largest
integrated nickel sulphate production facility, linking the Company
directly into the EV battery supply chain via the production of
low-cost, low-carbon nickel sulphate over Baptiste's projected
35-year mine life.
Highlights
- Development of an integrated nickel operation at Baptiste
producing approximately 43,500 tonnes of nickel contained in nickel
sulphate per annum, enough to fulfill approximately 17% of the
projected North American EV battery demand for nickel in 2030
(according to Goldman Sachs1)
- Study outlines conventional hydrometallurgical flowsheet for
production of high-purity nickel sulphate directly from Baptiste's
high grade awaruite nickel concentrate (60-65% nickel), without the
intermediate smelting typically required for sulphide concentrates
or the extensive, aggressive pressure oxidation conditions required
for laterite ores and sulphide concentrates
- Anticipated capital costs for nickel sulphate production
expected to be competitive with large-scale refinery operation
recently developed by Terrafame (Finland)
- Nickel sulphate production at Baptiste is expected to be more
environmentally sustainable than traditional production methods for
nickel sulphate, with reduced carbon intensity, fewer supply chain
participants, and synergies with an integrated site
"This scoping study demonstrates that Baptiste could become a
globally significant producer of low-cost, low-carbon nickel for
electric vehicles for decades to come," commented Martin Turenne, FPX's President and CEO.
"Baptiste's awaruite nickel mineralization has clear technical
advantages over sulphide and laterite ores for producing nickel
sulphate, offering a lower-cost, lower-carbon path from
mine-to-market in the EV battery supply chain. Given its extremely
high nickel content (over 60% nickel) and low levels of impurities,
our high-grade nickel concentrate has distinct advantages over
low-grade nickel sulphide concentrates (under 20% nickel), and is
already comparable to intermediate nickel sulphate feedstocks like
mixed hydroxide precipitate ("MHP"), mixed sulphide
precipitate ("MSP"), or nickel matte.
"We look forward to continued engagement with downstream
participants in the EV battery supply chain, including chemical
companies, battery makers and automotive OEMs, and expect to
incorporate the results of this internal scoping study into the
next stage of formal project study for Baptiste, with a new
National Instrument 43-101 technical report anticipated in the
first half of 2023."
Awaruite – An Advantageous Nickel
Feedstock
Nickel mineralization at Baptiste is primarily present in
awaruite (Ni3Fe), a nickel-iron alloy composed of 75%
nickel and 25% iron. In comparison to typical nickel sulphide
concentrates, the Baptiste awaruite nickel concentrate is notable
for its extremely high nickel content and low level of sulphur and
associated impurities, as shown in Table 1.
Table 1 – Select Elemental and Mineral Content for Baptiste
Nickel Concentrate and Typical Nickel Sulphide Concentrates
Elements and
Minerals
|
Baptiste
Awaruite
Nickel Concentrate
|
Nickel Sulphide
Concentrates
|
Nickel (Ni)
|
60-65%
|
8-21%
|
Iron (Fe)
|
30-32%
|
25-41%
|
Sulphur (S)
|
0.6 %
|
14-31%
|
Cobalt (Co)
|
1 %
|
0-1.2%
|
Copper (Cu)
|
0.5 %
|
0-5.0%
|
Magnesium Oxide
(MgO)
|
1 %
|
4-10%
|
As described in the Company's January 7,
2020 news release, successful pressure leach testwork on
Baptiste's awaruite nickel concentrate was undertaken by Sherritt
Technologies ("Sherritt"). These tests demonstrated
awaruite has favourable leaching characteristics, with up to 99%
nickel extraction under moderate conditions and short treatment
times. In addition, these tests demonstrated that the
expected pregnant leach solution will contain low levels of
impurities, allowing the utilization of conventional downstream
unit operations for the production of nickel sulphate.
The favourable leaching characteristics of Baptiste's awaruite
nickel concentrate, relative to a nickel sulphide concentrate,
arises from the absence of sulphur in the awaruite mineral.
