Post by
piltech on Feb 28, 2005 12:07pm
FNX makes significant discovery in Sudbury
FNX discovers high-grade mineralization beside Levack
FNX Mining Company Inc (TSX:FNX)
Shares Issued 50,244,169
Last Close 2/25/2005 $5.85
Monday February 28 2005 - News Release
Mr. Terry MacGibbon reports
FNX MINING DISCOVERS HIGH-GRADE CU-PT-PD-AU MINERALIZATION IN FOOTWALL OF LEVACK MINE
FNX Mining Company Inc. has discovered high-grade Cu-Ni-Pt-Pd-Au mineralization in the footwall rocks behind its 75-per-cent-owned Levack mine property in Sudbury, Ont. Two massive sulphide veins consisting of chalcopyrite, cubanite, pentlandite and millerite were intersected approximately 3,900 feet vertically below surface.
Borehole FNX 6010 includes:
5,357.2 to 5,367.4, 10.2 feet, 26.2 per cent Cu, 3.0 per cent Ni, 0.42 ounce per ton Pt+Pd+Au; and
5,395.0 to 5,411.4, 16.4 feet, 26.2 per cent Cu, 3.7 per cent Ni, 0.45 ounce per ton Pt+Pd+Au.
The upper sulphide vein consists of 10.2 feet of massive sulphide grading 26.2 per cent copper, 3.0 per cent nickel and 0.42 ounce per short ton of platinum plus palladium plus gold. The lower massive sulphide vein occurs 27.6 feet farther down the hole and consists of 16.4 feet of massive sulphides grading 26.2 per cent copper, 3.7 per cent nickel and 0.45 ounce per short ton of platinum plus palladium plus gold (see Table 1).
The full significance of this new discovery and the true width and orientation of the veins are unknown at this time and cannot be determined without further drilling. However, the intersected high-grade footwall-style mineralization has many of the features and characteristics of Sudbury basin footwall ore deposits and has the largest and best quality borehole geophysical response yet encountered by FNX on any of the Sudbury joint venture properties.
Borehole FNX 6010 was collared behind the Levack No. 2 shaft and drilled to the southeast and subparallel to the Sudbury Igneous complex contact. The borehole was temporarily halted to allow for the original drill rig to be replaced by a larger drill rig which will allow the borehole to be deepened to depths of 7,000, if required.
Mineralized Sudbury breccia was intersected throughout most of the borehole. Sudbury breccia is the host to most Sudbury basin footwall deposits and in this area behind the Levack mine hosts the Levack No. 3 orebody and represents a 3,500-foot by 5,000-foot footwall target.
From about 5,000 feet to 5,750 feet, the current depth of the borehole, the borehole intersected a large bornite-bearing, sulphide mineralized system containing veins, blebs and disseminations of bornite. This type of bornite mineralization tends to occur at the periphery or as a halo to Sudbury basin footwall ore deposits.
The large mineralized system and the massive sulphide veins are similar in character and occur at the same stratigraphic location as Inco's McCreedy East 153 and Falconbridge's Fraser-Strathcona deep copper ore deposits. This new discovery is located 6,000 feet west of the McCreedy East mine 153 footwall deposit and 12,000 feet from the Fraser-Strathcona deep copper deposits. It is also located directly behind and below the Levack mine, which produced approximately 60 million tons of 1.8 per cent nickel and 1.0 per cent copper ore from 1937 to 1999.
Borehole FNX 6010 was surveyed by Lamontagne Geophysics using its UTEM-4 system to a depth of 5,450 feet. The geophysical results outlined a large, complex, strongly conductive environment with significant in-hole and off-hole anomalies that are open at depth. Of these multiple conductors, the main conductor consists of a highly conductive core (50,000 Siemens measured at two hertz) that is 225 feet by 375 feet in area. This core area is hosted within a larger conductor that is 650 feet by 1,000 feet in area with variable conductivity from 10,000 to 1,000 Siemens (measured at two hertz). The location of the majority of the UTEM anomaly appears to be to the west of the borehole but definitive interpretations will only be possible when the drilling has progressed through the conductive zone, which is open to depth and a full UTEM-4 profile is available. The existing Levack infrastructure, including the 4,400-foot vertical Levack No. 2 shaft that is currently being reconditioned by the Sudbury joint venture, could provide underground access to the new discovery area, if warranted. The distance from both the Levack 3,600 level and previously mined No. 7 orebody infrastructure is less than 1,500 feet.
There are currently four drill rigs testing footwall targets on the Levack property. Additional drill rigs will be added as they become available over the next few months. New drill information and results will be released when available, but none is expected for at least one month.
