Fort St. James Nickel Corp.
TSX VENTURE : FTJ

Fort St. James Nickel Corp.

January 31, 2012 08:00 ET

Fort St. James Nickel Corp.: Drilling Confirms New Nickel Discovery at Kilometre 26

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2012) - Fort St. James Nickel Corp. (the "Company") (TSX VENTURE:FTJ) is pleased to announced diamond drill results for six holes (813 metres total) completed in November and December 2011 at the 100% owned Kilometre 26 project located in central British Columbia. All six holes spaced at an average of 400 metres apart (excepting K-11-1b which was re-drilled after K-11-1 was lost), intersected nickel mineralized serpentinized ultramafic rock throughout their full lengths with all holes ending in nickel mineralization. Five of the six holes were well mineralized with excellent nickel values throughout while one hole was well mineralized near its bottom. Nickel content of samples reaches a high of 3,048 ppm (0.30%). The distribution of the six holes extends 1,700 metres in a north south direction and approximately 500 metres in an east west direction within a geophysical target (total magnetic field high) that is more than 7 kilometres in length.

The following table summarizes the results:

Hole From - To
(Interval m)
Nickel
%
Chrome
ppm
Cobalt
ppm
Magnesium
%
Sulfur
%
K-11-1 34.0-72.0
(38.0m)
0.22 1,191 102 21.7 <0.05
K-11-1b 34.5-88.0
(53.5m)
0.21 1,123 102 21.4 <0.05
K-11-2 33.0-200.0
(167.0m)
0.21 1,160 101 21.3 <0.05
K-11-3 62.0-174.0
(112m)
including
168-174m
(6m)
0.04


0.16
678


1,528
64


92
4.1


7.7
0.07


0.09
K-11-4 13.5-171.0
(157.5)
0.20 1,103 98 22.0 <0.05
K-11-5 54.0-108.0
(54.0)
0.20 1,006 100 21.1 <0.05
Hole Overburden
(To m)
Hole Bottom (m) Last Sample
(Ni %)
Number
of Samples
K-11-1 34.0 72.0 0.22 19
K-11-1b 34.5 88.0 0.22 27
K-11-2 33.0 200.0 0.21 83
K-11-3 62.0 174.0 0.17 56
K-11-4 13.5 171.0 0.20 78
K-11-5 54.0 108.0 0.24 54

The high magnesium values are interpreted to reflect an initial high content of olivine which during serpentinization allowed nickel alloy and nickel sulfide to partition from the rock. The low sulfur content is interpreted to suggest that sulfide nickel is relatively minor.

Kilometre 26 is interpreted to contain a nickel mineralized ultramafic assemblage similar to the nearby Decar Project being explored by First Point Minerals Corp. and Cliffs Natural Resources Exploration Canada Inc. (30 km distant) and the Dumont project located in Quebec being developed by Royal Nickel Corporation. First Point and Cliffs have announced a recovery concept for the Decar Project that would recover nickel alloy using a magnetic recovery process (±64.0% Ni recovery reported). Royal Nickel has announced a recovery concept for the Dumont Project that would recover nickel alloy using a magnetic recovery process and high nickel content sulfide using a floatation process (±65.5% Ni recovery reported). Both nickel alloy and nickel sulfide occur at Kilometre 26 although the exact proportions of each is currently the subject of ongoing research. Scanning electron microscope work completed on surface rubble samples in 2011 identified both awaruite (nickel alloy) with an average nickel content of 81% and pentlandite (nickel sulfide) with an average nickel content of 35%. Other sulfide minerals were essentially non existent. Preliminary metallurgical work currently being completed by SGS Minerals Services in Burnaby, BC, has concluded that as much as 48.8% of the nickel in Kilometre 26 rubble samples reports to a magnetic concentrator (Ni alloy). SGS is still determining the proportion of sulfide nickel. The results reported above are total nickel which includes silicate, alloy and sulfide forms of the element. Analyses were performed by Acme Analytical Laboratories of Vancouver using a four acid digestion procedure. Drilling is expected to resume at Kilometre 26 towards the end of February while metallurgical work continues.

The Kilometre 26 Project encompasses 9,819 hectares (24,263 acres), located in the Omineca Mining Division of British Colombia near the community of Fort St. James approximately two and a half hours by highway from the city of Prince George. Due to the relatively low elevation of the Kilometre 26 property and its excellent access, exploration programs can be carried out year-round. Kilometre 26 is accessed by an all-season arterial logging road.

J.W. (Bill) Morton, PGeo, a qualified person for the purposes of National Instrument 43-101, has read and taken responsibility for this news release.

We seek Safe Harbor.

Further detail with respect to recent exploration work conducted on the Property is available in the Company's website www.fortstjamesnickel.com.

This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Fort St James Nickel believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Fort St James management on the date the statements are made. Fort St James Nickel Corp. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Fort St. James Nickel Corp. - Head Office
    Sandy MacDougall
    President and Chief Executive Officer
    604-662-8186
    604-662-8170 (FAX)
    www.fortstjamesnickel.com