Nickel & Cobalt

[johnlw]

FNX Mining Company Inc (C-FNX) - News Release

FNX drills 6.1 ft of 2.14% Cu, 4.18% Ni at Main Depths

2007-02-21 07:41 ET - News Release
Shares issued 83,868,472
FNX Close 2007-02-20 C$ 17.66

Mr. Terry MacGibbon reports

FNX MINING DISCOVERS MAIN DEPTHS DEPOSIT DOWN DIP OF THE LEVACK MINE MAIN OREBODY

FNX Mining Company Inc. has found the Main Depths nickel contact deposit located down-dip of the formerly producing Levack main orebody at its recently reopened Levack mine in the Sudbury mining district of Ontario.

All nine surface boreholes drilled to date have intersected significant pyrrhotite-pentlandite-chalcopyrite nickel-rich sulphide mineralization down-dip of the Levack main orebody and east of the Levack No. 7 orebody.

Highlights of the drill intersections are compiled in table No. 1, including:

* 45.7 feet grading 0.62 per cent copper and 1.99 per cent nickel, including 15 feet grading 1.04 per cent copper and 3.36 per cent nickel;
* 63.6 feet grading 0.34 per cent copper and 1.15 per cent nickel, including 11.1 feet grading 0.24 per cent copper and 2.48 per cent nickel, and 13 feet grading 0.88 per cent copper and 2.59 per cent nickel;
* 6.1 feet grading 2.14 per cent copper and 4.18 per cent nickel;
* 32.4 feet grading 0.92 per cent copper and 1.65 per cent nickel, including 10.3 feet grading 1.01 per cent copper and 2.49 per cent nickel; and
* 16.5 feet grading 0.52 per cent copper and 2.43 per cent nickel.

The FNX boreholes being reported, along with data from historical holes, indicate that the new Main Depths nickel mineralization is a continuation of the main orebody's geological system. As such, the Main Depths deposit may connect up-dip to the Levack main orebody and to the west with the No. 7 orebody. The top of the Main Depths deposit starts just below the 1,600 Level and is open down-plunge and along strike. It is located near underground infrastructure and is within 600 feet of the Levack No. 7 orebody, which is currently being developed and mined by the company. The deposit's strategic location near existing mine infrastructure will greatly facilitate exploration and potential mining of this new deposit.

Borehole electromagnetic geophysical results to date are very positive and indicate that the Main Depths mineralization drilled to date occurs within a large, continuous conductive plate. The modelled plate has dimensions of 1,300 feet (400 metres) in the east-west strike direction and 800 feet (250 metres) in the north-south dip direction.

The determination of the orientation and size of the Main Depths deposit, the extent of the mineralized pods and the nickel-sulphide content will require extensive additional drilling. FNX will continue to aggressively drill the Levack Main Depths mineralization from surface and from underground.

The Levack mine operated continuously from 1937 to 1999, when it was shut down by its former owners due to low nickel prices. It produced a total of 60.4 million tons of ore grading 1.3 per cent copper, 2 per cent nickel and 1.4 grams per tonne of precious metals. FNX Mining acquired the Levack mine in 2002, rehabilitated the surface facilities, the No. 2 shaft and much of the underground infrastructure over the past two years, reopened the mine and initiated production of nickel ore in January, 2007.

The Levack mine's main orebody consisted of a complex series of thick pods of nickel ore within interconnected pinches and swells in granite breccia host rocks along the base of the Sudbury igneous complex (SIC). Mining of the main orebody terminated at a pinch or uplift in the granite breccia at about the 1,450 level of the Levack mine. No historical production records are available for the main orebody, but non-compliant modelling done by FNX on the main orebody to guide FNX's deeper exploration, suggests that about 15 million tons grading approximately 2 per cent nickel was extracted from near the surface down to the 1,450 level. FNX has identified 918,000 tons of independently audited measured and indicated nickel resources grading 1.9 per cent nickel remaining in the main orebody.

