FNX to Advance Exploration at Podolsky Property

FNX Mining, Toronto, Canada reported that it has initiated two additional advanced underground exploration programs at its Podolsky mine property in northern Ontario at the eastern end of the Sudbury Basin. The combined $18-million programs, designed to explore and develop both the North and Nickel Ramp deposits, will involve ramping down to and driving crosscuts through the deposits, and geological mapping, sampling and extensive underground drilling to define and develop the deposits. Both ramps will start from the Podolsky ramp collar, which was previously established and maintained on standby, and will diverge at about the 100 ft level. In total, about 5,250 ft of lateral development will be excavated to access both the North and Nickel Ramp Deposits.

The North deposit is a footwall type, vein-dominant Cu-Ni-Pt-Pd-Au deposit, open at depth and with potential to contain additional resources, according to the company. The ramp for the North Deposit will be 1,225 ft long and will provide for crosscut drifting into the deposit as well as platforms for extensive underground drilling.

Pending positive results from this work, a decision to go from pre-production development to full production is expected in late 2008. A full production rate of 350 to 500 t/d is tentatively scheduled from the North Deposit in 2009.

The Nickel Ramp deposit is a disseminated sulphide, contact nickel-type deposit. A two-rig, 20,000-ft surface drilling program has been initiated at Nickel Ramp to provide data to facilitate further geological and resource modeling and to refine the planned underground advanced exploration program. The surface drill program is scheduled to be completed in December 2007. Total ramp development at Nickel Ramp is planned for 4,025 ft and is designed to provide drill platforms for a 15,000-ft underground definition drill program and to allow crosscut drifting into the deposit as well as geological mapping and sampling. The objective of the advanced underground exploration program is to define a large, low-grade, nickel contact deposit that can be bulk mined with low operating costs. A production decision based on the results of the advanced exploration program is expected in early 2009.

FNX Mining plans to drive ramps into the Podolsky mine’s Nickel Ramp (left) and North (right) deposits for advanced exploration activities.