Connect with us

Articles

Canada Nickel Demonstrates Carbon Sequestration Potential of Tailings from the Crawford Nickel Sulphide Project

Highlights: Initial lab scale testing demonstrates that Crawford tailings have the potential to capture 17.5 kg CO2 per tonne of tailings – more than…

Published

on

This article was originally published by Inside Exploration

Highlights:

  • Initial lab scale testing demonstrates that Crawford tailings have the potential to capture 17.5 kg CO2 per tonne of tailings – more than 3 times the amount required to offset the Project’s projected carbon footprint. Any amounts in excess of projected 4.6 kg CO2 per tonne could be sold for carbon credits.

TORONTO, Nov. 10, 2021 – Canada Nickel Company Inc. (“Canada Nickel” or the “Company”) (TSXV: CNC)(OTCQX: CNIKF) is pleased to report the results of the first phase laboratory scale testing, which demonstrates the potential for carbon sequestration in tailings at its Crawford Nickel-Sulphide Project (“Crawford” or the “Project”) near Timmins, Ontario.  

The laboratory tests were conducted by researchers from Kingston Process Metallurgy and Queen’s University and demonstrate that the project tailings naturally sequester CO2 into a mineralized form, which industry research has demonstrated is permanent. This is a critical foundation of Canada Nickel’s NetZero initiative to become the first zero carbon nickel operation. Canada Nickel’s wholly-owned Net Zero Metals subsidiary has successfully applied and registered trademarks in various jurisdictions for NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™ in expectation that the Company believes it can be successful in achieving its zero carbon initiatives.

Mark Selby, Chair and CEO of Canada Nickel commented, “Today’s announcement is a critical demonstration that our tailings have the fundamental capacity to capture CO2 in amounts that exceed what we believe will be required to achieve net zero carbon production for our concentrates. Any CO2 sequestration in excess of the 4.6 kg per tonne of tailings level would be potentially available for sale as carbon credits.  Work is underway on a series of larger scale tests aimed at demonstrating that Crawford tailings can be exposed to enough CO2 for a sufficient time period to achieve the sequestrations levels that were achieved at a lab scale.  We look forward to seeing the results over the coming year.”

What is mineral carbonation
The tailings and waste rock produced from the Company’s Crawford Nickel-Sulphide Project are anticipated to spontaneously and permanently capture CO2 when exposed to the atmosphere. Canada Nickel is developing processes to optimize the carbon capture potential of the Project to offset project emissions and work towards developing a potentially carbon negative nickel mining operation in Timmins, Ontario.

The key minerals that are responsible for this spontaneous reaction at Crawford are serpentine, olivine and brucite, which make up more than 80% of the resource material at Crawford. Brucite is the most reactive mineral, with an average content of 1.9% in Crawford based on 999 distinct QEMSCAN mineralogy analyses across the Crawford Main and East Zones as reported in the Preliminary Economic Assessment (“PEA”) dated May 25, 2021. Based on the brucite concentration above, it is estimated that only 31% of the brucite in Crawford needs to be carbonated to offset all of the estimated emissions from the PEA to make the operation carbon neutral.

Evidence of mineral carbonation can be seen on the surface of drill core over time. Figure 1 shows drill core taken from Canada Nickel’s Crawford Project after one year of storage. The surface of the drill core has turned white due to carbonation reactions with atmospheric CO2.

Figure 1. Canada Nickel Drill Core – October 2021 vs October 2020 Demonstrating Spontaneous CO2 Capture (white minerals on surface are carbonated minerals)

Figure 1. Canada Nickel Drill Core – October 2021 vs October 2020 Demonstrating Spontaneous CO2 Capture (white minerals on surface are carbonated minerals) (CNW Group/Canada Nickel Company Inc.)

Description of Current Results
Based on analysis by Skarn Associates, Canada Nickel estimates a preliminary emission intensity of 2.8 tonnes CO2 / tonne of Nickel equivalent concentrate production using data from the Crawford PEA. In order to offset all of the estimated Scope 1 and 2 emissions from the proposed mine and mill, the Company estimates that a carbon capture rate of 4.6 Kg CO2 per tonne of tailings produced is required. Figure 2 shows that a sample of Crawford tailings are surpassing this capture rate in the upper tailings layer after approximately 14 days. At 112 days, the top layer has achieved carbon capture of 17.5 kg CO2 per tonne of tailings and the carbon capture rate of the entire column has nearly surpassed the 4.6 kg CO2 per tonne threshold. This highlights the carbon capture potential of the Crawford tailings, the potential for the generation of carbon credits, as well as the importance of tailings deposition for optimized mineral carbonation. The next stage of test work will evaluate on a larger scale sample how much of this potential can be realized.

