VANCOUVER, BC, Sept. 6,
2023 /CNW/ - FPX Nickel Corp. (TSXV: FPX)
(OTCQB: FPOCF) ("FPX" or the "Company") is pleased to
announce results from the preliminary feasibility study
("PFS") for its 100%-owned Baptiste Nickel Project
("Baptiste" or the "Project") in central British Columbia, with an after-tax
NPV8% of $2.01 Billion and
IRR of 18.6% at $8.75 /lb Ni.
The PFS has been prepared in accordance with National
Instrument 43-101 ("NI 43-101") and demonstrates the
potential to develop a high-margin, long-life, large-scale, and
low-carbon mine with unparalleled flexibility to produce either a
high-grade concentrate (60% nickel) for direct feed into the
stainless steel industry (the "Base Case") or further
refining into battery-grade nickel sulphate, cobalt precipitate,
and copper concentrate products for the battery material supply
chain (the "Refinery Option"). All amounts are in US
Dollars unless otherwise indicated.
Highlights
- After-tax NPV8% of $2.01
Billion and IRR of 18.6% at $8.75 /lb Ni
- 29-year mine life producing an average 59,100 tonnes per year
of nickel
- Phased development approach, with expansion following the
3.7-year after-tax payback period
- Life-of-mine ("LOM") average C1 operating cost of
$3.70/lb Ni ($8,150/t), assuming no byproduct credits
- LOM average annual pre-tax free cash flow of $578 million during operating years
- Strategic product flexibility, with a Base Case high-grade
nickel concentrate (60% nickel) for direct feed to the stainless
steel industry, plus a Refinery Option to produce battery-grade
nickel sulphate
"The PFS firmly establishes Baptiste as a key strategic asset in
the development of Canada's
critical minerals supply chain," commented Martin Turenne, FPX's President and Chief
Executive Officer. "Despite the inflationary pressures
observed in the mining industry in recent years, the study has
yielded after-tax NPV and IRR superior to those observed in the
2020 preliminary economic assessment, reflecting greater
engineering maturity and incorporating the several optimizations
identified by our class-leading project team in regards to resource
modelling, mine planning, process recovery, and site design.
The Baptiste project represents a significant opportunity for
First Nations, the governments of British
Columbia and Canada, and
FPX to work together to develop a project that creates substantial
and sustainable benefits while protecting the environment for
future generations. We look forward to continued collaboration with
local Indigenous groups, and the provincial and federal governments
to support the development of Canada's critical minerals ecosystem and to
leverage health, economic and social benefits for local
communities."
Webinar and Presentation
The Company's management will host a live webinar on
Wednesday, September 6 at
10:00 a.m. Eastern (7:00 a.m. Pacific) to provide an overview of the
PFS results and to answer questions from participants.
Participants can access the live webinar at the following link:
https://www.renmarkfinancial.com/events/renmark-virtual-non-deal-roadshow-tsx-v-fpx-otcqb-fpocf-2023-09-06-100000
The results of the PFS are summarized in a corporate
presentation available on the homepage of the Company's website at
www.fpxnickel.com.
PFS Overview
The Base Case outlines an open-pit mining project in central
British Columbia which will
produce an average of 59,100 tonnes of nickel per year in
concentrate over a 29-year mine life. The project will be
developed in a phased approach, with an initial mill throughput
rate of 108,000 tonnes per day (Phase 1), followed by an expansion
to 162,000 tonnes per day (Phase 2) funded from free cash flow
after the initial after-tax payback period of 3.7 years. The
mining strip ratio averages 0.41 in the Phase 1, and 0.56 overall
for life-of-mine (excluding capitalized pre-stripping).
The Project will utilize a conventional processing flowsheet
with SAG-mill based grinding followed by magnetic separation, froth
flotation, and a flotation tailings leach circuit, as previously
described in the Company's June 27,
2023 news release. Overall Davis Tube Recoverable
("DTR") nickel recovery is estimated to average 88.7% for
the life-of-mine, with 93% of the nickel produced contained in a
high-grade flotation concentrate (60% nickel) and the balance (7%
of nickel produced) contained in a mixed hydroxide precipitate
("MHP") produced from a tailings leach circuit.
