|June 16, 2004|
Crowflight Joint Ventures with Falconbridge on Nickel Exploration and Production
|TORONTO, ONTARIO - CROWFLIGHT MINERALS INC. (TSX Venture Exchange: CML) announces the Company has entered into an important new phase by joint venturing with Falconbridge Limited, a major international mining company, to develop nickel properties in Thompson, Manitoba. By spending $25 Million over a 5 year period, including the completion of a bankable feasibility study on the Bucko Resource Block by December 31, 2006, Crowflight will earn a 50% interest in Falconbridge's Bucko Resource Block and the Bucko/Bowden, Halfway Lake and Resting Lake Properties (see the attached map and visit www.crowflight.com for details) in the Thompson Nickel Belt (TNB). Crowflight can increase its interest in the Bucko Resource Block to 100% by arranging financing and placing the deposit into production. The historical resource estimate by Falconbridge in 1992 (prior to NI 43-101) for the Bucko Resource Block is 2.5 million tonnes grading 2.23% nickel and 0.17% copper included within a global resource of 19 million tonnes grading 1% nickel. |
Thompson Nickel Belt - Prime Land Package
The properties cover more than 190 square kilometres of Mining Leases and claims located in the Wabowden segment of the TNB, located 100 kilometres south of Inco's producing mines (Thompson and Birchtree) which yielded more than 100 million pounds of nickel in 2003 along the same mineralized belt. The TNB hosts nickel mineralization along a well established geological trend, extending for over 250 kilometres. The belt has yielded an estimated 4.5 billion pounds of nickel in past production from Inco's producing mines, the largest of which is the Thompson deposit estimated at 100 million tonnes (production + reserves) grading 2.5% nickel. Falconbridge has been an active participant in the TNB since the early 1960's and has produced an extensive technical database for the Wabowden segment of the Belt.
The Crowflight -Falconbridge Agreement
Crowflight is required to spend $18 million over 3 years in an initial earn-in period to acquire a 50% interest in the Bucko Resource Block and a 25% interest in the Bucko/Bowden, Halfway Lake and Resting Lake Claims. Crowflight can elect to increase its interest to 100% in the Bucko Resource Block by making a production decision and by arranging for financing for the development of the reserves. As well, Crowflight can increase its interest to 50% in the Bucko/Bowden and Exploration Claims by incurring an additional $7 million in exploration expenditures.
In addition to the expenditures, Crowflight will immediately issue to Falconbridge, subject to regulatory approval, including without limitation, the approval of the TSX Venture Exchange, 2 million common shares and 5 million warrants. The 5 million warrants will consist of 2.5 million warrants exercisable at $0.35 valid for a period of 2 years and 2.5 million warrants exercisable at $0.75 valid for a period of 2 years. Crowflight will also issue Falconbridge an additional one million common shares in June of each of the subsequent years for a potential total of an additional 4 million common shares. Over 5 years, Falconbridge could receive up to 6 million common shares and 5 million warrants and become a major shareholder in Crowflight.
Completion of the transactions contemplated in the Crowflight Falconbridge agreement is subject to the approval of the TSX Venture Exchange.
"Crowflight is now well positioned to become the next nickel producer in Canada" stated Jean Lafleur, Crowflight's President and CEO. " Together with the current land position and assets in the Sudbury Basin, this transaction will make Crowflight a premier exploration and mining company with the potential to produce nickel, copper and platinum group elements (PGE's) within the next five years".
Crowflight's Chairman Gerry McCarvill adds "The fact that Falconbridge allows Crowflight to develop a high profile land package in a world class nickel belt is testimony to Crowflight's abilities to finance, manage and develop nickel projects. Crowflight's long term goal is to not only explore, but develop nickel-copper-PGE's projects to their fullest potential. This deal with Falconbridge is a huge step in accomplishing our goal in the near term".
Crowflight - Base Metal Builder
Crowflight is a Canadian junior mining exploration company listed on the TSX Venture Exchange focused on nickel-copper-PGE's exploration in the Sudbury Basin, and now in the Thompson Nickel Belt. The company currently owns and has under option more than 365 km2 in Ontario and Manitoba, containing six highly prospective properties 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 - and three in the Thompson Belt - Bucko-Bowden, Resting Lake and Halfway Lake. The Bucko Deposit will be the subject of a feasibility study starting this year. A major drilling program is also under way to identify massive sulphides at the AER-Kidd in Sudbury, located on the Worthington Offset near Inco's Totten Deposit (10.1 million tonnes grading 1.5 % Ni, 2.0 % Cu and 4.8 g/t PGE's), the prospective McIntyre Project and FNX Mining's Victoria project.
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 PLEASE CONTACT:
Crowflight Minerals Inc.
Jean Lafleur, P. Geo.
President and CEO
Cell: (514) 794-3633
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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