Platinum Exploration (PGM)

[Ed Monton]

First Nickel receives high values for hole D04-16

2004-09-20 10:30 ET - News Release


Ms. Elizabeth Kirkwood reports

FIRST NICKEL INC.: HIGH PLATINUM-PALLADIUM VALUES AT DUNDONALD SOUTH

First Nickel Inc. has received high gold-platinum-palladium values for diamond hole D04-16, recently completed on the north sector of the Dundonald South nickel zone as follows:

 
 From    To    Length   Ni    Cu 
  m       m      m      %      % 
  
 201.8  203.5   1.7   11.84  0.28 
 incl. 
 202.4  203.5   1.1   14.74  0.36 
 incl. 
 203    203.5   0.5   16.91  0.34 
  
 From    To     Co     Au     Pt   Pd 
  m       m      %    g/t    g/t   g/t 
  
 201.8  203.5  0.11   0.89   6.97  8.69 
 incl. 
 202.4  203.5  0.12   1.36  10.62 13.21 
 incl. 
 203    203.5  0.06   2.80  21.46 25.36 
  
 

...............

The above Ni and Co values were previously released in Stockwatch on Sept. 15, 2004. Results for the previous 15 holes on the north sector were released in Stockwatch on Aug. 13 and Sept. 15, 2004. The above Au, Pt and Pd values represent the average of two assays on each sample. Additional check assays are being carried out on this material.

These values are reminiscent of those encountered by Falconbridge (1989/1990) and Hucamp Mines Ltd. (2000) in surface trenches on the Dundonald Beach zone. This particular massive sulphide occurrence is very small (a width of 10 centimetres to 20 centimetres with a length of approximately 10 metres) but very high-grade, and occurs at the base of a komatiitic peridotite flow within the north sector. Sampling of the massive material by Falconbridge yielded some extremely high grades (26.3 per cent Ni, 22.4 grams per tonne (g/t) Pt, 22.7 g/t Pd, 3.30 g/t Rh and 3.06 g/t Ir). Hucamp Mines reported assay results of 34.82 per cent Ni, 0.30 per cent Co, 5.75 g/t Pt, 3.7 g/t Pd, 0.44 g/t Os, 0.47 g/t Ir, 0.84 g/t Rh, 2.4 g/t Ru on similar material. The difference between the Hucamp and Falconbridge Pt-Pd grades in samples from virtually the same location attests to an irregular distribution of these elements.

Analytical and microprobe work carried out at the University of Western Ontario in 1989 on a Dundonald Beach sample donated by Falconbridge showed the sulphides to consist predominantly of the variably altered nickel sulphide pentlandite with minor chalcopyrite, sphalerite and chromite. Three PGE species along with gold-silver electrum were identified. The PGE species were identified as froodite, along with an unnamed Pb-Sb-Bi phase and an Os-Ni-Fe alloy. This is the first recorded occurrence of froodite, first identified from mineralization from the Frood-Stobie mine, Sudbury, Ont., in komatiite-associated nickel mineralization.

"We are extremely encouraged by these very high values in hole D04-16," said Elizabeth Kirkwood, president and chief executive officer of First Nickel, "and we are now entertaining the possibility that the intersection in hole D04-16 represents a more robust reappearance of the Dundonald Beach zone to depth." Assays for the remaining platinum group elements are being carried out on this material and will be reported when received. First Nickel will be carrying out considerable additional drilling around hole D04-16.

First Nickel has also initiated line-cutting and ground geophysical surveys over the approximately 200-metre west extension onto the Dundonald property of the Kelex nickel zone currently being extensively explored by Canadian Arrow Mines Ltd. on its adjoining property to the east.

First Nickel has now received a comprehensive reinterpretation of previous Falconbridge downhole geophysical data for the Terminus base metals zone (copper, zinc, gold, silver) and adjoining Dundeal nickel zone located in the north-central portion of the Dundonald property from Quantec Geoscience Inc. Three high-priority off-hole geophysical targets have been identified, two of which correlate with Terminus stratigraphy and a deeper target in Dundeal stratigraphy. The current plan is to drill-test at least the two Terminus zone targets in the near future. The Terminus base metals system is also completely open down-plunge and at least one hole will be drilled to test the zone at approximately 550 metres vertical depth beneath previous Falconbridge hole DUN25-20 which returned a 10.13-metre core length which averaged 1.37 per cent Cu, 7.53 per cent Zn, 0.13 per cent Co, 1.1 g/t Au, 2.9 g/t Ag. Included within this was a 4.22-metre core length which assayed 1.67 per cent Cu, 13.66 per cent Zn, 0.14 per cent Co, 1.42 g/t Au and 35.2 g/t Ag.

The surface drilling program is being supervised by Kevin Montgomery, PGeo, of MPH Consulting Ltd., a qualified person under National Instrument 43-101 guidelines. Drill core of interest (NQ size) is sawed in half, with half sent to a commercial laboratory, Expert Laboratory of Rouyn-Noranda, Que., and the other half retained for future reference. A rigorous quality assurance/quality control program is employed which includes the insertion of standards, blanks and duplicates for each batch of samples.

Core samples are routinely analyzed for nickel, copper and cobalt by aqua regia digestion, atomic absorption techniques. Those samples returning greater than 5,000 parts per million (0.5 per cent) nickel are reassayed by total digestion atomic absorption and their value reported as a per cent. Selective assays for gold and platinum group elements on the higher-grade nickel samples are carried out by standard fire assay techniques.

The Dundonald property is located east of Timmins in Northeastern Ontario, approximately 25 kilometres by road from the Falconbridge Ltd.'s Kidd Creek metallurgical facility. The Dundonald property was acquired from Falconbridge as part of First Nickel's formative transaction whereby Falconbridge now owns 18.4 per cent of the issued and outstanding shares of First Nickel.