First Nickel finds more high grade (November 08, 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, which graded 5.26% nickel and 0.2% copper over 15.2 metres. Included in the hole was a 1.7-metre intercept of 14.5% nickel, 0.49% copper and 0.13% cobalt.

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

Ten holes tested the northern portion of the Dundonald South zone, one of which cut 2 metres grading 2.49% nickel (including 0.7 metre of 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, which is in a komatiitic volcanic package, strikes east and dips steeply to the south. There are five sub-parallel zones in the northern portion of Dundonald South, and three nickel-bearing zones in the southern portion.

Four of the eight holes drilled in the southern portion cut a zone 0.5-1.95 metres wide 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 hole at the Terminus zone (1.3 km northeast of Dundonald South) failed to intersect significant base metals but did return 18 metres of favourable stratigraphy at a vertical depth of 600 metres. Drilling has targeted two off-hole geophysical anomalies, based on a re-interpretation of drill-hole data from Falconbridge (FL-T). The major owns 18.4% of the issued and outstanding shares of First Nickel.

To retain a 100% interest, First Nickel must spend $1.7 million exploring the property before the end of 2005.

The 9.5-sq.-km property consists of 56 claims.