Page 24 By Gregory Reynolds After a successful year in 2013 First Nickel Inc is looking towards further Lockerby Mine keeps pumping out nickel and copper for First Nickel erby base metal mine near Sudbury FNI owns and operates the Lockerby Mine in the Sudbury Basin in North ern Ontario which reached full pro duction during 2013 Last year the mine produced 128 million lbs of contained nickel and 75 million lbs of contained copper The mine is expected to produce ap proximately 14 million pounds of contained nickel and approximately 7 million pounds of contained copper in 2014 providing a foundation from which to grow the company The company sees additional poten tial at the Lockerby Depth East and First Nickel FNI reported the fol lowing highlights produced 27 million pounds of con tained nickel and 17 million pounds of contained copper during the three months ended March 31 2014 months ended March 31 2014 was 168 million cash production costs were 128 mil lion for the three months ended March 31 2014 to the 68 Level was completed early in January and lateral development to taled 532 metres for the three months ended March 31 2014 of 93 million for the three months ended March 31 2014 ed cash balance at March 31 2014 million available to draw under the BNS credit facility as at March 31 2014 facilities will mature in March 2015 the balance sheet at March 31 2014 The company is in discussion with its Contd on pg 26 Contd from pg 22 grade Morrison Deposit continues Access and mining operations on the Morrison Deposit are now carried out from the adjoining Craig Mine under a cooperation agreement with GlencoreXstrata until 1998 when it was closed KGHM International began work on the Mc Creedy W e st property in 2002 Exploration ef forts on the property resulted in the discovery of the contact nickel Inter Main Deposit in 2002 which has been in production since 2003 num group deposit with standalone infrastructure was brought into produc tion Contact nickel production was suspended at the end of 2008 due to low com modity prices while copper production continued through 201 1 when pro duction was halted due to low ore grade Contact nickel production restarted in July 201 1 in an arrangement with Xstrata Nickel which processes the ore at its Strathcona mill Production of contact nickel ore is currently ongoing KGHM also owns DMC Mining Services a mining contractor originally formed in 1980 under the name of Dynatec Mining Limited T oday the 100 owned subsidiary of KGHM International Ltd primarily ments that utilize the company s full suite of mining services and solutions including shaft sinking mine construction and lateral and raise develop ment Employing over 600 professionals DMC and its extensive mining capabili ties have been successfully applied to lar gescale production of gold copper nickel zinc and other base and precious metals For over 30 years the company has served the mining and civil industry to extract value from resources and add value to client s assets in a safe and environmentally responsible manner SUDBUR Y MINING REPOR T 2014