Tag Archives: Ausenco Engineering Canada

Canada Nickel to leverage trolley assist, IPT carbon capture & storage at Crawford

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Canada Nickel Company has released the results of a bankable feasibility study (BFS) on its wholly-owned Crawford nickel sulphide project in Ontario, Canada that highlights the potential use of trolley-assist trucking and the company’s proprietary carbon capture and storage technology.

The BFS, prepared by Ausenco Engineering Canada, displayed an after-tax NPV (8% discount) of $2.5 billion and an internal rate of return of 17.1%. This is based on a long-term nickel price of $21,000/t, a C$:$US of $0.76 and an oil price of $70/bbl.

Crawford, in Timmins, Ontario, is the world’s second largest nickel reserve, according to Wood Mackenzie. Once in production, it is also expected to become one of Canada’s largest carbon storage facilities and be a net negative contributor of CO2 over the project life.

The study was based off proven and probable reserves of 3.8 Mt contained nickel from 1,700 Mt of ore grading 0.22% Ni, providing annual average nickel production of 38,000 t over a 41-year life, with production of 48,000 t/y of nickel, 800 t/y of cobalt, 13,000 oz of palladium and platinum, 1.6 Mt/y of iron and 76,000 t/y of chrome over 27-year peak period.

Crawford will produce two concentrates with life-of-mine average concentrate grades as follows:

  • Nickel concentrate: 34% Ni, 0.7% Co and 4.1 g/t combined Pd and Pt; and
  • Iron ore concentrate: 55% Fe, 0.3% Ni, 2.6% Cr.

The project’s carbon footprint has been calculated at 4.8 t CO2 per tonne of nickel in concentrate, or 2.3 t CO2 per tonne of nickel equivalent, largely due to the use of an electrically powered mining fleet, including trolley-assist trucks, that are expected to reduce diesel consumption by over 40% compared to diesel powered equipment.

Crawford will mine two separate open pits that contain approximately equal tonnages of ore. Approximately 89% of material mined will be rock, which will be drilled and blasted before being loaded by electrically powered rope shovels or large hydraulic excavators into 290 t trucks equipped with trolley assist. Over 70% of uphill hauls by this fleet will be conducted on trolley, reducing diesel consumption by approximately 1.5 billion litres, while faster speeds will reduce the fleet by 12 units, the company says. The remaining material will be overburden that will not require drilling and blasting and will be loaded and hauled with a mixed fleet of smaller equipment.

The concentrator will process ore using a conventional milling circuit. Unit operations include crushing, SAG and ball mill grinding, desliming, nickel flotation, magnetic separation on the flotation tailings and carbon storage using the company’s proprietary IPT (In-Process Tailings) Carbonation technology.

Crawford, and the company’s other properties in the Timmins Nickel District, are hosted in ultramafic rock, which contain minerals such as brucite that naturally absorb and sequester CO2. Canada Nickel has developed the novel IPT Carbonation process which involves injecting a concentrated source of CO2 into tailings generated by the milling process for a brief period of time. This simple process stores CO2 chemically in the tailings while they are still in the processing circuit, rather than after they have been finally deposited.

This technology is anticipated to allow capture and storage of 1.5 Mt/y of CO2 during the 27-year peak period, the bulk of which will be sold to third parties.

Mark Selby, CEO of Canada Nickel, said: “This BFS is a significant milestone for Crawford and a major step forward in demonstrating the value of our Timmins Nickel District and its potential to anchor a Zero Carbon Industrial Cluster in the Timmins-Cochrane region. Crawford is poised to be a leader in the energy transition through the large-scale production of critical minerals, including nickel and cobalt, and is expected to become the sole North American producer of chromium, while also supporting Canada’s climate objectives through industrial-scale carbon capture and storage.

“I am very proud of our team for accomplishing this milestone in a very short amount of time. Just four years ago, Crawford had only five drill holes. Today, we believe it is a world-class project with tremendous momentum. We are fully focused on pursuing our next milestones of obtaining permits, developing a financing package, and moving towards a production decision by mid-2025, with a goal of first production by the end of 2027.”

SilverCrest adds process plant EPC remit to Ausenco’s Las Chispas FS work

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SilverCrest Metals is racing ahead with securing one of the key contracts for its Las Chispas project in Mexico, with one of its Mexican subsidiaries entering into a fixed price engineering, procurement and construction (EPC) contract with Ausenco Engineering Canada and one of its affiliates ahead of the publication of a feasibility study on the silver-gold project.