While leaching of nickel sulphide concentrates is
industrially proven, as demonstrated by Vale's Long Harbour refinery, they require more
aggressive leaching conditions owing to the inherently refractory
nature of sulphide minerals. Further to the simpler
processing route, the significantly higher nickel grade of awaruite
translates to a reduced plant size for a given nickel output.
Engineering Study Evaluating
Nickel Sulphate Production
Strategy and
Basis
Upstream of EV battery manufacturers are chemical plants
producing P-CAM (precursor cathode active material) and CAM
(cathode active material) for inclusion into the battery cathode
cells. These chemical plants require nickel feedstock to
produce P-CAM and CAM, with a preference for nickel sulphate
specifically.
FPX engaged Ausenco Engineering Canada Ltd. ("Ausenco")
to complete an independent scoping study evaluating upgrading the
high-grade Baptiste awaruite nickel concentrate to nickel sulphate.
The Study evaluated options for producing nickel sulphate in either
crystal form (Option 1) or solution form (Option 2), including an
assessment of the various technical, economic and strategic
considerations of each alternative. Figure 1 below provides a
conceptual product flow diagram for each Option's integration into
the EV battery supply chain.
![Figure 1 – Product Flow for Integration of FPX Nickel Concentrate in EV Battery Supply Chain (CNW Group/FPX Nickel Corp.) Figure 1 – Product Flow for Integration of FPX Nickel Concentrate in EV Battery Supply Chain (CNW Group/FPX Nickel Corp.)](https://mma.prnewswire.com/media/1892851/Fig_1.jpg)
Option 1 entails the production of nickel sulphate crystals at a
hydrometallurgical refinery to be located either at the Baptiste
site or a separate off-site location. The primary advantage
of producing nickel sulphate in crystal form (versus Option 2's
solution form) is the greater flexibility for servicing multiple
downstream users, which is a tangible consideration considering the
significant potential annual production volume from Baptiste
(nominally 43,500 tonnes per year of nickel contained in
approximately 200,000 tonnes per year of nickel sulphate crystal
grading 22% nickel).
Option 2 is based on the transport of Baptiste concentrate to a
refinery co-located with P-CAM and CAM manufacturing facilities
(and potentially downstream battery cell manufacturing and battery
pack assembly facilities). In this scenario, the refinery
would produce a nickel sulphate solution, which would then be
directly fed to an adjacent chemical plant producing P-CAM and CAM.
The primary advantage of Option 2 is the potential synergies
of co-locating refining, P-CAM, and CAM facilities in a common
location.
In addition to the production of nickel sulphate, the Study also
evaluated the capture of cobalt units into a cobalt intermediate
product, representing a new by-product opportunity for the
Project.
Processing
Concept
The Study envisioned a processing concept with a conventional
flowsheet, including unit operations of leaching, purification,
solvent extraction, and crystallization. The process
envisioned in the Study is also broadly comparable with the
recently constructed Terrafame nickel refinery, which treats a
mixed sulphide precipitate ("MSP") product, with nickel
intermediates such as MSP having broadly comparable processing
requirements to Baptiste's awaruite nickel concentrate, as
presented in Table 2.
Table 2 – Comparison of Baptiste's Awaruite Nickel
Concentrate and Typical MSP Feedstock
|
Baptiste
Awaruite
Nickel
Concentrate
|
Typical
MSP
Feedstock
|
Composition
Nickel
(Ni)
Iron
(Fe)
Sulphur (S)
Cobalt
(Co)
Copper
(Cu)
Magnesium Oxide
(MgO)
|
60-65%
30-32%
0.6%
1.0%
0.5%
1%
|
55%
0.1-0.2%
33%
1-5%
<0.1%
<0.01%
|
Pressure Leaching
Requirements:
Pressure
(kpag)
Temperature
(°C)
Residence Time
(hours)
|
750
150
1.5
|
1,200-1,500
160-180
2.5
|
Pregnant Leach
Solution:
Nickel
(g/L)
Iron
(g/L)
Free Sulphuric
Acid (g/L)
|
60-70
2.0
10-25
|
80
0.5
20-30
|
Selection of the process design, equipment sizing and reagent
quantities in the Study was based on a review of previous testwork,
internal databases, and benchmarking against similarly-sized nickel
sulphate operations, including Terrafame's refinery in Finland and BHP's Kwinana refinery in
Australia. The FPX Study developed overall flowsheets, mass
and energy balances, key mechanical equipment lists, general
arrangement layouts, capital cost estimates, and operating cost
estimates.
