660 million pounds of in-situ nickel
Building Canada’s next mid-tier Nickel Company
Message: Victory Nickel Announces First Quarter Financial Results, Provides Update of Act
Victory Nickel Announces First Quarter Financial Results, Provides Update of Activities
Symbol: Ni
TORONTO, ONTARIO--(Marketwire - May 16, 2008) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)(www.victorynickel.ca) today announced financial results for the three months ended March 31, 2008. Achievements during and subsequent to the first quarter include:
- Reporting a significant intersection from the first hole of the drill program at its Minago nickel project, which confirmed the presence of higher-grade nickel mineralization at depth, assaying 1.51% nickel over 38.42 metres as part of a 193.01 metre interval grading 0.59% nickel.
- Signing an option agreement with Xstrata Nickel to acquire a 100% interest in five mineral claims located adjacent to the Minago property package.
- Increasing both the quantity and value of the frac sand by-product at its Minago nickel deposit.
- Confirming that excellent nickel and copper recoveries can be obtained from Lac Rocher ore.
- Confirming the potential for a continuous mineralized body at Minago linking the Nose Deposit and the North Limb to a depth of 1.5 kilometres.
- Purchasing an equity position in Wallbridge Mining Company Limited, providing the Company with participation in the Sudbury basin, one of the world's most prolific nickel camps, and in the rapidly emerging Duluth Complex in northeastern Minnesota through Wallbridge's 13% equity interest in Duluth Metals Limited.
- Appointing Steve Harapiak, an engineer with years of senior international mining experience, as President and Chief Operating Officer.
- Obtaining the Certificate of Exemption from the Quebec government, a key permit that temporarily exempts the Company from the environmental and social impact assessment process and thus allowing Victory Nickel to proceed expeditiously with the underground exploration and bulk sampling program at the Lac Rocher property.
"During the first quarter we reached a number of milestones that take us that much closer to production," said Rene Galipeau, Vice-Chairman and CEO. "We expect to exit the current quarter with more clarity on the timing of production at both Lac Rocher and Minago, and to be in a position to begin aggressively moving Mel toward a production decision. It's getting exciting."
Financial Performance
As a development stage enterprise, none of Victory Nickel's exploration or development projects have commenced commercial production and, accordingly, the Company does not yet have revenue.
The Company reported a loss for the three months ended March 31, 2008 of $430,000, versus $1,057,000 in the 2007 comparative period. The current period loss was lower due to reduced stock option compensation expense.
At March 31, 2008, the Company had working capital of $8,401,000, including cash and cash equivalents and cash for exploration expenditures of $7,167,000. During the three-month period ended March 31, 2008, the Company used $1,066,000 in operating activities.
Investing activities during the quarter included $2,780,000 expended on exploration and development projects and $1,913,000 spent to acquire marketable securities. The Company acquired 7,500,000 units of Wallbridge and, subsequent to the end of the quarter, acquired an additional 1,500,000 Wallbridge common shares at a cost of $577,515, increasing its ownership in Wallbridge to approximately 10.2%.
Full financial statements and management's discussion and analysis will be posted on the Company's website and at www.sedar.com.
Outlook
With one of Canada's largest undeveloped sulphide nickel inventories, Victory Nickel remains focused on building a mid-tier nickel company. Objectives for the balance of 2008 include:
- Completing the Preliminary Economic Assessment of Lac Rocher.
- Obtaining permitting at Lac Rocher.
- Obtaining production financing and building Lac Rocher.
- Completing the Minago frac sand feasibility study.
- Completing the Minago definitive feasibility study.
- Placing orders for long lead time items at Minago.
- Completing metallurgical testing on mineralization at the Mel Deposit.
- Completing the Preliminary Economic Assessment of the Mel Deposit.
Annual Meeting
Please join us at our Annual Meeting of Shareholders, to be held on May 21, 2008 at 4:00 pm, Toronto time. The meeting will be held at the Toronto Board of Trade, 1 First Canadian Place, Toronto, Ont., and will also be webcast.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with over 660,000,000 pounds of in-situ nickel in National Instrument 43-101-compliant measured (154,000,000 pounds) and indicated (511,000,000 pounds) resources in three sulphide nickel projects: Minago and Mel on Manitoba's Thompson nickel belt, and the high-grade Lac Rocher deposit in northwestern Quebec, and an additional 530 million pounds of in-situ nickel in inferred resources. Created from the nickel assets of Nuinsco Resources Limited (TSX:NWI), Victory Nickel is well financed and focused on becoming a substantial nickel producer by developing its existing properties and evaluating opportunities to expand its nickel asset base.
