Its Bucko Lake Nickel Mine in Manitoba began production in late-2008 and is expected to reach full production in early 2009 at a rate of about 12.5 million lbs. of nickel per year. The company is also advancing its other exploration projects located primarily in the Thompson Nickel Belt. Published proven reserves, indicated resources, and inferred resources at the Bucko deposit of 168 million lbs. nickel. Additional inferred resources contained within Crowflights other properties brings the total 1 billion lbs. nickel as of September 17, 2007. [David Zurbuchen] [Jan 23 2009]

With cash operating costs of about $4/lb. Nickel, only slightly below the current spot price, the Bucko Lake project is going to put significant pressure on the company especially given the current state of the credit markets. The company has hedged about 3 million lbs. nickel at $7.74/lb, but this will hardly offset the expected large cash outflows to keep the mine operational as long as the price of nickel remains low. Furthermore, there is uncertainly surrounding the permitting of a long-term tailing pond solution. [David Zurbuchen] [Jan 23 2009]