Nearctic Nickel Mines Inc. (formerly Ungava Minerals Corp.)
PINK SHEETS : UGVAF

September 12, 2007 15:48 ET

Mequillon Resource Upgraded

MONTREAL, QUEBEC--(Marketwire - Sept. 12, 2007) - Nearctic Nickel Mines Inc., formerly Ungava Minerals Corp., (PINK SHEETS:UGVAF) "the Company" is pleased to report that Canadian Royalties Inc., "CRI", reported in a Press Release dated September 11, 2007, that P&E Mining Consultants Inc. have completed an updated evaluation of the Mequillon deposit resource model resulting in a 94% increase in the resource and an improved metal content. The Mequillon deposit is on the property co-owned by CRI and the company's subsidiary, Ungava Mineral Exploration Inc.

A Preliminary Economic Assessment has been initiated regarding the Mequillon deposit as an open pit and underground bulk mine, which can be incorporated into a Bankable Feasibility Study Update, CRI reported. "The addition of the Mequillon deposit" (to the resources to be exploited pursuant to the Bankable Feasibility Study to be updated)" has the potential to substantially increase the 9 year plan in SNC - Lavalin's Bankable Feasibility Study", said R. Faucher, CRI President.

CRI provided the following table of data in their September 11, 2007 Press Release.



The Table below summarizes the updated resource estimate:

Resource Ni Cu Co Au Pt Pd PGE
Category tonnes (%) (%) (%)(g/t)(g/t)(g/t) (g/t)
-----------------------------------------------------------------
OP Indicated 1,447,000 0.73 1.00 0.04 0.21 0.71 2.56 3.48
UG Indicated 3,927,000 0.75 1.10 0.04 0.23 0.69 2.68 3.60
-----------------------------------------------------------------
TOTAL Indicated 5,374,000 0.74 1.07 0.04 0.23 0.70 2.65 3.58
-----------------------------------------------------------------
UG Inferred 3,085,000 0.82 1.12 0.04 0.18 0.65 2.57 3.40
-----------------------------------------------------------------


Notes to Table

(1) The newly updated resource for the Mequillon deposit was calculated on the basis of US$ metal prices of $5.50/lb nickel, $1.50/lb copper, $15/lb cobalt, $450/oz gold, $900/oz platinum and $300/oz palladium and the $US exchange rate of $0.80. NSR cut-offs of $40/tonne for open pit and $75/tonne for underground were utilized to report the resource.

(2) Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

(3) The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

(4) OP means Open Pit; UG means Underground.

CRI stated that the mineral resources in their Press Release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

CRI indicated that Eugene Puritch, P.Eng., Tracy Armstrong, P.Geo and Antoine Yassa, P.Geo of P&E Mining Consultants Inc. will be the authors of an NI 43-101 compliant Resource Estimate Technical Report on the Mequillon deposit to be filed within 45 days of the CRI Press Release. They are Qualified Persons in accordance with NI 43-101, and are responsible for the information presented in the CRI Press Release. All assaying was completed by ALS Chemex with sample preparation completed in Val-d'Or, QC and analyses completed at ALS Chemex in Vancouver, B.C. Base metal values were determined by sodium peroxide fusion with ICP-AES analysis. Platinum, palladium and gold values were determined by 30 gram fire assay with ICP-AES finish.

This news release contains forward-looking statements within the meaning of the "safe-harbour" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause the Company's results to differ materially from expectations. These include risks relating to market fluctuations, investee performance and other risks. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent to obligations to update these forward-looking statements.

Issued and Outstanding: 28,263,276 Common Shares

Contact Information

  • Nearctic Nickel Mines Inc.
    Dr. Allan Miller
    President
    (613) 231-5656