While the study is still pending finalisation by Ausenco, with announcement of results targeted for late January 2021, SilverCrest says it is confident entering into the process plant agreement based on the substantial feasibility information currently available.

At the same time, the company entered into a $120 million project financing facility with an affiliate of RK Mine Finance for funding the Las Chispas build.

The lump sum turnkey price of $76.5 million for the EPC contract will include construction of a 1,250 t/d process plant at Las Chispas, with execution of Ausenco’s scope of work to begin in February 2021, and commissioning of the process plant targeted for the June quarter of 2022. The process plant production ramp-up is expected to start in the September quarter of that year.

The construction execution plan includes stringent COVID-19 protocols including the use of a confined single room occupancy camp designed to limit the potential for a virus outbreak at the site and in the local communities, SilverCrest says.

Ausenco is in the throes of completing the Las Chispas feasibility study and progressing detailed engineering and the construction management plan. Detailed engineering is progressing well at around 60% completion, according to SilverCrest, and procurement of long lead items started in the final quarter of 2020.

“Advancing these programs in parallel has allowed Ausenco to develop comprehensive capital and operating cost estimates for Las Chispas while progressing detailed engineering beyond what is customary at a feasibility study level,” SilverCrest said.

“The disruption caused by the COVID-19 pandemic also allowed SilverCrest to initiate an early works program tailored to further reduce project execution risks.”

This early works program included the earthworks package, the water pumping system and the first phase of the construction camp. The advancement of the program, coupled with the fixed price nature of the EPC contract, reduces many common construction and market-related risks, the company said.

Beyond the tasks included in the EPC contract, the remaining initial capital costs anticipated for Las Chispas construction will include development costs of the underground mine; owner’s site costs; on-site infrastructure including Phase 2 of the confined construction camp, a bridge and the filtered (dry stack) tailings system facility; a new 33 kV, 49 km long powerline; and an analytical laboratory located in the community.

Pierre Beaudoin, COO of SilverCrest, said: “We are pleased to be working with Ausenco, a well-known and respected engineering firm with substantial global experience in designing, constructing, and commissioning precious metal process facilities. We have been working closely with Ausenco to complete the EPC contract and the feasibility study in close succession. We are confident that their intimate knowledge of the project will benefit the successful construction and commissioning of Las Chispas.”

A February 2019 preliminary economic assessment on Las Chispas outlined a 1,250 t/d production rate with an initial mine life of 8.5 years. This resulted in average annual production of 5.38 Moz of silver and 55,700 oz of gold.

Equinox Aurizona gold mine ramp up continues

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Equinox Gold says it has achieved commercial production at the Aurizona gold mine, in Brazil.

The milestone, which occurred on July 1, follows the processing plant, in the month of June, operating at an average throughput of around 90% of nameplate capacity (8,200 t/d), exceeded 90% average recovery and producing more than 7,000 oz of gold. It also follows the first gold pour in May.

Gold production is expected to continue to increase through the September and December quarters of 2019, with average life-of-mine production estimated at 136,000 oz/y.

Christian Milau, Equinox Gold’s CEO, said: “Achieving commercial production at Aurizona is a significant milestone, making Equinox Gold a multi-mine producer and bringing us one step closer to our near-term target of having three mines in production in 2020.”

With commercial production at Aurizona achieved, the final condition pursuant to the previously announced corporate revolving credit facility has been completed and the remaining $30 million of the total $130 million has been made available to the company.

The mining contractor at the Aurizona operation is U&M Mineração e Construção S/A (U&M) and the EPCM contractor is Ausenco Engineering Canada.

Equinox Gold hits first pour milestone at Aurizona

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Equinox Gold says it has poured first gold at its Aurizona gold mine, in Brazil.

Christian Milau, CEO of Equinox Gold, said: “Pouring first gold at Aurizona is a significant milestone for the company and the result of the hard work and dedication of the Equinox Gold team and our contractors.

“That we accomplished this milestone with no lost-time injuries is another important achievement for the Aurizona team.”

The company has also received its License to Operate, the final operating permit for Aurizona, from the Maranhão State Environmental Agency (SEMA).

Aurizona is expected to become a low-cost open-pit gold mine, with average annual production estimated at 136,000 oz/y, according to Equinox Gold.

Equinox, late last year, reported that the new primary jaw crusher at Aurizona had been energised and dry tested with the expectation of putting first ore through the system in early-January.

The mining contractor at the operation is U&M Mineração e Construção S/A (U&M) and the EPCM contractor is Ausenco Engineering Canada.