Terry MacGibbon, president and chief executive officer of FNX Mining Company, stated, "It has been the company's policy not to release data from a single borehole, but the mineralogy, the high-grade metal values, the strong borehole geophysical anomalies, the location and the significant potential of the intersected mineralization and surrounding rocks warrant its release at this time."
Mr. MacGibbon further added: "Our exploration team, over the past year, in addition to dedicating most of their efforts defining resources and reserves and supporting our McCreedy West phase 1 mining, conducted surface mapping and sampling programs in the footwall environments of the McCreedy West/Levack mine properties to identify footwall target areas for drill testing. This discovery of high-grade footwall mineralization behind the Levack mine is a direct result of this work and the exploration team's knowledge and expertise gained over the past three years exploring our Sudbury joint venture properties."
Sudbury joint venture -- general
The Sudbury joint venture is owned 75 per cent by FNX (exploration operator) and 25 per cent by Dynatec (mining operator). The Sudbury joint venture properties (McCreedy West, Levack, Victoria, Podolsky and Kirkwood) are all former copper, nickel, platinum, palladium, gold producers. The properties are located in the Sudbury district of Northeastern Ontario and are covered by previously announced agreements between FNX and Dynatec Corporation (see news as reported in Stockwatch Feb. 3, 2002). For a detailed description of the properties and previous work, please go to the FNX website, www.fnxmining.com, and refer to FNX's annual information form dated March 23, 2004.
James M. Patterson, PhD, PGeo, and vice-president exploration of FNX, is the designated qualified person and responsible for the verification and quality assurance of the Sudbury joint venture's exploration data and analytical results. Anthony P. Makuch, MEng, PEng, MBA, and Dynatec's vice-president, Sudbury joint venture mining operations, oversees mining activities on behalf of the Sudbury joint venture. Please see news as reported in Stockwatch July 16, 2003, and the March 23, 2004, annual information form for a description of sample preparation and assay procedures for the Sudbury joint venture.
TABLE 1
BH FNX 6010
LEVACK FOOTWALL MINERALIZATION
(Assays received to date)
From To Length Cu Ni Pt
(ft) (ft) (ft) (%) (%) (g/t)
5357.2 5359.0 1.8 26.80 1.24 4.26
5359.0 5361.1 2.1 27.10 3.11 2.83
5361.1 5363.5 2.4 30.20 0.49 4.17
5363.5 5365.3 1.8 26.10 3.96 4.33
5365.3 5367.4 2.1 20.40 6.38 5.62
5357.2 5367.4 10.2 26.22 2.99 4.24
5395.0 5396.9 1.9 27.70 2.31 4.21
5396.9 5399.8 2.9 28.90 1.94 3.48
5399.8 5402.9 3.1 29.30 0.89 4.33
5402.9 5405.4 2.5 25.00 3.68 4.84
5405.4 5407.4 2.0 29.70 1.48 5.00
5407.4 5409.0 1.6 23.60 7.56 6.09
5409.0 5410.1 1.1 14.00 17.40 2.88
5410.1 5411.4 1.3 20.40 3.11 13.10
5395.0 5411.4 16.4 26.15 3.67 5.09
TABLE 1
BH FNX 6010
LEVACK FOOTWALL MINERALIZATION
(Assays received to date)
From To Pd Au TPM TPM
(ft) (ft) (g/t) (g/t) (g/t) (oz/st)
5357.2 5359.0 7.31 0.24 11.81 0.34
5359.0 5361.1 7.57 0.04 10.44 0.31
5361.1 5363.5 10.75 0.02 14.94 0.44
5363.5 5365.3 12.10 0.05 16.48 0.48
5365.3 5367.4 11.10 1.87 18.59 0.54
5357.2 5367.4 9.80 0.45 14.49 0.42
5395.0 5396.9 6.28 0.41 10.90 0.32
5396.9 5399.8 5.17 0.03 8.68 0.25
5399.8 5402.9 7.91 0.02 12.26 0.36
5402.9 5405.4 14.05 0.06 18.95 0.55
5405.4 5407.4 11.35 0.03 16.38 0.48
5407.4 5409.0 17.10 0.06 23.25 0.68
5409.0 5410.1 10.35 0.08 13.31 0.39
5410.1 5411.4 12.30 3.46 28.86 0.84
5395.0 5411.4 10.00 0.35 15.44 0.45
Notes include:
the lengths reported are drill intersected core lengths;
Cu equals copper; Ni equals nickel; Pt equals platinum; Pd equals palladium; Au equals gold;
TPM equals total precious metals defined as Pt+Pd+Au;
g/t equals grams per metric tonne;
oz/st equals ounces/short ton; and
conversion factor g/t to oz/st equals g/t times 0.02917.
To view figures 1, 2 and 3 go to the following link https://www2.ccnmatthews.com/database/fax/2000/fnx0228.pdf.