Impact: Positive
Canada Nickel (CNC) reported metallurgical test results from its 100%-owned Crawford Ni project in Timmins, Ontario. The results are from one closed circuit test and 10 open circuit tests run on samples from the Crawford East zone, specifically the East zone starter pit area. The locked cycle test delivered a 60% nickel sulphide concentrate, which the company believes to be the highest-grade concentrate in the world. Additionally, total nickel recoveries in both the locked and open cycle tests exceeded recoveries modeled in the feasibility study. In our opinion, these are positive results, as CNC’s optimization work yields continued improvements in Ni recovery. We note that each 1% improvement in Ni recovery increases the after-tax NPV(8%) by ~US$100M, based on the company’s FS (read note).
