|September 17, 2007|
Crowflight Reports New Inferred Nickel Resources for Deposits Near Bucko Mine
CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX Venture Exchange: CML) is pleased to present National Instrument 43-101 compliant mineral resource estimates for the M11A, Apex, Bowden Lake and Halfway Lake deposits in the Thompson Nickel Belt South Project Area, all located within approximately 25 kilometres of the Company's Bucko Lake Nickel Project in Manitoba. Inferred Resources for each area were calculated based on recent exploration and historical drill hole data and were prepared in accordance with the Canadian Institute of Mining, Metal, and Petroleum (CIM) definition standards regarding Mineral Resources and Reserves. The results are presented below in Table 1 and Charts 1 and 2. Figure 1 is a location map of the deposits relative to planned operations at Bucko Lake.
Of particular note is the large tonnage Inferred Resource contained within the Bowden Lake Deposit of 63 million tonnes grading 0.68% nickel (at a 0.5% nickel cut-off grade) and the relatively high grade Inferred Resource at Halfway Lake of 1.1 million tonnes grading 1.08% nickel (at a 0.7% nickel cut-off grade).
Due to the preliminary stage of economic modelling for each deposit, the Inferred Resources of each zone are presented in Table 1 using a range of grade cut-off values. The cut-off values chosen approximate concentrations of contained nickel that, given the 24 month average market metal prices, could possibly be exploited economically.
Greg Collins, Crowflight's Vice President of Exploration commented: "We are encouraged by these results as they quantify for the first time the untapped resource potential of our other Manitoba projects. Exploration work conducted by our exploration team and partner Xstrata over the past few years has led to the definition of quality nickel resources in close proximity to planned operations at the Bucko Mine. The Company will be evaluating the development potential of these resources in the context of our ongoing exploration activities in the belt."
* Not calculated at the given Nickel cut-off grade
Mike Hoffman, the new President and CEO of Crowflight commented, "The new inferred resources represent another milestone in the evolution of Crowflight. It demonstrates the potential of the Crowflight Thompson Nickel Belt properties located near the Bucko deposit for future incremental mill feed or a potential stand alone project. Quantifying the inferred resources allow the team at Crowflight to study potential development scenarios and prioritize future exploration and development activities."
The M11A deposit consists of several small lenses of higher concentration nickel mineralization within larger zones of low grade nickel discovered by Falconbridge during the 1970s. The deposit is located within 4 kilometres of the Bucko Lake mill. In 2006, a higher grade nickel zone referred to as M11A North was discovered, which has been the subject of recent drilling (refer to press releases dated March 28, 2006, April 20, 2006 and May 8, 2007). The new Inferred Resource estimate is based on 64 historical holes drilled by Falconbridge and 19 holes drilled by Crowflight and its former operating partner Xstrata Nickel during 2006 and 2007. Plans for this resource include the evaluation of the potential of this resource to supplement Bucko mill feed in the future. Exploration potential in the vicinity of the deposit remains favourable for resource expansion.
The deposit was discovered by Crowflight and its former operating partner Xstrata Nickel in 2006 (see press releases dated April 27, 2006, July 7, 2006 and May 8, 2007) and is located approximately 5 kilometres from the Bucko Lake mill. The Inferred resource presented is based on 13 holes totalling 4,263 metres drilled during 2006 and 2007. The deposit retains exploration potential for expansion at depth and along strike.
The Halfway Lake deposit is located approximately 25 kilometres north of the town of Wabowden and the mill at Bucko Lake. Mineralization at Halfway Lake was first discovered by Falconbridge in 1995. In 2007, Crowflight followed up favourable intercepts with the goal of further assessing resource potential of the area and establishing inferred resources. Crowflight drilled 2 holes in 2007 intersecting widths of mineralization in excess of 9 meters grading 1.4% nickel (see press release dated May 31, 2007). The Inferred Resource presented is based on 9 historical holes drilled by Falconbridge and 4 holes drilled by Crowflight and its former operating partner Xstrata Nickel. The deposit is located in an under-explored portion of the belt and retains the potential for additional resource expansion.
The Bowden Lake deposit is located under Bowden Lake adjacent to the Wabowden townsite, approximately 5 kilometres from Bucko Lake. The deposit consists of large volumes of mineralized ultramafic rock over a strike length of >2.5km. Historical, but non NI 43-101 compliant resource calculations reported by Falconbridge indicated that this deposit hosts large volumes of lower grade nickel sulphide mineralization. In 2005, former operating partner Xstrata Nickel drilled 7 holes from the surface of Bowden Lake to further evaluate a corridor of elevated nickel content. The updated resource presented in this press release incorporates historical drilling from 66 holes, and 7 holes drilled in 2005. Crowflight plans to study potential development scenarios over the coming months.
