Jaguar Nickel Inc.

Jaguar Nickel Inc.

March 16, 2005 10:31 ET

Jaguar Nickel Inc.: Sechol Project Drilling Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: JAGUAR NICKEL INC.

TSX SYMBOL: JNI

MARCH 16, 2005 - 10:31 ET

Jaguar Nickel Inc.: Sechol Project Drilling Update

TORONTO, ONTARIO--(CCNMatthews - March 16, 2005) - Jaguar Nickel Inc.
(TSX:JNI) is pleased to report the assay data received for an additional
169 holes in its ongoing drilling program on the Sechol nickel - cobalt
laterite project in Guatemala. There are 25 holes from the El Inicio
area, 54 are from the El Segundo area and 90 from the Rio Negro area
(Maps 1 - 4 Inc.). This completes the reporting of the 620 holes with
acceptable core recoveries in 2004 on the 100m x 100m grids over the El
Inicio, El Segundo and Rio Negro areas and the 25m x 25m grids on El
Inicio.

El Inicio Grid

The results for El Inicio continue to confirm that well mineralised
nickel laterite with good continuity is present over the majority of
this area. Of the 25 holes reported in this release all have intercepts
of nickel bearing laterite exceeding a 1.00% nickel cut-off. Six of the
reported holes were on the 100m x 100m evaluation grid and 19 holes on
two 25m x 25m grids to test short range grade and thickness variability.
The results from the holes suffixed with A, B, C or D represent the
successful re-drilling of earlier holes which had unacceptable core
recovery.



El Inicio - 100m x 100m Grid
Table of Intercepts greater than or equal to 1.00% nickel cut-off

---------------------------------------------------------------------
Hole Intercept Interval (m) Ni (%) Co (%)
---------------------------------------------------------------------
From (m) To (m)
---------------------------------------------------------------------
JNI-04-005C 5.00 18.00 13.00 1.41 0.06
---------------------------------------------------------------------
JNI-04-012B 0.00 13.80 13.80 1.87 0.03
---------------------------------------------------------------------
JNI-04-026D 0.60 4.20 3.60 1.78 0.04
---------------------------------------------------------------------
JNI-04-034B 2.75 7.20 4.45 1.48 0.04
---------------------------------------------------------------------
JNI-04-036B 1.00 16.50 15.50 1.91 0.05
---------------------------------------------------------------------
JNI-04-201 0.00 5.75 5.75 1.54 0.04
---------------------------------------------------------------------



El Inicio - 25m x 25m Grids
Table of Intercepts greater than or equal to 1.00% nickel cut-off

---------------------------------------------------------------------
Hole Intercept Interval (m) Ni (%) Co (%)
---------------------------------------------------------------------
From (m) To (m)
---------------------------------------------------------------------
JNI-04-467B 4.75 23.90 19.15 1.69 0.06
---------------------------------------------------------------------
JNI-04-468A 3.00 10.40 7.40 1.26 0.12
---------------------------------------------------------------------
" " 12.50 18.50 6.00 1.84 0.04
---------------------------------------------------------------------
JNI-04-469 1.00 11.40 10.40 1.52 0.13
---------------------------------------------------------------------
" " 13.60 20.40 6.80 1.59 0.11
---------------------------------------------------------------------
JNI-04-470 0.70 29.60 28.90 1.84 0.13
---------------------------------------------------------------------
JNI-04-471A 1.00 20.50 19.50 1.95 0.06
---------------------------------------------------------------------
JNI-04-472A 2.60 27.10 24.50 2.11 0.06
---------------------------------------------------------------------
JNI-04-475B 1.00 18.10 17.10 1.42 0.07
---------------------------------------------------------------------
JNI-04-485 4.30 11.10 6.80 1.72 0.03
---------------------------------------------------------------------
JNI-04-486 2.25 4.95 2.70 1.45 0.03
---------------------------------------------------------------------
JNI-04-493 0.80 8.50 7.70 1.84 0.03
---------------------------------------------------------------------
JNI-04-494 1.50 11.00 9.50 1.35 0.12
---------------------------------------------------------------------
JNI-04-504 10.60 18.60 8.00 1.13 0.13
---------------------------------------------------------------------
" " 21.60 30.60 9.00 1.86 0.02
---------------------------------------------------------------------
JNI-04-505 10.10 33.00 22.90 1.65 0.06
---------------------------------------------------------------------
JNI-04-506 2.50 25.40 22.90 2.04 0.06
---------------------------------------------------------------------
JNI-04-507A 8.40 29.90 21.50 1.83 0.08
---------------------------------------------------------------------
JNI-04-511 1.30 20.80 19.50 1.65 0.08
---------------------------------------------------------------------
JNI-04-513 2.50 18.00 15.50 1.38 0.07
---------------------------------------------------------------------
" " 22.50 35.10 12.60 1.21 0.01
---------------------------------------------------------------------
JNI-04-514B 3.00 19.40 16.40 1.64 0.08
---------------------------------------------------------------------
JNI-04-515A 4.90 24.20 19.30 1.48 0.05
---------------------------------------------------------------------


