TSX-V-listed Canada Nickel has initiated the front-end engineering design (FEED) phase for its Crawford nickel sulphide project, situated in the Timmins-Cochrane mining camp of Ontario.
Spearheaded by Ausenco Engineering Canada, the FEED phase marks a significant step forward in the project’s development trajectory.
“As we continue to successfully advance Crawford financing and permitting activities, we are confidently moving into this next phase of project development which maintains our targets of a mid-2025 construction decision and first production by year-end 2027 by sufficiently advancing engineering on a number of fronts,” said Canada Nickel CEO Mark Selby.
The FEED phase is expected to conclude in August 2024. Activities will be supported by data collected during the 2024 winter geotechnical programme, which is nearing completion. This programme has been designed to mitigate project risks and procure essential data, facilitating a smooth transition towards construction commencement upon final decision-making.
The October 2023 bankable feasibility study (BFS) for Crawford estimates that the mine will produce 83-million pounds (38 000 t) of nickel a year over a 41-year life, with production of 48 000 t/y of nickel, 8 000 t/y of cobalt, 13 000 oz/y of palladium and platinum, 1.6-million tonnes a year of iron and 76 000 t/y of chrome over its 27-year peak period.
The BFS calculates net life-of-mine C1 cash costs of $0.39/lb nickel, placing Crawford in the first quartile of the cost curve. Net all-in sustaining costs are $1.21/lb nickel.
On average, Crawford is projected to earn revenue of $1-billion a year and deliver free cashflow of $546-million.
The BFS pegs capital costs at $1.9-billion for the initial phase, which will have a throughput of 60 000 t/y. The second phase, planned for commissioning during the fourth year, will double mill throughput to 120 000 t/d at a cost of $1.6-billion.