First Nickel Inc.

First Nickel Inc.

October 03, 2005 08:51 ET

First Nickel Begins Drilling On Bowell Property, North Range, Sudbury Basin Targeting Contact-Style And High-Grade Footwall Deposits

TORONTO, ONTARIO--(CCNMatthews - Oct. 3, 2005) - First Nickel Inc. (TSX:FNI) announces today that it has begun an 8,000 metre diamond drill program on the recently optioned Bowell property located on the eastern portion of the North Range of the Sudbury Basin. First Nickel as operator can earn 100% in the property by paying Falconbridge Limited CDN $2 million and placing the property into commercial production within two years.

A recently completed deep penetration, high resolution IP/Resistivity survey has identified a number of high priority targets for drill testing. The known sulphide deposit (see March 22/05 press release) has provided FNI with a geophysical signature that can be applied to the rest of the property. The survey suggests three additional contact associated targets to the east of the known deposit including a potential 200 metres eastern extension of the known mineralization. Two additional geophysical anomalies to the east are associated with known gossanous zones with previous surface grab sampling from the eastern gossan by Falconbridge returning values in 1.15 - 1.77 % Ni range. All of these targets will be tested during the up-coming drill program.

Following a review of previous work, FNI has concluded there is excellent potential for footwall mineralization on the property. For example, Falconbridge's last drill hole on the property in 2003, (BO-144) intersected significant nickel and copper values associated with massive and semi-massive sulphides hosted in a thick sequence of Sudbury Breccia approximately 35 metres into the footwall gneiss. The hole bottomed in Sudbury Breccia with disseminated chalcopyrite and pyrrhotite. The more significant intersections are summarized as follows:

From (m) To (m) Core Length (m) % Ni % Cu

95.35 124.59 29.24 1.34 1.59


95.35 106.50 11.15 1.63 2.05

100.00 102.00 2.00 1.94 3.86

112.00 114.00 2.00 1.57 2.81

118.28 120.16 1.88 2.94 1.55

122.76 124.12 1.36 3.17 1.98

Core Lengths are reported as true widths are not yet determined

The geophysics has recorded a number of strong anomalies in the footwall rocks beneath the known deposit that, in light of the above Falconbridge intersections, could indicate significant potential for high-grade footwall mineralization here and elsewhere on the property. Testing of the footwall targets will be a priority in the upcoming drill program.

The surface drilling program is being supervised by Phil Vicker, P.Geo, of First Nickel Inc, a qualified person under National Instrument 43-101 guidelines. Drill core of interest (NQ size) will be sawed, with one-quarter sent to a commercial laboratory, Expert Laboratory of Rouyn-Noranda, Que., one quarter retained for future reference, and one half sealed in plastic bags and frozen for potential future metallurgical studies . A rigorous quality assurance/quality control program is employed which includes the insertion of standards, blanks and duplicates for each batch of samples.

Core samples are routinely analyzed for nickel, copper and cobalt by aqua regia digestion, atomic absorption techniques. Those samples returning greater than 5,000 parts per million (0.5 per cent) nickel are re-assayed by total digestion atomic absorption and their value reported as a per cent. Selective assays for gold and platinum group elements on the higher-grade nickel samples are carried out by standard fire assay techniques.

At July 31, 2005 First Nickel had working capital of approximately $13,500,000 and 53,730,598 common shares issued and outstanding.

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