Jaguar Nickel Inc.
TSX : JNI

Jaguar Nickel Inc.

September 27, 2005 18:16 ET

Jaguar Announces The Results Of The Amended Resource Estimate On Its Sechol Property

TORONTO, ONTARIO--(CCNMatthews - Sept. 27, 2005) - Jaguar Nickel Inc. (TSX:JNI) today announces the results of the amendments to the mineral resource estimate for its Sechol Phase One Drilling Program originally released in June 2005. As reported on September 6, 2005, the amended results reflect the correction of the bulk density factors (BDF) applied to these resources and confirm that the estimated tonnage of the resource is about one-third lower than previously reported. This amendment was required after a calculation error in some of the BDF determinations undertaken by SGS Lakefield Research Limited ("SGS Lakefield") was discovered.

These amended estimates were prepared by Snowden Mining Industry Consultants of Vancouver ("Snowden") and are based on the Phase One program drilling results completed in 2004.

Summary of the amended mineral resource estimates:

El Inicio Indicated Mineral Resources for a range of nickel cut-offs



---------------------------------------------------------------------
Tonnage Ni Co Fe(2) MgO SiO(2) Al(2) Cr(2) LOI
O(3) O(3) O(3)
Ni cut-
off %
Dry Mt % % % % % % % %
---------------------------------------------------------------------
greater
than 1.6 6.37 1.91 0.030 20.3 23.4 37.9 2.9 0.9 12.0
greater
than 1.5 7.89 1.84 0.029 19.9 23.6 38.2 2.9 0.9 12.0
greater
than 1.4 9.34 1.78 0.028 19.5 23.9 38.5 2.8 0.8 12.0
greater
than 1.3 10.72 1.72 0.028 19.2 24.0 38.8 2.8 0.8 12.0
greater
than 1.2 11.94 1.68 0.028 18.9 24.2 39.0 2.8 0.8 12.0
greater
than 1.1 12.92 1.64 0.027 18.8 24.3 39.1 2.8 0.8 11.9
greater
than 1.0 13.58 1.61 0.027 18.7 24.3 39.2 2.7 0.8 11.9
greater
than 0.8 14.31 1.57 0.027 18.6 24.4 39.4 2.7 0.8 11.9
---------------------------------------------------------------------


El Segundo and Rio Negro Inferred Mineral Resources at a 1% nickel cut-off



---------------------------------------------------------------------
Tonnage Ni Co Fe(2) MgO Si Al(2) Cr(2) LOI
Deposit O(3) O(2) O(3) O(3)
Dry Mt % % % % % % % %
---------------------------------------------------------------------
El Segundo 4.69 1.66 0.031 22.6 21.5 38.0 2.7 1.0 11.5
Rio Negro 3.52 1.67 0.034 19.2 22.7 41.2 2.2 1.0 10.9
---------------------------------------------------------------------
TOTAL 8.21 1.66 0.032 21.1 22.0 39.4 2.5 1.0 11.2
---------------------------------------------------------------------


These estimates must be read in conjunction with the details of the resource estimation methods and the other parameters used as described in the Technical Report prepared by Snowden and summarized below.

- Mineral resources that are not reserves do not have demonstrated economic viability.

- The indicated mineral resources at El Inicio were estimated by kriging into three-dimensional (3D) block models that identify the limonite, transition and saprolite horizons within the laterite profile.

- The inferred mineral resource estimates for El Segundo and Rio Negro used two- dimensional (2D) polygonal methods using drill intercepts that met the criteria of: minimum grade 1% Ni; minimum down-hole width of 2m; and maximum internal dilution of 2m. The estimates respect the geological contacts between the limonite, transition and saprolite horizons.

- Sample preparation was undertaken by BSI Inspectorate laboratory in Guatemala City and assay by SGS Lakefield Research Analytical Services laboratory in Canada.

- Bulk density factors from measurements by SGS Lakefield taken on core samples from the individual horizons from El Inicio were applied to all the estimates.

- The mineral resources are comprised of the transition and saprolite horizons only. The limonite is excluded as JNI is currently assessing a pyrometallurgical process technology for which the limonite would not be suitable. Should a mine be developed the limonite would be available for an alternative process option, as yet undefined.

- A Mineral Resource Classification scheme has been applied for reporting the estimates that reflects the requirements of National Instrument 43-101, the CIM Standard Definitions.

- It has not been determined what cut-off grade should be used in an economic model.

The data contained in this release were verified by Andrew F. Ross FAusIMM (CP) a qualified person as defined in National Instrument 43-101. The full text of the Snowden Technical Report amended September 19, 2005 can be viewed on the SEDAR (www.sedar.com) website.

The amended National Instrument 43-101 resource estimates replace all of the resource estimates previously published in 2005 including but not limited to the SEDAR filings, Jaguar's Second Quarter MD&A and the corresponding press releases of June 7 and 28, August 3 and the President's Address at JNI's Annual Meeting on June 22, 2005.

The Sechol Phase Two Drilling Program is continuing.

About Jaguar Nickel Inc.

Jaguar Nickel Inc. (TSX: JNI) is a professionally managed Canadian nickel exploration and mine development Company. The Company's current exploration and development program is focused on the nickel laterite deposits of its licensed properties in Guatemala, Central America.

Trading Symbol on the TSX: "JNI"

This news release may contain certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performances or achievements of the Company to be materially different from those implied by such forward looking statements.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Jaguar Nickel Inc.
    Richard Weizenbach
    Executive Vice-President and Chief Operating Officer
    (416) 363-1124
    (416) 360-0728 (FAX)
    www.jaguarnickel.com