TORONTO, ONTARIO (TSX VENTURE: CML) today provided a project
update for the Bucko Lake Nickel Project (Bucko) that is currently
under development outside Wabowden, Manitoba.
Surface Facilities
Work is progressing steadily on the surface facilities at Bucko,
with much of the current activity focused on the processing plant.
Most of the processing plant equipment is on-site, with some
electrical components due to arrive in the next two months. The jaw
and cone crusher are in place with structural steel for the
crushing circuit progressing. The conveyors are on-site and the
conveyor sections should be installed between now and June.
Installation of the fine ore bin is expected to begin shortly.
Mechanical installation of the rod and ball mill is close to
completion, as is the mechanical installation of the flotation
circuit. The concentrate filter is in place, electrical work on the
plant's interior has begun and piping is expected to start
shortly.
In addition to work on the processing plant, the area for the
Interim Tailings Storage Facility (ITSF) has been cleared and the
geotechnical and design work is complete.
Underground Development
The new portal for the underground ramp is progressing with
completion expected by the end of May.
Two diamond drills are currently underground undertaking
definition and delineation drilling on the 1,000 foot level. It is
expected that the geotechnical information and assay results from
this drilling should assist in optimizing the geotechnical design
and upgrading the mineable reserve. The development underground on
the 1,000 foot level has progressed to the point that the larger
mining equipment is ready to be transported underground and then
assembled to finish the remaining work on that level and the ramps
to other levels.
Paul Keller, Crowflight's VP of Operations and COO, said: "A
tremendous amount of progress has been made at Bucko since
beginning construction in November 2006. Our staff, contractors and
consultants have been working tirelessly to bring Bucko into
production in the third quarter of 2008 and we look forward to
achieving this goal."
The operating costs, including on-site and off-site costs, are
projected to be $4.32 per pound of nickel produced, using a
US$:Cdn$ exchange rate of 1:1.The capital cost for the Bucko Lake
Nickel Deposit development is now expected to be Cdn$86 million net
of pre-production revenue, assuming a US$:Cdn$ exchange rate of
1:1. This compares to the Feasibility Study estimate of Cdn$66.0
million at an exchange rate of 0.8:1.
The cost differences are attributable to the following: Cdn$6.7
million due to capital development timing, the addition of the
ITSF, the ramp portal and surface connection to the underground
internal ramp; Cdn$3.0 million for increased surface infrastructure
EPCM (Engineering Procurement and Construction Management); and
Cdn$10.5 million for additional processing plant equipment, foreign
exchange differences and increased structural steel and concrete
foundation costs.
The inclusion of the ramp portal, the ITSF and additional
processing plant equipment, which will enable the processing plant
to process up to 1,500 tonnes of ore per day, were not included in
the original scope of the Feasibility Study. The ramp connection to
surface will open new production areas sooner in the life-of-mine
schedule and will provide operational flexibility. The addition of
the ITSF is necessary to begin operations in 2008 due to delays in
the federal permitting of Bucko Lake as a tailings storage facility
(see Press Release dated March 28, 2008).
Mike Hoffman, Crowflight's President and CEO, said: "One
striking advantage of Bucko compared to other mining projects
currently being developed throughout the world is that the overall
capital costs are moderate in relation to future expected cash
flow, especially considering that nickel prices have recently
averaged US$12-14 per pound. Many of the cost increases are
attributable to scope changes not included in the original
Feasibility Study and are designed to add further value to the
Bucko Project. These enhancements are necessary to tap into the
further potential we believe exists at Bucko. Some of the other
cost increases, such as steel and concrete, are consistent with
those of other companies currently building mines."
During 2007, Cdn$35.3 million was spent on Bucko construction,
which includes the main electrical installation, hoist and
headframe installation, processing plant foundations and steel,
shaft de-watering and rehabilitation, rehabilitation of the 1000
Level exploration drift, purchasing new and used equipment,
refurbishing used equipment and EPCM to date.
Additional information, including Crowflight's Financial
Statements and Management Discussion and Analysis, can be found
electronically on the System for Electronic Document Analysis and
Retrieval ("SEDAR") through Crowflight's profile at
www.sedar.com.
The current construction schedule estimates that the
commissioning of the processing plant will occur in July and August
of 2008, with cash flow from concentrate sales beginning shortly
thereafter. Full commercial production is expected in early
2009.
Crowflight Minerals - Canada's Next Nickel Producer
Crowflight Minerals Inc. (TSX VENTURE: CML) is a Canadian junior
mining exploration and development company focused on nickel,
copper and Platinum Group Mineral (PGM) projects in the Thompson
Nickel Belt and Sudbury Basin. The Company currently owns and/or
has under option approximately 800 square kilometres of exploration
and development properties in Manitoba and Ontario.
Crowflight's priority is to bring the fully-funded Bucko Lake
Nickel Project located near Wabowden, Manitoba into production by
the third quarter of 2008.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"plans", "proposes", "estimates", "intends", "expects", "believes",
"may", "will" and include without limitation, statements regarding
estimated capital and operating costs, expected production
timeline, benefits of updated development plans, foreign exchange
assumptions and regulatory approvals. There can be no assurance
that such statements will prove to be accurate; actual results and
future events could differ materially from such statements. Factors
that could cause actual results to differ materially include, among
others, metal prices, competition, risks inherent in the mining
industry, and regulatory risks. Most of these factors are outside
the control of the Company. Investors are cautioned not to put
undue reliance on forward-looking information. Except as otherwise
required by applicable securities statutes or regulation, the
Company expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new
information, future events or otherwise.
Total Shares Outstanding: 267.4MM
Fully Diluted: 307.0MM
52-Week Trading Range: C$0.45 - $1.35
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: Crowflight Minerals Inc. Mike Hoffman President and
CEO (416) 861-2964 Crowflight Minerals Inc. Heather Colpitts
Manager, Investor and Public Relations (416) 861-5803 Email:
info@crowflight.com Website: www.crowflight.com
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