The Project will be supplied with low-carbon power from the BC
Hydro provincial electricity transmission grid, resulting in an
estimated Scope 1 and 2 carbon intensity of 2.4 t CO2/t
nickel produced, placing Baptiste within the lowest decile of
global nickel production. The Project will be accessed by a
road system consisting of upgrades and expansions to an existing
forest service road ("FSR") network. All mine tailings
and waste rock are proposed to be managed within a single
integrated facility that will utilize open pit pre-stripping
material and waste rock for embankment construction.
Base Case economics are presented in Table 1, based on a
$8.75/lb nickel price.
Table 1 – Base Case Economics
Criteria
|
Units
|
Base
Case
|
Initial Capital
Cost
|
USD,
millions
|
2,182
|
Operating
Cost
|
$/t milled
|
8.15
|
C1 Operating
Cost1
|
USD /lb Ni
|
3.70
|
All-in Sustaining Cost
("AISC")2
|
USD /lb Ni
|
4.17
|
After- Tax
|
NPV8%
|
USD,
millions
|
2,010
|
IRR
|
%
|
18.6
|
Payback
Period
|
years
|
3.7
|
Mine
Life-to-Payback
|
ratio
|
7.8
|
NPV-to-Initial
Capex
|
ratio
|
0.92
|
Annual Free Cash Flow,
Pre-Tax3
|
USD,
millions
|
578
|
Notes:
|
|
1.
|
Exclusive of any
byproduct credits.
|
2.
|
Inclusive of operating
cost, sustaining capital, expansion capital, closure capital, and
royalties.
|
3.
|
For production
years.
|
The Refinery Option outlines an off-site refinery to upgrade a
portion of nickel-in-concentrate to produce 40,000 tpa of
battery-grade nickel sulphate for the electric vehicle battery
supply chain, with the balance of concentrate continuing to be
directly supplied to the stainless steel industry. Along with
battery-grade nickel sulphate, this option also supports the
valorization of cobalt and copper as refinery byproducts. The
Refinery Option presents incremental capital expenditure of
$448 million with an incremental
operating cost of $1.02 per pound of
nickel (C1 cost of $0.79/lb Ni,
including credits for cobalt and copper byproducts), resulting in
total NPV8% of $2,127
million. Further discussion of the Refinery Option is
contained within the "Refinery Option" section near the end of this
news release.
Mining & Mineral
Reserves
The Baptiste deposit will be mined as a conventional large-scale
truck and shovel operation with up to 60 Mt of material mined
per year during Phase 1 and up to 120
Mt of material mined per year during Phase 2. The
mining operation will feature 250 mm blast-hole electric drills,
42 m3 electric excavators,
and 300 t haul trucks working on nominal 10
m high benches. A flexible combination of dozers, graders,
wheel loaders, and excavators will form the core of the support
equipment fleet.
The mineral resource estimate (effective November 14, 2022, see FPX news release) for the
Project is based on updated drilling from the 2021 season,
informing the Baptiste deposit geological model. Taking
advantage of the resource shape and local topography, mining will
commence at the south of the deposit before moving northwest and
northeast, respectively. This approach provides two distinct
advantages during the initial operating years, including a higher
average mill feed grade and a lower mining strip ratio. This
approach allows capital advantages through the deferment of mining
equipment to sustaining costs, as well as a lower mining operating
cost during Phase 1.
A summary of the PFS mine plan is presented in Table 2, followed
by a chart of tonnage moved and average mill feed grade throughput
for the envisioned mine life (Figure 1).
Table 2 – PFS Mine Plan Summary
|
Phase
1
|
Phase
2
|
Total
|
Operating
Years
|
1 to 9
|
10 to 29
|
29 years
|
Head Grade, Average (%
DTR Ni)
|
0.135
|
0.128
|
0.130
|
Mill Throughput
(tpd)
|
108,000
|
162,000
|
-
|
Tonnes Milled, Total
(Mt)
|
345
|
1,143
|
1,488
|
Tonnes Waste, Total
(Mt)1
|
141
|
697
|
838
|
Strip Ratio
(waste:ore)1
|
0.41
|
0.61
|
0.56
|
Notes:
|
|
1.
|
Excludes capitalized
pre-stripping.
|
The Probable Mineral Reserves for the project are estimated at
1,488 Mt at an average grade of 0.13% DTR nickel (0.21% total
nickel), resulting in 1,933 kt of contained DTR nickel metal (3,125
kt of total nickel metal) over the 29-year mine life.
