The Report can also be found at www.buckolakemine.com.
Dated
The new Preliminary Economic Assessment ('PEA') on the Bucko Lake Mine indicates that it is one of the most advanced higher grade nickel sulfide mines in
The results of the PEA were previously disclosed in the Company's news release dated
Current Bucko Lake Mineral Resource Estimate ('MRE'): Measured and Indicated Mineral Resources of 5.7 million tonnes grading 1.24% nickel ('Ni') (using a 0.7% Ni cut-off grade) and 0.11% copper ('Cu') for contained metal content of 156.3 million pounds of nickel and 13.4 million pounds of copper.
Inferred Mineral Resources of 10.6 million tonnes grading 1.18% Ni (using a 0.7% Ni cut-off grade) and 0.13% Cu for contained metal content of 275.6 million pounds of nickel and 31.2 million pounds of copper.
The PEA indicates that the Project would be rehabilitated from its current 'care and maintenance' status and placed into operation to produce 101 million pounds of payable nickel over a 13-year mine life at an annual average production of 7.8 million pounds.
Using a base case future life-of-mine (LOM) nickel price assumption of
Sensitivity analysis using a recent spot nickel price of
Initial capital costs of
The existing 1,000 tonne-per-day ('tpd') processing plant would be upgraded to 1,500 tpd.
Average cash costs of
Opportunities exist for operations to continue beyond the current LOM plan using Mineral Resources from multiple known satellite deposits on active company claims: three contiguous deposits are located within 4 km from the Bucko Lake Mine, and a fourth deposit is located approximately 30 km away.
The PEA supersedes the previous Technical Report for the Project dated
Readers are cautioned that the PEA is preliminary in nature. It includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA outcome will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Recommendations
The Report makes several recommendations to advance the Project, including a diamond drill program to convert Inferred Mineral Resources, which account for 70% of the MRE, to Indicated Mineral Resources. The drill program would involve initial drilling from surface while the underground workings are being dewatered and rehabilitated, and then drilling from underground. An advanced geotechnical study is also recommended prior to undertaking a Pre-Feasibility Study. The recommended work program is estimated to cost
ABOUT CANICKEL
The mine and surrounding deposits benefit from excellent infrastructure including roads, rail, power, internet, personnel, and equipment. The mine can be accessed and operated all year, and existing mine infrastructure includes a 1,000-tpd processing plant, backfill paste plant, on-site drill core shack, hoist and headframe, fine mineralized material bin, office, dry trailers, compressor room, tailings disposal management area and a 100-person camp.
Contact:
Tel: 778-999-2771
Email: shirley@canickel.com
Forward-Looking Statements
This press release may contain forward-looking statements including those describing the Company's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, most of which are beyond the control of the Company. In particular, this news release contains forward-looking statements pertaining, directly or indirectly, to the Company's plans regarding bringing, the Bucko Lake Mine back into production, resolving the Company's indebtedness and the economic and operational potential of the Bucko Lake Mine and satellite deposits.
Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, general economic, market or business conditions, risks associated with the exploration and development industry in general (e.g., the outlook for nickel and copper, interest and exchange rates, inflation and capital market conditions, operational risks in development, exploration and production; the uncertainty of Mineral Resource Estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks).
Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.
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