Jaguar Nickel Inc.

Jaguar Nickel Inc.

January 06, 2005 11:45 ET

Jaguar Nickel Inc.: Sechol Project Drilling Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: JAGUAR NICKEL INC.

TSX SYMBOL: JNI

JANUARY 6, 2005 - 11:45 ET

Jaguar Nickel Inc.: Sechol Project Drilling Update

TORONTO, ONTARIO--(CCNMatthews - Jan. 6, 2005) - Jaguar Nickel Inc.
(TSX:JNI) is pleased to assay data received for an additional 99 holes
in its ongoing drilling program on the nickel / cobalt laterite project
in Guatemala. There are 35 holes from the El Inicio area, from the El
Segundo area and 3 from the Rio Negro area (Maps 1 - 4 Inc.).

El Inicio Grid

The results to date for El Inicio continue to show well mineralised
nickel laterite with continuity present over the majority of this area.
Of the 35 holes reported in this release, intercepts of nickel bearing
laterite exceeding a 1.00% nickel cut-off. Seven of the holes were on
the 100m x 100m evaluation grid and 28 holes on two 25m x 25m grids
short range grade and thickness variability. With the exception of one
hole on the 100m the holes reported have intercepts of nickel bearing
laterite exceeding a 1.00% nickel The results from the holes suffixed
with A or B represent the successful re-drilling of holes which had
unacceptable core recovery.



El Inicio - 100m x 100m Grid
Table of Intercepts Greater Than or Equal To 1.00% nickel cut-off

--------------------------------------------------------------
Hole Intercept Interval (m) Ni (%) Co (%)
--------------------------------------------------------------
From (m) To (m)
--------------------------------------------------------------
JNI-04-017B 8.10 17.40 9.30 2.36 0.03
--------------------------------------------------------------
JNI-04-093 0.70 10.40 9.70 1.87 0.03
--------------------------------------------------------------
JNI-04-105 2.00 5.10 3.10 1.67 0.02
--------------------------------------------------------------
JNI-04-107A 1.00 5.35 4.35 1.59 0.04
--------------------------------------------------------------
" " 8.50 20.10 11.60 2.00 0.02
--------------------------------------------------------------
JNI-04-156A 3.50 21.50 18.00 1.54 0.04
--------------------------------------------------------------
JNI-04-160A 2.25 12.70 10.45 1.71 0.08
--------------------------------------------------------------


El Inicio - 25m x 25m Grids
Table of Intercepts Greater Than or Equal To 1.00% nickel cut-off

------------------------------------------------------------------
Hole Intercept Interval (m) Ni (%) Co (%)
------------------------------------------------------------------
From (m) To (m)
------------------------------------------------------------------
JNI-04-459A 6.60 21.70 15.10 2.04 0.03
------------------------------------------------------------------
JNI-04-460A 3.00 16.00 13.00 1.64 0.05
------------------------------------------------------------------
JNI-04-466 1.00 32.60 31.60 1.88 0.04
------------------------------------------------------------------
JNI-04-473A 0.50 24.00 23.50 1.56 0.09
------------------------------------------------------------------
JNI-04-474A 1.10 15.00 13.90 1.51 0.07
------------------------------------------------------------------
JNI-04-480 0.00 4.25 4.25 1.50 0.03
------------------------------------------------------------------
JNI-04-481 3.20 7.30 4.10 1.54 0.03
------------------------------------------------------------------
JNI-04-482 0.90 3.80 2.90 1.44 0.03
------------------------------------------------------------------
JNI-04-483 2.65 5.30 2.65 1.56 0.02
------------------------------------------------------------------
JNI-04-484 2.48 5.00 2.52 1.57 0.01
------------------------------------------------------------------
JNI-04-487 0.90 3.00 2.10 1.49 0.03
------------------------------------------------------------------
JNI-04-488 2.30 4.75 2.45 1.43 0.04
------------------------------------------------------------------
JNI-04-489 0.00 5.20 5.20 1.72 0.03
------------------------------------------------------------------
JNI-04-490 1.25 5.50 4.25 1.36 0.04
------------------------------------------------------------------
JNI-04-491 0.50 3.50 3.00 1.89 0.01
------------------------------------------------------------------
JNI-04-492 2.30 4.60 2.30 1.60 0.01
------------------------------------------------------------------
JNI-04-495 6.50 11.70 5.20 1.84 0.02
------------------------------------------------------------------
JNI-04-496A 3.25 10.50 7.25 1.78 0.04
------------------------------------------------------------------
JNI-04-497 1.65 6.80 5.15 1.83 0.02
------------------------------------------------------------------
JNI-04-498 0.00 3.80 3.80 1.17 0.02
------------------------------------------------------------------
JNI-04-499A 0.00 6.40 6.40 2.05 0.03
------------------------------------------------------------------
JNI-04-500 1.00 11.00 10.00 1.89 0.02
------------------------------------------------------------------
JNI-04-501 1.90 9.70 7.80 1.95 0.03
------------------------------------------------------------------
JNI-04-502A 6.00 9.50 3.50 1.79 0.03
------------------------------------------------------------------
JNI-04-508A 6.75 40.40 33.65 1.65 0.06
------------------------------------------------------------------
JNI-04-509 3.00 20.90 17.90 1.58 0.06
------------------------------------------------------------------
JNI-04-510 2.00 17.90 15.90 1.66 0.05
------------------------------------------------------------------
JNI-04-512 5.75 16.30 10.55 1.47 0.06
------------------------------------------------------------------