Figure 2. Carbon Sequestration Potential of Crawford Tailings

Figure 2. Canada Nickel Carbon Sequestration Potential of Crawford Tailings (CNW Group/Canada Nickel Company Inc.)

These results are the product of experimental work that was completed at Queen’s University to measure the effect of time and tailings deposition depth on the progress of mineral carbonation reactions using tailings produced from Canada Nickel’s metallurgical test program. Figure 3 outlines the experimental set up that was used for this first set of tests, as well as the amount of carbon captured for each layer of tailings within the column with no active effort to accelerate the rate of mineral carbonation.

This first column cell test, which was completed on a sample with typical brucite concentration and with no active effort to accelerate the reactions, show a maximum carbon sequestration rate of 17.5 Kg CO2 /tonne of tailings in the upper 1 cm layer of tailings, an average carbonation rate of 9.2 Kg CO2 /tonne of tailings in the upper 4 centimetres of the column and an average of 4.2 Kg CO2 /tonne of tailings throughout the entire column after 112 days in laboratory setting. Mineral carbonation reactions decrease with depth in the experimental cell because there is less CO2 transported to the mineral reaction site. Canada Nickel is developing strategies to inject CO2 laden off-gases into the tailings storage facility as well as other opportunities, to increase the supply of CO2 to the mineral site and in turn the carbon capture of the tailings.

Figure 3. Carbon Capture Rate according to depth in column cell tests after 112 days

Figure 3. Canada Nickel Carbon Capture Rate according to depth in column cell tests after 112 days (CNW Group/Canada Nickel Company Inc.)

Description of Current Test Program
Canada Nickel is working with Kingston Process Metallurgy and Queen’s University to optimize the carbon sequestration potential of waste rock and tailings that will be potentially produced from Crawford. Our approach to optimizing the mineral carbonation potential of the project is to complete techno-economic evaluations of various strategies to accelerate mineral carbonation and pursue the options that are thought to be viable from a capital and operating cost perspective at current carbon prices. Our integrated academic-industrial team has identified a number of opportunities to accelerate the mineral carbonation reactions which will be tested in two stages of pilot studies starting in 2022.

In addition to the experimental work that is being completed, Canada Nickel is conducting an aggressive mineralogy program to map out the key economic minerals of the deposit and understand the areas of the deposit that have the highest potential for carbon sequestration. To date, more than 1500 distinct samples have been characterized mineralogically across the breadth of Crawford. The mineralogy results will eventually be incorporated into the block model so that the carbon sequestration potential of extracted material can be incorporated into the mine schedule.

Description of Future Test Program
Canada Nickel is planning two larger scale pilot tests to continue to evaluate the carbon sequestration potential of tailings produced from the company’s metallurgical test program, as well as to test various strategies for accelerated mineral carbonation. Pilot scale testing will be completed in two phases starting in the first quarter of 2022, with a tote test loaded with 1-tonne of tailings and then followed by an approximately 25 tonne test starting in the second half of 2022, which will be completed in a dynamic, outdoor environment in Timmins, Ontario near to the project site. Canada Nickel has already started the design of the 1-tonne tote test and has produced the tailings required for this. The 25-tonne pilot test will require a mineral processing pilot plant to generate the tailings which provides the additional opportunity to demonstrate the metallurgical flowsheet at scale and generate bulk concentrate for testing in flowsheet development efforts aimed at the downstream processes. The larger scale pilot test is being planned for the second half of 2022.

Cautionary Statement 
The test results described herein are preliminary in nature and may not be representative of conditions or results in an operating environment, particularly as it pertains to the representativeness of mineralization, moisture content, changes in weather conditions, process water chemistry and tailings emplacement configuration, including the rate at which tailings are covered with fresh material, among other parameters. There is no certainty that the results reported herein will be realized in an operating environment. Further studies are recommended to expand the scale of testing to better understand the potential for carbon sequestration to be realized in an operating environment.

