News Release

 October 28, 2004
Crowflight Completes Scoping Study on Bucko Deposit

 TORONTO: CROWFLIGHT MINERALS INC. (TSX-V: CML) has received a preliminary economic evaluation on the higher grade portion of the Bucko Deposit in the Thompson Nickel Belt, Manitoba, from Micon International Limited (Micon). Kirk Rodgers, P.Eng., was the Qualified Person, as defined in NI 43-101, for the study.

HIGHLIGHTS
  • Micon based their evaluation on the currently defined Mineral Resources outlined by GEOLOGICA Inc. in their 43-101 technical evaluation of the Bucko Deposit (refer to Crowflight Press Release dated October 13th, 2004).
  • The NI 43-101 Report by GEOLOGICA identified 1,218,000 tonnes at 2.71% Nickel as Indicated Resources and 455,000 tonnes at 2.23% Nickel as Inferred Resources,
  • The Preliminary Economic Evaluation on an underground mining scenario for Bucko by Micon was conducted using two options:
    1. Using the Indicated Resources only,
    2. Combining the Indicated and Inferred Resources.
  • Using the Indicated Resources only, Micon estimates that a 750 tonnes per day underground mining project can produce approximately 11 million pounds of Nickel, 700,000 pounds of Copper and 80 000 pounds of Cobalt annually at a cash cost US $2.66 per pound of Nickel, net of by-product credits. The Project has excellent potential economics with a Rate of Return of between 45% and 89%, at nickel prices from US $4.00 per pound to US $5.00 per pound Nickel, respectively. The Net Present Values, at these metal prices, range from almost US $19 million to US $50 million, using a 15% discount rate, before tax,
  • If the Indicated and Inferred Resources are combined, Micon estimates that Bucko can operate an underground mining project at 1,000 tonnes per day and produce over 14 million pounds of Nickel, almost one million pounds of Copper and 100,000 pounds of Cobalt per year, at a cash cost of US $2.72 per pound of Nickel, net of by-product credits. The project Net Present Value increases to between US $29 million to US $70 million at a 15% Discount Rate, with a Rate of Return of between 59% to 112%, at US $4.00 to US $5.00 per pound Nickel, respectively. However, Inferred Resources are considered too speculative geologically to have any economic considerations applied to them that would enable them to be considered as ore reserves.
It must be cautioned that this preliminary economic evaluation prepared by Micon is not adequate to definitively confirm the economics of the Bucko Deposit. A Pre-feasibility or Feasibility study as defined under NI-43-101 is required for this purpose. Micon also cautions that the results presented in the study are preliminary in nature. In addition, the Inferred Mineral Resources cannot be converted to mineral reserves due to the low confidence level of the resource without additional drilling. Also, there is no guarantee that further exploration will be successful in adding to the confidence level of the resources, and there is no certainty that the preliminary assessment will be realized.

BUCKO DEPOSIT - 2004 RESOURCE ESTIMATE
GEOLOGICA Inc. (GEOLOGICA) prepared a report entitled, "43-101 Technical Evaluation Report of the Bucko Lake Property, Northern Manitoba", September 24, 2004 (filed under Crowflight Minerals Inc. on SEDAR at www.sedar.com).

The GEOLOGICA resource estimate was conducted on a higher grade portion of the Bucko Deposit within the boundaries of the historical (pre-NI 43-101) resource of 19 million tonnes grading 1% Nickel. The current Mineral Resources are summarized in Table 1.
Table 1. Bucko Deposit - Mineral Resource Estimate (September 2004)
                                           Indicated         Inferred
Level (depth below surface)                Resources        Resources
---------------------------         ---------------- ----------------
                                     Tonnes % Nickel  Tonnes % Nickel
                                    ------- -------- ------- --------
400 to 600 (surface to -150 meters)  57,000     2.16  35,000     2.06
600 to 1000 (-150 to -375 meters)   554,000     2.96 151,000     2.05
1000 to 1600 (-375 to -750 meters)  439,000     2.51 140,000     2.34
Below 1600 (below -750 meters)      169,000     2.62 129,000     2.37
Total                             1,218,000     2.71 455,000     2.23
GEOLOGICA believes there is potential to increase the mineral resource and to convert Inferred Resources to the Indicated category. Drilling of the deposit on projections of known blocks along plunge should increase the amount of Indicated Resources. Fill-in drilling in the vicinity of intersections in the Inferred Blocks should allow classification of some of these blocks as Indicated Resources. According to Micon, some mineralization in the west limb is not closed off, either up or down plunge. Potential also exists for discovery of new resources above -150 meters and below -375 meters.

SCOPING STUDY RESULTS
The Preliminary Economic Evaluation of an underground mining project was completed using two scenarios:
  1. Using the Indicated Resources only,
  2. Combining the Indicated and Inferred Resources.