Included in waste material for the PFS are 44 Mt of inferred
material at an average grade of 0.113% DTR nickel.
Table 3 – Baptiste Nickel Project Reserve Estimate
Category
|
Tonnes
(Mt)
|
DTR
Nickel
(%)
|
Total
Nickel
(%)
|
Contained
Metal
(kt DTR
nickel)
|
Contained
Metal
(kt total
nickel)
|
Proven
|
-
|
-
|
-
|
-
|
-
|
Probable
|
1,488
|
0.13
|
0.21
|
1,933
|
3,125
|
Proven &
Probable
|
1,488
|
0.13
|
0.21
|
1,933
|
3,125
|
Notes:
|
|
1.
|
Mineral Reserves are
reported effective September 6, 2023.
|
2.
|
The Qualified Person
for the estimate is Mr. Cristian Hernan Garcia Jimenez, P.Eng, an
independent consultant.
|
3.
|
Mineral Reserves were
developed in accordance with CIM Definition Standards
(2014).
|
4.
|
Mineral Reserves are
reported using a fixed 0.06% DTR Ni cut-off grade, which represent
approximately US$9/t NSR value, which is above the economic cut-off
grade of US$5.5/t.
|
5.
|
The Mineral Reserves
are supported by a mine plan, based on a pit design, guided by a
Lerchs Grossmann (LG) pit shell. Inputs include $8.75/lb Ni,
$1.98/t mining opex, $3.72/t process opex, $1.10 /t G&A opex,
pit slopes varying from 42-44 degrees, and 85% process
recovery
|
6.
|
Life-of-mine strip
ratio is 0.56 (W:O), excluding capitalized
pre-stripping.
|
7.
|
Ore and contained
nickel tonnes are reported in metric units and grades are reported
as percentages.
|
8.
|
All figures are rounded
to reflect the relative accuracy of the estimate. Totals may not
sum due to rounding as required by reporting guidelines.
|
Metallurgy & Process
Facilities
The PFS metallurgical testwork program involved multiple bench-
and pilot-scale campaigns (see FPX's June
27, 2023 news release). The overall processing strategy
takes advantage of awaruite's unique characteristics in a simple
flowsheet utilizing well-proven unit operations, as presented in
Figure 2. The estimated life-of-mine DTR nickel recovery for
the PFS is 88.7%, as presented in Table 4.
Based on average grade of 0.21% total nickel, this equates to
a 55% total nickel recovery.
Table 4 – Life of Mine DTR Nickel Recovery
Recovery
|
DTR Nickel
Recovery (%)
|
By
Processing
Stage
|
Roughing Magnetic
Separation
|
95.0
|
Cleaning Magnetic
Separation
|
99.3
|
Recleaning Magnetic
Separation
|
99.7
|
Flotation
|
87.4
|
Flotation Tailings
Treatment
|
54.8
|
Overall
|
To Awaruite
Concentrate
|
82.2
|
To Mixed Hydroxide
Precipitate
|
6.5
|
Combined To Both
Nickel Products
|
88.7
|
The process plant will be developed in two phases, with the
Phase 1 plant capable of processing 108,000 tpd of ore, and the
Phase 2 expansion bringing total processing capacity to 162,000
tpd. Processing facilities utilize conventional unit
operations and configurations in comminution, magnetic separation,
flotation, and tailings leach.
In consideration of ore grindability, low abrasivity, and low
power cost, comminution will consist of primary gyratory crushing,
followed by semi-autogenous ("SAG") mill and ball mill
grinding. Based on awaruite's intense magnetic response, a
coarse primary grind of 250 mm allows approximately 84% of the
fresh plant feed to be diverted directly to final tailings in the
primary magnetic separation stage. Followed by two stages of
regrind and cleaner magnetic separation, a further 12% of fresh
plant feed is diverted to final tailings, resulting in a "magnetics
only" concentrate consisting of awaruite and magnetite. This
results in a flotation circuit which only needs to treat less than
5% of fresh plant feed.
Flotation utilizes well-defined conditions in conventional
mechanical flotation cells. Roughing flotation followed by
four stages of cleaning flotation produces a high-grade nickel
concentrate (60% nickel) which is then dewatered, briquetted, and
bagged for sale to market. Flotation tailings are subjected
to mild atmospheric tank leaching conditions to recover nickel not
recovered in flotation (approximately 6.5% of DTR nickel).
