FNX Mining Company Inc.
TSX : FNX

FNX Mining Company Inc.

February 25, 2008 07:00 ET

FNX Expands 2450 Level High-Grade Resource and Announces Additional High-Grade Drill Results in the Podolsky 2000 Deposit

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2008) - FNX Mining Company Inc. (TSX:FNX) reports that it has extended the Podolsky 2000 Deposit Breccia Zone's 2450 Level high-grade, Cu-Ni-Pt-Pd-Au massive sulphide resource as a generally thinner sheet for at least an additional 150 ft up-dip (see Figure 2 and November 1, 2007 FNX press release). The massive sulphide resource occurs along a geological interface between a large block of gneissic rocks and the host breccia rocks. This highly mineralized interface appears to continue up-dip and along strike and may connect with a thick 26.3 ft massive sulphide vein grading 22.5% Cu, 0.1% Ni and 22.6 g/t Pt-Pd-Au (FNX4277) situated a further 100 feet up-dip of the current 2450 Level massive sulphide resource outline. Additional diamond drilling is required to determine the extent of 2450 Level massive sulphide resource and if this intersection is connected to it.

In addition, the ongoing underground definition drilling program continues to intersect significant ore-grade widths away from the massive sulphide resource and within the 2000 Deposit Breccia Zone mineralized resource envelope. Borehole FNX4277 intersected 153.7 ft grading 8.2% Cu, 0.6% Ni and 7.9 g/t Pt-Pd-Au ("TPM") that included very high-grade massive sulphide veins from a ft to up to 26 ft; as follows: 17.5 ft grading 15.6% Cu, 0.1% Ni, 10.3 g/t TPM, 1.0 ft grading 21.0% Cu, 0.2% Ni and 5.2 g/t TPM, 26.3 ft grading 22.5% Cu, 0.2% Ni, 22.6 g/t TPM, and 1.9 ft grading 12.2% Cu, 0.1% Ni and 7.2 g/t TPM (see Figure 2).

The positive drifting results over the past several months and the high-grade drill results being released today (see Table 1 for details) have not yet been used to revise the 2000 Deposit Breccia Zone's published mineral resource of 3,108,200 tons grading 3.24% Cu, 0.29% Ni and 3.62 grams per ton total precious metals (see FNX May 26, 2006 press release) or the published mineral resource for the 2450 Level high-grade, massive sulphide resource of 102,000 tons grading 22.69% Cu, 1.43% Ni, 0.41 opt TPM (see FNX November 1, 2007 press release). Significant additional drifting and drilling are required before a new revised 43-101 mineral resource can be estimated and published. However, the very positive results from the ongoing underground drilling and drifting into the Podolsky 2000 Breccia Deposit will positively affect revised mineral resource estimates.

A detailed review of previous surface drilling results has indentified several thick, high-grade, massive sulphide intersections that are now considered to be highly prospective for high-grade concentrations of massive sulphides similar to those discovered in the 2450 Level massive sulphide resource.

A 50,000 ft underground delineation drilling program currently underway and the ongoing definition drill program are designed to: explore for additional massive sulphide concentrations, expand the known mineral resources, upgrade the current resource classification in preparation for conversion to reserves, and to define the orientation and character of the massive sulphide vein systems and the relationships between the high grade veins and the ore-grade mineralization between the massive sulphide veins. The drill program will also test the insufficiently drilled 2000 Deposit Grey Gabbro Zone. The Grey Gabbro Zone, positioned in the hangingwall to the Breccia Zone, has an inferred resources estimate of 4.86 million tons at 1.16% copper, 0.15% nickel and 0.04 oz/ton TPM, including a higher grade zone of 1.34 million tons at 3.12% copper, 0.37% nickel and 0.10 oz/ton TPM (see FNX May 26, 2006 press release). The Grey Gabbro Zone resource is characterized by a sharp-walled vein system that is hosted within a large metagabbro block rather than in offset breccias as is the Breccia Zone. As experienced at FNX's Podolsky 2000 Deposit Breccia Zone and Levack Footwall Deposit, and at most other Sudbury Basin footwall deposits, drifting and definition drilling into the Grey Gabbro Zone is expected to discover additional higher grade mineralization and more extensive high-grade massive sulphide concentrations.