    TABLE NO. 1: HIGHLIGHTS OF FNX MINING DRILL HOLES 
  
 Borehole       From       To   Length      Cu     Ni     TPM 
 No.            feet     feet     feet       %      %     gpt 
  
 FNX2003      1963.1   1969.2      6.1    2.14   4.18    3.22 
 FNX2004      1679.1   1742.7     63.6    0.34   1.15    0.81 
 incl.        1679.1   1690.2     11.1    0.24   2.48    1.39 
 incl.        1729.7   1742.7     13.0    0.88   2.59    1.77 
 FNX6054      2063.3   2071.3      8.0    1.31   2.86    1.82 
 FNX6064      2175.5   2228.1     52.6    0.77   1.44    1.33 
 incl.        2175.5   2185.8     10.3    1.02   2.48    1.97 
 incl.        2192.6   2207.9     15.3    1.04   1.70    1.60 
 incl.        2217.3   2228.1     10.8    0.93   2.01    1.79 
 FNX6067      1604.9   1617.1     12.2    0.57   1.02    0.86 
              1710.6   1723.9     13.3    0.25   1.04    0.89 
              1802.4   1827.6     25.2    1.27   1.38    1.65 
 incl.        1802.4   1809.6      7.2    2.12   2.82    2.68 
 incl.        1821.4   1827.6      6.2    2.10   1.58    2.21 
 FNX6066      2359.7   2384.2     24.5    0.46   1.89    1.06 
 FNX6068      2430.6   2444.8     14.2    0.18   1.17    0.50 
              2465.0   2473.2      8.2    0.37   1.22    0.32 
              2493.9   2503.4      9.5    0.33   1.06    0.43 
 FNX6069      2110.1   2161.8     51.7    0.26   1.20    0.33 
 incl.        2110.1   2123.9     13.8    0.32   1.57    0.44 
 incl.        2143.6   2161.8     18.2    0.29   1.47    0.33 
 FNX6072      2330.0   2370.9     40.9    0.58   0.98    1.03 
 incl.        2352.1   2370.9     18.8    0.82   1.40    1.41 
              2427.3   2444.8     17.5    0.87   1.44    1.40 
 FNX6074      2449.3   2495.0     45.7    0.62   1.99    0.53 
 incl.        2480.0   2495.0     15.0    1.04   3.36    0.83 
  
 Lengths reported are drill-intersected core lengths. 
 TPM equals total precious metals defined as platinum plus 
 palladium plus gold. 
  
      TABLE NO. 2: HIGHLIGHTS OF HISTORICAL DRILL HOLES 
  
 Borehole       From       To   Length      Cu     Ni     TPM 
 No.            feet     feet     feet       %      %     gpt 
  
 64460         241.3    246.3      5.0    0.63   3.29     n/a 
 22280         742.0    789.4     47.4    0.40   1.17     n/a 
 incl.         776.5    789.4     12.9    0.55   2.09     n/a 
 64450         248.5    282.3     33.8    1.10   2.78     n/a 
 and           328.5    364.0     35.5    0.41   1.27     n/a 
 incl.         356.5    364.0      7.5    0.72   3.24     n/a 
 120800        297.4    359.8     62.4    0.47   1.70    0.83 
 incl.         298.5    318.6     20.1    0.62   2.84    0.99 
 incl.         344.6    353.8      9.2    0.63   2.45    1.28 
 64470         265.3    271.7      6.4    0.63   3.04     n/a 
 596110        351.8      384     32.2    0.08   0.96     n/a 
 466990          913      925     12.0    0.14   1.24     n/a 
 LV20490         n/a      n/a      n/a     n/a    n/a     n/a 
 520680          720      725      5.0    0.71   1.13     n/a 
 22120         712.5    726.2     13.7    0.54   1.31     n/a 
  
 Lengths reported are drill-intersected core lengths. 
 TPM equals total precious metals defined as platinum plus 
 palladium plus gold. 
 

QA/QC statement

Dr. James Patterson, PhD, PGeo, executive consultant, a designated qualified person pursuant to National Instrument 43-101 of the Canadian Securities Administrators, is responsible for the verification and quality assurance of the corporation's exploration data and analytical results. Samples of half core are prepared at SGS Lakefield Laboratories in Garson and shipped to ALS Chemex in Vancouver for assay. Please see Stockwatch news dated July 16, 2003, and the March 31, 2005, annual information form for a description of sample preparation and assay procedures.

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