El Segundo Grid

Of the 61 holes reported, 25 have intercepts of nickel bearing
laterite exceeding a 1.00% nickel cut-off. Of these, 11 holes have
intercepts Greater Than or Equal To 1.50% nickel. The results from
the holes suffixed with A represent the successful re-drilling of
earlier holes which had unacceptable core recovery.

El Segundo - 100m x 100m Grid
Table of Intercepts Greater Than or Equal To 1.00% nickel cut-off

------------------------------------------------------------------
Hole Intercept Interval (m) Ni (%) Co (%)
------------------------------------------------------------------
From (m) To (m)
------------------------------------------------------------------
JNI-04-248 0.00 4.30 4.30 1.36 0.05
------------------------------------------------------------------
JNI-04-317 0.50 8.00 7.50 1.43 0.04
------------------------------------------------------------------
JNI-04-358 0.00 2.80 2.80 1.41 0.04
------------------------------------------------------------------
JNI-04-364A 0.60 2.60 2.00 1.05 0.05
------------------------------------------------------------------
JNI-04-367 1.00 3.00 2.00 1.10 0.04
------------------------------------------------------------------
JNI-04-376 0.20 2.80 2.60 1.32 0.03
------------------------------------------------------------------
JNI-04-380 0.00 8.00 8.00 1.48 0.03
------------------------------------------------------------------
JNI-04-381A 0.00 2.00 2.00 1.62 0.02
------------------------------------------------------------------
JNI-04-387 0.00 5.20 5.20 1.93 0.02
------------------------------------------------------------------
JNI-04-389 0.70 4.00 3.30 1.57 0.04
------------------------------------------------------------------
JNI-04-393 5.10 13.60 8.50 1.77 0.02
------------------------------------------------------------------
JNI-04-394A 6.05 11.20 5.15 1.46 0.02
------------------------------------------------------------------
JNI-04-395 0.00 10.90 10.90 1.44 0.04
------------------------------------------------------------------
JNI-04-397 3.30 7.40 4.10 1.17 0.05
------------------------------------------------------------------
JNI-04-399 0.00 2.50 2.50 1.87 0.02
------------------------------------------------------------------
JNI-04-405 12.30 30.00 17.70 1.92 0.04
------------------------------------------------------------------
JNI-04-423 0.00 8.40 8.40 1.33 0.08
------------------------------------------------------------------
JNI-04-426 0.30 4.10 3.80 1.37 0.03
------------------------------------------------------------------
JNI-04-428 1.20 3.60 2.40 1.53 0.04
------------------------------------------------------------------
JNI-04-429A 2.40 8.90 6.50 1.79 0.02
------------------------------------------------------------------
" " 12.30 17.00 4.70 1.30 0.01
------------------------------------------------------------------
JNI-04-436 3.60 18.46 14.86 1.47 0.05
------------------------------------------------------------------
JNI-04-437 3.80 8.90 5.10 1.50 0.01
------------------------------------------------------------------
JNI-04-453 4.10 11.00 6.90 1.29 0.03
------------------------------------------------------------------
JNI-04-455 2.50 5.75 3.25 1.67 0.03
------------------------------------------------------------------
JNI-04-478A 1.00 11.80 10.80 1.96 0.10
------------------------------------------------------------------

