CaNickel Mining Limited
TSX : CML

June 29, 2011 08:30 ET

CaNickel Intercepts 9.98 Metres of 2.35% Nickel

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 29, 2011) - CANICKEL MINING LIMITED, formerly "Crowflight Minerals Inc.", ("CaNickel" or the "Company") (TSX:CML) is pleased to provide the drilling results from the 2011 winter drilling program at the Company's M11A area, a deposit ("M11A North Deposit") of the Company's Thompson Nickel Belt Exploration Project in Manitoba. This deposit is located approximately four kilometers north of the Bucko Lake Nickel Mine and milling operations, near the town of Wabowden, Manitoba. This drill program focused on infill drilling of the mineralized zones to increase the drill hole density and to increase the size of deposit by extending it along strike to the northeast, southwest and at depth.

A total of 5,202 meters in 12 diamond drill holes was completed, of which 11 holes reached their planned depth with 1,548 samples assayed while one hole was abandoned. This successful winter drilling program demonstrates that the M11A North Deposit can be extended at depth, to the northeast and southwest tying the deposit to mineralization intersected in drill hole M09-17 with several intervals of potentially mineable widths and grades. M11-08 with 14.25 metres grading 1.60% nickel and M11-07 with 14.85 metres grading 1.19% nickel and another intersection of 6.40 metres grading 1.80% nickel has extended the deposit to the northeast. The previously discovered high grade mineralization in M08-03 and M09-12 has been extended further at depth by M11-01 with an intersection of 9.98 metres grading 2.35% nickel.

Highlight Intersection from the drill holes include:

  • Hole M11 - 01 intersected 9.98 metres grading 2.35% nickel;
  • Hole M11 - 08 intersected 14.25 metres grading 1.60% nickel with a section of 7.10 meters grading 2.58%;
  • Hole M11 - 07 intersected 14.85 metres grading 1.19% nickel and 6.4 meters grading 1.6% nickel; and,
  • Hole M11 - 11 intersected 7.07 metres grading 1.55% nickel.

Detailed Exploration Results

The following table summarized the detailed drilling results for each drill hole at M11A North Deposit.

Drill HoleFrom
(m)
To
(m)
Core Length
(m)
Core Length
(ft)
Ni
(%)
Cu
(%)
Pt
ppm
Pd
ppm
M11-01379.50385.255.7518.860.800.060.070.36
and416.52426.509.9832.742.350.160.330.50
M11-02297.44302.204.7615.621.250.150.120.34
and354.13362.338.2026.901.330.040.060.18
M11-03272.70278.105.4017.721.530.150.060.31
and306.55316.409.8532.320.710.060.070.13
M11-04Lost hole @ 371m depth. No significant Intercept
M11-04B336.05350.6414.5947.870.920.060.110.20
and356.14363.357.2123.651.020.090.110.23
and371.98379.607.6225.001.450.140.160.30
M11-05244.45245.400.953.123.090.040.220.51
M11-06228.55231.502.959.680.850.040.080.14
M11-07372.30387.1514.8548.721.190.070.050.16
incl.378.60380.001.404.597.440.170.090.91
and466.60473.006.4021.001.800.090.080.28
M11-08314.25328.5014.2546.751.600.080.050.15
incl.321.40328.507.1023.292.580.100.080.26
M11-09372.94383.3710.4334.220.920.060.080.16
and398.92417.8018.8861.941.000.070.100.22
M11-10269.90284.3014.4047.240.780.040.080.16
and344.20355.0010.8035.430.630.050.060.13
M11-11274.05295.1721.1269.290.980.050.050.12
Incl.285.10292.177.0723.201.550.070.060.25
*Intersection intervals reported are core lengths; actual true widths are unknown at this time but are generally 70 to 80% of core length. Once known, true widths are calculated for each intersection. These could vary somewhat from time to time as the zones are re-interpreted, thereby altering the geometry.

The M11A North Deposit was discovered by the Company and its partner Xstrata Nickel in 2006 and was followed up by subsequent drilling programs in 2007, 2008 and 2009 (refer to press releases dated July 11, 2006, May 8, 2007, April 21, 2008, May 20, 2008, February 4, 2010 and March 4, 2010). In 2008, a National Instrument (NI) 43-101 compliant inferred resource estimate for the deposit was calculated at 903,000 tonnes grading 1.55% nickel (refer to press release dated March 12, 2009). Due to complications with weather and logistics in the 2009 winter drilling program zones at depth and along strike to the southwest were not able to be tested. The 2011 winter drill program targeted these areas for definition.

The Company plans to review results from this program and update resource calculations at M11A North later this year. The Company is advancing the M11A North Deposit with the expectation that it could eventually provide a source of supplemental feed for the Bucko Mine operations to expand production and extend the life of the operations.

Quality Control

CaNickel executes a quality control program to ensure best practice in sampling and analysis. Samples are cut and split for assay with the remaining sample retained for reference. Assayed samples are transported in sealed and secure bags for preparation at ALS-Chemex Laboratory in Vancouver, British Columbia. Fire assays were performed at ALS-Chemex Laboratory in Vancouver on all the samples for gold and PGEs which undergo an ICP-AES finish and Sodium Peroxide Fusion. All other metals undergo an ICP-AES finish. Standards and blanks are submitted with each sample batch every 25 samples.

Mats Heimersson is the Qualified Person on the project as defined under National Instrument 43 – 101. He has verified the information and has reviewed and approved the contents of this news release.

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.

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.

Contact Information

  • CaNickel Mining Limited
    Derek Liu
    CFO and Corporate Secretary
    778-372-1806
    604-254-8863 (FAX)
    www.canickel.com