Canada Nickel's Crawford Project: A Milestone in Front End Engineering Design

Canada Nickel Company Inc. (TSXV: CNC) (OTCQX: CNIKF) has successfully completed the Front End Engineering and Design (FEED) activities for its Crawford Project, marking a significant milestone in the project's development. The Company has released the results of the FEED, which demonstrate improved financial metrics and a steady pace towards a construction decision.

Improved Financial Metrics

The FEED update reveals a notable improvement in the project's financial metrics. The net present value (NPV) at an 8% discount rate has increased by over $300 million to $2.8 billion, while the internal rate of return (IRR) has improved by 0.5% to 17.6% compared to the feasibility study. The initial capital cost has increased by 5% to $2.0 billion, which is relatively low considering the significant cost inflation experienced in the mining industry over the past several years.



Resequencing the Mine Plan

One of the key changes in the FEED update is the resequencing of the mine plan. Ore from the East Zone will now be mined and processed first, being brought forward on average 12 years. This resequencing allows for a 30% reduction in pre-stripping requirements and accelerates the delivery of higher value ore. Additionally, metallurgy testing has led to an increase in the average value of East Zone ore by 7.4% to US$31.18/t.

Carbon Capture, Utilization, and Storage (CCUS) Credits

The inclusion of CCUS credits in the project's financial model would further enhance its financial viability. The Company believes it would qualify for these credits, which would increase the NPV to $2.9 billion and the IRR to 18.9%. Pursuing CCUS credits could provide additional revenue streams and enhance the project's reputation as a responsible and environmentally conscious operation.



Next Steps and Funding

With the completion of the FEED activities, Canada Nickel is working with its project financing partners, Scotiabank, Deutsche Bank, and Cutfield Freeman, to complete the funding package for the Crawford Project by the end of the year. This funding package will be used for order placement of long-lead items and engineering activities. The Company is also pursuing non-equity financing initiatives, including government funding, to provide the remaining funding required to complete permitting and engineering activities this year.

In conclusion, Canada Nickel's successful completion of the Front End Engineering and Design for the Crawford Project demonstrates the project's strong fundamentals and the team's ability to manage costs effectively. The improved financial metrics, resequencing of the mine plan, and potential benefits of pursuing CCUS credits position the project well for a construction decision once permits are received. As the Company continues to advance the project, investors should closely monitor its progress and the potential impact on the nickel market.