Canada Nickel Company Inc V.CNC

Preliminary Economic Assessment Confirms Robust Economics

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Canada Nickel Preliminary Economic Assessment Confirms Robust Economics of Crawford Nickel Sulphide Project Highlights $1.2 billion after-tax NPV8% and 16% after-tax IRR First quartile net C1 cash cost of $1.09/lb and net AISC of $1.94/lb of nickel Production of 1.9 billion pounds nickel over 25 years Annual EBITDA of $439 million and annual free cash flow of $274 million Immediately advancing to feasibility study (All amounts in US dollars unless otherwise indicated.) TORONTO, May 25, 2021 /CNW/ - Canada Nickel Company Inc. ("Canada Nickel" or the "Company") (TSXV: CNC) (OTCQB: CNIKF), is pleased to announce that the Preliminary Economic Assessment ("PEA") has confirmed robust economics showing an after-tax NPV8% of $1.2 billion and an after-tax IRR of 16% from its wholly owned flagship Crawford Nickel Sulphide Project ("Crawford") located in Timmins, Ontario, Canada. The PEA, prepared by Ausenco Engineering Canada Inc. ("Ausenco") in accordance with National Instrument 43-101 ("NI 43-101"), demonstrates the potential to develop a phased conventional nickel sulphide concentrator, producing nickel concentrates and magnetite concentrate. The operation is designed to have an open pit mine with a plant potential of 120,000 tonnes per day. The Company is immediately advancing the project to a feasibility study, which is expected to be completed by mid-2022. "We are focused on delivering the next generation of nickel and are pleased that this PEA demonstrates the robust economics of our flagship Crawford project. The PEA, utilizing just a fraction of our resource potential, demonstrates that we expect to be one of the largest nickel sulphide operations globally, producing 1.9 billion pounds of nickel over a 25-year period with net cash costs of just over $1 per pound. Our current focus on the stainless steel market allows us to fully utilize the substantial by-product value for the contained iron and chrome, placing us on the lower end of the cost curve. I am very proud of our team for delivering these results in just over 20 months since our first drill holes and I look forward to continuing to unlock the district scale nickel potential of the Timmins region," said Mark Selby, Chairman and CEO of Canada Nickel. Mr. Selby further stated, "The PEA is a milestone that enables a whole range of key activities as we aggressively advance the project towards production by the middle part of the decade. We are immediately embarking on a feasibility study. We are calculating our carbon footprint and evaluating Crawford's potential to deliver NetZero NickelTM, NetZero CobaltTM and NetZero IronTM. We are exploring opportunities to deliver the nickel in our concentrates into the electric vehicle ("EV") market. We have begun our Environmental and Social Impact Assessment ("ESIA"), and we continue to work in partnership with Indigenous and local communities. We intend to implement an extensive and inclusive stakeholders' consultation process that will allow us to identify and mitigate the project impacts in order to deliver sustainable benefits for multiple generations."

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"The PEA, utilizing just a fraction of our resource potential, demonstrates that we expect to be one of the largest nickel sulphide operations globally, producing 1.9 billion pounds of nickel over a 25-year period with net cash costs of just over $1 per pound." This is good. How good is the question.

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I'm not a geo numbers expert but in a quick comparison to Dumont PEA it appears we kicked @ss.