Fort St. James Nickel Corp.
TSX VENTURE : FTJ

Fort St. James Nickel Corp.

April 11, 2012 17:29 ET

Fort St. James Nickel Corp.: News Release Released Earlier Today is Hereby Retracted

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 11, 2012) - Fort St. James Nickel Corp. (TSX VENTURE:FTJ) - The release which was disseminated earlier today included reference to in situ value of metal which is not permitted. The description of the model should not be considered an economic analysis and should not be relied on as this must be based on a current resource estimate. (There is no current resource estimate for the Kilometer 26 project). Its purpose is limited to providing a very early stage based concept of the exploration rationale.

The news release retracted is replaced as follows:

Nickel Mine Model Developed for Kilometer 26 Project

Fort St. James Nickel Corp. (the "Company") is pleased to announce that a conceptual mine model is being developed for the Kilometer 26 nickel project located north of the community of Fort St. James in central British Columbia. The model is predicated on applying similar economies of scale and process technology to what is currently utilized at several bulk tonnage, low grade copper porphyry deposits in BC. With the exception of the floatation circuit in the mine mill, which would float nickel sulphides instead of copper sulphides and possibly additionally include a magnetic recovery unit, it is envisioned that a mine could be developed using the same procedures as a bulk tonnage open pit copper mine. On February 14, 2012 Imperial Metals Corporation publicly filed (on SEDAR) its technical report which outlines its plans to construct and operate the Red Chris copper/gold deposit located in Northern BC. Imperial estimates the capital cost for constructing a 30,000 tonne per day mine at 444 million dollars with operating costs at $9.96 per tonne ore processed (Fort St. James Nickel has no interest or involvement in the Red Chris Project and these statistics are presented only for broad based comparison and should not be relied on as completely comparable).

Recent drilling at Kilometer 26 has confirmed that a magnetic anomaly with dimensions of 7,000 metres by 500 to 750 metres reflects a serpentinized ultramafic body which is pervasively mineralized with a combination of low grade silicate, sulphide and alloy nickel. A 1,680 metre by 400 metre area of this feature has so far been drill tested with all holes starting and ending in mineralized serpentinite. Preliminary metallurgical testing has confirmed that most of the mineralization is high nickel content pentlandite (average 35% Ni in the sulphide fraction). Four of the six holes completed contain nickel intercepts of 0.20% to 0.24% total Ni with included sulphide nickel at 0.10% to 0.15% Ni respectively. A key factor in making the Kilometer 26 project concept feasible is the virtual absence of non-nickel bearing sulphides which if present would dilute the resulting sulphide concentrate. Preliminary metallurgical work completed at Kilometer 26 suggests the concentrate would grade 35% nickel with some accessory cobalt making it very attractive to the Ni concentrate market and very amenable to cost effective transportation. Similar concepts to develop bulk tonnage nickel deposits are now at the pre-feasibility stage at Royal Nickel's Dumont project in Quebec.

Summary of Significant Ni Sulphide Intercepts from 2011 Drill program:

Hole From-To
(m)
Intercept
(m)
Ni (sulphide)
(%)
Depth of Hole
Bottom (m)
K-11-1 40.0-72.0 32.0 0.091 72
K-11-2 35-57 22.0 0.127
93-156 63.0 0.119
168.0-200.0 32.0 0.102 200
K-11-4 21.0-64.0 43.0 0.144
134.0-171.0 37.0 0.153 171
K-11-5 56.0-106.0 53.0 0.104 106

Hole K-11-2 ended in mineralization grading 0.125% Ni sulphide while hole K-11-4 ended in mineralization grading 0.178% Ni sulphide.

Nickel Sulphide was determined by Acme Analytical Labs at their Vancouver, BC facilities using an ammonia citrate peroxide leach procedure which is reputed to be specific for nickel sulphide and not subject to significant contamination from a nickel silicate source. Acme Analytical Labs Ltd. is an ISO 9001 certified facility.

The Kilometre 26 Project encompasses 12,479 hectares (30,835 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.fortstjamesnicke.com