Crowflight Minerals Inc.
TSX VENTURE : CML

Crowflight Minerals Inc.

January 31, 2006 13:17 ET

Crowflight Files NI 43-101 Feasibility Report On Bucko Lake Nickel Project

TORONTO, ONTARIO--(CCNMatthews - Jan. 31, 2006) - CROWFLIGHT MINERALS INC. (Crowflight, the Company)(TSX VENTURE:CML) is pleased to announce the filing of the Feasibility Study for the Bucko Lake Nickel Project Wabowden, Manitoba, recently completed by Micon International. The Study indicates the ability of the project to deliver a 23.9% rate of return and a net present value at a 10% discount rate of C$22.6 million at an average life-of-mine nickel price of US$5.00 per pound. At a US$6.00 per pound nickel price (average 2005 nickel price averaged about US$6.75 per pound), the rate of return increases to 41.6% and the net present value increases to C$53.1 million at a 10% discount rate (all currencies, unless otherwise stated are in Canadian dollars).

The feasibility study employed the services of engineering specialists in a number of disciplines and was coordinated and written by Micon (refer to press release dated December 16, 2005).

Crowflight plans additional work to take the project to a Bankable Feasibility Stage. Activities intended for this Stage, include:

- Full project permitting - the project is currently permitted to discharge mine water, rehabilitate the underground workings and to extract a bulk sample. With the completion of the project feasibility study the Company now has sufficient information to apply for full project permitting.

- Further resource definition drilling - based on the results of the Summer 2005 program Crowflight believes it can add as much as 500,000 to 1,000,000 additional tonnes of Indicated Resources down to the 2000 Level (approximately 600 metres below surface) in close proximity to planned mine infrastructure.

- Sourcing of used plant buildings and equipment - a number of opportunities have been identified where suitable used buildings and equipment are available which following refurbishment could reduce the capital cost of the project.

- Reduce Operating Costs/Increase Revenues- based on the detailed information available from the feasibility study, further pursue a number of additional operating improvements and revenue enhancing activities which will positively impact project economics.

Crowflight intends to complete the various Bankable Feasibility activities in the second quarter of 2006 and coincident with these activities seek project financing. Crowflight believes that if successful in achieving the sought after enhancements through the aforementioned Bankable Feasibility activities, the Bucko Deposit will have the potential to be within the second quartile of average nickel industry costs and will have sufficiently robust economics to ensure an attractive rate of return and net present value at a life-of-mine average nickel price of US$4.00 per pound. If successful in financing the project and developing the mine, Crowflight plans to be producing a nickel concentrate by the third quarter 2007. The costs of the Advanced Feasibility activities are estimated at from C$2.0 to C$3.0 million.

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 100% owned Peter's Roost Property; and (3) the Airport Property (a 50/50 joint venture with Millstream Mines Ltd.) located 4 km 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).

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. The Company cautions investors that the projections for increases to the Indicated Resources are based on Inferred Resources. There is no certainty that these projections will be added to the Indicated Resources or that they will be economically viable.

Total Shares Outstanding: 98.6MM

Fully Diluted: 135.5MM

52-Week Trading Range: C$0.18 - $0.41

Contact Information

  • Crowflight Minerals Inc.
    Thomas Atkins
    President and CEO
    (416) 861-5900
    (416) 861-8165 (FAX)
    or
    Ascenta Capital
    Bruce Korhonen
    (604) 684-4743 x 30
    (416) 861-8165 (FAX)
    www.crowflight.com