El Segundo Grid

Of the 54 holes reported 22 have intercepts of nickel bearing laterite
exceeding a 1.00% nickel cut-off. Of these 10 holes have intercepts
greater than or equal to 1.50% nickel. The results from the holes
suffixed with A represent the successful re-drilling of an earlier hole
which had unacceptable core recovery. These results have highlighted the
development of a discrete area of mineralisation with good continuity at
the southern end of the El Segundo grid.



El Segundo - 100m x 100m Grid
Table of Intercepts greater than or equal to 1.00% nickel cut-off

---------------------------------------------------------------------
Hole Intercept Interval (m) Ni (%) Co (%)
---------------------------------------------------------------------
From (m) To (m)
---------------------------------------------------------------------
JNI-04-383 0.00 3.70 3.70 1.32 0.03
---------------------------------------------------------------------
JNI-04-384 0.00 5.00 5.00 1.36 0.03
---------------------------------------------------------------------
JNI-04-398 0.00 6.70 6.70 1.90 0.01
---------------------------------------------------------------------
JNI-04-406 3.90 12.60 8.70 1.37 0.08
---------------------------------------------------------------------
JNI-04-407 3.00 17.00 14.00 1.94 0.05
---------------------------------------------------------------------
JNI-04-409 0.25 6.90 6.65 1.78 0.04
---------------------------------------------------------------------
JNI-04-414 2.00 4.38 2.38 1.51 0.05
---------------------------------------------------------------------
JNI-04-422 0.88 3.65 2.77 1.89 0.02
---------------------------------------------------------------------
JNI-04-427 0.20 15.50 15.30 1.91 0.04
---------------------------------------------------------------------
JNI-04-430 12.00 24.40 12.40 1.42 0.02
---------------------------------------------------------------------
JNI-04-438 0.00 5.50 5.50 1.56 0.02
---------------------------------------------------------------------
JNI-04-440 1.00 3.40 2.40 1.22 0.05
---------------------------------------------------------------------
JNI-04-442 0.00 2.60 2.60 1.35 0.03
---------------------------------------------------------------------
JNI-04-448 0.00 2.20 2.20 1.03 0.04
---------------------------------------------------------------------
JNI-04-449 3.40 14.32 10.92 1.46 0.10
---------------------------------------------------------------------
JNI-04-451A 8.00 10.80 2.80 1.20 0.03
---------------------------------------------------------------------
JNI-04-454 15.90 18.50 2.60 1.80 0.04
---------------------------------------------------------------------
JNI-04-456A 7.50 17.50 10.00 1.59 0.01
---------------------------------------------------------------------
JNI-04-457 0.00 3.00 3.00 1.42 0.01
---------------------------------------------------------------------
JNI-04-458 6.50 9.70 3.20 1.53 0.05
---------------------------------------------------------------------
JNI-04-461 4.00 9.80 5.80 1.24 0.08
---------------------------------------------------------------------
JNI-04-560 0.00 2.10 2.10 1.11 0.01
---------------------------------------------------------------------


Rio Negro Grid

Of the 90 holes reported 51 have intercepts of nickel bearing laterite
exceeding a 1.00% nickel cut-off. Of these 4 holes have intercepts
greater than or equal to 2.00% nickel including holes 538A, 589A and 539
with intercepts of 2.39% nickel over 14.9 metres, 2.34% nickel over
14.50 metres and 2.08% nickel over 17.60 metres respectively. Another 24
holes have intercepts greater than or equal to 1.50% nickel. The high
nickel grades and long intervals of many of the intercepts together with
the continuity of the mineralised zones indicate the good potential of
this area. The results from the holes suffixed with A, B or C represent
the successful re-drilling of an earlier hole which had unacceptable
core recovery.



