FNX Mining Company Inc.

FNX Mining Company Inc.

September 04, 2007 08:48 ET

FNX Initiates $18 Million Advanced Underground Exploration Programs at Podolsky North and Nickel Ramp Deposits

TORONTO, ONTARIO--(Marketwire - Sept. 4, 2007) - FNX Mining Company Inc. (TSX:FNX) ("FNX" or "Company") announces that, in consideration of its recent successful underground excavations at the 2000 Deposit, the near completion of the surface facilities at the Podolsky Mine and the current strong commodity prices, it has initiated two additional advanced underground exploration programs at its Podolsky Mine Property. The combined $18 million programs are designed to aggressively explore and develop both the North and Nickel Ramp Deposits (See Figure 1). The programs will consist of ramping down to and driving crosscuts through the deposits, and geological mapping, sampling and extensive underground drilling to define and develop the deposits. Both ramps will start from the Podolsky ramp collar, which was previously established and maintained on standby, and will diverge at about the 100 ft level. In total, about 5,250 ft of lateral development will be excavated to access both the North and Nickel Ramp Deposits (See Figure 2).

The North Deposit is a footwall type, vein-dominant Cu-Ni-Pt-Pd-Au deposit, very similar to the Podolsky 2000 Deposit. It is exposed at surface ("the 2003 Yellow Brick Road showing") and plunges to the south towards the 2000 Deposit to a depth of at least 600 vertical ft. It is characterized by a stockwork of high-grade, copper, nickel and platinum-palladium-gold-bearing massive sulphide veins similar to those encountered in the 2000 Deposit. The previously published NI43-101 compliant indicated resource for the North Deposit is 130,000 tons at 6.56% copper, 0.66% nickel and 0.20 ounces per ton Pt+Pd+Au ("TPM"). The Deposit is open at depth and has potential to contain additional resources. The ramp for the North Deposit will be 1,225 ft in length and will provide for crosscut drifting into the Deposit as well as platforms for extensive underground drilling. Pending positive results from this work, a decision to go from pre-production development to full production is expected in late 2008. In this scenario, a full production rate of 350 to 500 tons per day is tentatively scheduled from the North Deposit in 2009.

The Nickel Ramp Deposit is a disseminated sulphide, contact nickel type deposit and the down-plunge extension of the previously mined Whistle open pit deposit. The mineralization consists of strongly disseminated blebby sulphide and local massive sulphide zones hosted by Sublayer Norite. A previously published NI43-101 compliant, inferred resource for this Deposit totaled 6.68 million tons of 0.75% nickel and 0.21% copper (see May 28, 2008 FNX news release). A two rig, 20,000 ft surface drilling program has been initiated at the Nickel Ramp Deposit to provide data to facilitate further geological and resource modeling and to refine the planned underground advanced exploration program. The surface drill program is scheduled to be completed in December 2007. Total ramp development at Nickel Ramp is planned for 4,025 feet and is designed to provide drill platforms for a 15,000 ft underground definition drill program and to allow crosscut drifting into the deposit as well as geological mapping and sampling. The objective of the advanced underground exploration program is to define a large, low-grade, nickel contact deposit that can be bulk mined with low operating costs. A production decision based on the results of the advanced exploration program is expected in early 2009.

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.

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 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 Maps of the Podolsky Mine, please visit the following links:

Figure 1: http://www.ccnmatthews.com/docs/podF10904.pdf

Figure 2: http://www.ccnmatthews.com/docs/podF20904.pdf

Contact Information

  • FNX Mining Company Inc.
    Terry MacGibbon
    President and CEO
    (416) 628-5929
    (416) 360-0550 (FAX)
    FNX Mining Company Inc.
    David Constable, Vice President
    Investor Relations and Corporate Secretary
    (416) 628-5928
    Email: info@fnxmining.com
    Website: www.fnxmining.com