The Podolsky 2000 Deposit is currently being accessed by lateral development from both the 1750 and 2450 Levels as part of the ongoing Podolsky Mine development program. During 2007, FNX shipped 18,129 tons of pre-production ore for processing at Vale Inco's Clarabelle Mill as part of its 2450 Level stope development. To date this year, FNX has hoisted an additional 10,319 tons of ore as development of the high-grade reserve area continues. The targeted daily production rate of 1,250 tons per day is expected to be reached by the third quarter of this year and sustained from the fourth quarter onwards.

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 if this news release. Samples of drill core from the Podolsky 2000 Deposit are prepared at SGS Lakefield Laboratories in Garson and shipped to ALS Chemex in Vancouver, British Columbia for assay. ALS Chemex 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 July 16, 2003 news release and the March 28, 2007 Technical Report 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 Figure 1 and Figure 2 of the Podolsky Mine, please visit the following link: http://media3.marketwire.com/docs/Podolskymaps.pdf



Table 1: Results from Podolsky 2450 Level definition drilling

---------------------------------------------------------------------------
---------------------------------------------------------------------------
From To Cu Ni Pt+Pd+Au
DDH # (ft) (ft) Footage (%) (%) g/ton
---------------------------------------------------------------------------
---------------------------------------------------------------------------
FNX4265 256.5 412.9 156.4 5.1 0.5 7.7
---------------------------------------------------------------------------
incl. 256.5 260.2 3.7 11.4 1.1 9.5
---------------------------------------------------------------------------
and 262.7 266.1 3.4 13.2 2.2 11.3
---------------------------------------------------------------------------
and 270.2 273.3 3.1 15.3 0.9 9.2
---------------------------------------------------------------------------
and 274.3 277 2.7 11.4 0.7 36.7
---------------------------------------------------------------------------
and 285 297.4 12.4 19.6 1.3 34.4
---------------------------------------------------------------------------
and 309.6 310.8 1.2 26.9 0.1 22.3
---------------------------------------------------------------------------
and 325.7 328.1 2.4 26.7 0.2 13.3
---------------------------------------------------------------------------
FNX4267 181 207.6 26.6 10.2 0.6 11.1
---------------------------------------------------------------------------
incl. 181 182.6 1.6 25.3 0.8 17.6
---------------------------------------------------------------------------
and 193.3 194.7 1.4 29.2 0.8 13.6
---------------------------------------------------------------------------
and 197.8 202.6 4.8 18.3 1.6 21.2
---------------------------------------------------------------------------
FNX4269 165.5 180.2 14.7 8.2 0.2 6.5
---------------------------------------------------------------------------
incl. 172.7 176.7 4 25.3 0.1 14
---------------------------------------------------------------------------
205.3 238.6 33.3 4.9 1.7 3.5
---------------------------------------------------------------------------
incl. 230.2 232.5 2.3 18.6 0.3 5.1
---------------------------------------------------------------------------
FNX4277 298.5 452.2 153.7 8.2 0.6 7.9
---------------------------------------------------------------------------
incl. 298.5 316 17.5 15.6 1 10.3
---------------------------------------------------------------------------
and 378.4 379.4 1 21 0.2 5.2
---------------------------------------------------------------------------
and 419.7 446 26.3 22.5 0.2 22.6
---------------------------------------------------------------------------
and 450.3 452.2 1.9 12.2 0.1 7.2
---------------------------------------------------------------------------
FNX4285 243.1 247.5 4.4 14.5 0.7 9.7
---------------------------------------------------------------------------
257.2 258.4 1.2 19.8 8.1 18.2
---------------------------------------------------------------------------
353.3 357.4 4.1 24.8 0.4 8.9
---------------------------------------------------------------------------
435 440.8 5.8 16.1 2.8 44
---------------------------------------------------------------------------
492.1 543.3 51.2 8.5 0.3 5.5
---------------------------------------------------------------------------
incl. 502.7 509 6.3 24.6 0.2 10.1
---------------------------------------------------------------------------
and 520.1 252 4.9 27 0.7 18.4
---------------------------------------------------------------------------
and 537 538.3 1.3 27.2 0.2 3.6
---------------------------------------------------------------------------
626.3 628.8 2.5 21.2 0.1 7.4
---------------------------------------------------------------------------

- Cu equals copper, Ni equals nickel, Pt equals platinum, Pd equals
palladium, Au equals gold, ft equals feet or foot, m equals meters, g/t
equals grams per metric tonne

- The lengths reported are drill indicated core lengths. The true width of
individual veins cannot be determined due to the variable orientation of
the veins within the mineralized system.


Contact Information

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