First Nickel firming up Dundonald South

First Nickel (FNI-T) has intersected significant nickel at Its Dundonald property, 60 km east of Timmins, Ont.

Drill results from eight holes are highlighted by one hole that cut 5 metres grading 1.43% nickel (this included a 1.5-metre intercept grading 2% nickel) and 50 metres further downhole, 2.1 metres grading 3.74% nickel (an intercept that includes 1.2 metres grading 5.82% nickel). The deeper intersection corresponds with the F zone, whereas higher in the hole, the G zone was cut.

Gold, platinum and palladium assays have been received for some of the holes (and are pending for others). One hole, which graded 5.26% nickel and 0.2% copper, over a 15-metre interval, also graded 1.77 grams combined gold, plus platinum, plus palladium, per tonne. Two other holes cut from 1.25-3.01 grams combined platinum, plus palladium, plus gold, per tonne over 0.3-2 metres. In addition these intersections contained significant (3.3-13.8%) nickel.

To date, 63 holes totaling 11,000 metres have been drilled at the Dundonald South zone, and nearly all have cut significant nickel.

Dundonald South strikes east and dips steeply to the south. There are five sub-parallel zones in the northern portion of Dundonald South and three nickel-bearing zones in the southern portion. The distance between zone A (cut in hole 29) and zone F (cut in hole 21) is 300 metres.Falconbridge (FL-T) owns 17.2% of the issued and outstanding shares of First Nickel. First Nickel has to spend $1.7 million on exploration this year, in order to retain a 100% interest in the 9.5-sq.-km Dundonald property.

First Nickel is in negotiations with Falconbridge to buy a 100% interest in the past-producing Lockerby mine which closed in September of last year after producing 8 million tonnes grading 1.79% nickel and 1.07% copper. The mine has two 1,300-metre shafts, as well as an internal shaft from 1,200-1,920 metres below surface. First Nickel plans to drill the footwall area of the mine, which has not been tested for copper and platinum group elements, and the down-plunge extensions of two zones that were recently mined. Due diligence is underway.