VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/07/12 -- CaNickel Mining Ltd. ("CaNickel" or the "Company") (TSX: CML), is pleased to report that it has successfully implemented long hole stoping mining method and achieved record mine production at its 100% own Bucko Lake mine, Manitoba, Canada.
In order to increase productivity and reduce production costs, the Company conducted a trial of long hole open stoping mining method in January 2012. As a result of the long hole stoping, a total of 25,102 tonnes of ore were mined for the month, of which a total of 10,316 tonnes of ore were mined from the long hole stoping with the remaining of 14,786 tonnes of ore using cut and fill method. With successful use of the long hole stoping mining, the Company is working on the mine plan to increase underground mine production from the long hole stopes. The application of long hole stoping is expected to substantially reduce mining cost.
Production results from Bucko Lake mine for January 2012, fourth quarter of 2011, and full year 2011 are summarized as follows:
------------------------------------------------------------------------- ------------------------------------------------------------------------- Bucko Lake Mine January 2012 Q4 2011 Year 2011 ------------------------------------------------------------------------- Ore mined (tonnes) 25,102 54,413 107,451 Ore milled (tonnes) 12,372 55,311 102,069 Head grade 1.16% 1.16% 1.18% Mill recovery rate 71.7% 55.2% 61.0% Payable nickel produced (lb) 226,753 780,218 1,631,916 ------------------------------------------------------------------------- -------------------------------------------------------------------------
As a result of the operation scaled down announced on December 29, 2011, the processing plant was in operation for 18 days in January 2012, but has resumed full production since the 1st of February.
Dr. Dianmin Chen, the Director and CEO of CaNickel, comments that the Company is pleased to see the improved ore quality from the long hole stopes helped the mill achieved better recovery rate. The Company will continue to carry out more studies to optimize the mining method at its Bucko Lake Mine to further increase production efficiency and to reduce operation cost. More efforts will also be made to further improve its mill production performance.
ABOUT CANICKEL
CaNickel Mining Limited, formerly "Crowflight Minerals Inc.", (TSX: CML) is a Canadian junior mining company that owns and operates the Bucko Lake Nickel Mine near Wabowden, Manitoba. The Company also holds nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.
Further information is available on the Company's website at www.canickel.com.
Advisory Respecting Forward-Looking Information
This press release contains forward-looking statements under Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks of the Company described in its annual information form that is available under its profile on SEDAR at www.sedar.com. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
Contacts:
CaNickel Mining Limited
Dr. Dianmin Chen
Director and CEO
204-689-2972 ext.1031
dchen@canickel.com
CaNickel Mining Limited
Derek Liu
CFO and Corporate Secretary
778-372-1806
dliu@canickel.com
www.canickel.com
