PR84906

TORONTO, July 27, 2020 /PRNewswire=KYODO JBN/--

Canada Nickel Company Inc. (TSX-V: CNC) ("Canada Nickel" or the "Company") is

pleased to announce it has created a wholly-owned subsidiary, NetZero Metals,

to begin the research and development of a processing facility that would be

located in the Timmins, Ontario region with the goal of utilizing existing

technologies to produce zero-carbon nickel, cobalt and iron products.  

The Company has applied for trademarks for the terms NetZero Nickel(TM),

NetZero Cobalt(TM), and NetZero Iron(TM) in U.S., Canada, and other

jurisdictions related to zero-carbon production of nickel, cobalt, and iron

products.

"The electric vehicle industry and many other consumer sectors needs

zero-carbon metal this decade -- not in a nebulous 2050 timeframe contemplated

by many other resource companies," said Mark Selby, Chair & CEO of Canada

Nickel.

"As a result of the unique advantages of the Timmins region with its close

proximity to zero-carbon hydroelectricity and our Crawford Nickel-Cobalt

Sulphide project,  comprised largely of serpentine rock that naturally absorbs

CO2 when exposed to air, Canada Nickel has the potential to develop zero-carbon

products that our customers are expecting from the mining sector. With nickel

as a preferred metal to power the clean energy revolution, our commitment to

net zero-carbon production is the right step to take for the environment, for

consumers, and for our investors."

Serpentine rock, the host rock comprising more than 90 per cent of the mass of

the resource at the Crawford Nickel-Cobalt Sulphide Project[1], has had

numerous studies completed that note that the rock naturally absorbs carbon

dioxide (CO[2]) when exposed to air through a naturally occurring process of

spontaneous mineral carbonation.

The nickel industry faces a number of challenges as the current processing

approach of laterite and sulphide ores generate a significant environmental

footprint in the form of SO[2] and CO[2] emissions. These environmental

challenges will only worsen given the industry supply profile with the bulk of

recent nickel supply growth and the main source of future production growth

being nickel pig iron production in Indonesia, which, according to industry

sources, uses 25-30 tonnes of coal to produce each tonne of nickel, which when

combined with other sources of CO2, generates nearly approximately 90 tonnes of

Scope 1 and Scope 2 CO[2] emissions per tonne of nickel produced. (see Figure

1).

For an electric vehicle battery pack that contained 50kg of nickel from this

source, it would represent approximately 4 tonnes of CO2.emissions for that

vehicle.  Other sources of nickel supply growth that have additional

environmental footprint issues are HPAL projects in Indonesia that are

considering technologies such as deep-sea discharge of tailings which would

result in ocean discharge of approximately 100 tonnes of material per tonne of

nickel.

Key Technologies Being Explored to Develop a Zero-Carbon Footprint Operation

Canada Nickel will explore the use of various alternatives to achieve its

NetZero objectives in each stage of the mining process: Mining, Milling and

Processing.  

Mining

The biggest single technology to reduce the carbon footprint of mining

activities is the utilization of electric rope shovels and trolley trucks which

utilize electricity, rather than diesel fuel, as a power source wherever

possible.  Given the close proximity to zero carbon hydroelectric generating

capacity, electricity use in place of diesel fuel has the potential to

significantly reduce carbon emissions.

The deposition of waste rock and tailings during the mining process will also

expose the serpentine rock to air which provides the potential for this

material to absorb CO[2] through natural mineral carbonation and offsetting any

CO[2] emissions from the project.  The exact amount and rate at which CO[2] can

be absorbed from materials mined at Crawford will be analyzed during upcoming

phases of work.

Milling

Traditionally, large scale processing of lower grade sulphide ores utilizes a

significant amount of electricity.  Again, the local proximity to

hydroelectricity provide the potential to minimize carbon emissions for this

stage of production.

NetZero Metals - Nickel-Cobalt Concentrate Processing

Existing processes for processing nickel-cobalt concentrates to remove sulphur,

iron, and other impurities have resulted in the generation of significant

quantities of CO[2], SO[2], and other impurities for a number of producers

worldwide.