Qualified Person and Data Verification
Arthur G. Stokreef, P.Eng (ON), Project Metallurgist of Canada Nickel and a “qualified person” as such term is defined by National Instrument 43-101, has reviewed the technical information in this news release on behalf of Canada Nickel Company Inc.  

About Canada Nickel
Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt sulphide projects to deliver nickel and cobalt required to feed the high growth electric vehicle and stainless steel markets. Canada Nickel Company has successfully registered and applied for trademarks in various jurisdictions for NetZero Nickel™, NetZero Cobalt™ and NetZero Iron™ and is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt, and iron products. Canada Nickel provides investors with leverage to nickel and cobalt in low political risk jurisdictions. Canada Nickel is currently anchored by its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp. For more information, please visit www.canadanickel.com.

For further information, please contact:
Mark Selby, Chair and CEO
Phone: 647-256-1954
Email: [email protected]

Cautionary Statement Concerning Forward Looking Statements
This press release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, the metallurgical results, the timing and results of the feasibility study, the results of Crawford’s PEA, including statements relating to net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, carbon footprint and sequestration levels, estimates of capital and operating costs, timing for permitting and environmental assessments, realization of mineral resource estimates, capital and operating cost estimates, project and life of mine estimates, ability to obtain permitting by the time targeted, size and ranking of project upon achieving production, economic return estimates, the timing and amount of estimated future production and capital, operating and exploration expenditures and potential upside and alternatives. Readers should not place undue reliance on forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Canada Nickel to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The PEA results are estimates only and are based on a number of assumptions, any of which, if incorrect, could materially change the projected outcome. There are no assurances that Crawford will be placed into production. Factors that could affect the outcome include, among others: the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices of metals or project costs could differ substantially and make any commercialization uneconomic; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes, the availability and productivity of skilled labour and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities; mineral resource estimates relating to Crawford could prove to be inaccurate for any reason whatsoever; additional but currently unforeseen work may be required to advance to the feasibility stage; and even if Crawford goes into production, there is no assurance that operations will be profitable.

Although Canada Nickel has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Canada Nickel disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

[nxtlink id=

SOURCE Canada Nickel Company Inc.





Author: MikeyMike426

Precious Metals

Palantir Is Forming a Pattern That Bullish Investors Should Love

Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. The company is an unquestioned leader in the field…

Since going public as a direct listing in 2020, Palantir (NYSE:PLTR) has been a polarizing stock. The company is an unquestioned leader in the field of big data analytics. Bears say its close association with the United States government, along with an executive compensation structure that has caused share dilution, make PLTR stock overvalued. Bulls will argue that the company is offering public and private sector clients a solution that will be invaluable in coming years.  

Source: rblfmr / Shutterstock.com

The truth probably lies somewhere in between. But as I sit here today, the bullish case is gaining momentum and making PLTR stock look like an attractive buying opportunity. 

Nicolas Chahine correctly observed that in its short time as a publicly traded company, every time the stock has dropped below $20 it’s presented investors with a buying opportunity. If history repeats itself, then PLTR stock could set up as a profitable trade.  

What About Commercial Growth? 

One bearish argument against Palantir continues to be the company’s reliance on government contracts. These contracts accounted for approximately 56% of the company’s revenue in the third quarter. But this is a statistic that requires context.  

First, the company is growing its commercial revenue. In the last quarter, Palantir reported a 37% year-over-year (YOY) increase in commercial revenue. And the company’s overall revenue was up 36% YOY at $392 million. For the first three quarters of 2021, the company has revenue that exceeds $1.1 billion. 

Commercial revenue accounted for 44% of the total in Q3. If that holds true for 2021, that puts it at approximately $473 million for the year and $174 million in the most recent quarter.  

If Palantir was growing its government side of the business at the exclusion of its commercial side, it would be concerning. But it’s hard to find fault when the company is growing both sides of the business.  

Investing in Gold and Bitcoin 

In an effort to guard against black swan events, Palantir recently made a large purchase of gold bars. It also announced it would accept payment in Bitcoin (CCC:BTC-USD), although according to a company spokeswoman, Palantir has not received any payments in the cryptocurrency. 

Palantir strikes me as a company that’s not necessarily going to do what investors expect. And I can certainly understand if investors might wonder why the company chose to deploy capital in this way as opposed to buying back shares.  

Perhaps it would be easier for investors to accept Palantir’s dabbling in gold and bitcoin if it wasn’t for the continuing dilution of shares that is happening as management exercises warrants. It’s a perfectly legal practice, it’s just not something investors like to see. 

