Crowflight Minerals Inc.
TSX VENTURE : CML

Crowflight Minerals Inc.

June 22, 2005 16:05 ET

Crowflight Appoints Exploration Manager for Thompson Nickel Belt Joint Venture

TORONTO, ONTARIO--(CCNMatthews - June 22, 2005) - CROWFLIGHT MINERALS INC. (TSX VENTURE:CML) is pleased to announce the recent appointment of Mr. Greg Collins to the position of Exploration Manager, Thompson Nickel Belt. Mr. Collins is a Professional Geologist who has been actively involved in the mining/exploration industry since 1991. He is a graduate of Queen's University with a B.Sc. degree in Geological Engineering, who has worked continuously for Falconbridge Limited on exploration and mine development projects in Canada and overseas since 1994. Mr. Collins has participated in exploration work leading to the discovery of several nickel sulphide deposits in the Cape Smith Belt, Northern Quebec and new mine developments in Timmins and Sudbury, Ontario. Mr. Collins brings to the team considerable knowledge of magmatic nickel sulphide deposits and a successful track record of discovery.

Crowflight President and CEO, Tom Atkins commented on the appointment of Mr. Collins stating: "We're excited about having an individual with Greg's nickel sulphide exploration and discovery experience involved with Crowflight. His immediate task will be to work with Falconbridge over the summer to generate new exploration targets within the 440 square kilometres of highly prospective exploration ground in the Thompson Nickel Belt under the Crowflight - Falconbridge joint venture and to assist in finding additional targets for expanding the resources at the Bucko Deposit."

Mr. Collins will report to Crowflight Vice President Exploration Mr. Jean Lafleur and will work closely with Mr. Lafleur and Crowflight's Project Geologist - Bucko Deposit, Mr. Peter Karelse. With the addition of Mr. Collins, Crowflight adds to its impressive geological team with extensive early through to advanced-stage exploration and mine development experience from which to draw on for the advancement of its projects.

Crowflight plans to commence an approximate 5,000 metre surface in-fill program at the Bucko Deposit in the coming weeks. This program is expected to extend to the end of the summer, whereupon the bankable feasibility study on the development of the Bucko Deposit will have been completed and Crowflight will commence the rehabilitation of the underground workings for additional in-fill and resource expansion drilling and pre-production development. Summer exploration activities on the regional joint venture grounds optioned from Falconbridge will primarily be focused on analysis of geophysical, geological and diamond drill data from historical and the most recent winter 2005 program. This work will be focused on generating new drill targets for a follow-up winter 2006 drill program. Results from the interpretation of this regional data will be announced late in the year, prior to the launch of the winter program.

The Bucko Deposit

Micon International Limited performed a scoping study on the development of the Bucko Deposit (refer to the press release dated October 28, 2004). The study analysed the potential economics of mining a 1.2 million tonne indicated resource grading 2.7% nickel that would yield a recoverable diluted resource of 1.3 million tonnes grading 2.4% nickel that would be mined at the rate of 750 tonnes per day (tpd) to produce approximately 11 million pounds of nickel in concentrate per year plus minor amounts of by-product copper, platinum, palladium and cobalt in concentrate. An additional scenario was considered wherein approximately 0.5 million tonnes of inferred resources were added to the indicated resource to yield a recoverable diluted resource of 1.8 million tonnes grading 2.2% nickel to be mined at the rate of 1,000 tpd to produce up to 14 million pounds of nickel in concentrate per year. Both scenarios provided a robust pre-tax economic return assuming a US$4.50 per pound nickel price (nickel is currently selling at about US$7.30 per pound) of from US$34 million (under the 750 tpd scenario) and an internal rate of return (at a 15% discount rate) of 67% to US$50 million (under the 1,000 tpd scenario) and an internal rate of return (at a 15% discount rate) of 86% (refer to the press release dated October 28, 2004).

