UPDATE 2-Crowflight to resume operations at Manitoba mine in April

* 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)

UPDATE 2-Crowflight to resume operations at Manitoba mine in April