Three more Canadian projects have taken a step closer to production. Last week operators of these projects each released NI 43-101-compliant resource estimates and feasibility reports. Here are the highlights.
CROWFLIGHT MINERALS of Toronto says the study of its Bucko Lake nickel project points toward profitability. The study was prepared by MICON INTERNATIONAL, which reported the project could deliver a 23.9% rate of return and a net present value (at a 10% discount rate) of $22.6 million, using an average life-of-mine nickel price of US$5.00/lb. At a nickel price of US$6.00/lb, the rate of return increases to 41.6% and the net present value increases to $53.1 million at a 10% discount rate.
The Bucko Lake deposit is located in the Thompson Nickel Belt near Wabowden, Manitoba. Crowflight (www.Crowflight.com) expects to have the bankable feasibility study completed in the second quarter of 2006.
FRONTEER DEVELOPMENT GROUP of Vancouver has doubled the uranium resource at its Michelin uranium deposit in the Central Mineral Belt of Labrador. Measured and indicated resources are now 22.2 million lb of uranium with an additional inferred resource of 13.4 million lb, compared with the historic resource of 18.3 million pounds.
In terms of electricity generation, says Fronteer, 35 million lb of uranium oxide would fuel fifty-five 1,000-MW reactors for one year, satisfying the electrical needs of 42.5 million homes. This would be the energy equivalent of 186 million tonnes of coal or 882 million barrels of crude oil.
Visit www.FronteerGroup.com for more details about the Michelin project, as well as the results of the resource study on the company’s gold project in Turkey.
TORCH RIVER RESOURCES of Calgary has estimated the inferred resources at its Red Bird property to be 86.5 million tonnes at 0.10% MoS2. The project is located 100 km north of Bella Coola in west-central British Columbia. It was previously explored by CRAIGMONT MINES, which put resources at 81.5 million tonnes at 0.118% MoS2 in its 1980-81 annual report.
Torch River has resampled the old Craigmont drill core and identified a halo zone of copper, molybdenum and silver mineralization outside the boundaries of the previously known zone. The company plans next to conduct flotation tests for further analysis of the concentrated product. Further information will be posted at www.TorchRiver.ca website as it become available.