|May 03, 2005|
Crowflight Reports on Delineation and Extension Drilling at Bucko Deposit, Thompson Nickel Belt
|CROWFLIGHT MINERALS INC. (TSX Venture Exchange: CML) is pleased to release results from its delineation and extension drill program on the Bucko Deposit in the Thompson Nickel Belt ("TNB") with Falconbridge Limited ("Falconbridge"). The program tested the depth and lateral extent of the known nickel and copper mineralization in the deposit, indicating the potential to expand these resources in all directions. These follow a press release last week (press release of April 26, 2005) wherein Crowflight announced results from its metallurgical and in-fill drill program.|
This work (as well as the previously reported metallurgical and in-fill drill holes) illustrates the continuity of mineralization and the potential for adding to the global resources. Of particular interest were holes:
Jean Lafleur, Vice-President Exploration for Crowflight added: "All of the drilling completed to date at Bucko, whether for metallurgical, in fill, delineation or exploration purposes will enable the Company to build an updated resource model of the Bucko Deposit with confidence. This drilling provides additional information on lithologies, structures and mineralization. The three originally identified mineralized lenses have been recognized in core and have now been extended laterally and to depths approaching 500 metres. One of the lenses can be correlated with an historical nickel intersection to a depth of 1,000 metres. This alone offers the potential to significantly expand the global nickel and copper resources of the deposit."
Under its agreements with Falconbridge, Crowflight has an option to earn:
The delineation and extension drill program was designed to test areas on the fringe of known mineralization (holes: BK04-01, BK05-01, 02A, 03, 04A, 05, 06, 07and 08) and areas significantly outside of the known resources (holes: BX05-01, 02, 03) to determine the nature and grade of nickel mineralization. Following the encouraging results from this work and upon completion of the new resource model for Bucko, the Company plans to commence a follow-up, initial surface and then underground resource delineation and definition drill program. Results from this follow-up program are intended to more fully test the resource potential of Bucko at depth and along strike.
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.
Additional updates on results from the winter exploration programs on the Falconbridge-Crowflight TNB South and TNB North projects 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 by-product 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 a bankable 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 high-grade 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 at 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 at 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: Fri May 13, 2005, Crowflight Updates Progress on the Bucko Deposit Feasibility Study
You can view the Previous News Release item: Thu Apr 28, 2005, Crowflight Reports on Metallurgical and In-Fill Drilling at Bucko Deposit, Thompson Nickel Belt
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