Nuinsco to drill Bucko

A flow-through financing for $400,000 will bankroll a drilling program by Nuinsco Resources (NWI-T) at the Bucko property near Wabowden, Man.

Nuinsco is to drill an electromagnetic anomaly located by a recent deep-pulse survey. The conductor coincides with a zone of high magnetic susceptibility suggestive of iron or nickel sulphides about 1 km north of the Bucko nickel deposit.

Bucko carries a resource of 2 million tonnes grading 2.27% nickel, an estimate based on earlier drilling by Falconbridge (FL-T), which discovered the deposit in the 1970s, and on a 4,600-metre program of surface drilling operated by Nuinsco in 2000. Metallurgical tests showed that the Bucko mineralization can be treated at Inco‘s (N-T) Thompson smelter, about 90 km by road from Wabowden.

The feasibility of putting the deposit into production is being studied.

Nuinsco has an option to buy the Bucko property from Falconbridge, which will give Nuinsco an outright interest once it has spent $3 million on exploration and issued shares, options, and/or warrants to the major. Falco retains a net smelter return royalty of 1.5-2.5%, which varies according to where concentrates from the project are smelted.