Royal Nickel Corporation
TSX : RNX

Royal Nickel Corporation

January 19, 2011 09:01 ET

RNC Successfully Completes Additional Laboratory Testing, Analyst Site Visits Occurring January 19th, 2010

TORONTO, ONTARIO--(Marketwire - Jan. 19, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Royal Nickel Corporation (TSX:RNX) ("RNC" or the "Company") is pleased to announce that additional laboratory testing on 38 samples has confirmed the initial results from the first 32 samples used to develop the rougher recovery equations utilized in the Company's Preliminary Assessment (as hereinafter defined) on the Dumont Nickel Project. 

Additionally, RNC has successfully commissioned a mini-pilot plant operation in Thetford Mines, Quebec. The test program is currently in progress and results will be reported upon completion.

"We are pleased that metallurgical testing continues to support the robust project economics in the Preliminary Assessment. Even more importantly, the metallurgical work during this stage has identified a number of optimization opportunities to consolidate crushing and fines removal into a single stage, reduce reagent usage, and reduce the number of unit operations in the grinding circuit. These opportunities have the potential to reduce both the capital and operating cost of the project. These optimization studies will be completed over the next few months, and the results will be incorporated into the final design of the concentrator flowsheet in the pre-feasibility study." said Tyler Mitchelson, Chief Executive Officer of RNC.

The Company is also pleased to report that on January 19th, seven analysts will be attending a site visit to the project site in Amos and the pilot plant facility in Thetford Mines. The presentations for these site visits will be made available on the Company's website.

RNC's principal asset is the 100% owned Dumont Nickel Project strategically located in the established Abitibi mining camp, 25km northwest of Amos, Quebec. RNC's board of directors and management team has over 100 years of combined mining experience. The specialized skills and knowledge of the board of directors and management team will be essential in the exploration and development of the Dumont Nickel Project. Additionally, the Company has strong and established relationships with local communities and will consult with local stakeholders as the project advances.

Based on encouraging results from the Company's National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") compliant technical report entitled "Preliminary Assessment of the Dumont Project, Launay and Trecesson Townhips, Quebec, Canada" dated September 30, 2010 (the "Preliminary Assessment") (a copy of which can be found on www.sedar.com or the Company's website www.royalnickel.com), RNC believes that the Dumont Nickel Project has the potential to rank as the fourth largest nickel sulphide operation in the world. The Dumont Nickel Project deposit remains open at depth and the Company believes that it has potential to be expanded further. The Preliminary Assessment indicates the potential for developing an operation that could produce 65,000 tonnes of nickel annually for at least 25 years. 

Preparation of this press release has been supervised by Johnna Muinonen, Vice-President, Metallurgy, and Alger St. Jean, P.Geo., Vice-President, Exploration of RNC, who are both a "Qualified Person" as defined in NI 43-101. For more information on the Dumont Nickel Project, please refer to the Preliminary Assessment which is available on RNC's website and on SEDAR at www.sedar.com.

Cautionary Statements Concerning Forward-Looking Statements

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects, the future price of metals, the estimation of mineral reserves and mineral resources, the conversion of mineral resource estimates to mineral reserve estimates, the realization of mineral reserve and mineral resources estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcomes of pending litigation and/or regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate" or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: the actual results of current exploration and development activities; project delays; funding needs; general business, economic, competitive, political and social uncertainties; future prices of metals; availability of alternative nickel sources or substitutions; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the future cost of capital to the Company; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in the prospectus of the Company. Such forward-looking statements are based on a number of material factors and assumptions identified in the prospectus of the Company.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this prospectus and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking 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.

Contact Information

  • Royal Nickel Corporation
    Tyler Mitchelson
    President and Chief Executive Officer
    (416) 363-0649