FNX Mining Company Inc.
TSX : FNX

FNX Mining Company Inc.

December 21, 2006 13:00 ET

FNX Initiates Access to Levack Footwall From Craig Mine

TORONTO, ONTARIO--(CCNMatthews - Dec. 21, 2006) - FNX Mining Company Inc. (TSX:FNX) reports that it has reached an underground development and advanced exploration agreement with Xstrata Nickel whereby Xstrata Nickel will drive an exploration drift from its Craig Mine into FNX's adjoining Levack Footwall Deposit at the Levack Mine property. The development work totaling 805 metres of 5.0m by 5.4m drifting from the 4025 Level of the Craig Mine, consists of a 510 metres access drift to the middle portion of the Levack Footwall Deposit, 125 metres of crosscut drift to establish diamond drill stations to facilitate detailed drilling of the Levack Footwall Deposit, and an additional 170 metres of development within the mineralization. This work will also allow geological mapping and sampling of the footwall mineralization and the extraction of a bulk sample for metallurgical testing. Both Companies have agreed to discuss driving a similar but shorter (300 m) drift from the Craig Mine 30-1 Level into the upper portions of the Levack Footwall Deposit.

The underground program will commence immediately and will continue to the end of 2007 with exposure into the Levack Footwall Deposit expected by August of 2007. Total cost, including a significant budget for detailed drilling, will be approximately $12 million. Xstrata Nickel will carry out the development work on behalf of FNX and will be reimbursed for all associated costs.

The drilling and down hole geophysical results to date indicate that a continuous poly-metallic mineralized system exists from the top of Rob's Footwall Deposit down to at least the bottom of the Lower Levack Footwall Deposit, a vertical distance of some 1,600 ft (2,300 ft along plunge). This mineralized system hosts the Levack high-grade Cu-Ni-Pt-Pd-Au footwall veins and is open in all directions. To date, 59 boreholes have been drilled into the Levack Footwall Deposit with each borehole containing an average of 9.8 veins that average 2.7 ft in width. The average total width of mineralization per borehole is 26.5 ft grading an average of 12.4% Cu, 1.9% Ni and 11.6 grams per tonne of TPM (Pt+Pd+Au). Forty one (41) of these boreholes contained an average of 2.7 massive sulphide veins that averaged 4.9 ft in width. The average total width of these massive sulphide veins per borehole was 13.1 ft grading an average of 26.7% Cu, 3.5% Ni and 23.2 g/t TPM. The planned advanced exploration program will help define the Deposit and the continuity between the high grade veins.

Accessing the Levack Footwall Deposit quickly from underground has been a priority for FNX since the deposit was discovered in February 2005. The adjoining Craig Mine underground infrastructure has already provided excellent drill access from which to drill test the Levack Footwall Deposit and will now provide a unique opportunity to quickly access the Deposit and conduct a planned advanced underground exploration program.

In addition, the Company has approved a development and advanced exploration program to be conducted by FNX from its Levack Mine 2650 level. The planning and final engineering are expected to be completed by the end of the year with underground work starting early in the New Year.

The Craig Mine and Levack Mine advanced exploration programs will significantly accelerate the delineation and economic evaluation of the Levack Footwall Deposit and, subject to favourable results, enable it to be put into production as quickly as possible. Although ultimate production plans for the Levack Footwall Deposit calls for production development and ore extraction through the Company's Levack Mine infrastructure, underground access from the Craig Mine could greatly enhance the production timetable.

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 about potential discoveries or extensions of footwall type deposits, grades and estimated costs are examples of forward-looking statements. There is no guarantee that any discovery of commercial mineralization will be made on FNX Mining's Levack or other properties. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

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