Canadian developer Canada Nickel has arranged a $10-million loan with precious metals merchant Auramet, which will be used for post-feasibility study work, including permitting and detailed engineering.
Chairperson and CEO Mark Selby reports that the feasibility study for the Crawford project is on track to be completed by year-end.
“The study work is approximately 85% complete and the company is confident in its outcome,” he says.
The Auramet loan will be due January 14, 2023 and will carry an interest rate of 1% a month, and be subject to a 2% arrangement fee. At closing, Auramet will also receive 325 000 one-year warrants with a strike price of $1.52 a share.
The preliminary economic assessment (PEA) on the Crawford project has confirmed its robust economics. The study has demonstrated the potential to develop a phased conventional nickel sulphide concentrator producing nickel and magnetite concentrates.
Average production is estimated at 34 000 t/y nickel, with production peaking at 42 000 t/y. Production will include significant iron and chrome by-products of 860 000 t/y and 59 000 t/y respectively.
The process plant will use a conventional milling operation comprising rushing, grinding, desliming and flotation operations consistent with other ultramafic nickel operations. The process plant will be constructed in three phases.
Phase 1 will have a steady-state throughput of 42 500 t/d using a single 36 ft x 24 ft semiautonomous grinding mill and a 26.5 ft × 44 ft ball mill grinding circuit. Phase 2 will double throughput, starting in Year 4, by mirroring the first line. Phase 3 will raise production to the ultimate rate of 120 000 t/d through the addition of secondary crushing, a third ball mill and additional downstream capacity.
About 842 000 t of nickel, 21-million tonnes of iron and 1.5-million tonnes of chrome is expected to be produced over the project’s 25-year mine life.