MANITOBA – Toronto-based CROWFLIGHT MINERALS has released the bankable feasibility study for its Bucko Lake nickel deposit in the Thompson Nickel Belt. The study concludes that the project has the potential for 118% IRR with nickel at US$8/lb.
The study considered 1.8 million t of measured and indicated resources grading 2.10% Ni at a 1.5% Ni cutoff. An underground mine would use the rehabilitated three-compartment shaft, plus an internal ramp system for primarily long-hole stoping, contract mining of 1.7 million t proven and probable reserves grading 1.92% Ni at the same cutoff. The study was based on measured and indicated resources as of Dec. 31, 2005, and did not include the 32% increase in resources outlined in 2006.
Shaft-hoisted ore is to be processed in a surface concentrator at the rate of 1,000 t/d, producing 12.5 million lb of contained nickel annually in a concentrate grading from 17% to 18% Ni. Minor amounts of byproduct credits were available from platinum group metals, copper and cobalt. Concentrate is to be transported and sold to XSTRATA NICKEL under the terms of a definitive offtake agreement.
Capital cost of project development to production is estimated to total Cdn$64 million and includes all engineering, procurement, construction, management and contingencies.
Crowflight will utilize a combination of refurbished used equipment already purchased by the company supplemented by new equipment purchases. Crowflight is currently updating the mine plan to take into account the increase in resources. It is expected that the addition of this material will enhance project economics.
The feasibility study will be posted at www.Crowflight.com under the Projects section.