VANCOUVER, BC, July 30,
2024 /CNW/ - FPX Nickel Corp. (TSXV: FPX) (OTCQB:
FPOCF) ("FPX Nickel" or the "Company") is pleased to
provide an update on value engineering ("Value Engineering")
studies that have improved the conceptual mine plan and facilities
of the Baptiste Nickel Project ("Baptiste" or "the
Project") in central British
Columbia. Results of the mine Value Engineering studies have
identified improvements to project economics and mine operability,
and a significant reduction to Baptiste's greenhouse gas emissions
estimate and the resultant carbon intensity.
Highlights
- Optimization of the Baptiste mine plan and application of
trolley-assist haul truck systems has improved operability and
reduced overall diesel consumption by approximately 50%
- The mine Value Engineering program has reduced Baptiste's
carbon intensity to 1.2 tCO2e/tNi, which is in the
lowest decile of current global nickel production and 50% below the
amount reported in the 2023 preliminary feasibility study
- FPX has received funding support from BC Hydro that will enable
Baptiste to commence interconnection studies in the second half of
2024, advancing electrification of the project and supporting BC's
and Canada's critical minerals
strategy
"Our plans to adopt best-in-class mining technologies are
expected to enable Baptiste to be one of the lowest-carbon nickel
operations in the world. The optimization of our approach to
mine planning highlights our made-in-Canada advantage. British Columbia's clean power underpins
Baptiste's potential for responsible production of high-value
nickel units that will support decarbonization of the global
economy. We are grateful for BC Hydro's support as we move toward
entry into the provincial and federal environmental assessment
process in 2025."
- Martin Turenne, President and CEO of FPX
Nickel
"FPX Nickel is setting new global standards in responsibly mined
high-value nickel, exemplifying British
Columbia's leadership in environmental, social, and
governance practices. Mining and mineral exploration are a
foundational part of our transition to a low-carbon future, and
projects like this one will help us build a stronger and more
sustainable British Columbia where
our hard work benefits everyone. I congratulate FPX Nickel on their
progress on this world-class project."
- The Honourable Josie Osborne, British Columbia's Minister of Energy, Mines
and Low Carbon Innovation
Background
The Baptiste 2023 preliminary feasibility study ("PFS")
demonstrates the potential to develop a high-margin and low-carbon
nickel mine producing an average of 59,100 tonnes per year of
nickel over a 29-year mine life (see the Company's September 6, 2023 news release). Due to
awaruite's properties, Baptiste has the unparalleled flexibility to
produce either a high-grade concentrate (60% nickel) for direct
feed into the stainless steel industry (the "Base Case") or
for further refining into battery-grade nickel and cobalt products
for the electric vehicle battery supply chain (the "Refinery
Option").
While the PFS presents robust economics, including a Base Case
after-tax NPV8% of US$2.01
Billion and after-tax IRR of 18.6% at US$8.75 /lb. Ni, FPX continues to strive towards
adding further value to Baptiste, focusing on a holistic blend of
economics, constructability, operability, risk and ESG
considerations.
The key Value Engineering studies pursued by FPX in 2024
are:
- Mineral processing (see the Company's July 10, 2024 news release)
- Mine planning and engineering (described herein)
- Refinery planning (to be completed in the third quarter of
2024)
Baptiste Carbon Intensity
The Baptiste PFS reported life-of-mine ("LOM") average
carbon intensity of 2.4 tCO2e/tNi on a Scope 1+2 basis.
Approximately 85% of this PFS carbon intensity is due to
diesel consumption, with the remainder from other fuels (propane
and gasoline), minor use of limestone for neutralization in the
process plant, and minor contribution from BC Hydro's grid
electricity emission intensity factor (11.3 tCO2e/Gwh in
2023).
Following the Value Engineering work described herein, the
Baptiste carbon intensity has been reduced to a LOM average of 1.2
tCO2e/tNi, representing a 50% reduction from the
reported PFS value. This value would place Baptiste within
the lowest decile of current global nickel production.
According to Skarn Associates, a mining sustainability
consultancy, approximately 85% of global nickel production in 2023
had a carbon intensity greater than 10 tCO2e/tNi, and
approximately 70% of global nickel production had a carbon
intensity greater than 30 tCO2e/tNi.
BC Hydro Support
FPX has enjoyed a positive relationship with BC Hydro, working
closely through our project development activities to evaluate
potential grid connection scenarios. BC Hydro will provide
funding support to FPX as the Company formally enters the grid
connection queue in the second half of 2024 with the initiation of
a System Impact Study ("SIS") for Baptiste.