Of particular concern was the approximately 17.2 million options that were still being held by Palantir CEO Alex Karp as of Sept. 30. These options were set to expire on Dec. 3, 2021.

Not surprisingly, Karp has sold a lot of these options recently. But the good news is that Karp was by far the biggest holder of options. So while there will likely continue to be some selling in the next few years, investors may have to find something else to object to.  

What to Do With PLTR Stock 

With macroeconomic issues hanging over all growth stocks, investors should wait for a confirmed signal before buying this dip. As for me, I have to admit that PLTR stock is starting to look a lot more attractive at this price. An adjusted free cash flow (FCF) of $119 million in the last quarter and a margin of 30% is hard to ignore.  

In fact, based on the company’s FCF projections, InvestorPlace contributor Mark Hake has a price target of $38.81 for Palantir. And as Hake notes, even if investors have to wait two years for the stock to hit that target, they would still get an average annual return of 29.54%.  

On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.  

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. 

More From InvestorPlace

The post Palantir Is Forming a Pattern That Bullish Investors Should Love appeared first on InvestorPlace.


Author: Chris Markoch

Continue Reading

Energy & Critical Metals

3 Rare Earth Stocks on Watch as Talk of a Chinese Mega-Merger Grows

At a time when both the global supply chain crisis and U.S.-China relations hang hotly in the balance, China has announced an important decision that threatens…

At a time when both the global supply chain crisis and U.S.-China relations hang hotly in the balance, China has announced an important decision that threatens to affect both matters significantly. Today, the Wall Street Journal reports that China is planning to create a new rare earth mining company that will be owned by the state. While there’s no question that the forming of such a company will directly affect rare earth stocks, so far the reactions from the sector have been mixed.

Source: LuYago / Shutterstock.com

What’s Happening With Rare Earth Stocks

The rare earth sector has been an interesting one to follow this year, particularly as the electric vehicle (EV) boom has highlighted a new market for its companies. The news out of China today hasn’t done much to affect Nevada-based MP Materials (NYSE:MP), a company that has seen more than its fair share of turbulence this past year but has remained overall in the green for most of it. As of this writing, MP stock is up 2.16% for the day, although it has declined slightly from the peak it saw this morning. While it’s down more than 6% for the week, the stock is in the green for the month by more than 2%.

In a state not too far away, though, things aren’t looking so rosy. Texas Mineral Resources Corp (OTCMKTS: TMRC) has seen its shares fall by more than 4% today, demonstrating a fairly turbulent pattern. Despite being up by more than 12% for the week, TMC is down for the month by almost 19%.

Many miles away in Australia, a similar company is experience similar patterns. Lynas Rare Earths (OTCMKTS:LYSCF) is down by more than 2% for the day with losses for the week just shy of that figure. For the month, though, the small stock has seen shares rise by more than 18%.

Why It Matters

China’s new firm, titled China Rare Earth Group, will be based in the country’s southern province of Jiangxi, an area rich in resources. It will be built through the merging of assets of several prominent state-owned mining firms. According to WSJ, part of the mindset behind this massive industry consolidation is the goal of gaining the clout necessary to “undercut Western efforts to dominate critical technologies.”

For a company like MP Materials, there will very likely be negative implications if the firm is indeed constructed. The company has emphasized that its goals involve helping restore the rare earth supply chain and helping reduce the sector’s heavy dependence on China. The international economic superpower that MP has focused on challenging is about to get considerably stronger and more powerful. That’s bad news for MP and most other rare earth stocks.

While some reports have framed it as a company well-positioned to accomplish an important task, the picture painted for investors hasn’t always been so positive. In October 2021, a report from Grizzly Research staked the claim that the company had issued unattainable projections. While the stock was down during that month, it’s been rising fairly steadily since. Earlier this year, InvestorPlace’s Joseph Nograles touted the upside potential he saw in MP stock as a key component of the emerging EV market.

What It Means

As TRMC and LYSCF trade at much lower levels than MP, it’s hard to gauge just how much they stand to be affected. What is clear, though, is that China is clearly furthering its quest to dominate the section of the global supply chain that concerns strategic metals. The construction of a state-owned giant to help the country gain further control of highly valuable rare earth materials certainly won’t do any favors for the U.S.