Rio Negro - 100m x 100m Grid
Table of Intercepts greater than or equal to 1.00% nickel cut-off

---------------------------------------------------------------------
Hole Intercept Interval (m) Ni (%) Co (%)
---------------------------------------------------------------------
From (m) To (m)
---------------------------------------------------------------------
JNI-04-519 7.40 9.40 2.00 1.30 0.03
---------------------------------------------------------------------
JNI-04-520 1.45 15.45 14.00 1.50 0.02
---------------------------------------------------------------------
JNI-04-521 16.75 24.00 7.25 1.35 0.03
---------------------------------------------------------------------
JNI-04-522 0.70 10.75 10.05 1.77 0.02
---------------------------------------------------------------------
JNI-04-523 0.00 4.35 4.35 1.37 0.03
---------------------------------------------------------------------
JNI-04-524 0.00 8.80 8.80 1.63 0.02
---------------------------------------------------------------------
JNI-04-525 3.10 6.20 3.10 1.27 0.07
---------------------------------------------------------------------
JNI-04-526 0.00 3.30 3.30 1.28 0.04
---------------------------------------------------------------------
JNI-04-527 1.80 13.10 11.30 1.54 0.02
---------------------------------------------------------------------
JNI-04-532 0.17 3.00 2.83 1.44 0.02
---------------------------------------------------------------------
JNI-04-534A 2.00 10.00 8.00 1.52 0.05
---------------------------------------------------------------------
JNI-04-535 2.10 12.40 10.30 1.54 0.08
---------------------------------------------------------------------
JNI-04-536B 6.00 16.20 10.20 1.41 0.04
---------------------------------------------------------------------
JNI-04-538A 4.50 19.40 14.90 2.39 0.04
---------------------------------------------------------------------
" " 21.75 24.10 2.35 1.40 0.01
---------------------------------------------------------------------
JNI-04-539 7.20 24.80 17.60 2.08 0.05
---------------------------------------------------------------------
JNI-04-541 0.00 3.00 3.00 1.38 0.04
---------------------------------------------------------------------
JNI-04-543 0.00 9.80 9.80 1.82 0.06
---------------------------------------------------------------------
JNI-04-544 4.75 12.40 7.65 1.41 0.04
---------------------------------------------------------------------
JNI-04-546A 0.80 6.80 6.00 1.61 0.02
---------------------------------------------------------------------
JNI-04-548 0.50 5.70 5.20 1.94 0.05
---------------------------------------------------------------------
JNI-04-549 0.00 7.70 7.70 1.58 0.03
---------------------------------------------------------------------
JNI-04-550 1.00 5.80 4.80 1.03 0.02
---------------------------------------------------------------------
JNI-04-562 1.10 10.20 9.10 1.78 0.03
---------------------------------------------------------------------
JNI-04-563 0.00 5.90 5.90 1.77 0.02
---------------------------------------------------------------------
JNI-04-564 0.00 7.70 7.70 1.15 0.02
---------------------------------------------------------------------
JNI-04-565 4.20 14.80 10.60 1.83 0.04
---------------------------------------------------------------------
JNI-04-566 0.90 15.60 14.70 1.94 0.04
---------------------------------------------------------------------
JNI-04-567 9.40 12.36 2.96 1.51 0.06
---------------------------------------------------------------------
JNI-04-569 2.10 10.20 8.10 1.40 0.07
---------------------------------------------------------------------
JNI-04-570 2.78 5.00 2.22 1.53 0.01
---------------------------------------------------------------------
JNI-04-571B 0.80 12.10 11.30 2.35 0.02
---------------------------------------------------------------------
JNI-04-574 0.70 13.50 12.80 1.44 0.22
---------------------------------------------------------------------
JNI-04-575 9.70 15.30 5.60 1.39 0.04
---------------------------------------------------------------------
JNI-04-576 0.50 7.40 6.90 1.42 0.04
---------------------------------------------------------------------
JNI-04-577 2.80 6.00 3.20 1.19 0.04
---------------------------------------------------------------------
JNI-04-578A 0.00 15.00 15.00 1.64 0.03
---------------------------------------------------------------------
JNI-04-579A 4.40 8.25 3.85 1.27 0.03
---------------------------------------------------------------------
" " 10.75 17.20 6.45 1.27 0.03
---------------------------------------------------------------------
JNI-04-580A 3.10 13.20 10.10 1.32 0.05
---------------------------------------------------------------------
JNI-04-582 0.00 2.20 2.20 1.52 0.02
---------------------------------------------------------------------
JNI-04-584 3.00 6.10 3.10 1.23 0.02
---------------------------------------------------------------------
JNI-04-586B 2.00 9.40 7.40 1.70 0.05
---------------------------------------------------------------------
JNI-04-587C 0.00 7.00 7.00 1.87 0.05
---------------------------------------------------------------------
JNI-04-589A 0.00 14.50 14.50 2.34 0.03
---------------------------------------------------------------------
JNI-04-590 0.00 5.20 5.20 1.51 0.07
---------------------------------------------------------------------
JNI-04-591C 8.10 11.82 3.72 1.33 0.04
---------------------------------------------------------------------
JNI-04-596C 10.90 14.90 4.00 1.68 0.05
---------------------------------------------------------------------
JNI-04-597 18.60 38.20 19.60 1.50 0.11
---------------------------------------------------------------------
JNI-04-598 21.25 28.10 6.85 1.62 0.08
---------------------------------------------------------------------
JNI-04-602A 12.60 16.05 3.45 1.12 0.02
---------------------------------------------------------------------
JNI-04-605 6.50 8.93 2.43 1.28 0.07
---------------------------------------------------------------------
" " 11.20 17.20 6.00 1.22 0.04
---------------------------------------------------------------------
JNI-04-606 4.20 9.50 5.30 1.24 0.01
---------------------------------------------------------------------


