FPX Nickel Corp (TSX-V:FPX) said it has completed a series of engineering trade-off studies (TOS) that have de-risked and improved the value of its Baptiste Nickel Project.
For example, a comminution circuit utilizing semi-autogenous grinding (SAG) tangibly improves project value and provides an improved execution basis compared to the previously considered high-pressure grinding rolls (HPGR) approach, the company found.
FPX added that the typical capital cost savings of 20%-30% associated with SAG-based circuits versus HPGR are amplified due to Baptiste’s site conditions, topography, and mineralization characteristics; while the operation costs advantages of HPGR-based circuits are muted due to the low-cost of low-carbon power in British Columbia and the Baptiste deposit’s low abrasiveness.
READ: FPX Nickel says new lab results solidify Baptiste project's potential as nickel industry's first carbon-neutral operation
There is also significant value in a phased construction approach, including an initial operating phase of 4-7 years at 100,000 tonnes per day (tpd) followed by an expansion to 150,000 tpd for the remainder of the 30-plus year mine life, the company noted, over the previously considered single-build 120,000 tpd approach.
“The completion of these trade-off studies marks a significant milestone for FPX, demonstrating our commitment to a methodical, risk-based approach to project development,” CEO Martin Turenne said in a statement. “These findings have yielded a more robust project model, one which will contribute to lower development risk and improved project economics in the next stage of study.”
Additionally, multiple tailings storage locations have been identified as technically feasible, including conventional facility configurations with reduced sand requirements for dam construction, thereby enabling finer primary grinding to increase nickel recovery.
The TOS also yielded a more comprehensive understanding of the options for the routing of the site access road and off-site power system, better defining the economics of those linear facilities
A full TOS breakdown can be found here.
FPX’s Decar Nickel District claims cover 245 square kilometers of the Mount Sidney Williams ultramafic/ophiolite complex, 90 km northwest of Fort St. James in central British Columbia.
Of the four targets in the Decar Nickel District, the Baptiste Deposit has been the focus of diamond drilling since 2010, with a total of 99 holes and 33,700 m of drilling completed.
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