|November 04, 2011|
CaNickel Announces Third Quarter 2011 Financial Results
|Vancouver, British Columbia -- November 4, 2011 -- CANICKEL MINING LIMITED, formerly "Crowflight Minerals Inc.", ("CaNickel" or the "Company") (TSX: CML) announce its financial results for the third quarter of 2011 ended September 30, 2011. Complete interim condensed financial statements and related Management's Discussion and Analysis are filed under the Company's profile on www.sedar.com. All amounts are in Canadian dollars unless otherwise indicated. |
HIGHLIGHTS FOR THE THIRD QUARTER OF 2011
• Net loss for the three months ended September 30, 2011 ("Q3 2011") was $7.6 million or ($0.01) per share compared to net loss of $14.6 million or ($0.03) per share in same period last year ("Q3 2010").
• In Q3 2011, the Company mined 38,846 tonnes of ores and milled 37,035 tonnes of ore to produce 661,394 pounds of nickel compared to a total of 53,518 tonnes of ore mined and a total of 58,605 tonnes of ore milled to produce a total of 989,265 pounds of nickel in Q3 2010;
• Arranged additional US$15.0 million debt facility in Q3 2011 and a total of US$20.0 million debt facility was arranged during the nine months ended September 30, 2011. As of September 30, 2011, a total of US$17.0 million debts were advanced.
• Granted by the Manitoba government a revised Environment Act Licence to construct and operate a land based tailing management area which could store all tailings from the Company's Bucko Lake Mine over its existing mine life; and,
• Working capital was in a deficit position of $13.3 million with cash and cash equivalent of $2.1 million on hand as at September 30, 2011 compared to working capital of deficit of $24.6 million with cash and cash equivalent of $4.1 million on hand as at December 31, 2010.
OUTLOOK FOR THE THIRD QUARTER OF 2011
Due to several design issues and the delay of equipment delivery, the commissioning of the paste backfill plant is expected to be in first quarter of 2012. The completion of the construction of the new tailing facility phase I is expected to be in the first half of 2012.
With all mining equipment now in place, the Company expects that the operation at Bucko Lake Mine can be ramped up to reach 78,000 tonnes of ore for the fourth quarter of 2011. The operation unit cost will be further reduced due to the improved production rate.
About CaNickel Mining Limited.
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 or contact:
CANICKEL MINING LIMITED
(Formerly "Crowflight Minerals Inc.")
P.O. Box 35 1655-999 West Hastings Street
Vancouver, British Columbia Canada V6C 2W2
Tel: 778-372-1806 Fax: 604-254-8863
Cautionary Note on 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.
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