A start-up company, Timmins Nickel, is pushing ahead with a project with open-pit potential, having entered into a non-binding agreement with Glencore Canada to consider processing raw materials closer to home.
Nickel Canada has signed a memorandum of understanding with Glencore for the potential use of Glencore's Kidder Concentrator and Metallurgical Plant (Met Site, east of Timmins).
The refinery will process materials mined from Nickel Canada's Crawford Nickel Cobalt project, located 40 km north of the city.
According to Nickel Canada, the Met mine has excess capacity at its concentrator and other infrastructure for milling and processing the nickel-cobalt and magnetite concentrates to be mined at Crawford.
If a detailed study to evaluate the MET site by the end of March yields positive results, a more binding agreement will be finalized.
The Crawford Project is about a 15-minute drive down Route 655 from Glencore's Kidder mine, north of Timmins.
Glencore's Kidd metallurgical plant is located 27km east of the community.
The 12,500-ton-a-day concentrator, built in 1966, processes metal ore from copper and zinc concentrates.
Nickel Canada expects to release a preliminary economic assessment (PEA) of the main Crawford project by the end of the first quarter of this year, which will give investors an initial idea of the life of the potential open-pit mine.
A further feasibility study will be released later this year.
The company describes Crawford as one of the world's top nickel sulfide projects.
Exploration of the 4,900 hectare site continues to demonstrate other high value prospects for the site, including a separate PGM area.
"The opportunity to take advantage of the excess capacity and existing infrastructure at the Kidder Met plant enables the faster, simpler, and smaller Crawford startup to be realized at a lower cost of capital, while the company continues to allow and develop larger companies.
Large-scale projects are being considered."
Mark Selby, chairman and chief executive of Nickel Canada, said in a news release on Jan. 11.
"Given the potential for significant changes in the scope of the project launch, the release of the Preliminary Economic Assessment (PEA) will be delayed until the end of March 2021 to enable the inclusion of this option (if successful)."