This story is certainly worth watching as it unfolds, but this is likely not the time for a bullish play on rare earth stocks.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

More From InvestorPlace

The post 3 Rare Earth Stocks on Watch as Talk of a Chinese Mega-Merger Grows appeared first on InvestorPlace.



Author: Samuel O'Brient

Continue Reading

Articles

Big River Gold’s Brazil plans buoyed as interest in sector runs hot

Special Report: Big River Gold’s Borborema project is on track according to a recently completed water study which de-risked the … Read More
The post…

Special Report: Big River Gold’s Borborema project is on track according to a recently completed water study which de-risked the supply of process water to the operation, and also identified a way to double production up to 4Mtpa. All at a time of heightened interest in the Brazilian gold sector.

Big River Gold (ASX:BRV) has received a shot in the arm with encouraging results from a water study derisking the highly prospective Borborema Gold Project in Brazil for what was initially considered to be a 2-million-tonne-per-annum (Mtpa) production operation. The study identified a water source that could support production expansion up to double the previously forecast production to 4Mtpa.

The positive results from studies completed by SRK Consulting come at a time of hot mergers and acquisitions (M&A) action in the gold sector in both Brazil and Australia. There’s also renewed interest in the safe haven metal due to uncertainty over the Omicron COVID variant following a slide in prices from its all-time high of around $US2,070 per ounce in August last year.

Confirming that Big River Gold’s optimism on the 29sqkm project’s water security is well founded, the water study established that minimal additional external water will be required to support a 2Mtpa operation.

“Borborema has always suffered from the perception that there is a lack of water,” executive chairman Andrew Richards told Stockhead. “The completion of the water studies has been a big step forward in de-risking the project in that regard, but also provides us opportunities to look at different size production scenarios.”

Richards said that as the project in northeast Brazil progressed towards production the water study results were an important part of the larger engineering study update.

“Any upscaling we were looking at had to be considered in conjunction with the water issue. Water has always been an integral part of the development of Borborema,” Richards said.

“The study results mean we can either stay at 2 million tonnes per annum without any additional water for most of the time but, if we’re looking to expand up to say 4 million tonnes per annum, we can base that more on the underlying economics given that process water supply is no longer the bottleneck it was.”

View to the south west over the Borborema pit showing the exposed ore zone and infrastructure

A hot mining jurisdiction

As Brazil emerges from the pandemic with a more optimistic economic outlook, the latest data shows M&A activity in the South American powerhouse grew eightfold to $56.8 billion in the first half of 2021, compared to the same period last year.

Banks expect activity to remain buoyant into 2022 as economic activity recovers and interest rates remain low, while increasing COVID vaccination rates boost Brazil’s profile as an investment destination.

And there are some glittering pickings for investors in the gold-rich nation.

Thanks mainly to its Tucano gold mine in Brazil, Great Panther Mining’s revenue soared a whopping 2,947.1% in 2020. Like Borborema, Tucano is in Brazil’s northeast and it contributed $US234m, or 85% of total revenue, to the Canadian listed miner.

While Great Panther’s world-leading leap in revenue was a definite standout, gold miners in general have been buoyed by the renewed, COVID-induced interest in the safe haven metal. This has led to some major deals in the sector in both Australia and Brazil.

Last month, Amarillo Gold, owner of the Posse gold project in Brazil, agreed to a $US128.36m takeover offer from UK’s Hochschild Mining, a $US1.5bn cashed up South American mining house looking to invest more outside of Peru.

The deal values Amarillo Gold at A$/165 per reserve ounce, and A$65/resource ounce.

As part of the deal, Amarillo shareholders will also receive shares in a newly formed company, Lavras Gold Corp, which will hold a stake in the 22,278-hectare Lavras do Sul gold project in Brazil’s south.

FTSE 250 miner Hochschild affirmed Brazil’s reputation as a solid location for resources projects, saying the deal “enhanced its portfolio by adding a long-life asset located in a mining-friendly jurisdiction”.

The heightened interest in the South American nation and the yellow metal, alongside the highly encouraging results just out from the all-important water study, bode extremely well for Big River Gold.

“These results really just derisk the project and give us the ability to go to a bigger scale operation to achieve economies of scale,” Richards said.

 


 

This article was developed in collaboration with Big River Gold, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Big River Gold’s Brazil plans buoyed as interest in sector runs hot appeared first on Stockhead.


Author: Special Report

Continue Reading

Trending