Leach solution is purified and nickel is subsequently precipitated
to a MHP product (containing 45% nickel) which is then dewatered
and bagged for sale to market.
Other Facilities
The proposed tailings facility design considers management of
tailings and mine waste in a single integrated facility, utilizing
open pit pre-stripping material and waste rock for dam
construction. Deposition of waste rock and tailings is
considered within the open pit in the final years of operations.
The tailings facility will incorporate cross-valley dams and
is situated in close proximity to the open pit, with gravity-flow
of tailings for the first 6 years of operations, followed by the
installation of a tailings pumping system in Year 7.
The conceptual site water management plan includes management of
site contact water in the tailings facility with collection of
runoff water downstream of all other Project
infrastructure/disturbances. PFS water balance modelling
indicates the site to be in an annual water deficit, requiring a
modest allowance for freshwater makeup during operations, including
for potable water requirements.
The Project considers a full suite of on-site infrastructure and
ancillaries. Both the construction and operation phases will
be supported by an on-site camp facility.
The Project will connect with BC Hydro's low-carbon grid, with
multiple options having been validated through a formal BC Hydro
study. The PFS considers a 230 kV connection to the
Glenannan substation located to the south of the Project, with a
line length of approximately 155 km. The current FSR network will
suitably support the early stages of site construction. The current
road network will be upgraded, including minor expansions, at the
end of the first year of construction resulting in reduced travel
times to site. No other off-site facilities are envisioned to
be required for the Project.
Project Execution
The Gantt chart presented in Figure 3 summarizes the conceptual
project development timeline. The critical path runs through
the environmental assessment ("EA") and permitting process,
with an anticipated EA decision in the first quarter of 2027.
Approximately 9-12 months off the critical path are engineering
studies, with key events including the feasibility study and
front-end engineering and design ("FEED") ahead of the final
investment decision ("FID"). Following a positive EA
decision and permitting the project through 2027, the FID will
approve the project to proceed with construction early works
commencing in early 2028, followed by full construction and
subsequent production of first nickel in the fourth quarter of
2030.
Capital Cost Estimate
Initial capital costs have been estimated in alignment with AACE
(Association for the Advancement of Cost Engineering) Class 4
standards and have a stated accuracy of +/- 25%. The PFS
contributors completed engineering, design, and costing inputs for
their respective scope, with the overall estimate consolidated by
Ausenco Engineering Canada Inc. Sustaining and expansion
capital costs have been estimated in alignment with AACE Class 5
standards, and closure capital costs have been estimated on an
order-of-magnitude basis.
The total initial capital cost for the Project is estimated to
be $2,182 million and is expended in
Years -3, -2, and -1 ahead of start-up at the commencement of Year
1. Expansion capital cost is estimated to be $763 million and is expended ahead of expansion
start-up at the commencement of Year 10. Sustaining capital
cost is estimated to be $1,281
million. Total closure capital cost is estimated to be
$284 million. No salvage value
is considered due to the 29-year mine life.
Table 5 – Total Estimated Capital Costs
Capital
Cost Type
|
Category
|
Total
(USD,
millions)
|
Initial
Capital
Costs
|
Mining
|
325
|
Process
Plant
|
730
|
Tailings
Facility
|
115
|
On-Site
Infrastructure
|
106
|
Off-Site
Infrastructure
|
127
|
Indirect
Costs
|
401
|
Owner's
Costs
|
106
|
Contingency
|
272
|
Total Initial
Capital
|
2,182
|
Sustaining
Capital
Costs
|
Mine
Equipment
|
643
|
Tailings
Facility
|
421
|
Indirect
Costs
|
20
|
Contingency
|
97
|
Total Sustaining
Capital
|
1,181
|
Total Expansion Capital
Costs
|
763
|
Total Closure Capital
Costs
|
284
|
Total Capital Costs
(life-of-mine)
|
4,410
|
Operating Cost Estimate
Total operating costs are estimated to average $8.15 per tonne milled for life-of-mine, for an
equivalent C1 cost of $3.70 /lb
nickel produced (exclusive of any byproduct credits). Phase 1
operating costs of $7.88/t milled are
lower than the life-of-mine average, primarily due to the impact of
the lower strip ratio in the early operating years. Inclusive
of royalties, sustaining capital, expansion capital, and closure
capital, AISC is estimated to average $4.17 /lb nickel produced for life-of-mine.
