TORONTO, ONTARIO, Jan 12, 2015 (Marketwired via COMTEX) — First Nickel Inc. (“First Nickel”, “FNI” or the “Company”) (FNI) has announced that the Lockerby nickel/copper mine, located in the Sudbury basin in Ontario, is being restructured in order to reduce costs, increase exploration and extend mine life.
Background
The Lockerby Mine Project Technical Report dated August 2, 2012, available on SEDAR.com, envisaged mining from the 6,500-foot level to the 7,000-foot level. In 2013, the Company disclosed that, as a result of low nickel prices, ramp development below the 6800 level would be suspended. The Company has also said that if a decision was not made to restart ramp development, Lockerby would cease mining operations in 2015.
In December 2014, the Company concluded that, unless costs could be substantially reduced, developing the mine below the 6800 level would be uneconomic based on the current cost structure.
Thomas M. Boehlert, President & Chief Executive Officer, commented: “The employees at Lockerby have done a remarkable job in recent months to improve performance at the mine, with nickel production in the second half of 2014 improving significantly compared to the first half. However, the combination of persistently low nickel prices and our underlying cost structure has had a negative impact on our ability to generate the funds required to continue development of the mine.”