|October 22, 2008|
Crowflight Expands Resources at Satellite Deposits Near Bucko Lake Nickel Mine
CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX Venture Exchange: CML) is pleased to present updated National Instrument (NI) 43-101 compliant mineral resource estimates for its Halfway Lake and M11A North nickel deposits in the Thompson Nickel Belt. The deposits are located near the Company's Bucko Lake Nickel Mine (Bucko) and mill operations located near Wabowden, Manitoba.
Drilling at the M11A North deposit in 2008, which is approximately four kilometres north of the mill at Bucko, has resulted in a 197% increase in contained nickel. Using a 1.0% nickel cut-off grade, the Inferred Resource at M11A North deposit was increased to 903,125 tonnes grading 1.55% nickel. At Halfway Lake, exploration drilling resulted in a 46% increase in contained nickel. Utilizing a 1.0% nickel cut-off grade, the Inferred Resource at Halfway Lake now stands at 989,268 tonnes grading 1.20% nickel.
Greg Collins, Crowflight's Vice President of Exploration, commented, "We are pleased with these increases, especially at the M11A North deposit, the closest satellite deposit to the Bucko Operations. Drilling at M11A North in 2008 intersected some of the highest grade material over the longest intervals to date, with the best intercept defining a new zone of mineralization that remains open for further expansion along strike and at depth. It is hoped that our efforts to build reserves and resources near our operations at Bucko will assist us to identify new opportunities to expand production and extend the life of operations."
Updated resources at Halfway Lake and M11A North are presented in Table 1 along with a summary of other resources associated with nearby satellite deposits and the Bucko Lake Nickel Mine. Figure 1 depicts the location of these deposits relative to operations at Bucko.
Summary of Combined Crowflight Reserve/Resources (using a 1.0% nickel cut-off grade)
Contained Nickel Pounds (1000's)
* Probable Reserves based on 1.4% nickel cut-off utilized in design feasibility study (filed on Sedar April 24, 2007)
** Indicated Resources at Bowden and Apex disclosed in press release issued September 17, 2007
Crowflight is currently conducting an engineering study to optimize production at Bucko based on the existing resource with the goal of expanding production capacity. The study considers higher rates of mining facilitated by a ramp from surface, the shaft and the currently constructed 1,500 tpd mill capacity to exploit an increased mining reserve based on a reduction of nickel cut-off grade from 1.4%. The objective of this study is to optimize financial return from the Bucko Deposit. The Company expects to release the results of this study in the coming weeks.
The Crowflight Exploration team is working to build a sufficient mass of low cost resources proximal to the mill at Bucko to facilitate expansion of production and/or to extend the mine life. As described above, recent exploration activity has been successful in expanding resources at M11A North and Halfway Lake, as well as discovering two new zones of mineralization near the past producing Manibridge Nickel mine. Plans for 2009 include further exploration drilling to expand resources and reserves at Bucko and M11A North. The increases to Inferred Resources in 2008 reflect a discovery cost of approximately $0.10 per pound contained nickel.
Discussion of M11A and Halfway Lake Deposits
The M11A intrusion, located four kilometres north of Bucko, hosts several small lenses of higher concentration nickel mineralization within larger zones of low grade nickel. Initial indications of mineralization were identified by Falconbridge Ltd. during the 1970s. In 2006, a higher grade nickel zone referred to as M11A North was discovered, which has been the subject of recent drilling by Crowflight (refer to press releases dated March 28, 2006, April 20, 2006, May 8, 2007 and April 21, 2008). The Inferred Resource estimate for the M11A North Zone is based on seven historical holes drilled by its partner Falconbridge (now Xstrata Nickel) and 12 holes drilled by Crowflight between 2006 and 2008. The Deposit consists of two main zones. The Upper Zone was the main source of resources estimated in 2007 (refer to press release dated September 17, 2007). Drilling in 2008 identified a new Lower Zone of mineralization (see press release dated April 21, 2008). The increase in estimated Inferred Resources at M11A North is related to material related to this new zone and a re-interpretation of deposit geometry. Additional exploration at M11A North is planned to further assess the resource potential of this new zone.
The Halfway Lake deposit is located approximately 25 kilometres north of the town of Wabowden and the Bucko mill. 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 resulting in the calculation of initial inferred resources for the deposit. In 2008, Crowflight drilled and additional eight holes totalling 3,411 metres which have been incorporated in the current resource update (see press releases dated February 29, 2008 and April 21, 2008). The deposit is located in an under explored portion of the belt and retains the potential for additional resource expansion.
Notes on Mineral Resource Estimates
The resource calculations were completed by Crowflight personnel under the supervision of Greg Collins, who is VP Exploration of Crowflight, a Qualified Person under NI 43-101 guidelines 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 were prepared in accordance with the Canadian Institute of Mining, Metal, and Petroleum (CIM) definition standards regarding Mineral Resources and Reserves. Updated resource calculations at M11A North and Halfway Lake were independently reviewed by Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. (P&E) of Brampton, Ontario. Based on this review, the resource estimation methodology employed by Crowflight was verified and found to be consistent with industry standards. Please refer to news releases dated April 20, 2006, April 27, 2006, May 11, 2006, July 11, 2006, May 8, 2007, May 31, 2007, February 29, 2008, and April 21, 2008 for information concerning mineralized intercepts.
The determination of mineral resources was based on geostatistical block modeling using Gemcom Software utilizing the inverse distance squared method for grade interpolation. Estimates were based on a total of 19 holes at M11A North and 13 holes at Halfway Lake. Composite lengths were based on a 1.5 metre ideal interval within resource domain solids. The density of material was based on average bulk density measurements taken in mineralized intervals based on available density data. 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. 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 approved 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 NI 43-101 reporting guidelines, 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 2005-2008 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 2005-2008 drill programs were sent to the primary laboratory ALS Chemex in Thunder Bay, Ontario for preparation and were subsequently analyzed in Vancouver, British Columbia. 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.
Crowflight Minerals - Canada's Next Nickel Producer
Crowflight Minerals Inc. (TSX-V: CML) is a Canadian junior mining company that is bringing the Bucko Lake Nickel Mine near Wabowden, Manitoba into production. Full commercial production is expected to be achieved at Bucko in early 2009. The Company is also focused on nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.
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 mineralization projections; exploration programs and the costs and timing thereof; ability to convert resources into reserves and to profitably mine identified deposits; production forecasts; and development plans and costs. 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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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