SUDBURY, ON, Aug. 15 /CNW/ - Independent Nickel Corp. (INI: TSX) (the
"Company" or "INI") is pleased to announce that its shares will commence
trading on the Toronto Stock Exchange (the "TSX") as of the open of markets
today. The share structure and trading symbol will remain unchanged.
"Our graduation to Canada's premier stock exchange represents another
milestone in the development of Independent Nickel Corp.," stated Company
president and CEO, Richard Murphy. "We are progressing well on many fronts in
the development of Independent Nickel Corp. and, as we near completion of the
pre-feasibility study for the Lynn Lake nickel mine, the increased liquidity
and exposure provided through Canada's senior stock exchange will help us
capitalize on the results of our efforts."
At the Lynn Lake mine site, the 20,000 metre exploration drill program,
which commenced in March, is 25% complete. Drilling under the current program
to date has focused on the 'Golf' and 'G' target areas with encouraging
results (see news release dated June 6, 2007). Additional results will be
released as they are received and compiled. Currently, there is one drill
continuing to test the 'Golf' target area.
The Company will have a second drill at Lynn Lake in mid September. The
Company is also working to contract a third drill rig, in order to further
accelerate the drill program.
Once additional drills arrive on site, the large 'Echo' target area,
which is 3,000 feet in vertical extent by 1,600 feet horizontally, will be
drill tested for the first time by INI. The historical drill results, which
define the 'Echo' target, include higher grade intersections, such as
14.4 feet of mineralization grading 2.2% nickel.
In addition to undertaking this sizable exploration program, the Company
commissioned Wardrop Engineering Inc. ("Wardrop") earlier in the year to
complete a full pre-feasibility study for the Lynn Lake nickel mine. The
pre-feasibility work is currently on schedule for completion around the end of
the third quarter.
An important component of the pre-feasibility study is comprehensive
metallurgical testing to determine actual metal recoveries from the ores.
Wardrop is concurrently examining a new process for ore treatment at Lynn
Lake. If this work is successful, it will have profound implications for the
economics of the project. The metallurgical work is well advanced and final
results will be released when they are received by the Company.
Historically, Lynn Lake ores yielded high nickel recoveries. Previous
operators were profitable due to the extraordinary metallurgical
characteristics that allowed for these very high nickel recoveries. In the
Preliminary Economic Assessment released on September 25, 2006, Wardrop
assumed future recoveries of 83% for nickel and 90% for copper.
In looking at broader industry fundamentals, the global nickel market has
been volatile over the past year. The price has recently come off record highs
of over US$24 per pound to current levels of approximately US$12. The long
term trend for nickel prices is still upward. Global consumption of nickel
grows at approximately 3% annually and, while there are a few very large
nickel mines coming on stream over the next several years, there is no
guarantee that they can even keep up with global demand. As for nickel
sulphide mines, like Lynn Lake, there are very few new developments on the
horizon. Nickel sulphide deposits are advantageous because they require much
less capital to develop and tend to display far more predictable metallurgical
Nickel is expected to continue to do very well in a long term commodities
bull market INI owns 100% of the Lynn Lake nickel sulphide deposit. INI also
owns a 3% Net Smelter Royalty on all production from the Minago property,
which is owned by Victory Nickel Inc. (TSX:NI). The Company's undiluted
ownership in these two main assets positions it as one of a few truly
independent nickel companies on the landscape.
To ensure that maximum value is realized from the Company's assets, INI
has engaged the investment banking firm Paradigm Capital Inc. to advise
management and to fully explore the opportunities that exist for INI in
today's global nickel market.
The Lynn Lake mine operated for 24 years between 1953 and 1976, producing
22.2 million tons of ore. Currently, measured and indicated resources on the
Lynn Lake property include 16.1 million tons grading 0.7% nickel and
0.4% copper (see the Company's 43-101 compliant resource estimate, as detailed
in its press release of September 19, 2005).
This document may contain forward-looking statements relating to
Independent Nickel Corp.'s (INI) operations or to the environment in which it
operates. Such statements are based on operations, estimates, forecasts and
projections. They are not guarantees of future performance and involve risks
and uncertainties that are difficult to predict and may be beyond INI's
control. A number of important factors could cause actual outcomes and results
to differ materially from those expressed in forward-looking statements,
including those set forth in other public filings. In addition, such
statements relate to the date on which they are made. Consequently, undue
reliance should not be placed on such forward-looking statements. INI
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, save and except as may be required by applicable securities laws.
The Qualified Person responsible for the technical content of this news
release is Richard Murphy, P. Geo., President and CEO of Independent Nickel
For further information:
For further information: Independent Nickel Corp., Richard Murphy,
President and CEO, Tel: (705) 521-8444, Email: email@example.com; 957
Cambrian Heights Drive, Suite 102, Sudbury, Ontario, P3C 5M6