|December 29, 2011|
CANICKEL TO REDUCE OPERATIONS
|Vancouver, British Columbia --- December 29, 2011 --- CaNickel Mining Ltd. ("CaNickel"), announces that due to the current unfavourable nickel price, mining operations at its Bucko Lake Mine will be scaled down in order to reduce operation cost and preserve capital to complete the paste backfill plant construction and tailings facility expansion. The effect of the reduction in operations will be to reduce ore production from current 600 -- 700 tonnes per day to 400 -- 500 tonnes per day and this is expected to reduce the Company's cash burn from $2.7 million per month to approximately $1.7 million per month and to be able to generate positive cash flow from the mine operations. The period of reduced operations is uncertain at this time. |
The Company also announces that it has entered into an agreement with Luckyup Investment Limited, a third party based in Hong Kong, to increase its one year term debt facility from US$15 million to US$25 million. The debt facility bears an interest rate of 12% per annum (also see our press release dated July 26, 2011). The Company intends to carry out a feasibility study to review the feasibility of upgrading existing mill circuit and flotation facility to 1,300 tonnes per day as well as commencing a study on optimizing mining methods. This later study will focus on stoping method, production sequence and schedule to mitigate ore contamination from hydraulically backfilled stopes to increase productivity and to reduce production costs. It is expected that these studies will be completed in 2012 and exact completion time for the mill upgrade is uncertain at this time.
CaNickel Mining Limited, formerly "Crowflight Minerals Inc.", (TSX: CML) is a Canadian junior mining company that owns and operates the Bucko Lake Nickel Mine near Wabowden, Manitoba. The Company also holds nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt, Manitoba and Sudbury Basin, Ontario.
Further information is available on the Company's website at www.canickel.com or contact:
CANICKEL MINING LIMITED
(Formerly "Crowflight Minerals Inc.")
P.O. Box 35 1655-999 West Hastings Street
Vancouver, British Columbia Canada V6C 2W2
Tel: 778-372-1806 Fax: 604-254-8863
Advisory Respecting Forward-Looking Information
This press release contains forward-looking statements under Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks of the Company described in its annual information form that is available under its profile on SEDAR at www.sedar.com. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
You can view the Next News Release item: Mon Feb 6, 2012, CANICKEL FILES PRELIMINARY SHORT FORM BASE SHELF PROSPECTUS
You can view the Previous News Release item: Fri Nov 4, 2011, CaNickel Announces Third Quarter 2011 Financial Results
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