* Expects to mine 220,000 tonnes of ore at Bucko Lake Mine in 2011
* Production at mine started in Q2 of 2009
* Mine estimated to contain reserves of 3.7 mln tons
* Operations were halted in Oct last (Adds details, Share milestone)
March 30 (Reuters) - Canadian miner Crowflight Minerals Inc said it will resume mining operations at its Bucko Lake Mine in April and expects to mine 220,000 tonnes of ore in 2011.
The mine, which is located in the Thompson Nickel Belt near Wabowden, Manitoba, started commercial production in the second quarter of 2009 and is estimated to contain proven and probable reserves of 3.7 million tons.
Operations at the Manitoba mine were temporarily suspended in October last year in order to introduce its underground equipment and the team and also to address certain operational issues.
Once full production commences, the mine’s ouput is likely to be 1,000 tonnes per day, yielding 11.1 million pounds of payable nickel per year on average, according to the company’s website.
In 2010, the company sold a total of $2.1 million pound of nickel, and it expects to generate $20 million cash flow from the Bucko Lake Mine in 2011.
Crowflight said its capital budget outlook for the mine for 2011 is $15 million, of which it expects to spend $6 million on mining equipment and the rest on development.
The company expects to set an exploration budget of $3 million in 2011 and to carry out 12,000 meters of diamond drilling at the Thompson Nickel Belt Exploration Properties.
In January, Crowflight’s creditor Dumas Contracting sued the company for C$7.1 million and also placed a lien on the Bucko mine. [ID:nSGE7090BX].
Shares of Vancouver, British Columbia-based Crowflight, which have fallen 15 percent since it was sued by Dumas Contracting , were trading up nearly 8 percent at 7 Canadian cents in early trade Wednesday on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Prem Udayabhanu)