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CML Canickel Mining Limited

0.04
0.00 (0.00%)
03 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Canickel Mining Limited TSXV:CML 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% 0.04 0.035 0.045 0 01:00:00

Crowflight Provides Bucko Lake Nickel Project Update

08/05/2008 12:30pm

Marketwired Canada


CROWFLIGHT MINERALS INC. (Crowflight, the Company) (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

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