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

The compositing of nickel and cobalt grades in the individual holes was
done using a nickel cutoff of 1.00%, a minimum intercept length of 2
metres and a maximum length of internal waste of 2 metres. The
compositing was done across geological boundaries. It has not yet been
determined what cut-off grade should be used in an economic model.

Since the start of the Sechol drilling program in March 2004, 725
vertical HQ core holes with acceptable core recoveries, totalling 9,458
metres, have been completed. These include 86 holes (1,090m) drilled in
2005 on an ongoing 50m x 50m infill drilling program in the El Inicio
area (Map 2). Land negotiations for portions of the El Segundo, Rio
Negro and Pozo Azul areas are continuing and the drilling program will
get underway when the negotiations have been satisfactorily concluded.

Jaguar has engaged Snowden Mining Industry Consultants of Vancouver to
undertake a block model resource estimate over the El Inicio grid and
polygonal resource estimates for those parts of the El Segundo and Rio
Negro grids for which 100m x 100m drilling has been completed to date.
This estimate is expected to be completed and released within two
months.

The data were validated and the intersections calculated by the
designated Qualified Person for the project as defined in National
Instrument 43-101, Andrew F. Ross FAusIMM (CPGeo), of Snowden Mining
Industry Consultants of Vancouver.

About Jaguar Nickel Inc.

Jaguar Nickel Inc. (TSX JNI) is a well funded and professionally managed
Canadian nickel exploration and mine development company. The company's
current exploration project is focused on its licensed properties in
Guatemala.

Maps of The Sechol project are available on CCNMatthews' website at the
following links:

http://www2.ccnmatthews.com/database/fax/2000/secholmap1.pdf

http://www2.ccnmatthews.com/database/fax/2000/secholmap2.pdf

http://www2.ccnmatthews.com/database/fax/2000/secmap4.pdf

http://www2.ccnmatthews.com/database/fax/2000/secholmap4.pdf

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Jaguar Nickel Inc.
    Lynne A. Coles
    Director, Investor Relations and Corporate Communications
    (416) 363-1124
    (416) 360-0728 (FAX)
    info@jaguarnickel.com
    www.jaguarnickel.com
    or
    2015 - 120 Adelaide Street West
    Toronto, Ontario
    M5H 1T1
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.