TORONTO, ONTARIO--(Marketwire - Jan. 17, 2011) - Victory Nickel Inc. (the "Company") (TSX:NI) (www.victorynickel.ca)today announced that preparations are underway for drilling in the NoseDeposit and North Limb at its 100%-owned Minago sulphide nickel projectin Manitoba. Drilling is expected to begin toward the end of January.
The Nose Deposit currently incorporates all known resourcesand reserves at Minago (620 million pounds in-situ nickel Measured andIndicated resource, 170 million pounds in-situ nickel inferred resource –see below); the North Limb is an underexplored and highly prospectivezone of sulphide nickel mineralization with a known strike length of 1.5kilometres to the north of the Nose Deposit.
The drill program will incorporate the following:
- A single deep hole targeting the down-plunge extension of the significant nickel resource currently known to exist in the Nose Deposit at Minago. In part, this deep drill hole will target a large magnetic mass shown to extend to a depth in excess of 1.5 kilometres vertically and over two kilometres in length incorporating the Minago Nose Deposit and the North Limb (see "Figure 1: Magnetic Inversion Study" attached).
- Ten holes to define a nickel resource in the North limb. The North Limb's existing 17 diamond drill holes demonstrate continuity and significant thickness of nickel-mineralized rock identical in character to that which comprises the Nose Deposit.
- Five holes in the local area of the Nose Deposit to examine the geology and assess local conditions with regard to infrastructure placement.
"Near-surface mineralization already identified in pastdrilling shows that the North Limb is a prime target for significantexpansion of the Minago resource," said Paul Jones, Vice-President,Exploration. "The airborne survey shows that the potential exists forthe Nose Deposit and North Limb to comprise a single continuousmineralized body. If this is the case, the nickel resource at Minagowould increase dramatically, potentially to district proportions."
Victory Nickel's Qualified Person under the NI 43-101guidelines is Paul Jones, Vice-President, Exploration. Mr. Jones hasreviewed and approved the contents of this news release.
Permitting Update
As announced in its news release of May 4, 2010, VictoryNickel has submitted its Environmental Impact Statement (EIS) toregulators in Manitoba. This submission represented a key step in thepermitting process. In addition, the Company has responded to alltechnical questions since then regarding the EIS and fulfilled itsobligations with respect to public and community engagement meetings inthe individual Aboriginal communities in the Minago area. Victory Nickelmaintains ongoing communication with the Aboriginal communities thatwill be impacted by the development of a large-scale mining operation atMinago, and is committed to working with these parties in a manner thatwill benefit all stakeholders, including the province of Manitoba. TheCompany is waiting for the government of Manitoba to undertake its dutyto consult with Aboriginal communities as required under the CanadianConstitution Act, 1982.
About Minago
Victory Nickel's l00%-owned Minago sulphide nickel project islocated approximately 225 kilometres south of Thompson, Manitoba on theThompson Nickel Belt. Minago is one of Canada's largest undevelopedsulphide nickel deposits, with a nickel resource (0.25% cutoff, totalnickel basis) as follows: Measured: 11.1 million tonnes grading 0.56%Ni; Indicated: 43.1 million tonnes grading 0.51% Ni; Inferred: 14.6million tonnes grading 0.53% Ni. The Minago feasibility study indicatesan internal rate of return of 19.8% at US$11.19/lb Ni and a net presentvalue (6% discount rate) of $487.6 million (see news release dated June21, 2010).
About Victory Nickel
Victory Nickel Inc. is a Canadian company with four sulphidenickel deposits containing significant NI 43-101-compliant nickelresources. Victory Nickel is focused on becoming a mid-tier nickelproducer by developing its existing properties, Minago, Mel and LynnLake in Manitoba, and Lac Rocher in northwestern Québec, and byevaluating opportunities to expand its nickel asset base. Victory Nickelalso owns shares in Prophecy Resource Corp. (TSX VENTURE:PCY) andWallbridge Mining Company Limited (TSX:WM), the third largest landholderin the Sudbury Basin which in turn owns approximately 13% of DuluthMetals Limited.
Please visit the Company's website at www.victorynickel.ca. Should you wish to receive Company news via email, please email nadine@chfir.com and specify "Victory Nickel" in the subject line.
Forward-Looking Information: This newsrelease contains forward-looking information. All statements, other thanstatements of historic fact, that address activities, events ordevelopments that the Company believes, expects or anticipates will ormay occur in the future constitute forward-looking information. Thisforward-looking information reflects the current expectations or beliefsof the Company based on information currently available to theCompany. Forward-looking information is subject to a number of risks anduncertainties that may cause the actual results of the Company todiffer materially from those discussed in the forward-lookinginformation, and even if such actual results are realized orsubstantially realized, there can be no assurance that they will havethe expected consequences to, or effects on the Company. Factors thatcould cause actual results or events to differ materially from currentexpectations include, among other things: uncertainty of estimates ofcapital and operating costs, production estimates and estimated economicreturn; the possibility that actual circumstances will differ fromestimates and assumptions; uncertainties relating to the availabilityand costs of financing needed in the future; failure to establishestimated mineral resources; fluctuations in commodity prices andcurrency exchange rates; inflation; recoveries being less than thoseindicated by the testwork carried out to date (there can be no assurancethat recoveries in small scale laboratory tests will be duplicated inlarge tests under on-site conditions or during production); changes inequity markets; operating performance of facilities; environmental andsafety risks; delays in obtaining or failure to obtain necessary permitsand approvals from government authorities; unavailability of plant,equipment or labour; inability to retain key management and personnel;changes to regulations or policies affecting the Company's activities;the uncertainties involved in interpreting geological data; and theother risks disclosed under the heading "Risk Factors" and elsewhere inthe Company's annual information form dated March 31, 2010, filed onSEDAR at www.sedar.com.Forward-looking information speaks only as of the date on which it ismade and, except as may be required by applicable securities laws, theCompany disclaims any intent or obligation to update any forward-lookinginformation, whether as a result of new information, future events orresults or otherwise. Although the Company believes that the assumptionsinherent in the forward-looking information are reasonable,forward-looking information is not a guarantee of future performance andaccordingly undue reliance should not be put on such information due tothe inherent uncertainty therein.
To view Victory Nickel Inc., Minago Project, Magnetic Inversion Study, please visit the following link: https://media3.marketwire.com/docs/vicnick.pdf.