Figure 2 presents a comparison of the Study's processing concept
to the comparable Terrafame processing concept, with key
differences highlighted.
Key Results
Based on the Study's process design, the production of nickel
sulphate from Baptiste's awaruite nickel concentrate is expected to
achieve stage nickel recoveries of approximately 97%, resulting in
the annual production of approximately 43,500 tonnes of nickel in
nickel sulphate in the form of either crystals (Option 1) or
solution (Option 2). At this scale, Baptiste would
significantly exceed the scale of the world's current largest
nickel sulphate producers.
Further, the proposed design is expected to yield cobalt
recoveries from flotation concentrate of approximately 95%,
resulting in the annual production of approximately 650 tonnes of
cobalt in either an MSP or MHP product grading 40-50% Co. At
this scale, Baptiste would become one of Canada's five largest cobalt operations,
alongside nickel-cobalt mines operated by Glencore and Vale in
central and eastern Canada.
Based on preliminary estimates developed for the Study, it is
expected that the capital costs of nickel sulphate production at
Baptiste will be competitive with the comparable Terrafame refinery
in Finland, which was commissioned
in 2021 (see Table 3). Similarly, the Study's operating cost
estimate in well aligned with other industry benchmarks.
Table 3 – Key Parameters for Recent and Planned Nickel
Sulphate Refinery Operations
|
Baptiste
|
Terrafame
|
Basis
|
Independent
scoping
study
|
Constructed
|
Location
|
Canada
|
Finland
|
Feedstock
|
Awaruite
concentrate
60-65% Ni
|
MSP
55% Ni
|
Production (tpa nickel
contained in
nickel
sulphate)
|
43,500
|
37,4002
|
Capital Cost (USD,
millions)
|
Internal
Estimates
|
$3333
|
Capital Intensity (USD
/ tpa nickel)
|
Internal
Estimates
|
$8,900
|
Operating Cost (USD /
lb nickel)
|
Internal
Estimates
|
Not
published
|
The production of (a) nickel sulphate and (b) cobalt MHP (or
MSP) products are expected to generate high-value alternatives for
the utilization of Baptiste concentrate in the global EV battery
supply chain. With easy access to well established domestic
and international shipping routes, the Baptiste products can be
readily integrated into the rapidly expanding EV production chain
both within North America and
abroad.
Comparison of Nickel Sulphate
Feedstocks – Awaruite vs. Sulphides and Laterites
Typically, nickel sulphate is produced from intermediate or
refined nickel products that have been subject to multiple complex
metallurgical processes. These intermediate nickel products
are typically either produced from sulphide or laterite nickel
ores. The treatment process for Baptiste's awaruite nickel
concentrate presents a simplified and lower risk route to producing
large quantities of nickel sulphate.
