May 4, 2023
EV Nickel Inc. (TSXV:EVNI, BUY (S), C$1.00 target, Taylor Combaluzier) announced that bench-scale testing has demonstrated that the W4 sulphide zone at its 100%-owned Shaw Dome project is amenable to bioleaching. Two flowsheets were developed to process the material including 1) a whole ore-to-heap bioleach operation and 2) a crushing-grinding floatation to tank bioleach operation. Results indicate that extraction rates are likely greater with the tank bioleach as it would have lower acid consumption. Tank bioleaching could also be enhanced by incorporating flotation to upgrade the feed to improve bioleaching efficiency. Other benefits of the tank bioleaching include a smaller processing footprint and likely lower capital costs. Metal extraction achieved by the testwork ranged from 86.0% to 90.5% for Ni and 85.2% to 90.1% for Co. Notably, heap bioleaching was determined to be problematic for W4 ore given its low sulphide content, resulting in considerable acid consumption. Overall, we view this test work positively as tank bioleaching, likely with flotation upgrading, could be an effective way to extract Ni and Co from W4 ore. As mentioned in our initiation report, we are encouraged by EV Nickel’s continued work to advance its Clean Nickel strategy. We view this announcement as an incremental step towards local production of the required product for battery plants, which would avoid sending a future concentrate to foreign-owned smelters and refiners. We are looking forward to future testing of the CarLang ore, as we flagged this as the next key step for the project following the release of its maiden mineral resource (read more). Read more
Company Specific Disclosure Details
EV Nickel Inc. – TSXV:EVNI – 1,2,3
- The analyst has visited the head/principal office of the issuer or has viewed its material operations.
- The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
- In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.
- In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or an analyst involved in the preparation of the research report has provided services other than in the normal course investment advisory or trade execution services to the issuer for remuneration.
- An analyst who prepared or participated in the preparation of this research report has an ownership position (long or short) in, or discretion or control over an account holding, the issuer’s securities, directly or indirectly.
- Red Cloud Securities Inc. and its affiliates collectively beneficially own 1% or more of a class of the issuer’s equity securities.
- A partner, director, officer, employee or agent of Red Cloud Securities Inc., serves as a partner, director, officer or employee of (or in an equivalent advisory capacity to) the issuer.
- Red Cloud Securities Inc. is a market maker in the equity of the issuer.
- There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared or participated in the preparation of the research report, and the issuer.
Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.