Canada Nickel will explore the potential for producing nickel and cobalt

products from existing pyrometallurgical processes such as roasting, sulphation

roasting, and reduction using electric arc furnaces (utilizing natural gas

rather coke or coal as a reductant) with the offgases captured and re-routed to

allow the CO[2] be captured by the waste rock and tailings from the Crawford

nickel-cobalt sulphide project[1]. The Company will also look at existing

hydrometallurgical processes to produce nickel and cobalt products such as the

Albion or other similar processes, which generate minimal off-gases to produce

nickel and cobalt products. The off-gases will again be captured and treated to

ensure CO2 and SO2 emissions are minimized.  

NetZero Metals - Magnetite Concentrate Processing

The Company will explore the potential for the production of iron products

utilizing existing direct reduced iron (DRI) processes or reduction in electric

arc furnaces utilizing natural gas and then re-routed to allow the CO[2] to be

captured by the waste rock and tailings from the deposit.

Next Steps

The Company will announce some key leadership changes at the Board level to

help guide the Company in this important endeavour.  The NetZero approach will

be incorporated into the work done for the engineering for the Preliminary

Economic Assessment which has been previously announced and currently

underway.  Specific studies to analyze the quantity and timing of CO[2]

absorption by the host rock at Crawford and process design for downstream

processing of nickel and cobalt materials and magnetite concentrate will be

announced and get underway through the remainder of the year.  

[1] The Crawford Nickel-Cobalt Sulphide Project is an early stage exploration

and development project. There is no guarantee that the project will reach

advanced development or production stage. The economic viability and technical

feasibility of the Company's Crawford Nickel-Cobalt Sulphide Project has not

been established at any level of confidence supported by a PEA, PFS or FS, and

as such there is currently no evidence to support that the project would result

in a "net zero-carbon" footprint.  The Company is currently planning to

complete a PEA by year-end 2020.

About Canada Nickel Company

Canada Nickel Company Inc. is advancing the next generation of nickel-cobalt

sulphide projects to deliver nickel and cobalt required to feed the high growth

electric vehicle and stainless steel markets.  Canada Nickel Company has

applied in multiple jurisdictions to trademark the terms NetZero Nickel(TM),

NetZero Cobalt(TM), NetZero Iron(TM) and is pursuing the development of

processes to allow the production of net zero carbon nickel, cobalt, and iron

products. Canada Nickel provides investors with leverage to nickel and cobalt

in low political risk jurisdictions.  Canada Nickel is currently anchored by

its 100% owned flagship Crawford Nickel-Cobalt Sulphide Project in the heart of

the prolific Timmins-Cochrane mining camp.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain information that may constitute

"forward-looking information" under applicable Canadian securities legislation.

Forward looking information includes, but is not limited to, drill results

relating to the Crawford Nickel-Cobalt Sulphide Project, timing of economic

studies, the potential of the Crawford Nickel-Cobalt Sulphide Project, the

potential development of zero-carbon production of nickel, cobalt and iron,

strategic plans, including future exploration and development results, and

corporate and technical objectives. Forward-looking information is necessarily

based upon a number of assumptions that, while considered reasonable, are

subject to known and unknown risks, uncertainties, and other factors which may

cause the actual results and future events to differ materially from those

expressed or implied by such forward-looking information. Factors that could

affect the outcome include, among others: future prices and the supply of

metals, the future  demand for metals, the results of drilling, inability to

raise the money necessary to incur the expenditures required to retain and

advance the property, environmental liabilities (known and unknown), general

business, economic, competitive, political and social uncertainties, results of

exploration programs, timing of the updated resource estimate, risks of the

mining industry, delays in obtaining governmental approvals, and failure to

obtain regulatory or shareholder approvals. There can be no assurance that such

information will prove to be accurate, as actual results and future events

could differ materially from those anticipated in such information.

Accordingly, readers should not place undue reliance on forward-looking

information. All forward-looking information contained in this press release is

given as of the date hereof and is based upon the opinions and estimates of

management and information available to management as at the date hereof.

Canada Nickel disclaims any intention or obligation to update or revise any

forward-looking information, whether as a result of new information, future

events or otherwise, except as required by law.

Contact: Mark Selby

         Chair and CEO

         Tel: +1-647-256-1954

         Email: info@canadanickel.com

SOURCE: Canada Nickel Company Inc.