|April 28, 2005|
Crowflight Reports on Metallurgical and In-Fill Drilling at Bucko Deposit, Thompson Nickel Belt
News Release No. 17/05
CROWFLIGHT MINERALS INC. (TSX Venture Exchange: CML) is pleased to provide the complete list of results from the in-fill and metallurgical sample drilling on the Bucko Deposit in the Thompson Nickel Belt ("TNB") with Falconbridge Limited ("Falconbridge"). Partial results from these holes had been previously released, however a number of intersections were not available at the time of original release.
President and CEO Thomas Atkins commented on the program, stating: "The high-grade intersections from this work show good continuity in grade and thicknesses with the historic work by Nuinsco and Falconbridge. These results will be incorporated into the new resource block model for the deposit. A 350 kilogram sample was extracted from this core and sent for metallurgical testing to be conducted by G&T Metallurgical Service in Kamloops, BC. Both the block model and the metallurgical testing are part of the ongoing feasibility study on the Bucko project development expected to be completed in the second half of this year."
Under its agreements with Falconbridge, Crowflight has an option to earn:
The in-fill and metallurgical sample drill program which commenced in early 2005 was focused on providing a representative sample of ore-like material to facilitate metallurgical sampling to determine the recovery and quality of concentrate from the Bucko deposit. A bulk 350 kilogram sample was extracted from this core along intersections grade and mineralization typical of that within the previously defined Indicated resource at the Buck Deposit. In addition, significant intersections from these holes will be incorporated into the resource block model which is being updated as part of the activities for the feasibility study on the development of Bucko deposit. Table 1 summarizes results from this program. Figure 2 - Surface Plan and Longitudinal Section of the Bucko Deposit, illustrates the location of the holes from this program relative to historical drilling.
Table 1 Summary of Significant Assay Results, In-fill and Metallurgical Drill Program Winter 2005 Bucko Deposit, Thompson Nickel Belt DDH# From To Azimuth Dip Length Nickel Copper (metres) (metres) (degrees) (degrees) (metres) (%) (%) N05-12A (522422.86E, 6081542.05N) 294.6 314.9 270 -50 20.3 2.23 0.26 incl. 308.4 311.4 3.0 11.06 1.39 330.0 342.3 12.3 1.84 0.11 incl. 330.0 338.4 8.4 2.69 0.17 N05-12B (522422.86E, 6081542.05N) 298.0 326.0 270 -57 28.0 1.10 0.12 incl. 298.0 301.6 3.6 2.57 0.13 336.0 347.2 11.2 1.39 0.09 N05-12C (522422.86E, 6081542.05N) 312.5 345.6 270 -57 33.1 1.29 0.10 incl. 315.2 322.0 6.8 2.42 0.17 324.5(i) 327.7(i) 3.2 1.75 0.07 N05-15A (522326.05E, 6081593.63N) 202.6 228.4 270 -45 25.8 1.28 0.06 incl. 202.6 213.0 10.4 1.85 0.07 221.6(i) 228.4(i) 6.8 1.27 0.08 N05-15B (522326.05E, 6081593.63N) 190.3 194.3 270 -45 4.0 1.21 0.06 198.2 210.5 12.3 1.36 0.09 N05-21A (522333.69E, 6081609.35N) 199.3(i) 205.5(i) 270 -50 6.2 1.81 0.15 215.5(i) 219.3(i) 3.8 1.25 0.06 222.4 229.6 7.2 2.49 0.15 232.7(i) 242.4(i) 9.7 1.83 0.31 N05-21B (522333.69E, 6081609.35N) 202.0(i) 205.0(i) 270 -50 3.0 2.26 0.23 210.7 242.4 31.7 2.43 0.26 incl. 224.8 232.4 7.6 6.40 0.83
Intersections in bold and marked with an asterisk (*) represent those not previously reported.
Additional updates on results from the winter exploration programs on the Falconbridge-Crowflight TNB South and TNB North projects and on resource delineation and extensional drilling on the Bucko deposit conducted by Crowflight will be announced in the coming weeks. It is expected that as these results are reported, plans will be finalized and announced regarding the Falconbridge-Crowflight TNB South and TNB North summer exploration programs. An update on the progress and timing of completion of the feasibility study plus Crowflight's surface and underground exploration programs at Bucko are also expected in the coming weeks.