1. Evaluation Using Indicated Resources
For the purpose of estimating the underground mining potential of the project, Micon used the Indicated Resources as the basis for estimating a conceptual reserve by adding 20% waste rock dilution at the reported grade of the rock adjacent to the mineralization (0.6% Ni) and a mining recovery factor of 90% (Table 2). These factors will need to be confirmed by further analysis.
Table 2. Conceptual Reserve Estimate Based on the Indicated Resources
                                  
Description                        Quantity (tonnes) Nickel Grade (%)
-----------                       ------------------ ----------------
                                                                     
Indicated Resources                        1,218,000             2.71
Dilution of 20% at Wall Rock Grade           243,600             0.60
Diluted Resources                          1,461,600             2.36
Conceptual Reserve (90% Recovery)          1,315,400             2.36
The financial analysis used the Conceptual Reserve of 1,315,400 tonnes at 2.36% Nickel and adjusted the input parameters and costs calculated previously by Micon in 2001, where deemed necessary. The cost estimates assume processing of the mined ore at an on-site mill (concentrator). Cost estimates for the construction and operation of this mill were developed by comparison with other similar operations. Metallurgical recoveries used in the analysis are based on previous test work and are subject to further confirmation through additional studies.

Input parameters
  • Production rate of 750 tonnes per day over a 5 year underground mine life,
  • Additional credits for Copper, Platinum, Palladium, Cobalt and Rhodium, based on historical concentrate grades from earlier metallurgical studies,
  • Metal prices of US $4.50 per pound Nickel, with sensitivities at US $4.00 and US $5.00 per pound Nickel, US $1 per pound Copper, US $750 per ounce Platinum, US $300 per ounce Palladium, US $20 per pound Cobalt and US $1,200 per ounce Rhodium
  • Metal recoveries of 87.5%,
  • Capital costs of $US 28.08 million, to bring the mine and associated infrastructure into production (including a concentrator at the site), and for the initial exploration phase, to dewater and rehabilitate the mine,
  • Delivery of the concentrate by rail to Falconbridge's Sudbury smelter.
Some 11 million pounds of Nickel would be produced annually at a cash cost of US $2.66 per pound, in addition to 700,000 pounds of Copper and 80,000 pounds of Cobalt.

Based on these parameters, the potential economics, using Indicated Resources only, are summarized below:
                                         NPV at 15%          Internal
Nickel Price (US$/lb)                 Discount Rate    Rate of Return
---------------------------------------------------------------------
5.00                              US $49.78 million               89%
4.50                              US $34.22 million               67%
4.00                              US $18.66 million               45%
Using a discount rate of 10% and a US$ 4.50 per pound Nickel price, the NPV would increase to US$ 43.61 million.

2. Evaluation Combining Indicated and Inferred Resources
Micon also performed a preliminary assessment on the viability of the Bucko deposit, should the currently defined Inferred Resources be upgraded by further exploration to the Indicated category. In this case, these Inferred Resources would be included with the Indicated Resources that were considered in the previous study. Table 3 outlines the Conceptual Reserve in such a scenario.
Table 3. Conceptual Reserve Estimate Based on the Indicated and Inferred(i) Resources

Description                        Quantity (tonnes) Nickel Grade (%)
-----------                       ------------------ ----------------
Indicated Resources                        1,218,000             2.71
Inferred Resources                           455,000             2.23
Total Indicated and Inferred Resources     1,673,000             2.58
Dilution of 20% at Wall Rock Grade           334,600             0.60
Diluted Resource                           2,007,600             2.25
Conceptual Reserves (90% recovery)         1,806,800             2.25
---------------------------------------------------------------------
(i) Inferred Resources are considered too speculative geologically to have the  
    economic considerations applied to them that would enable them to be 
    categorized as ore reserves
All operating and capital costs have been kept the same as the previous analysis except for the daily production rate, which has been increased to 1,000 tonnes per day to justify the higher conceptual reserves in this scenario. Micon notes that under closer analysis, it is likely that these costs would likely to lower due to the increased scale of operations. Generally, the unit operating costs of production would decrease while the capital costs would increase.

The mine project would produce 14 million pounds of Nickel, 950,000 pounds of Copper and 110,000 pounds of Cobalt, at a cash cost of US $2.72 per pound of Nickel.

The following table summarizes the potential economics using Indicated and Inferred Resources:
                                         NPV at 15%          Internal
Nickel Price (US$/lb)                 Discount Rate    Rate of Return
---------------------------------------------------------------------
5.00                              US $69.39 million              112%
4.50                              US $49.17 million               86%
4.00                              US $28.95 million               59%
Using a discount rate of 10% and a US $4.50 per pound Nickel price, the NPV would increase to US $61.43 million.

FOLLOW UP
"The preliminary economic assessment clearly makes the case for a potentially robust underground mining project at Nickel prices well below the current range of US $6.00 to US $6.25 per pound", stated Stan Bharti, President and CEO. "Based on these results, Crowflight will now initiate a feasibility study on the Indicated Resources, and undertake a drilling program to outline additional high grade resources, based on some of the historic drill intersections at Bucko."

Crowflight - The Base Metal Builder
Crowflight is a Canadian junior mining exploration company listed on the TSX Venture Exchange focused on Nickel, Copper and Platinum Group Minerals exploration in the Thompson Nickel Belt and Sudbury Basin. The company currently owns and has under option more than 365 km2 in Manitoba and Ontario, containing three highly prospective properties in the Thompson Nickel Belt - Bucko-Bowden, Resting Lake and Halfway Lake, and six in Sudbury - AER Kidd, Airport Property (a joint venture with Millstream Mines Ltd.), Marble Mountain Option, Copenhagen Option, Mystery Offset Dyke Option and Peter's Roost.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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".

For further information:
----------------------------------------------------------
Stan Bharti
President and CEO
(416) 861-5875
 
 

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