Awaruite vs. Sulphide
Ores
As compared to nickel sulphide concentrates, results from FPX's
testwork and the Study suggest Baptiste's awaruite nickel
concentrate has significant technical advantages, as
follows:
- Reduced Processing Requirements – the lack of sulphur
and associated impurities eliminates the need for intermediate
smelting prior to downstream hydrometallurgical processing into
nickel sulphate (see Figure 3)
- Reduced Process Complexity – the efficient dissolution
of Baptiste's awaruite nickel concentrate eliminates the need for
intermediate smelting and/or complex leaching processes, such as
ultra-fine grinding, chlorine pre-leaching, chloride addition, or
ammonia leaching
- Reduced Carbon Intensity – the extremely high
nickel content of Baptiste nickel concentrate (60-65% nickel)
reduces the volume of concentrate for shipment by up to 85% in
comparison with nickel sulphide concentrates, which typically grade
10-15% nickel, and the elimination of a secondary refining stage
(e.g., smelting) further reduces the carbon emissions associated
with transportation to multiple refining locations
Awaruite vs. Laterite
Ores
As compared to nickel laterite ores, results from FPX's testwork
and the Study suggest Baptiste's awaruite nickel concentrate has
significant technical advantages, as follows:
- Process Complexity – the leaching characteristics
of awaruite require significantly lower pressure and temperature
than high-pressure acid-leach ("HPAL") processes (See Figures 4 and 5)
- Process Footprint – the extremely high nickel
content of Baptiste concentrate (60-65%+ nickel) tangibly reduces
the volume of material subjected to pressure oxidation and
leaching, significantly reducing the footprint and cost of the
hydrometallurgical facility
- Reduced Carbon Intensity – tangibly reduced process
requirements for Baptiste concentrate fed by British Columbia's hydroelectric-based grid
with demonstratively lower carbon intensity
Based on FPX's testwork and Study results, a refinery upgrading
Baptiste's awaruite nickel concentrate would generate a low-carbon,
low-cost, high-volume and high-purity nickel sulphate product for
the EV battery supply chain, with a favourable competitive position
driven by:
- Single integrated facility to convert concentrate directly to
nickel sulphate
- Low cost of feedstock for a refinery integrated with the
Baptiste mine-and-mill operation, versus higher-cost refined nickel
feedstocks like nickel matte, MSP, MHP, powder, and briquettes
- High refinery recovery rates for both nickel and cobalt
- Efficiencies in the use of power, water and reagents and
tailings disposal in an integrated site
- Low-carbon footprint leveraging access to low-cost
hydroelectric power in British
Columbia
Next Steps
The near-term path for development of a nickel refinery
upgrading Baptiste's awaruite nickel concentrate to nickel sulphate
includes further testwork, further engineering studies, and general
project development activities.
As part of FPX's ongoing three-phase metallurgical testwork
campaign, approximately 17 tonnes of Baptiste material is currently
being treated by a pilot plant at Corem in Quebec City. In
addition to supporting refinement of the upstream mineral
processing flowsheet, this large-scale piloting will also generate
sufficient awaruite nickel concentrate for hydrometallurgical
testwork. Concentrate is anticipated to be available in
October 2022, with the subsequent
hydrometallurgical testwork campaign to run through the fourth
quarter of 2022. This hydrometallurgical testwork campaign
will:
- Optimize awaruite nickel concentrate leaching conditions
- Validate the conventional solution purification route for
awaruite feedstock producing battery grade nickel sulphate
- Evaluate opportunities specific to awaruite to further simplify
the process and significantly reduce capital and operating
costs
Building on the engineering studies to date and incorporating
the testwork results as available, FPX will commence a more
advanced engineering study in the fourth quarter of 2022, with
results available in the second or third quarter of 2023.
This new technical study will adhere to National Instrument 43-101,
thereby allowing a fulsome disclosure of estimate results which
will complement the more advanced engineering basis.
Andrew Osterloh, P. Eng., FPX
Nickel's Qualified Person under NI 43-101, has reviewed and
approved the technical content of this news release.
References:
- Goldman Sachs Commodities Research, "Nickel's Class Divide",
April 28, 2022.
-
https://www.terrafame.com/media/terrafame-ltd-carbon-footprint.pdf
-
https://www.terrafame.com/news-from-the-mine/news/2021/06/production-ramp-up-at-terrafames-battery-chemicals-plant-has-started.html#:~:text=Production%20ramp%20up%20at%20Terrafame's%20new%20battery%20chemicals%20plant%20has,of%20the%20highest%20production%20capacities
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,
petrographic examination, electron probe analyses and outcrop
sampling on all four targets. 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 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
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. 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 ceo@fpxnickel.com.
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.