VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/29/12 -- CaNickel Mining Ltd. (TSX: CML) ("CaNickel" or the "Company") announces the results of an updated National Instrument ("NI") 43-101 Technical Report with an effective date of October 19, 2012 covering Bucko Lake Mine and its satellite properties, M11A, Apex, Halfway Lake, and Bowden Lake projects in Wabowden, Manitoba ("CaNickel 2012 Technical Report"), which will be made available for review on the SEDAR system at www.sedar.com and on the Company's website at www.canickel.com in due course. The report was prepared by Lane A. Griffin, P.Geo., Paul L. Martin, P.Eng., and Chris C. Broili, P.Geo.. These authors are independent from the Company and qualified person as defined by NI 43-101. The report is an update of the Mineral Reserves and Resources for Bucko Lake Mine and it's satellite properties based on drilling results obtained from surface and underground drilling completed from the 1960's to 2012, as well as an overview of the current mining and milling activities at Bucko Lake Mine. The report is also prepared in response to a technical disclosure reviewed conducted by British Columbia Security Commission in February 2012. 2012 Reserve and Resource Estimate
The mineral reserve and resource estimate for Bucko Lake Mine and its satellite properties as of April 1, 2012 are summarized in the table below: -------------------------------------------------- Deposit Average Contained (values round to nearest Cut-Off Grade Nickel 1,000) Grade (Ni%) Tonnes (Ni%) (lbs) -------------------------------------------------- Bucko Lake Mine -------------------------------------------------- Proven Reserves(i) 1.25% 616,000 1.43% 19,402,000 -------------------------------------------------- Probable Reserves(i) 1.25% 1,994,000 1.44% 63,129,000 -------------------------------------------------- Total Reserves(i) 1.25% 2,610,000 1.43% 82,531,000 --------------------------------------------------
-------------------------------------------------- Measured Resources(ii) 1.00% 751,000 1.37% 22,680,000 -------------------------------------------------- Indicated Resources(ii) 1.00% 2,845,000 1.28% 80,059,000 -------------------------------------------------- Total Measured and Indicated Resources 1.00% 3,596,000 1.30% 102,739,000 --------------------------------------------------
-------------------------------------------------- Inferred Resources(iii) 1.00% 5,043,000 1.41% 156,887,000 --------------------------------------------------
-------------------------------------------------- Satellite Deposits -------------------------------------------------- M11A -------------------------------------------------- Indicated Resources(ii) 1.00% 800,000 1.17% 20,639,000 -------------------------------------------------- Inferred Resources(iii) 1.00% 525,000 1.11% 12,850,000 --------------------------------------------------
-------------------------------------------------- Apex -------------------------------------------------- Inferred Resources(iii) 1.00% 41,000 1.19% 1,076,000 --------------------------------------------------
-------------------------------------------------- Bowden -------------------------------------------------- Inferred Resources(iii) 1.00% 2,044,000 1.16% 52,281,000 --------------------------------------------------
-------------------------------------------------- Halfway Lake -------------------------------------------------- Inferred Resources(iii) 1.00% 900,000 1.20% 23,814,000 -------------------------------------------------- Notes to the reserve and resource statement:
(i) Proven and Probable Reserves determined from Measured and Indicated Resources using a 1.25% nickel cut-off with a 15% margin incorporated into the cut-off grade evaluation. 2012 Reserves were calculated using $8.50 US per pound long term nickel price based on the 3 year trailing average nickel spot price and 2012 historical Bucko Lake Mine, Mill and G&A operating costs, mill recoveries and smelting charges.
(ii) Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
(iii) The quality and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Bucko Lake Mine
As per the CaNickel 2012 Technical Report, based on 1,000 tonnes per day or 363,000 tonnes per year using long term average nickel price of US$8.50 per pound, historical 2012 unit cost, and 6% discount rate, the pre-tax net present value of Bucko Lake Mine's Reserves was estimated as $80.0 million and the project economics is breakeven at US$6.75/lb nickel metal price. Due to weak nickel price, Bucko Lake Mine currently is put into care and maintenance. Although the Company is carrying studies to optimize the mine plan, the restart-up operation at Bucko Lake Mine is uncertain and mainly depends on the nickel metal price. M11A Deposit
Subject to the financial resources, the Company is planning to carry out a preliminary assessment study to investigate the possibility of developing the M11A deposit as a supplemental feed deposit to Bucko Lake Mine. More surface drilling programs conducted at M11A is expected. Qualified Person
Lane A. Griffin, P.Geo., Paul L. Martin, P.Eng., and Chris C. Broili, P.Geo are qualified persons as defined by NI 43-101 and have reviewed and consented to this press release and that it fairly and accurately represents the information in the CaNickel 2012 Technical Report which supports the disclosure. James Wong, P. Geo., P. Eng., is the qualified person for CaNickel under NI 43-101 and has reviewed and given consent to this press release |