Jaguar Nickel Inc.
TSX : JNI

Jaguar Nickel Inc.

September 06, 2005 16:46 ET

Jaguar Nickel to Correct El Inicio Resource Estimate as a Result of Supplier Error

TORONTO, ONTARIO--(CCNMatthews - Sept. 6, 2005) -

Company expects to publish a corrected version of NI 43-101 Technical Report by mid-October

Jaguar Nickel Inc. (TSX:JNI) today announces that as a result of a calculation error by its supplier, SGS Lakefield Research Limited (SGS), there will be a downward revision to the bulk density factor (BDF) used in the NI 43-101 resource estimate published in June 2005. SGS has been retained by Jaguar since 2004 to provide drillcore physical analysis services and has reported that human error led to the miscalculation.

"We deeply regret the error which occurred as we were inputting the data during a change-over from the existing test procedure to a more robust methodology," explains Mr. Chris Fleming, Vice President Global Metallurgy, SGS.

SGS received and reported on three sample shipments; the first two were reported without error, however the data reported from the third shipment, which provided about two thirds of the El Inicio BDF data used in the NI 43-101 resource estimate, was incorrect. As a result, Jaguar expects the estimated tonnage of the resource will be about one third lower than reported. The revised tonnage estimate will not be available until Snowden Mining Industry Consultants executes the necessary work leading to the reissue of the Technical Report on the resource estimate for the Sechol Project area. SGS has assured Jaguar that all the BDF data has now been corrected and verified. Jaguar expects to release a corrected version of the NI 43-101 technical report by mid-October 2005.

"While we are disappointed with this unfortunate event, the Jaguar management team is satisfied that the miscalculation in the BDF samples has been discovered and that SGS has rectified its procedures to ensure the ongoing accuracy of our BDF dataset," says Mr. Richard Weizenbach, Executive Vice President and Chief Operating Officer. "We are focused on advancing all areas of the business. We continue our discussions with interested parties to define an appropriate strategic alliance for our shareholders and will announce key developments as soon as we are able to do so. In addition, we had hoped to announce our test results for an existing process in July, however the program of test work has been extended."

The Company notes that in the NI 43-101 Technical Report Section 13.3, published in June 2005, it stated that ... "The bulk density determinations for each of the principal laterite horizons show large ranges and, though within the range of possible values, high means compared with many other similar laterite deposits. Collection of additional samples for further determinations from both larger excavations as well as HQ core samples is currently in progress."

Jaguar will continually gather and report current and relevant information about the Sechol resource. To this end, the Company expects to revise its Sechol resource information with three key elements; the inclusion of 133 new holes from the 2005, 50 meter grid spacing definition drilling program at El Inicio, the new AAHatch aerial land survey data which provides higher quality topographical information to model the resource volumes and a larger BDF dataset. Snowden geologists expect these improvements to the El Inicio data may allow a portion of the resource to be upgraded to 'Measured' category.

The corrected NI 43-101 will replace all of the resource estimates previously published in 2005 including but not limited to the SEDAR filings, the Company's Second Quarter MD&A and the corresponding press release of August 3, the press releases issued June 7 and June 28 and the President's Address at the Company's Annual General Meeting on June 22.

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.

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.
    Lynne A. Coles
    Director, Investor Relations & Corporate Communications
    (416) 363-1124
    (416) 360-0728 (FAX)
    lcoles@jaguarnickel.com
    www.jaguarnickel.com
    or
    Jaguar Nickel Inc.
    2015 - 120 Adelaide Street West
    Toronto, Ontario M5H 1T1