The Bucko Deposit
Micon International Limited performed a scoping study on the development of the Bucko deposit (refer to the press release dated October 28, 2004). The study analysed the potential economics of mining a 1.2 million tonne indicated resource grading 2.7% nickel that would yield a recoverable diluted resource of 1.3 million tonnes grading 2.4% nickel that would be mined at the rate of 750 tonnes per day (tpd) to produce approximately 11 million pounds of nickel in concentrate per year plus minor amounts of byproduct copper, platinum, palladium and cobalt in concentrate. An additional scenario was considered wherein approximately 0.5 million tonnes of inferred resources were added to the indicated resource to yield a recoverable diluted resource of 1.8 million tonnes grading 2.2% nickel to be mined at the rate of 1,000 tpd to produce up to 14 million pounds of nickel in concentrate per year. Both scenarios provided a robust pre-tax economic return assuming a US$4.50 per pound nickel price (nickel is currently selling at about US$7.30 per pound) of from US$34 million (under the 750 tpd scenario) and an internal rate of return (at a 15% discount rate) of 67% to US$50 million (under the 1,000 tpd scenario) and an internal rate of return (at a 15% discount rate) of 86% (refer to the press release dated October 28, 2004).
Crowflight is in the midst of studying the economic feasibility of developing the Bucko Deposit. Upon delivery of the feasibility, Crowflight will earn a 50% interest in the Bucko Deposit. The feasibility study is scheduled for completion early in the second half of 2005. Subject to suitable metal prices and the economics of the feasibility study, Crowflight envisions developing the Bucko Deposit for production of a nickel concentrate in early 2007.
Qualified Person/Quality Control Procedures
This press release has been prepared and revised by Mr. Jean Lafleur, P. Geo., Crowflight's VP Exploration, a Qualified Person under the NI 43-101 guidelines, based on data provided by Falconbridge Limited. Fire assays are performed at the ALS-Chemex laboratory in Vancouver on all the samples for Gold and PGE's which undergo an ICP-AES finish and Sodium Peroxide Fusion. All other metals undergo an ICP-AES finish. Standards and blanks are submitted with each sample batch.
Crowflight - The Base Metal Builder
Crowflight Minerals Inc. is a Canadian junior mining exploration and development company listed on the TSX Venture Exchange. The company is focused on nickel, copper and Platinum Group Mineral ("PGM") projects in the Thompson Nickel Belt ("TNB") and Sudbury Basin. The company currently owns and/or has under option more than 672 km2 of exploration and development properties in Manitoba and Ontario.
In Manitoba, these properties include: (1) the Bucko Deposit, where the Company can earn a 100% interest by completing a feasibility study (in progress) and finance and begin production on a highgrade underground nickel resource (forecasted production in 2007), and (2) an earn-in option on ten highly prospective properties with Falconbridge Limited, including five on the TNB South Project located within 30 kilometres of the Bucko Deposit (Bucko/Bowden, Resting Lake, Rock Island Lake, Halfway Lake and Gonlin Lake), and six located 100 kilometres to the north on the TNB North Project (Burntwood River, Birchtree South, Birchtree North, Airport, Moak Lake and Strong Lake).
In the Sudbury Basin, these properties include: (1) the 100% owned AER Kidd Project adjacent to Inco's Totten Deposit (10.1 million tonnes @ 1.5% Nickel, 2% Cu, 4.8 g/t PGM's), (2) the Airport Property (a 50/50 joint venture with Millstream Mines Ltd.) located 4 km south, and on-strike, with Falconbridge's Nickel Rim South Deposit (13.2 million tonnes @ 3.5% Cu, 1.7% nickel, 0.8 g/t Au, 4.1 g/t PGM's), (3) the optioned (100% earn-in) Mystery Offset Dyke Property and (4) the 100% owned Peter's Roost Property.
Further information is available on the Company's web site at www.crowflight.com.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information please contact:
President and CEO
Tel: (416) 861 - 5900
Fax: (416) 861 - 8165
Vice President Exploration
Tel: (514) 794 - 3633
You can view the Next News Release item: Tue May 3, 2005, Crowflight Reports on Delineation and Extension Drilling at Bucko Deposit, Thompson Nickel Belt
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