- Reporting a significant intersection from the first hole of the drill program at its Minago nickel project, which confirmed the presence of higher-grade nickel mineralization at depth, assaying 1.51% nickel over 38.42 metres as part of a 193.01 metre interval grading 0.59% nickel.
- Signing an option agreement with Xstrata Nickel to acquire a 100% interest in five mineral claims located adjacent to the Minago property package.
- Increasing both the quantity and value of the frac sand by-product at its Minago nickel deposit.
- Confirming that excellent nickel and copper recoveries can be obtained from Lac Rocher ore.
- Confirming the potential for a continuous mineralized body at Minago linking the Nose Deposit and the North Limb to a depth of 1.5 kilometres.
- Purchasing an equity position in Wallbridge Mining Company Limited, providing the Company with participation in the Sudbury basin, one of the world's most prolific nickel camps, and in the rapidly emerging Duluth Complex in northeastern Minnesota through Wallbridge's 13% equity interest in Duluth Metals Limited.
- Appointing Steve Harapiak, an engineer with years of senior international mining experience, as President and Chief Operating Officer.
- Obtaining the Certificate of Exemption from the Quebec government, a key permit that temporarily exempts the Company from the environmental and social impact assessment process and thus allowing Victory Nickel to proceed expeditiously with the underground exploration and bulk sampling program at the Lac Rocher property.
"During the first quarter we reached a number of milestones that take us that much closer to production," said Rene Galipeau, Vice-Chairman and CEO. "We expect to exit the current quarter with more clarity on the timing of production at both Lac Rocher and Minago, and to be in a position to begin aggressively moving Mel toward a production decision. It's getting exciting."
Financial Performance
As a development stage enterprise, none of Victory Nickel's exploration or development projects have commenced commercial production and, accordingly, the Company does not yet have revenue.
The Company reported a loss for the three months ended March 31, 2008 of $430,000, versus $1,057,000 in the 2007 comparative period. The current period loss was lower due to reduced stock option compensation expense.
At March 31, 2008, the Company had working capital of $8,401,000, including cash and cash equivalents and cash for exploration expenditures of $7,167,000. During the three-month period ended March 31, 2008, the Company used $1,066,000 in operating activities.
Investing activities during the quarter included $2,780,000 expended on exploration and development projects and $1,913,000 spent to acquire marketable securities. The Company acquired 7,500,000 units of Wallbridge and, subsequent to the end of the quarter, acquired an additional 1,500,000 Wallbridge common shares at a cost of $577,515, increasing its ownership in Wallbridge to approximately 10.2%.
Full financial statements and management's discussion and analysis will be posted on the Company's website and at www.sedar.com.
Outlook
With one of Canada's largest undeveloped sulphide nickel inventories, Victory Nickel remains focused on building a mid-tier nickel company. Objectives for the balance of 2008 include:
- Completing the Preliminary Economic Assessment of Lac Rocher.
- Obtaining permitting at Lac Rocher.
- Obtaining production financing and building Lac Rocher.
- Completing the Minago frac sand feasibility study.
- Completing the Minago definitive feasibility study.
- Placing orders for long lead time items at Minago.
- Completing metallurgical testing on mineralization at the Mel Deposit.
- Completing the Preliminary Economic Assessment of the Mel Deposit.
Annual Meeting
Please join us at our Annual Meeting of Shareholders, to be held on May 21, 2008 at 4:00 pm, Toronto time. The meeting will be held at the Toronto Board of Trade, 1 First Canadian Place, Toronto, Ont., and will also be webcast.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with over 660,000,000 pounds of in-situ nickel in National Instrument 43-101-compliant measured (154,000,000 pounds) and indicated (511,000,000 pounds) resources in three sulphide nickel projects: Minago and Mel on Manitoba's Thompson nickel belt, and the high-grade Lac Rocher deposit in northwestern Quebec, and an additional 530 million pounds of in-situ nickel in inferred resources. Created from the nickel assets of Nuinsco Resources Limited (TSX:NWI), Victory Nickel is well financed and focused on becoming a substantial nickel producer by developing its existing properties and evaluating opportunities to expand its nickel asset base.
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