FPX NICKEL CORP. 
Highlights
- Primary crushing: Changing from a gyratory-type primary crusher to mineral sizers has reduced earthwork and structural quantities, improved Phase 1 operability, and eliminated the need for a second primary crushing circuit in Phase 2
- Concentrator expansion: A new integrated approach to the Phase 2 expansion has reduced overall quantities, improved Phase 2 operability, and reduced the footprint of process and infrastructure facilities
- Project phasing: The phased approach and throughput rates in the preliminary feasibility study ("PFS") have been validated, while acceleration of the Phase 2 expansion improves Baptiste's metal production profile
- Execution schedule has been confirmed, further validating the PFS's estimated three-year construction duration
"Results from our mineral process and infrastructure Value Engineering studies have added significant value to the
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
While the PFS presents robust economics, including a Base Case after-tax NPV8% of
The key Value Engineering studies pursued by FPX in 2024 are:
- Mineral processing and infrastructure (described herein)
- Mine planning and engineering (to be completed in the third quarter of 2024)
- Refinery planning (to be completed in the third quarter of 2024)
Mineral Processing & Infrastructure Value Engineering Studies
FPX engaged
- Primary crushing: application of mineral sizers
- Phase 2 concentrator expansion
- Project phasing
As described below, each of the mineral process and infrastructure Value Engineering studies validated several key tenets from the PFS and added significant project value through reduced quantities, improved operability, reduced process operating costs, and reduced process and infrastructure footprint.
Primary Crushing
The PFS considered a gyratory-type primary crusher. In re-evaluating the Project's geotechnical and communication datasets, the Company has identified an opportunity to use mineral sizers for primary crushing. Taking advantage of the modest compressive strength and fractured nature of the Baptiste ore, mineral sizers have added significant value through reduced earthwork and structural quantities, increased operating availability, and the complete elimination of the second primary crushing line for the planned mine expansion from an initial Phase 1 processing throughput of 108,000 tonnes per day ("tpd") to 162,000 tpd in Year 10 ("Phase 2").
Phase 2 Concentrator Expansion
The PFS considered the construction of a standalone processing facility for the Phase 2 expansion from 108,000 tpd to 162,000 tpd. A new approach to expansion is based on an integrated concentrator approach which entails an expansion of the Phase 1 processing facility rather than the construction of a new standalone facility for Phase 2. This integrated approach results in a reduced process and infrastructure footprint, improved Phase 2 operability, and reduced Phase 2 work force requirements.
Project Phasing
A Value Engineering study re-evaluated the phased approach to processing throughput and compared it with a series of single-build scenarios ranging from 80,000 to 163,000 tpd. Following this evaluation, the PFS's phased approach has been validated; however, the Phase 2 expansion has been accelerated to Year 6 from Year 10. This acceleration in metal production is expected to generate improved economics versus the PFS, with the Phase 2 expansion funded from operating free cash flow following the 3.7 year after-tax payback demonstrated in the PFS.
Project Execution
Both Fluor and Wood were assigned further scope to review the PFS's execution basis, including the permanent facility layout, construction sequence, contracting approach, and overall execution schedule. Note that Fluor and Wood jointly executed the detailed engineering and construction management of the nearby
Through this additional execution planning effort, numerous scheduling improvements to the PFS were identified, thereby improving the constructability, operability, and maintainability of Baptiste. In addition, increased focus on allowances for temporary construction facilities has improved execution scope assurance ahead of the environmental assessment and permitting processes. Fundamentally, these robust execution planning efforts further de-risk the Baptiste execution schedule, including the PFS assumption of a three-year construction period.
About the
The
The Baptiste Deposit is located within the
About
FPX Nickel Corp. is focused on the exploration and development of the
On behalf of
"Martin Turenne"
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
SOURCE
© Canada Newswire, source