Mine Value Engineering Studies
The mine Value Engineering studies focused on optimization of
the PFS mine plan through the following parameters:
- Design criteria,
- Equipment selection,
- Autonomous haulage technology; and
- Lower-carbon haulage technology.
Design Criteria and Equipment Selection
An evaluation of key design criteria and equipment selection has
demonstrated improved economics and tangible carbon intensity
reductions through increasing bench heights and haulage equipment
size. The now 15 m bench heights (vs.
10 m in the PFS) and 400-ton class
haul trucks (vs. 300-ton class in the PFS) have resulted in
improved loading equipment efficiency, reduced haul truck counts,
and optimization of ore and waste quantities on a year-to-year
basis, all without material impact to initial capital costs.
Additionally, further engagement with haul truck vendors on
benchmarkable diesel consumption rates indicate the PFS considered
an overly conservative diesel consumption rate. The total
impact of these design criteria and equipment selection evaluations
improve project economics and mine operability while reducing the
average life of mine ("LOM") diesel consumption by
approximately 20%.
Autonomous Haulage Technology
An evaluation of autonomous haulage system ("AHS")
technology has demonstrated reduced mine operating costs along with
means to improving Baptiste's post-expansion operating basis.
Two scenarios were evaluated, including (1) implementation of
an AHS as part of the initial mine construction ("Phase 1");
and (2) implementation of an AHS for the planned mine expansion
("Phase 2") from a processing throughput of 108,000 tonnes
per day ("tpd") to 164,000 tpd.
With the increased mining rate in Phase 2, the Value Engineering
study concluded that the adoption of AHS will reduce mine operating
costs without impacting initial capital costs. Adoption of
AHS in Phase 2 will allow personnel serving as haul truck operators
in Phase 1 to be uptrained for positions within the expanded Phase
2 operations, thereby providing new opportunities to the Phase 1
mine haulage workforce while also mitigating the expanded work
force requirements.
Lower-Carbon Haulage Technology
An evaluation of mine haulage technology has yielded significant
carbon intensity reductions. With 85% of the PFS carbon
intensity associated with haul truck diesel consumption, the
application of lower-carbon mine haulage technologies is the most
direct means to reduce Baptiste's carbon intensity. This
evaluation considered trolley-assist haulage systems, such as that
successfully implemented at the Copper Mountain Mine in southern
British Columbia, while further
evaluations during the FS will also consider battery-powered haul
trucks, hydrogen-powered haul trucks, and other emerging
technologies.
A series of trolley assist system concepts were evaluated,
including in-pit systems, ex-pit systems, and combinations thereof.
Ultimately, a scenario adding an in-pit system for operating year 5
and an ex-pit system for operating year 8 results was selected. The
net result of the in- and ex-pit trolley assist systems is an
approximate 30% reduction in total LOM diesel consumption without
impacting the Project's initial capital intensity.
Carbon Sequestration in Mine Waste and Tailings
Due to their ultramafic mineralization, Baptiste's mine waste
and tailings have the potential to sequester carbon dioxide through
carbonation of brucite, serpentine, and other magnesium-based
minerals. For reference, Baptiste's tailings will contain an
average of 1% brucite. This has been demonstrated through
multiple field- and lab-based testwork campaigns in tandem with the
University of British Columbia, as well
as carbonation modelling work with independent consultants.
FPX continues to pursue means to promote carbon sequestration
in the Baptiste tailings facility; however, in line with our
conservative approach to project development, no benefit thereof is
currently considered within Baptiste's project economics or carbon
intensity. As such, carbon sequestration within Baptiste mine
waste and tailings is considered to be a future potential economic
and environmental opportunity.
About the Decar Nickel District
The Company's Baptiste Nickel Project represents a large-scale
greenfield discovery of nickel mineralization in the form of a
sulphur-free, nickel-iron mineral called awaruite
(Ni3Fe) hosted in an ultramafic/ophiolite complex.
The Baptiste mineral claims cover an area of 408 km2,
west of Middle River and north of
Trembleur Lake, in central British Columbia. In addition to
the Baptiste Deposit itself, awaruite mineralization has been
confirmed through drilling at several target areas within the same
claims package, most notably at the Van Target which is located 6
km to the north of the Baptiste Deposit. Since 2010,
approximately US $30 million has been
spent on the exploration and development of Baptiste.
The Baptiste Deposit is located within the Baptiste Creek
watershed, on the traditional territories of the Tl'azt'en Nation
and the 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 agreements with First 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 distinctive style of awaruite nickel-iron
mineralization.
On behalf of FPX Nickel Corp.
"Martin Turenne"
Martin Turenne, President, CEO and
Director
Email: ceo@fpxnickel.com
Phone: 604-681-8600
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.
