The Bucko Lake Mine in Manitoba is scaling back operations due to a fall in nickel prices.
The mine’s owner, Vancouver-based CaNickel Mining (formerly Crowflight Minerals), said Thursday that ore production will be reduced from 600-700 tpd to 400-500 tpd. Reducing production is expected to save the company about $1 million per month and allow it to complete construction of the paste backfill plant and tailings facility expansion.
The mine near Waboden, Manitoba, re-opened in June.
Nickel has been one of the metals hardest hit by the current economic downturn. The price has sunk from a 52-week high of $13.20/lb to a low of $5.27/lb on December 28th. It ends the year trading at $8.42/lb.
CaNickel also announced it has entered into an agreement with Luckyup Investment Limited, a third party based in Hong Kong, to increase its one year term debt facility from US$15 million to US$25 million. The company is planning a feasibility study to examine upgrading the mill and flotation facility at Bucko Lake to 1300 tpd, as well as a new study to optimize its mining methods.