Positive Hydrogeologic Study, Updates Minago Status
posted on Dec 10, 2008 06:04AM
Building Canada’s next mid-tier Nickel Company
Victory Nickel Inc.
TORONTO, ONTARIO--(Marketwire - Dec. 10, 2008) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)(www.victorynickel.ca) today announced very positive results from a hydrogeologic study ("the Study") of its Minago deposit, indicating a 72% decrease in the average water pumping rate compared with initial estimates.
"We are naturally pleased with this result, as it dispels any notion that development of a mine at Minago will be hindered by water issues," said Victory Nickel CEO Rene Galipeau. "The Study confirms that water at Minago is manageable and can be dealt with in an efficient and environmentally sound manner."
The Study by Golder Associates ("Golder") was conducted to determine hydrogeologic parameters and water pumping rates for design of the dewatering system for the Minago open pit and for inclusion in the environmental impact statement. The Study shows that the average pumping rate is estimated to be a very reasonable quantity of 1,667 m3 per hour, a 72% decrease compared with an original estimate by Wardrop Engineering ("Wardrop") of 6,000 m3 per hour.
The results of the Study will be incorporated into the Minago feasibility study currently being completed by Wardrop. Wardrop is progressing well with the Minago feasibility study, however the completion date has been revised to the first quarter of 2009. This delay is primarily due to issues relating to scope changes, project optimization and personnel turnover at Wardrop. The Company will continue to announce the results of components of the feasibility study as they become available.
The Company also continues to advance discussions, in conjunction with its advisor Raymond James Ltd., with respect to maximizing the value of the frac sand by-product at Minago. Frac sand, which is used to improve recoveries in the oil and gas industry and remains in high demand, forms part of the overburden that must be removed before mining nickel from the Minago open pit. Wardrop is currently finalizing a National Instrument 43-101-compliant estimate of the frac sand resource, which is expected before year end, as is an updated Minago nickel resource estimate.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with three sulphide nickel deposits containing significant 43-101-compliant nickel resources. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago and Mel in Manitoba, and Lac Rocher in northwestern Quebec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns approximately 9% of Wallbridge Mining Company Limited (TSX:WM) the third largest landholder in the Sudbury Basin, approximately 84% of the outstanding shares of Independent Nickel Corp. (TSX:INI), and is preparing to further increase its interest in INI to 100% thereby adding to its nickel inventory with the Lynn Lake Mine.
Forward-Looking Information: This news release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow, costs, economic return, net present value, mine life and financial models, mineral resource estimates, potential mineralization, potential mineral resources, timing of possible production and the Company's development plans and objectives) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from estimates and assumptions; uncertainties relating to the availability and costs of financing needed in the future; failure to establish estimated mineral resources; fluctuations in commodity prices and currency exchange rates; inflation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company's activities; the uncertainties involved in interpreting geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's updated annual information form dated August 18, 2008 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.