MANITOBA – Vancouver-based CaNickel Mining says the current low price of nickel is forcing it to reduce operations at its Bucko Lake nickel mine near Wabowden in the Thompson Nickel Belt. Ore production will drop to 400-500 t/d from the previous rate of 600-700 t/d.
The move will preserve capital so the paste backfill plant and tailings facility expansion can be completed. The company said in a release that the cut “… 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.”
CaNickel is also reviewing the feasibility of upgrading the existing milling circuit and flotation facility to 1,300 t/d. At the same time the company is studying mine optimization including the stoping method, production sequence and schedule to increase productivity. The study should be completed in 2012, but no date has been set to begin the mill upgrade.
The Bucko Lake mine has proven and probable reserves of 3.7 million tonnes grading 1.45% Ni plus measured and indicated resources of 2.8 million tonnes at 1.52% Ni. Further details are available at www.CaNickel.com.