Mine operating costs are estimated to average $3.14 per tonne milled for life-of-mine, with
lower costs during Phase 1 ($2.59 per
tonne milled) due to the lower strip ratio. Processing costs
are estimated to average $3.63 per
tonne milled for life-of-mine, with the Phase 2 costs slightly
lower due to increased throughput. G&A averages
$1.09 per tonne milled for
life-of-mine, benchmarking consistently with nearby major operating
mines. Concentrate transport averages $0.29 per tonne milled for life-of-mine, assuming
shipment of concentrates from Baptiste to east Asia.
The Project is subject to a 1% net smelter return ("NSR")
which is payable on annual sales less transportation costs to
market.
Table 6 – Life-Of-Mine Operating Cost and AISC
Category
|
Units
|
Phase
1
|
Phase
2
|
LOM
Average
|
Mining
|
$/t milled
|
2.59
|
3.31
|
3.14
|
Processing
|
$/t milled
|
3.75
|
3.59
|
3.63
|
G&A
|
$/t milled
|
1.23
|
1.05
|
1.09
|
Concentrate
Transport
|
$/t milled
|
0.31
|
0.29
|
0.29
|
Total Cash
Costs
|
$/t
milled
|
7.88
|
8.24
|
8.15
|
C1 Operating
Cost1
|
$/lb nickel
produced
|
3.48
|
3.76
|
3.70
|
AISC2
|
$/lb nickel
produced
|
3.97
|
4.23
|
4.17
|
Notes:
|
|
1.
|
Exclusive of any
byproduct credits.
|
2.
|
Inclusive of operating
cost, expansion capital, sustaining capital, royalties, and closure
capital.
|
Economic Analysis
At an assumed nickel price of $8.75/lb and a CAD:USD exchange rate of 0.76, the
Project generates an after-tax NPV8% of $2.01 billion, an after-tax IRR of 18.6%, and an
after-tax payback of 3.7 years. See Table 7 for further
details regarding PFS economics and Table 8 for NPV8%
sensitivity to nickel price, recovery, initial capital cost, and
operating cost.
CRU, a leading provider of analysis and consulting in the
mining, metals and fertilizer markets, prepared a market analysis
report that looked at the global ferronickel ("FeNi") market
and considered the applicability of the Baptiste FeNi briquette to
stainless steel production and the strong comparability of the
Baptiste FeNi briquette to standard FeNi. Based on an average
of the last six years of published data from a leading western
ferronickel producer, payability of 95% of the LME nickel price has
been assumed for the Baptiste FeNi product.
Based on published market data, the payability for nickel
content in MHP ranged from 70% to 90% of the LME nickel price over
the 2020-22 period, with the low-end of that payability range
coinciding with the period of extreme market volatility and
elevated LME nickel prices in the first half of 2022. For the
purposes of the PFS economic analysis, payability of 87% of the LME
nickel price has been assumed for the Baptiste MHP product.
The PFS models provincial mining taxes in accordance with the
British Columbia Mineral Tax Act, and combined provincial and
federal income taxes. The PFS reflects the impact of the
federal government's refundable critical minerals investment tax
credit, announced in the 2023 Federal Budget, which is proposed to
be equal to 30% of the capital cost of eligible property for the
extraction and processing of certain critical minerals, including
nickel. The PFS estimates total LOM taxes paid of
C$6.3 billion including C$2.5 billion to the Province of British Columbia and C$3.8 billion to the Government of Canada, implying an estimated LOM tax rate on
taxable income of approximately 37%.
Table 7 – PFS Economics
Economic
Basis/Result
|
Units
|
Base
Case
|
Nickel Price
|
USD/lb
|
8.75
|
Payability, FeNi
Briquette
|
%
|
95
|
Payability,
MHP
|
%
|
87
|
Pre-Tax
|
NPV8%
|
USD,
millions
|
2,923
|
After-Tax
|
NPV8%
|
USD,
millions
|
2,010
|
IRR
|
%
|
18.6
|
Payback
|
years
|
3.7
|
Mine
Life-to-Payback
|
Ratio
|
7.8
|
NPV-to-Initial
Capex
|
Ratio
|
0.92
|
Annual Free Cash Flow,
Pre-Tax1
|
USD,
millions
|
$578
|
Notes:
|
|
1.
|
During operating
years.
