MANITOBA – CaNickel Mining of Vancouver announced the results of an updated 43-101 report late last week for its Bucko Lake nickel mine and satellite properties. The project is located at Wabowden, in the Thompson Nickel Belt.
The current proven and probable reserve estimate (using a 1.25% Ni cut-off) is 2.61 million tonnes grading 1.43% Ni and containing more than 82.5 million lb of nickel for the Bucko Lake deposit. The same deposit has 3.56 million measured and indicated tonnes (using a 1.00% Ni cut-off) at 1.30% Ni plus 5.04 million inferred tonnes grading 1.4% Ni (at the 1.00% Ni cut-off).
As per CaNickel’s most recent report, based on 1,000 t/d or 363,000 t/y using long term average nickel price of US$8.50/lb, historical 2012 unit cost, and 6% discount rate, the pre-tax net present value of reserves at the Bucko Lake mine is as $80.0 million.
Due to the weak nickel price, Bucko Lake mine currently is put into care and maintenance. Although the CaNickel is examining ways to optimize the mine plan, the restart of operations at Bucko Lake is uncertain as the project economics is breakeven at US$6.75/lb nickel metal price.
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