Lockerby back online

By STAR STAFF

Posted 1 day ago

First Nickel Inc. announced Tuesday that it has started ore production at its Lockerby nickel-copper mine and made its first delivery of ore from the mine to Xstrata Nickel's Stractcona mill.

The mine is expected to produce an average of 400 tonnes per day during the fourth quarter of 2011, ramping up to commercial production at the annual rate of 10 million pounds of nickel and seven million pounds of copper by mid-2012.

"The Lockerby Mine team has taken full ownership of this project and has been instrumental in bringing the mine back into production," Gerry Bilodeau, First Nickel's chief operating officer, said in a release.

"Looking forward, I am confident we will achieve our production milestones given the hard work and dedication of our employees, managers and contractors here at the Lockerby Mine."

First Nickel closed Lockerby two years ago because of poor demand and low prices for nickel and other metals. Now, however:

* all production and maintenance, and office, clerical and technical employees have been recalled. First Nickel had about 160 employees when the mine was shut down;

* the main haulage ramp has advanced towards 65 Level;

* lateral development work has advanced on the 65-3 and 65-2 levels;

* key i n f ra s t r u c t u re improvements have been completed; and

* several major elements of the underground mobile fleet have been replaced.

First Nickel is a Canadian mining and exploration company that is in production at its Lockerby nickel/copper mine.

In addition, the company owns exploration properties in the Sudbury Basin, the Timmins region and the Belmont region of Eastern Ontario.

First Nickel's shares are traded on the TSX under the symbol FNI.