|May 25, 2005|
Crowflight Announces Summer Exploration Program on the Bucko Deposit
|TORONTO, ONTARIO - CROWFLIGHT MINERALS INC. (TSX VENTURE:CML) is pleased to provide details regarding its planned summer exploration program on the Bucko Deposit, Thompson Nickel Belt ("TNB"), Manitoba (refer to Figure 1, Location Map, Thompson Nickel Belt Properties). Commencing in mid to late June (as soon as the ground dries following spring break-up), the Company will commence its summer 2005 surface drill program on the Bucko Nickel Deposit. Crowflight plans to drill 10 to 12 holes from surface to in-fill areas within the resource block model above the 1000 Level (305 metres below surface). Based on the work done to date on the resource model it is apparent that these holes have the potential to add as much as 200,000 tonnes of additional Indicated Resources to the resource model. The locations of the initial 9 holes of this program are shown in Figure 2 - Summer 2005 Surface Drill Program - Surface Plan and Longitudinal Section. The ability to prove-up this tonnage assumes grade and thicknesses of nickel bearing rock in intersections of the planned holes are similar to historic holes in nearest proximity to those planned. If successful in converting these resources and if these holes yield grades equal to that of the known deposit, this program, estimated to cost C$750,000, would translate into a per pound discovery cost of about US$0.05 per pound of nickel. Nickel has most recently been quoted on the London Metal Exchange at prices of from US$7.30 per pound to as much as US$8.00 per pound.|
Beyond the summer 2005 surface program, Crowflight also intends to begin a program of dewatering and rehabilitating the historic underground infrastructure. The dewatering and rehabilitation of the underground is scheduled to commence in early July and will facilitate underground drilling from the 1000 Level to delineate known mineralization at and above the 1000 Level and as much as an additional 200 metres below the 1000 Level. If this work is successful in outlining nickel mineralization with grades and thicknesses similar to that which exists from the surface down to the 1000 Level, this could result in a doubling of resources. The underground drill program is scheduled to get underway late in the summer once the rehabilitation of the underground is completed.
Crowflight President and CEO, Tom Atkins commented on the summer program stating: "The three dimensional resource modeling work done by our geologist's identified the opportunity to significantly increase the Indicated Resource at Bucko. In-fill drilling in pockets of the Inferred resource both from surface and the underground workings has the potential to upgrade up to one million tonnes of material into the Indicated category, thereby significantly increasing the value of the Bucko deposit."
Crowflight Vice President Exploration, Jean Lafleur added: "Following the winter exploration program at Bucko we have been able to advance the resource block model of the deposit. Within the statistical constraints of the model it became apparent that there are areas where assay results and geology illustrate good continuity, however the drill spacing is too great to permit us to classify this material as an Indicated Resource. With a minor amount of targeted in-fill drilling there is a terrific opportunity to increase resources in a cost effective manner. Further, we see excellent continuity in geology and nickel mineralization in the deeper holes drilled in the deposit with the Indicated Resources identified above the 1000 Level. We're very encouraged by this continuity and plan to delineate a significant expansion in resources below the 1000 Level via an in-fill drilling program conducted from the underground workings."
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. The feasibility study is scheduled for completion in the second half of 2005. Subject to suitable metal prices, timely completion of permitting and the economics of the feasibility study, Crowflight envisions developing the Bucko Deposit for production of a nickel concentrate in early 2007.
Terms of Crowflight's Agreements with Falconbridge
Under its agreements with Falconbridge, Crowflight has an option to earn:
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 approximately 600 km2 of exploration and development properties in Manitoba and Ontario.
In Manitoba, these properties include: (1) the Bucko Nickel Deposit; (2) an earn-in option with Falconbridge Limited on five highly prospective properties (Bucko/Bowden, Resting Lake, Rock Island Lake, Halfway Lake and Gonlin Lake) on the TNB South Project located within 30 kilometres of the Bucko Deposit; and (3) six additional properties (Burntwood River, Birchtree South, Birchtree North, Airport, Moak Lake and Strong Lake) located 100 kilometres to the north on the TNB North Project.
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: Wed Jun 22, 2005, Crowflight Appoints Exploration Manager for Thompson Nickel Belt Joint Venture
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