First Nickel Inc.

First Nickel Inc.

July 11, 2007 08:15 ET

First Nickel Inc.-Lockerby Mine: Quarterly Nickel Ore Production and Mine Development Update, Sudbury, Ontario

TORONTO, ONTARIO--(Marketwire - July 11, 2007) - First Nickel Inc. ("First Nickel" or the "Company") (TSX:FNI) is please to report that daily production rates from the Lockerby Mine have increased by 70% through the second quarter of 2007 compared to the first quarter, averaging in recent weeks over 400 tonnes per day. A total of 35,343 dry metric tonnes was delivered to Xstrata's Strathcona Mill Facility at an estimated grade of 1.49% Ni and 0.96% Cu.

The lower average grades in the second quarter are attributable to lower grade material at the eastern limit of the 64 Level extracted at the start of the period which was deemed economic under current metal prices. Further development later in the quarter on 64 Level resulted in output returning to higher, more typical Lockerby grades.

Development work is progressing at the Lockerby Mine with the completion of the access to the western portion of the 64 Level. The driving of the undercut drift will provide development ore in addition to the active mining from the stopes in the eastern portion of the level. The down ramp to the 65 Level continues to advance as well as ongoing development work on the Lockerby East Zone.

Diamond drilling is continuing on the Lockerby Depth Zone to delineate Indicated Resources to the 72 level. Three exploration holes are scheduled to test down plunge on the Lockerby Depth Zone below the 80 Level in the second half of 2007. Engineering and mine planning studies are in progress on the merits of deepening of one of the existing shafts and related infrastructure improvements needed to develop the expanding Depth Zone resource.

First Nickel is in a solid financial position, with Lockerby Mine production at current levels generating cash resulting in a growing corporate working capital position. With a focus on growth through expansion and new development plans, the Company will continue to advance its pipeline of exploration projects and engineering studies in the months ahead.

The foregoing technical information in this release was prepared or reviewed by Paul Davis, P.Geo., Vice President Exploration for First Nickel Inc., a "qualified person" as defined by National Instrument 43-101.

First Nickel is a Canadian mining and exploration company. Its current activities are primarily focused on the Sudbury Basin in northern Ontario, the location of the company's producing property (the Lockerby Mine) and four of its exploration properties. First Nickel also has two exploration properties in the Timmins region of northern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

This news release may contain forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

Contact Information

  • First Nickel Inc.
    William Anderson
    President & CEO
    (416) 362-7050 or Toll Free: 1-888-362-7050
    (416) 362-9050 (FAX)