Canadian nickel juniors set to benefit from CVRD capital works expansion

October 9, 2007

Greetings investors! 

Metals giant CVRD Inco Ltd. has announced an aggressive capital project in Canada’s Thompson Nickel Belt (TNB), in northern Manitoba province.

That’s a vote of confidence for the region, and a handful of juniors with projects there like Crowflight Minerals Ltd (CML.TSX-V. Recent cls. $0.70 Cdn), trading on Canada’s venture exchange.

Last year our readers made a ton of money on these start up nickel plays, and though the bottom has since fallen out pricing wise and the stocks have come off their previous highs, I’m still bullish over the long term. I also like the TNB as an area play.

Crowflight is destined to become the TNB’s next nickel producer. A feasibility study released last winter demonstrated the company’s wholly-owned Bucko Lake deposit has a 117.6% rate of return based on a value of $157.3 million Cdn and an average nickel price of US$8.00 per pound.

They’ve already begun ground prep for the building of a mine, and drilling continues to encounter more ore: Last spring they intersected hit 41 meters of 1.45% Ni and 0.14% Cu!

What has held the project up is the lack of a mining permit. I expected that earlier this year, but so far they’ve only achieved a ‘confirmation’ from the government for an environmental licence. Mine permitting is a lengthy process in Canada. However, I’m confident they will receive it in due course and that will definitely help the stock price along.

Crowflight has a suite of properties in both the Thompson Nickel Belt and the renowed Subury Basin nickel camp in Ontario (AER/Kidd Creek). All were obtained by joint ventures signed with Falconbridge Ltd., shortly before the giant nickel producer was sold to Swiss based Xstrata plc. last year.

The company also has inferred resource calculations at the M11A, Apex, Bowden Lake, and Halfway Lake deposits all located within spitting distance of Bucko Lake. The preliminary figures infer 63 million tonnes at 0.68% Ni at Bowden Lake and 1.1 million tonnes at 1.08% Ni at Halfway Lake. My hope is that Crowflight will continue to develop these resources into a sort of ‘mini’ TNB mining camp, with their own milling/mining facilities. In the meantime, the stock price keeps limping along due to unstable market conditions and the lack of that mining permit.  However, these are details which I believe are destined to change for the better.

Get timely details on this and other Canadian nickel plays by subscribing to The BarkerLetter.

Kb

The BarkerLetter on October 9th 2007 in Commodity investing

4 Responses to “Canadian nickel juniors set to benefit from CVRD capital works expansion”

  1. Nav Gill responded on 10 Oct 2007 at 1:22 pm #

    Miss your commentary on Infomine, are you coming back soon?
    Nav Gill

  2. The BarkerLetter responded on 10 Oct 2007 at 3:47 pm #

    hi nav.
    i am back. look for my headlines on the infomine homepage.
    happy investing!
    Kb

  3. Paul responded on 13 Oct 2007 at 9:46 pm #

    CML isn’t awaiting a mining permit, but approval for using the local lake for their tailings pond. The alternative is a land based tailings pond, but CML’s experts believe a water based impoundment is the preferred ecologic solution. Whether the tailings go in the lake or on land makes little difference to CML.

    In any event, that permit isn’t holding up mine cstr one whit. They are continuing to rehab the existing workings and install surface structures etc.

  4. The BarkerLetter responded on 14 Oct 2007 at 2:43 pm #

    Ok.

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