Crowflight is in the midst of studying the economic feasibility of developing the Bucko Deposit. The feasibility study is scheduled for completion in the second half of 2005. Subject to suitable metal prices, timely completion of permitting and the economics of the feasibility study, Crowflight envisions developing the Bucko Deposit for production of a nickel concentrate in early 2007.

Terms of Crowflight's Agreements with Falconbridge

Under its agreements with Falconbridge, Crowflight has an option to earn:

1. A 100% interest in the Bucko Nickel Deposit (refer to Figure 1, Location Map) by completing a Bankable Feasibility Study, arranging financing and bringing the deposit into production. To be eligible to earn its interest in the Bucko Deposit, Crowflight must fund minimum exploration commitments in the 190 square kilometre Thompson Nickel Belt South ("TNB South") Project area of C$10.5 million prior to December 31, 2006. By spending the C$10.5 million on exploration and completing a Bankable Feasibility Study on the Bucko Deposit, Crowflight will at that time have earned a 25% interest in all TNB South Projects including the Bowden Lake Deposit, a 50% interest in the Bucko Deposit and have, subject to financing to production, the right to earn a 100% interest in the Bucko Deposit. To date C$4.25 million of the C$10.5 million required has been funded by Crowflight. In addition, Crowflight has the option to fund an additional C$7.0 million in exploration to December 31, 2008, whereupon it will have earned a 50% interest in all of the TNB South Projects.

2. A 50% interest in Falconbridge's share of approximately 250 square kilometres of exploration ground located adjacent to Inco Limited's Thompson and Birchtree nickel mines (refer to Figure 1 - Location Map, Thompson Nickel Belt Properties) near Thompson, Manitoba ("TNB North Project"). To earn this interest, Crowflight must fund C$5.0 million in exploration expenditures to December 31, 2008. To date C$1.0 million has been funded.

Crowflight - The Base Metal Builder

Crowflight Minerals Inc. is a Canadian junior mining exploration and development company listed on the TSX Venture Exchange. The company is focused on nickel, copper and Platinum Group Mineral ("PGM") projects in the Thompson Nickel Belt ("TNB") and Sudbury Basin. The company currently owns and/or has under option approximately 600 square kilometres of exploration and development properties in Manitoba and Ontario.

In Manitoba, these properties include: (1) the Bucko Nickel Deposit; (2) an earn-in option with Falconbridge Limited on five highly prospective properties (Bucko/Bowden, Resting Lake, Rock Island Lake, Halfway Lake and Gonlin Lake) on the TNB South Project located within 30 kilometres of the Bucko Deposit; and (3) six additional properties (Burntwood River, Birchtree South, Birchtree North, Airport, Moak Lake and Strong Lake) located 100 kilometres to the north on the TNB North Project.

In the Sudbury Basin, these properties include: (1) the 100% owned AER Kidd Project adjacent to Inco's Totten Deposit (10.1 million tonnes @ 1.5% Nickel, 2% Cu, 4.8 g/t PGM's); (2) the Airport Property (a 50/50 joint venture with Millstream Mines Ltd.) located 4 kilometres south, and on-strike, with Falconbridge's Nickel Rim South Deposit (13.2 million tonnes @ 3.5% Cu, 1.7% nickel, 0.8 g/t Au, 4.1 g/t PGM's); (3) the optioned (100% earn-in) Mystery Offset Dyke Property; and (4) the 100% owned Peter's Roost Property.

Further information is available on the Company's web site at www.crowflight.com.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".

Total Shares Outstanding: 71.5 million

Fully Diluted: 103.5 million

52-Week Trading Range: C$0.14 - $0.41

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Crowflight Minerals Inc.
    Thomas Atkins
    President and CEO
    (416) 861-5900
    (416) 861-8165 (FAX)
    or
    Crowflight Minerals Inc.
    Jean Lafleur
    Vice President Exploration
    (514) 594-3633
    www.crowflight.com