Can you discuss highlights from the October 2023 Crawford Nickel Project (Crawford) feasibility study?

The study results affirm Crawford's status as a world-class asset, positioning the deposit as the second-largest nickel reserve globally. If operational today, Crawford would be the third-largest nickel sulfide operation worldwide and the largest outside Russia and China. The project's NPV exceeds C$2.5 billion with an 18.3% IRR, including the projected carbon capture and storage tax credits. We are positioned to be one of Canada's leading carbon storage operations, capable of storing over 1.5 million t/y of CO2 during peak production, which will last 27 years over a 41-year mine life. Why is it beneficial to mine nickel sulfide?

The alternative to sulfides is laterite nickel, which contains only 1% nickel. Extracting nickel from laterite requires either coal-fired electricity or sulfuric acid, effectively producing more tailings and carbon than actual metal. Sulfide deposits allow for concentrated extraction, significantly reducing energy and environmental impact. Our low-grade ore upgrades into a high-grade concentrate, saving energy in downstream operations. The sulfur in the concentrate also provides the fuel for the processing, resulting in a lower downstream footprint. Our location in Ontario grants access to low-carbon electricity from the grid, enabling us to produce a 34% nickel concentrate with a minimal carbon footprint. We can store 35 t of CO2 for every t of nickel produced, resulting in a net negative 30-t CO2 footprint. Can you elaborate on the advantage of Canada Nickel's location?

The North American nickel market has demanded between 120,000-150,000 t/y of nickel for the last 20 years. That number is set to double or triple in the next 10 years. Car companies prefer their supply chain to be located as close to auto operations as possible. Ontario is one of the few places in the world where we mine metals and produce cars, allowing us to be a part of an integrated supply chain. We are in the Timmins Nickel District, a location we anticipate will emerge as the primary nickel supply district for the coming century. What is the financing strategy for Crawford?

Crawford’s feasibility pegs the total CapEx at C$3.5 billion, which includes both project phases. For the first phase, only C$1.9 billion is required. The benefit of the current environment, and in Ontario specifically, are the governmental programs providing support. We anticipate that half of the required C$800 million equity capital and the C$1.2 million debt for the project will come from the federal and provincial government, as well as USA Department of Defense programs. These are clear signals to the market that the government wants projects like ours to move forward.

Car companies in the battery supply chain recognize the scarcity of new raw material sources, especially from places like North America, and understand the need to provide capital for Crawford, as the only large-scale nickel project that can come online before 2030. We aim to secure the necessary equity capital through a combination of government funding, offtake financing, and partnerships, avoiding the need to turn to the market for it. Can you describe NetZero Metals’ underlying IPT Carbonization process?

Our deposit is hosted in ultra-mafic rock. This rock absorbs CO2 molecules from the environment and converts itself into a new mineral incorporating CO2 into its lattice, permanently locking it away. Other carbon storage options rely on creating a CO2 reservoir. Our process is spontaneous; the CO2 is trapped unless there is a pH 5 acid rain. What are Canada Nickel’s priorities?

Our immediate priorities include finalizing the financing package by the end of this year. We anticipate receiving permits by mid-2025 and commencing the construction of a 60,000 t/d open-pit mine by the end of 2027. We are planning to twin the mill, achieving a throughput of over 120,000 t/d of ore. This will result in 50,000 t/y of nickel, almost 1,000 t/y of cobalt, over 1.5 million t/y of iron, and 75,000 t/y of chromium—the sole North American source of chromium.

Beyond Crawford, we see tremendous potential in the Timmins Nickel District. We envision playing a pivotal role in shaping the district as one of the world's leading nickel supply regions.