Tau..

Nickle is good ..if you have enough of it..it is open pitable..close to markets..etc....

Seems Victory has all of the above and came out with this this morning..

These may be "Famous last words.."LOL

I don't think I would buy this stock, nickel at less than 1% in my mind just does not cut it

See the full release here..

http://www.marketwire.com/press-release/Victory-Nickel-Inc-TSX-NI-1090080.html

Victory Nickel Inc.

TSX: NI

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2009) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) (www.victorynickel.ca), today released the results of the Definitive Feasibility Study ("DFS") on the 100%-owned Minago sulphide nickel deposit in Manitoba. The DFS confirms that the development of an open pit mine and concentrator at Minago is technically and commercially feasible. The base case pricing uses three-year trailing averages for metal prices and the US: Canadian dollar exchange rate in accordance with the recommended practice of the U.S. Securities and Exchange Commission Industry Guide 7. The DFS is based on mining open pit reserves only and does not incorporate the potential for underground mining that was included in the Preliminary Economic Assessment ("PEA") completed by Wardrop, A Tetra Tech Company ("Wardrop") in November 2006.

The DFS will be posted at www.sedar.com upon receipt of the final document from Wardrop.

The Company will hold a conference call at 10:30 am (Toronto time) on Monday December 14, 2009 to discuss the results of the Minago DFS. To participate in the conference call, please dial 416-340-2216 or 866-226-1792. The call can also be accessed on the Internet at http://events.digitalmedia.telus.com/victory/121109/index.php. The conference call will subsequently be available for replay until December 21, 2009 at 11:59 pm, and will be able to be accessed by dialling 416-695-5800 or 800-408-3053 and entering the pass code: 3768817.

Highlights of the DFS Base Case (all figures in Canadian dollars, except as indicated) are:

• Undiscounted cash flow (pre-tax) of CAN$917.7 million.
• Net present value ("NPV"), using a discount rate of 8%, of CAN$293.8 million.
• Internal rate of return ("IRR") of 17.66%.
• Breakeven price of nickel is US$5.06.
• Payback period of four years from start of nickel production.
• Measured and Indicated resource of Sulphidic Nickel ("Ni(S)") of 44.1 million tonnes grading 0.43% nickel for open pit only.
• Total ore tonnes mined is 57.1% of Measured and Indicated Ni(S) resource.
• Proven and Probable reserve of Ni(S) of 25.2 million tonnes grading 0.43% nickel for open pit only.
• Strip ratio of 11.7:1 to mine the nickel including frac sand as overburden.
• Production of the world's highest grade nickel concentrate at 22.3% Ni with 10.4% magnesium oxide ("MgO").
• Seven-year nickel production life (open pit only).
• Capital cost forecast of $596 million, including a contingency of $50 million.
• Average annual ore production of 3.6 million tonnes.
• Average annual nickel production in concentrate of approximately 11,000 tonnes.
• Cash cost per pound of nickel before by-product credits: $6.95 (US$6.34).
• Metal by-product credits of $0.79 (US$0.72) per pound of nickel.
• Frac sand by-product value of $4.04 (US$3.68) per pound of nickel.
• Cash costs per pound of nickel, net of credits, of $2.12 (US$1.94).
• Average annual frac sand sales revenue, net of freight, of $70 million.
• Processing cost per tonne of frac sand of $6.50.

"Completion of the DFS represents a major milestone for the development of the Minago deposit," said Rene Galipeau, Vice-Chairman and CEO. "The process of optimizing the technical and financial aspects of the project has already begun. Our next steps, early in the new year, are to create a project execution plan, begin road construction on site, select financial advisors to structure financing and submit the Environmental Impact Statement with a view to receiving environmental and operating permits before the end of 2010. In addition, consultation with local Aboriginal groups and other stakeholders can now be continued with a better understanding of the opportunities that are potentially available to local communities."

Some of the opportunities for optimizing the technical and financial aspects of the project being assessed are as follows:

• Increasing resources and reserves is an important objective. Previous drilling has indicated the potential for a significant increase in resources along the North Limb, an estimated 1.5 kilometre long domain north of the proposed open pit, and at depth beneath the open pit. An initial 6,000 metre drilling program is already planned for the winter of 2010.
• Outotec's HydroNic, a chloride hydrometallurgical process, is being evaluated to determine whether Minago concentrates can be treated using this technology. The process could improve recoveries and treat MgO content. Metal could be produced on site to eliminate smelter charges and significant freight costs.
• Conventional options to suppress MgO and zinc levels in the concentrate.
• Further definition of distinct granite intrusions in the pit to make selective mining an option for minimizing dilution, raising the head grade and reducing the volume of material to be milled.
• The use of dense media separation technology to optimize head grade, minimize processing costs and lower capital costs by reducing the size of the processing plant.
• Although the DFS assumes the purchase of all new equipment, used equipment would reduce capital cost and improve delivery times.
• Leasing, rather than purchasing, equipment to lower the capital cost.

The DFS reflects the Base Case using the three-year trailing average shown below. For comparative purposes, the Current Metal Price and Exchange Rate ("Current") case is shown below.

Although the DFS assumes 100% equity financing, project financing is expected to include a substantial debt component. The DFS cost estimates are considered to be of an accuracy of -10%/+20%.

The DFS preparation was managed and compiled by Wardrop, with contributions from SGS Lakefield Research Ltd. ("SGS Lakefield") (metallurgical testing), Klohn Crippen Berger (geotechnical review), URS (environmental baseline studies), Golder Associates (hydrology and hydrogeology), DHR Associates (social context), Roche Engineering (environmental baseline studies), GAIA (dewatering wells pumping test) and Victory Nickel (closure costs and environmental considerations) and Outotec (frac sand plant).

Minago is one of Canada's largest undeveloped sulphide nickel deposits and has been shown to be capable of producing a nickel concentrate grading up to 22.3%, making it the world's highest grade nickel concentrate. In addition to metal by-products such as copper, cobalt, gold, platinum, palladium, silver and rhodium, a layer of silica sand averaging approximately 9 metres thick overlies the nickel mineralization within the open pit. With the optimum grading splits, approximately 84% of this 15 million tonne National Instrument 43-101 ("NI 43-101")-compliant Indicated sand resource, effective as of September 9, 2009, (see the technical report of Wardrop dated August 20, 2009 and entitled "Minago Frac Sand Ni 43-101 Compliant Technical Report") is marketable frac sand, which is used to improve recoveries in the oil and gas industry. The frac sand forms part of the overburden that must be removed prior to mining the nickel ore. According to the DFS, production of frac sand could begin 20 months after the start of mine development.