Mineral Resource Estimate
The resource calculations were completed by Crowflight personnel under the supervision of Greg Collins, Qualified Person for the programs, and a professional geoscientist experienced in the determination of mineral resources and reserves. The resource estimates were based on geological data collected by representatives from Crowflight and chemical analysis provided by ALS Chemex. The update incorporates historical exploration information collected by Falconbridge and recent data collected by Crowflight under a Joint Venture partnership with Xstrata Nickel. The resource estimates incorporate the results from 139 historical diamond drill holes totalling 48,130 metres and 43 recent holes totalling 17,420 metres drilled at four separate zones during the period from January 2005 to May 2007. Please refer to Figure 1 for an illustration of the location of the deposits. Please refer to news releases dated April 20, 2006, April 27, 2006, May 11, 2006, July 11, 2006, May 8, 2007, and May 31, 2007 for information concerning mineralized intercepts.
The determination technique of the mineral resources was based on geostatistical block modeling using Gemcom Software utilizing the inverse distance squared method of grade interpolation. The database consisted of 182 surface diamond drill holes from four project areas, including recent holes completed by Crowflight during the 2005 - 2007 drill campaigns. Minimum composite lengths were 1.5 metres. Density of material was assigned based on average bulk density of mineralized intervals based on available density measurements. The Inferred Resource calculation used a 150 metre search ellipse with minimums of two drill holes and five samples per block. A 0.5% nickel cut-off grade was used to constrain the interpolation model. It should be noted that Mineral resources that are not reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
Qualified Person Comments/Quality Control Procedures
This press release has been prepared and reviewed by Mr. Greg Collins, P. Geo., Crowflight's Vice President of Exploration, a Qualified Person under the NI 43-101 guidelines. The resource estimate has been prepared in compliance with National Instrument 43-101 and form NI 43-101F1, which requires that the estimate be prepared in accordance with the "CIM Definition Standards on Mineral Resources and Mineral Reserves as prepared by the CIM Standing Committee on Reserve Definitions and as adopted by CIM Council, November 14, 2004."
The core sampling method applied during the 2005-2007 drill campaigns followed NI 43-101 requirements and procedures as set forth in the Diamond Drill Standard Procedures developed by Falconbridge Limited. One control standard and one blank were inserted per 40 samples. Three different internal control standards representing different grades were utilized and the standard was selected with similar grade as the samples submitted. All diamond drill core samples collected during the 2005-2007 drill program were sent to the primary laboratory of ALS Chemex in Thunder Bay for preparation and were subsequently analyzed in Vancouver. Fire assays were performed 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.
Granting of Crowflight Stock Options
Further to the press release dated September 10, 2007 announcing management changes at Crowflight, one million options at a strike price of $0.60 per share have been granted to Mike Hoffman, the new President and CEO of Crowflight. In addition, Bruce Humphrey, the new Chairman and Director of Crowflight, has been granted 500,000 options at $0.60 per share. The options granted will vest in quarterly increments over the course of two years as per the terms of the Crowflight Stock Option plan.
Conference Call Webcast Now Available Online
A recording of the conference call held Tuesday, September 11th at 10 a.m. has been posted on Crowflight's website at www.crowflight.com.
Crowflight Minerals -- Canada's Next Nickel Producer
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 800 square kilometres of exploration and development properties in Manitoba and Ontario.
Crowflight's priority is to bring the Bucko Nickel deposit located near Wabowden, Manitoba into production late in the second quarter of 2008.
Crowflight is the second largest landholder in the prolific TNB in Manitoba with interests in approximately 700 square kilometres (270 square miles) and is well positioned to capitalize on potential development synergies with the proximal location of the Bucko Deposit. Crowflight plans to spend C$2.8 million on exploration in 2007 in the TNB. In Sudbury, Crowflight owns a 100% interest in the AER Kidd project adjacent to Inco's Totten Deposit (10.1 million tonnes grading 1.5% nickel, 2.0% copper, and 4.8 g/t PGM's) and holds property under option to Wallbridge Mining in the prospective Sudbury North Range Footwall.
Crowflight continues to explore opportunities to create shareholder value that capitalize on the depth of the Crowflight exploration and development team.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Company's plan of business operations; mineral resource estimates, and projected costs and expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
Further information is available on the Company's website at www.crowflight.com or contact:
President and CEO
Tel: (416) 861 - 2964
Manager, Investor and Public Relations
Tel: (416) 861 - 5803
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