|
Table 8 – NPV Sensitivity
After-tax
NPV8% (USD, millions)
|
-20 %
|
-10 %
|
Base
Case
|
+10 %
|
+20 %
|
Nickel Price
|
837
|
1,427
|
2,010
|
2,593
|
3,173
|
Recovery
|
837
|
1,427
|
2,593
|
3,173
|
Initial Capital
Cost
|
2,217
|
2,114
|
1,907
|
1,803
|
Operating
Cost
|
2,444
|
2,227
|
1,794
|
1,577
|
As seen in Table 8, the project is most and equally sensitive to
nickel price and recovery; however, economics remain robust at
levels below Base Case assumptions. In keeping with the long
mine life, the Project is more sensitive to operating cost than
initial capital cost.
Refinery Option
To demonstrate Baptiste's strategic flexibility to also produce
nickel and cobalt for the battery material supply chain, a Refinery
Option was developed to be discrete from the Base Case, envisioning
the operation of a standalone refinery in Central British
Columbia. Located in an urban setting, the refinery
would benefit from the infrastructure, services, and labour which
would be available at an integrated battery material processing
hub, such as those being developed in eastern Canada and other locations worldwide.
The refinery flowsheet has been optimized based on the results
of FPX's hydrometallurgical testwork program (see FPX's
May 17, 2023 news release).
Substantial improvements to the refinery flowsheet are centred in
the optimization of the leaching circuit and the resultant
simplification of downstream purification requirements.
The refinery is sized to produce 40,000 tonnes per year of
nickel contained in battery grade nickel sulphate. In
addition, the refinery would produce approximately 700 tonnes per
year of cobalt in MHP and 300 tonnes per year of copper in
concentrate. For the Refinery Option, the balance of nickel
produced at the Baptiste mine (over and above the 40,000 tonnes in
nickel sulphate) would continue to be marketed as a FeNi product to
the stainless steel industry.
Based on market data published by Asian Metal, the 2022
nickel sulphate price in China ranged from a low of $23,677 to a high of $33,036 per tonne of contained nickel. For
the Baptiste nickel sulphate product, a premium of $1.00/lb ($2,205/tonne) to the assumed base LME Ni price of
$8.75/lb ($19,290/tonne) has been applied in the Refinery
Option economic analysis.
Initial capital costs for the Refinery Option have been
estimated in alignment with AACE Class 5 standards. As seen
in Table 9, the Refinery Option economics are comparable to the
Base Case.
Table 9 – Refinery Option Economics
Economic
Basis/Result
|
Units
|
Refinery
Option
Only
|
PFS Base Case +
Refinery Option
|
Nickel Refinery
Capacity
|
Tpa
|
40,000 tpa of contained
nickel in nickel sulphate
|
Nickel Sulphate
Premium
|
$/lb Ni
|
1.00
|
Nickel Price
|
USD/lb
|
8.75
|
Cobalt Price
|
USD/lb
|
15.00
|
Copper Price
|
USD/lb
|
3.50
|
Initial Capital
Cost
|
USD,
millions
|
448
|
2,629
|
C1 Operating
Cost1
|
USD/ lb Ni
|
0.79
|
3.89
|
Payability,
MHP
|
% LME price
|
87
|
87
|
After-Tax
|
NPV8%
|
USD,
millions
|
63
|
2,127
|
IRR
|
%
|
9.9
|
17.7
|
Payback
|
years
|
7.5
|
3.9
|
Notes:
|
|
1.
|
Inclusive of cobalt and
copper byproduct credits from refinery.
|
Indigenous Engagement
The Baptiste area is located on the traditional territories of
Tl'azt'en Nation and Binche Whut'en and within several Tl'azt'enne
and Binche Whut'enne keyohs, a traditional governance system of the
Dakelh people of the Stuart-Trembleur Lake area. FPX has maintained
regular engagement with Tl'azt'en Nation and Binche Whut'en,
formalizing those activities with a Memorandum of Understanding
("MoU") signed in 2012 with Tl'azt'en Nation, and an
Exploration and Development Memorandum of Agreement ("MoA")
signed in 2022 with the Binche Keyoh Bu Society.