Rio Negro Grid

These are the first drilling results reported for the Rio Negro area.
Each of the three holes reported have intercepts of nickel bearing
laterite exceeding a 1.00% nickel cut-off.

Rio Negro - 100m x 100m Grid
Table of Intercepts Greater Than or Equal To 1.00% nickel cut-off

------------------------------------------------------------------
Hole Intercept Interval (m) Ni (%) Co (%)
------------------------------------------------------------------
From (m) To (m)
------------------------------------------------------------------
JNI-04-516 0.00 3.90 3.90 1.58 0.02
------------------------------------------------------------------
JNI-04-517 0.00 3.00 3.00 1.58 0.05
------------------------------------------------------------------
JNI-04-518 1.40 4.95 3.55 1.58 0.05
------------------------------------------------------------------


Sample preparation was undertaken by BSI Inspectorate laboratory in
Guatemala City and assay by SGS Lakefield Research Analytical Services
laboratory in Canada.

The compositing of nickel and cobalt grades in the individual holes was
done using a nickel cutoff of 1.00%, a minimum intercept length of 2
metres and a maximum length of internal waste of 2 metres. The
compositing was done across geological boundaries. It has not yet been
determined what cut-off grade should be used in an economic model.

Since the start of the Sechol drilling program in March 2004, 639
vertical HQ core holes with acceptable core recoveries totalling 8,355
metres have been completed. These include holes drilled on regular 100m
x 100m grids on El Inicio (224 holes; 3,302m), El Segundo (256 holes;
2,663m) and Rio Negro (93 holes; 1,230m). In addition 19 holes (267m)
were drilled for bulk density determination and 47 holes (893m) on two
close spaced grids (25m x 25m) on El Inicio for geostatistical
variability data. A part of the El Segundo area and the Pozo Azul area
are subject to land access negotiations and will be drilled when these
are satisfactorily concluded.

Jaguar has engaged Snowden Mining Industry Consultants of Vancouver to
undertake a block model resource estimate over the El Inicio grid and
polygonal resource estimates for the El Segundo and Rio Negro grids when
the 100m x 100m drilling is completed and the results are available. As
part of Snowden's forthcoming independent resource estimate its staff
has concluded field verification and validation of the database. Snowden
will also be providing mining engineering services.

The data were validated and the intersections calculated by the
designated Qualified Person for the project as defined in National
Instrument 43-101, Andrew F. Ross FAusIMM (CPGeo), of Snowden Mining
Industry Consultants of Vancouver.

Jaguar is a well funded, professionally managed resource company
involved in developing nickel-cobalt laterite properties in Guatemala,
Central America. The company is also developing an innovative and
proprietary nickel leaching technology that has the potential to be
economically and environmentally superior to traditional metallurgical
treatments.

Trading Symbol on the TSX: "JNI"

NOTE: There are Maps available on CCNMatthews' website at:
http://www2.ccnmatthews.com/database/fax/2000/jag106.pdf


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Jaguar Nickel Inc.
    Lynne A. Coles
    Director, of Investor Relations & Corporate Communications
    416-363-1124
    416-360-0728 (FAX)
    lcoles@jaguarnickel.com
    or
    Jaguar Nickel Inc.
    2015 - 120 Adelaide Street West,
    Toronto, Ontario M5H 1T1
    www.jaguarnickel.com
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.