FNX Mining Company Inc.

FNX Mining Company Inc.

November 01, 2007 06:30 ET

FNX Announces Initial Reserves and Intersects Another High-Grade Zone at Podolsky

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2007) - FNX Mining Company Inc. (TSX:FNX) ("FNX" or "Company") announces initial measured resource and probable reserve estimates for the lower, southwest portion of the Podolsky Property's 2000 Deposit (see Figure 1), where the Company recently drifted into a high-grade massive sulphide vein from the 2450 Level (see Aug. 2, and Sept. 5, 2007 FNX news releases). The initial resources and reserves, which are open in all directions, are based on the results of the ongoing underground definition drilling and bulk sampling programs off the 2450 Level drift and will enable immediate mine planning and scheduling; leading to initial commercial production from the Podolsky 2000 Deposit in first half of 2008.

An initial measured resource of 102,000 tons grading 22.69% Cu, 1.43% Ni, 0.41 ounce per ton Pt-Pd-Au ("opt TPM") was established and converted to a probable mineral reserve of 92,000 tons grading 18.54% Cu, 1.23% Ni, and 0.34 opt TPM (see Table 1 for details).

This high-grade measured resource is included within a larger measured resource of 401,000 tons grading 7.08% Cu, 0.69% Ni, and 0.17 opt TPM which has also been converted to a probable mineral reserve of 324,000 tons grading 7.94% Cu, 0.67% Ni, and 0.17 opt TPM (see Table 1 for details).

Underground borehole FNX4277 intersected 15.4 ft of high-grade massive sulphide mineralization approximately 25 ft above the reserve block, and an additional 23.7 ft of high-grade semi-massive sulphide mineralization for which assays are pending. This high-grade mineralization may be indicative of a new parallel massive sulphide zone, but the orientation, extent and potential of the 23.7 ft intersections in FNX4277 is unknown and will require extensive detailed drilling. The ongoing underground drilling program will provide the information required to further define the reserve block, to test the high-grade 23.7 ft intersection in FNX4277 and to search for additional high-grade massive sulphide zones.

The 2000 Breccia Deposit is characterized by zones and veins of chalcopyrite-rich sulphide, with inter-vein, low-sulphide, high Pt and Pd tenor stringer and disseminated mineralization. It is hosted by clast-rich quartz diorite and metabreccia of the Whistle Offset. Detailed definition drilling from the recently established 2450 Level drift has been continuing since August to define the high-grade massive sulphide zone in this part of the Cu-Ni-Pt-Pd-Au 2000 Breccia Deposit and to establish its relationship to the rest of the Deposit.

Significant high-grade drill intersections used to define the massive sulphide portion of the 2000 Deposit reported today include:

FNX4241: 26.79% Cu, 1.49% Ni, 0.15, opt Pt, 0.20, opt Pd, 0.01, opt
Au over 80.0 ft
FNX4242: 24.19% Cu, 2.02% Ni, 0.15, opt Pt, 0.20, opt Pd, 0.07, opt
Au over 49.6 ft
FNX4248: 23.91% Cu, 1.46% Ni, 0.21, opt Pt, 0.27, opt Pd, 0.23, opt
Au over 17.3 ft
FNX4252: 22.97% Cu, 0.77% Ni, 0.18, opt Pt, 0.18, opt Pd, 0.03, opt
Au over 13.2 ft
FNX4264: 24.53% Cu, 0.93% Ni, 0.17, opt Pt, 0.19, opt Pd, 0.01, opt
Au over 10.3 ft

Pre-production ore from the 2450 level drifting into the 2000 Breccia Deposit has been shipped to the custom mill for processing and full commercial production is expected in the first half of 2008 with full production at a rate of 1,200 tons per day expected to be achieved by the end of 2008.

Table 1: Summary of Mineral Resources and Reserves as shown in Figure 1

Tons Cu Ni Pt Pd Au TPM
Category % oz/ton
Measured 401,000 7.08 0.69 0.07 0.08 0.02 0.17
Resource -------------------------------------------------------
including 102,000 22.69 1.43 0.16 0.21 0.04 0.41
Probable 324,000 7.94 0.67 0.07 0.08 0.02 0.17
Reserve -------------------------------------------------------
including 92,000 18.54 1.23 0.13 0.18 0.03 0.34

Geological continuity between the graded blocks (10 ft3) was used to calculate the Measured mineral resource estimates. Due to the polymetallic (Cu-Ni-Pt-Pd-Au) character of the 2000 Deposit, an in-situ total dollar sensitivity approach has been employed to establish an economic cut-off of CDN$100. The in-situ dollar value was calculated for each block based on a US$-CDN$ exchange rate of 0.80 and the following metal prices: Cu equals US$1.50/lb; Ni equals US$5.00/lb; Pt equals US$800/oz; Pd equals US$350/oz; and Au equals US$400/oz. Reserves are the mineable economic portion of the Measured resources. The Probable reserves estimates reported here are based on the same metal prices and foreign exchange schedule as resources using bulk mining methods with approximately 95% mining recovery, a back-fill dilution of 2.6%, and metal prices based on the Company's current off-take agreement.

Qualified Person

Catharine Farrow Ph.D., P. Geo., Vice President Exploration for FNX is the designated Qualified Person pursuant to NI 43-101 of the Canadian Securities Administrators and is responsible for the verification and quality assurance of the technical content of this news release. Richard Smith, P. Eng., Manager of Engineering is FNX's Qualified Person for reserves estimations. Samples of drill core were prepared at SGS Lakefield Laboratories in Garson and shipped to SGS Minerals Services, Toronto, Ontario for assay. SGS Minerals Services is accredited by the Standards Council of Canada (SCC) for specific mineral tests listed on the scope of accreditation to the ISO/IEC 17025 standard. Please see the May 29, 2007 news release for a description of sample preparation and assay procedures.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements of reserve and resource estimates, their future economic viability and future production forecasts are examples of forward-looking statements. There is no guarantee that any of the mineral resources described here will be commercially viable. Accordingly, readers should not place undue reliance on forward-looking statements.

To view a map of Podolosky Mine 2000 Deposit (Figure 1), please visit the following link: http://www.ccnmatthews.com/docs/podolsky.pdf

Contact Information

  • FNX Mining Company Inc.
    John Lill
    President and Chief Executive Officer
    (416) 628-5929
    FNX Mining Company Inc.
    David Constable
    Vice President Investor Relations and Corporate Secretary
    (416) 628-5929
    Email: info@fnxmining.com
    Website: www.fnxmining.com