- Report projects that demand for nickel from the battery industry is set to increase significantly
- Texmont testing delivers results that meet or exceed expectations
- The company has acquired 403 additional mining claims within the Texmont ultramafic trend
With experts predicting that nickel metal will play a key role in the 2023 battery-grade market (https://ibn.fm/e8Ky4), Canada Nickel Company (TSX.V: CNC) (OTCQX: CNIKF) appears to be ideally positioned in the growing space. The company just released initial results from preliminary metallurgical testing at its Texmont Nickel Sulphide Project, and the results meet or exceed historical results (https://ibn.fm/NpwuL).
Nickel metal has a key role to play in 2023 battery grade market, states a recent Fastmarkets report. “With global lithium-ion battery production forecast to grow significantly in the coming years, market participants in the global nickel industry are working on the most efficient way to produce nickel sulfate for lithium-ion battery cathodes,” the article notes. “In addition, nickel sulfate is a key component in nickel-manganese-cobalt (“NMC”) units, and nickel-rich batteries are often preferred over lithium-ion batteries due to their high energy density and longer range when used in electric vehicles (“EVs”).
“Demand for nickel from the battery industry is, therefore, set to increase significantly,” the report continued. “Fastmarkets researchers forecast that demand for nickel for use in EV batteries represents around 280,000 tonnes per year of nickel metal globally, which corresponds to around 10% of worldwide demand for nickel. vBut this figure is set to grow significantly. Demand from the battery industry is expected to increase to close to 314,000 tonnes in 2023 and to 668,000 tonnes by 2025.”
With that projection as a backdrop, Canada Nickel’s report of nickel recoveries of 79% to 84% couldn’t have come at a better time. “Texmont continues to deliver excellent results, with initial metallurgy yielding nickel and cobalt recoveries and concentrate grades exceeding our expectations,” said Canada Nickel CEO Mark Selby. “Further, these results were achieved with a simple flowsheet, which will maximize potential opportunities to toll mill our initial production. I look forward to the next phases of work while we complete our initial resource on Texmont and complete a Preliminary Economic Analysis (‘PEA’) by year-end.”
Canada Nickel’s Texmont property is a past-producing mine that contains a large ultramafic body. The company has identified a near-surface, high-grade zone of less than 1% nickel wrapped within a moderate-high grade zone of 0.6 to 1.0% nickel, and Canada Nickel management is evaluating the potential for near-term production from Texmont through open pit mining of this moderate-high grade material. The company is planning to finalize the metallurgical flowsheet in the coming months, including conducting locked cycle and metallurgical variability tests. Following that, Canada Nickel anticipates releasing recovery equations for the Texmont PEA by the end of 2023.
In addition, the company announced that it has acquired 403 additional mining claims within the Texmont ultramafic trend through a series of purchase and sale agreements. “Given our success at Texmont, we capitalized on the opportunity to acquire regional mining claims, consolidating 20 kilometres of property with the potential to find more Texmont-style deposits,” Selby stated. “We have signed a total of 10 agreements, which consolidate 9,520 hectares of mining claims. We view this as an important and highly prospective addition to our Timmins Nickel District.”
Canada Nickel Company is advancing the next generation of nickel-sulphide projects to deliver nickel required to feed the high-growth electric vehicle and stainless-steel markets. Canada Nickel Company is pursuing the development of processes to allow the production of net zero carbon nickel, cobalt and iron products. The company provides investors with leverage to nickel in low political-risk jurisdictions. Canada Nickel is currently anchored by its wholly owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of the prolific Timmins-Cochrane mining camp.
For more information, visit the company’s website at www.CanadaNickel.com.
NOTE TO INVESTORS: The latest news and updates relating to CNIKF are available in the company’s newsroom at https://ibn.fm/CNIKF
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