MONTREAL, Oct. 1 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ)
provides the following update about the progress of construction of its
Nunavik Nickel Project (the "Project"), and about the implementation of an
Asset Conservation Plan (the "ACP"), previously announced on August 5th, 2008.
The ongoing 2008 Exploration Program is progressing as planned with over
24,000 metres drilled to date; results will follow in separate news releases
commencing in approximately one week.
Nunavik Nickel Project: Construction on the Project site started on
May 20th, 2008. Following implementation of the ACP, construction activities
were refocused to complete essential infrastructure and to prepare the site
for a temporary shutdown. To date progress on the project includes the
- The housing complex is fully operational with a capacity of 250 people.
- A significant portion of the mine fleet is on-site.
- Site preparation for the complex, concentrator, power plant and fuel
storage is complete.
- The concentrator foundation has been completed.
- Critical path items such as ball mills, floatation cells etc. are
- Several large hanger-style shelters have been built to store and
protect equipment, the mine fleet and other construction materials.
- Potable and waste water systems are installed and operational.
- Winterization of the facilities and equipment is being carried out to
ensure efficient future start-up.
A current aerial photograph of the Mine site is available at
Including the exploration crew, there are currently 131 employees on
site. Demobilization of site employees will continue progressively with the
weekly crew rotations until the last week of October at which point the winter
caretaking team will be in place. Final preparation of the Berbegamo camp for
winter use will be completed in the coming weeks. A fuel delivery for winter
caretaking operations is planned and the last sealift backhaul of material
from Deception Bay, including rental equipment, is planned for October 14th.
Project Financing: Discussions and negotiations are ongoing and strategic
alternatives are being considered.
Litigation: Canadian Royalties also is continuing to diligently prosecute
its legal and arbitration proceedings against Nearctic Nickel Mines Inc.
(formerly Ungava Minerals Corp.) ("Nearctic") as well as certain of its
principals. The Company is also vigorously defending itself from the various
proceedings launched by the Ungava/Neararctic group and related parties.
Access to Infrastructure: Negotiations to reach an agreement to share in
the use of certain local infrastructures have been delayed until financing
discussions are completed. The absence of an agreement continues to impede the
Corporation's ability to efficiently and cost-effectively transport people and
supplies to the Project site.
Employees and Contractors: A retention plan was implemented for certain
key employees and managers. Planned layoffs of other staff functions have
occurred at all offices and sites as the Corporation implemented conservation
measures (ACP) to preserve its financial resources. Additional staffing
reductions are expected as the Project winds down for the winter over the next
several weeks. Most of the staff working on the Project site since the
beginning of construction in May are contractors and will no longer be
employed once essential work is completed.
About Canadian Royalties and the Nunavik Nickel Project: Canadian
Royalties has initiated the development of a nickel-copper mine on its Nunavik
Nickel Project, located 20 kilometers south of Xstrata Nickel's Raglan Mine in
Nunavik, Québec. Canadian Royalties received its Environmental Certificate of
Authorization on May 20th, 2008 and Mine Leases for the Expo, Mesamax, Ivakkak
and Mequillon sites, which were obtained in June and July of 2008.
Forward-looking Statement: This news release contains certain
forward-looking statements or forward-looking information. These
forward-looking statements are subject to a variety of risks and uncertainties
beyond the Corporation's ability to control or predict which could cause
actual events or results to differ materially from those anticipated in such
forward-looking statements. Such risks and uncertainties are disclosed under
the heading "Risk Factors" in the Corporation's Annual Information Form for
the year ended December 31, 2007 and dated March 31, 2008. Further,
forward-looking information is in addition based on various assumptions,
including, without limitation, the expectation and beliefs of management, the
assumed long term price of nickel, that the Nunavik Nickel Project is a
technical viable and economic operation, that it can be successfully completed
by the Corporation, that the Corporation will receive the required permits and
access to surface rights, and that the Corporation can access financing,
appropriate equipment, and sufficient labour. Should one or more of these
risks and uncertainties materialize, or should the underlying assumption prove
incorrect or different, actual results may vary materially from those
described in the forward-looking statements. All forward-looking statements
speak only as of the date of this news release and the Corporation does not
undertake any obligation to update or publicly disclose any revisions to such
forward-looking statements to reflect events, circumstances or changes in
expectations after the date hereof, except as required by law. Accordingly,
readers should not place undue reliance on forward-looking statements.
For further information:
For further information: please visit our website at
www.canadianroyalties.com or: Glenn J. Mullan, Chairman of the Board, Interim
President and Chief Executive Officer, Canadian Royalties Inc., (514)
879-1688, ext. 1222, firstname.lastname@example.org; Dr. Jens Zinke, VP,
Business Development, Canadian Royalties Inc., (514) 879-1688, ext. 1250,
email@example.com; Renmark Financial Communications Inc.: Jason
Roy, firstname.lastname@example.org; Dan Symons, email@example.com;
Media - François Trépanier, firstname.lastname@example.org, (514) 939-3989,
Fax: (514) 939-3717, www.renmarkfinancial.com