Jaguar Nickel Inc.
TSX : JNI

Jaguar Nickel Inc.

October 20, 2005 07:00 ET

Jaguar Nickel Secures the El Inicio Deposit with Extension of Sechol II License

TORONTO, ONTARIO--(CCNMatthews - Oct. 20, 2005) - Jaguar Nickel Inc. (TSX:JNI) today announces that the Company's application to extend the area of the Sechol II exploration license has been granted by the Ministry of Energy and Mines of Guatemala.

The Sechol II license area has been extended to the east and west. The license now covers an area of 31.5 km 2 which includes the former Sechol licensed area.

"The granting of the extended Sechol II license qualifies the Sechol laterite deposit for renewals until 2012. We consider this development an important indication of the government's support for our exploration activities in this area," explains Mr. Richard Weizenbach, Chief Operating Officer.

Three exploration licenses totaling approximately 42 km 2 (Sechol II, Seamay and Cahabon) encompass the Sechol project. Jaguar geologists have identified four distinct mapped nickel laterite occurrences; El Inicio, El Segundo, Rio Negro, and Poza Azul. Jaguar has identified an indicated resource of 14.3mt grading 1.57% nickel of transition and saprolite material. Work at the El Segundo and Rio Negro deposits has identified an inferred resource of 8.2mt grading 1.66% nickel of transition and saprolite material.

The National Instrument 43-101 Technical Report detailing the resource estimates excludes large portions of the El Segundo and Rio Negro deposits and all of the Poza Azul deposit which had not been drilled by year end 2004. Further drilling by Jaguar in 2005 at the El Inicio, El Segundo, and Rio Negro deposits is expected to be incorporated into the resource estimates following completion of the work program.

Jaguar's revised mineral rights holdings in Guatemala now include 13 licenses granted and 6 licenses under application, including one extension, covering a total area of approximately 746 km 2 . Maps identifying the extended Sechol II license, and the other Jaguar licenses and applications for license in Guatemala can be viewed on the Company's website (www.jaguarnickel.com).

Exploration work on the Sechol project is supervised by Paul Nagerl, P.G.O., Chief Geologist at Jaguar Nickel, a Qualified Person as defined in National Instrument 43-101.

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.

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

Contact Information

  • Jaguar Nickel Inc.
    Richard Weizenbach
    Executive Vice-President and Chief Operating Officer
    (416) 363-1124
    (416) 360-0728 (FAX)
    www.jaguarnickel.com
    2015 - 120 Adelaide Street West, Toronto, Ontario M5H 1T1