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FS First Star Resources

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0.00 (0.00%)
Share Name Share Symbol Market Type
First Star Resources TSXV:FS TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Victory Nickel Applies for Amendment to Minago EAL

30/04/2014 1:00pm

Marketwired Canada


Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) today announced
that it has filed an Environmental Act Proposal ("EAP") to amend its
Environmental Act Licence ("EAL"). The amendment provides for the relocation of
the Minago project tailings impoundment to an area much more suitable than
previously proposed in the feasibility study ("FS"). The EAL allows the
development of its Minago nickel project in central Manitoba.


"The Company continues to investigate all options that have the potential to
enhance the economics of the Minago project," said Steve Harapiak, President and
COO of Victory Nickel. "This latest revision is one of the most significant of
various improvements which will be implemented when we develop the nickel mine,
and is very timely given the recent improvement in the price of nickel."


The Minago open pit is expected to produce approximately 110 million pounds of
nickel per year for approximately nine years (see news release dated May 2,
2011). The open pit represents only a portion of the overall resource at Minago.
While mining the open pit, the Company will plan for potential underground
mining and for development of other pits on the North Limb if possible.


In addition to the nickel potential at the Minago project, a portion of the
overburden has been identified to contain approximately 11 million tonnes of
frac sand which has to be removed as part of the stripping of the pit. Recently,
Victory Nickel, through its wholly-owned subsidiary Victory Silica, has entered
the frac sand industry by constructing a 500,000 ton per annum frac sand
processing facility in Seven Persons, just south of Medicine Hat, Alberta. The
plant is in the commissioning stage and has made its first sales.


About Frac Sand

Frac sand is a proppant used in the oil and gas business as a part of the
hydraulic fracturing process - a means of increasing flow to the wellhead. Frac
sand must have particular characteristics including achieving certain levels of
crush resistance, sphericity and roundness, and it is therefore a relatively
rare commodity. Vast quantities of frac sand are consumed, and more is needed
all the time, as shale gas plays in Canada and the US rise to prominence.


About Victory Silica Ltd.

Victory Silica is a wholly-owned subsidiary of the Company with a phased plan to
establish itself in the frac sand market. In Phase 1, Victory Silica completed
the construction of a 500,000 ton per annum frac sand processing facility in
Seven Persons Alberta (the "7P Plant") near Medicine Hat. Partially-processed
premium quality Midwest sand purchased in Wisconsin will be shipped to the 7P
Plant for final processing and distribution. The 7P Plant is well located in an
area populated with fracking companies, its potential customers and is within
only a few hours' trucking distance of major oil play well sites. Phase 2, which
includes the construction of a concentrator in Wisconsin, will reduce costs and
assure security of sand supply through the control of a frac sand mine in
Wisconsin. In Phase 3, Victory Silica has identified a site in Winnipeg,
Manitoba, where it plans to build a larger frac sand plant to process and
distribute both imported and domestic sands, including sand mined as a
co-product of development of a nickel mine at the Company's 100%-owned Minago
project in Manitoba. With margins expected to be in excess of $25 per ton of
frac sand sold, Victory Silica should generate sufficient cash flow in Phases 1
and 2 to provide the financial flexibility to expand its activities by
developing a second plant as Phase 3 of its growth plan.


About Victory Nickel

Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits
containing significant NI 43-101-compliant nickel resources. Victory Nickel is
focused on becoming a mid-tier nickel producer by developing its existing
properties, Minago, Mel and Lynn Lake in Manitoba, and Lac Rocher in
northwestern Quebec, and by evaluating opportunities to expand its nickel asset
base. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel is
establishing a presence in the frac sand market prior to commencing frac sand
production and sales from Minago. 


Please visit the Company's website at www.victorynickel.ca. Should you wish to
receive Company news via email, please email cathy@chfir.com and specify
"Victory Nickel" in the subject line.


Forward-Looking Information: This news release contains forward-looking
information. All statements, other than statements of historic fact, that
address activities, events or developments that the Company believes, expects or
anticipates will or may occur in the future constitute forward-looking
information. This forward-looking information reflects the current expectations
or beliefs of the Company based on information currently available to the
Company. Forward-looking information is subject to a number of risks and
uncertainties that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking information, and even if
such actual results are realized or substantially realized, there can be no
assurance that they will have the expected consequences to, or effects on the
Company. Factors that could cause actual results or events to differ materially
from current expectations include, among other things: uncertainty of estimates
of capital and operating costs, production estimates and estimated economic
return; the possibility that actual circumstances will differ from estimates and
assumptions; uncertainties relating to the availability and costs of financing
needed in the future; failure to establish estimated mineral resources;
fluctuations in commodity prices and currency exchange rates; inflation;
recoveries being less than those indicated by the testwork carried out to date
(there can be no assurance that recoveries in small scale laboratory tests will
be duplicated in large tests under on-site conditions or during production);
changes in equity markets; operating performance of facilities; environmental
and safety risks; delays in obtaining or failure to obtain necessary permits and
approvals from government authorities; unavailability of plant, equipment or
labour; inability to retain key management and personnel; changes to regulations
or policies affecting the Company's activities; the uncertainties involved in
interpreting geological data; and the other risks disclosed under the heading
"Risk Factors" and elsewhere in the Company's annual information form dated
March 31, 2014 filed on SEDAR at www.sedar.com. Forward-looking information
speaks only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new information,
future events or results or otherwise. Although the Company believes that the
assumptions inherent in the forward-looking information are reasonable,
forward-looking information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information due to the
inherent uncertainty therein.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Victory Nickel Inc.
René Galipeau or Sean Stokes
416.363.8527
416.626.0890 (FAX)
admin@victorynickel.ca


CHF Investor Relations
Cathy Hume
416.868.1079
416.868.6198 (FAX)
cathy@chfir.com

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