While the market remains chilly to nickel projects, Crowflight Minerals (CML-T) continues to improve the economics at its Bucko Lake nickel mine in Manitoba.
The low cost nickel mine, which is wholly owned by Crowflight and sits is near Wabowden, Manitoba, has bumped up its reserves considerably by drilling done in 2007 and 2008.
The company says proven and probable reserves increased to 3,708,393 tonnes grading 1.45% nickel for 118.2 million lbs of nickel. — a 22% increase in contained nickel over previous estimate. Those numbers use a 1.25% cut-off grade.
As for measured and indicated resources, using a 1% cut-off grade, the project has 2.8 million tonnes grading 1.53% nickel for 93 million lbs. of nickel.
Crowflight forecasts production of 9.1 million pounds of payable nickel from 362,000 tonnes grading 1.65% nickel at projected cash cost of US$3.61 per pound for 2009.
The company expects to reach full commercial production by early in the second quarter of this year and, it says, it has the potential to expand production to 1,500 tonnes per days from 1,000 tonnes per day.
Crowflight has positioned itself well in an investment environment hostile to base metals. With tight credit conditions and low nickel prices it has managed to pay back all debt connected with construction and commissioning of plant and has already produced and delivered marketable nickel concentrate at a cost under the spot rate.
In Toronto on March 12, the company’s shares were up 0.5¢ to 17.5¢ on roughly 53,000 shares traded.
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