FPX acknowledges the potential impacts of resource projects and
the concerns that Indigenous communities may have for such
activities occurring on their territories. The Company has been
working collaboratively and meeting with local communities to
understand key valued species and habitats in order to avoid and
minimize impacts, and to identify significant mitigations and
enhancements that have the potential to create long-term
environmental benefits for the local area. The Company is
committed to ensuring the Rights of Indigenous Peoples are
respected, and is focused on working with Indigenous leadership to
advance a modern mining project that is aligned with global
sustainable development goals and that protects people and the
environment. FPX looks forward to continuing to evaluate all
aspects of the potential project, building on on-going geological
and engineering studies, Indigenous-led cultural and environmental
baseline studies, and continued early engagement with all
potentially-affected communities.
Technical Report
FPX intends to file on SEDAR and the FPX website within 45 days
of this news release the Technical Report for the PFS prepared in
accordance with the requirements of NI 43-101, including a
description of the updated Mineral Resource Estimate and the
Mineral Reserve Estimate. For readers to fully understand the
information in this news release, they should read the Technical
Report in its entirety, including all qualifications, assumptions,
exclusions, and risks that relate to the PFS. The Technical
Report is intended to be read as a whole, and sections should not
be read or relied upon out of context.
PFS Contributors
The Baptiste PFS included contribution from the parties listed
in Table 10 ("PFS Contributors"), each of whom is a
qualified person under NI 43-101.
Table 10 – PFS Contributors
PFS
Contributor
|
Qualified
Person
|
Scope of
Responsibility
|
Ausenco Engineering
Canada Inc.
|
Kevin Murray,
P.Eng.
|
Recovery methods,
process plant, on-
site infrastructure, capital cost
estimate, operating cost estimate,
financial model, opportunities, next
steps, and refinery option
|
Carisbrooke Consulting
Inc.
|
David Baldwin,
P.Eng.
|
Off-site
power
|
Equity Exploration
Consultants Ltd.
|
Ron Voordouw,
P.Geo.
|
Geology
|
ERM Consultants Canada
Ltd.
|
Rolf Schmitt,
P.Geo.
|
Environmental,
Permitting
|
International
Metallurgical &
Environmental Inc.
|
Jeff Austin,
P.Eng.
|
Metallurgy
|
Knight
Piésold Ltd.
|
Duke Reimer,
P.Eng.
|
Tailings, water
management, &
geotechnical
|
Next Mine Consulting
Ltd.
|
Richard Flynn,
P.Geo.
|
Mineral resource
estimate
|
Onsite Engineering
Ltd.
|
Paul Mysak,
P.Eng.
|
Off-site roads and
bridges
|
TechSer Mining
Consultants Ltd.
|
Cristian Garcia,
P.Eng.
|
Mine design &
mineral reserve
estimate
|
Qualified Persons Murray, Voordouw, Reimer, Flynn, Mysak, and
Garcia all visited the Baptiste Nickel Project site during the
development of their respective PFS contributions.
Additional information can be found in the pending Technical
Report.
Qualified Person
The PFS contributors prepared or supervised the preparation of
information that forms the basis of the PFS disclosure in this news
release.
Andrew Osterloh, P.Eng., Senior
Vice President, Projects and Operations for FPX, is a qualified
person as defined by NI 43-101. Mr. Osterloh has reviewed and
approved the technical content of this news release.
About the Decar Nickel
District
The Company's Decar Nickel District represents a large-scale
greenfield discovery of nickel mineralization in the form of a
naturally occurring nickel-iron alloy called awaruite
(Ni3Fe) hosted in an ultramafic/ophiolite complex.
FPX's mineral claims cover an area of 245 km2 west of
the Middle River and north of Trembleur Lake, in central British
Columbia. Awaruite mineralization has been identified in
several target areas within the ophiolite complex including the
Baptiste Deposit and the Van Target, as confirmed by drilling,
petrographic examination, electron probe analyses and outcrop
sampling. Since 2010, approximately US $30 million has been spent on the exploration and
development of Decar.
Of the four targets in the Decar Nickel District, the Baptiste
Deposit has been the focus of increasing resource definition (a
total of 99 holes and 33,700 m of
drilling completed), as well as environmental and engineering
studies to evaluate its potential as a bulk-tonnage open pit mining
project. The Baptiste Deposit is located within the Baptiste
Creek watershed, on the traditional and unceded territories of
Tl'azt'en Nation and Binche Whut'en, and within several Tl'azt'enne
and Binche Whut'enne keyohs. FPX has conducted mineral exploration
activities to date subject to the conditions of our agreements with
the Nations and keyoh holders.
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.