First Nickel finds more high grade (November 01, 2004)

First Nickel (FNI-T) has hit more high grade nickel at its Dundonald property, 60 km east of Timmins, Ont.

The latest results (from 19 holes) are highlighted by hole 29 that grades 5.26% nickel and 0.2% copper over 15.2 metres. This includes a 1.7-metre intercept that grades 14.5% nickel, 0.49% copper and 0.13% cobalt.

The hole was drilled about 10 metres east of a previous hole that returned 11.8% nickel over 1.7 metres, as well as a 0.9 gram gold per tonne, 6.97 grams platinum and 8.69 grams palladium. Platinum group element assays are pending for hole 29.

Ten holes tested the north sector of the Dundonald South zone. Apart from the aforementioned hole, one hole cut 2 metres grading 2.49% nickel (this includes 0.7 metre grading 5.68% nickel). Five holes hit grades of 0.95-2.32% nickel over widths of 0.6-2 metres. Three holes failed to intersect significant mineralization.

The zone is within a komatiitic volcanic package; it strikes east and dips steeply to the south. The north sector consists of five sub-parallel zones. It is 125 metres north of the south sector, which comprises three nickel-bearing zones.

Eight holes tested the south sector. Four of them cut at least one zone 0.5-1.95 metres in width grading 2.06-2.85% nickel. Two holes intersected two intercepts each of 0.8-1.6 metres grading 1.1-1.75% nickel. Two failed to intersect any significant grade.

An initial drill hole targeted at the Terminus base metal zone (1.3 km north northeast of Dundonald South) failed to intersect significant base metals, but did intersect 18 metres of favourable stratigraphy at a vertical depth of 600 metres. Drilling has targeted two high priority off-hole geophysical anomalies (from re-interpreted Falconbridge-drilled holes).

Falconbridge (FL-T) owns 18.4% of the issued and outstanding shares of First Nickel. First Nickel will spend $1.75 million to explore the property before December 31, 2005 in order to keep a 100% interest. The 9.5-sq.-km property consists of 15 unpatented claims, 38 lease-patented and three patented mining claims.