Partners expand Levack Footwall deposit (August 24, 2005)

An ongoing six-rig drilling campaign has expanded the Footwall discovery behind the Levack No. 2 shaft, 40 km north of Sudbury, Ont., for partners FNX Mining (FNX-T) and Dynatec (DY-T).

All 15 of the latest batch holes (totalling 14,573 metres) intersected the Sudbury Breccia host rocks. Twelve of the holes were designed to test the mineralized vein system; nine of those returned significant widths of high-grade mineralization. Selected results include:

• Hole 6046A multiple intervals, including a 1.6 metre stretch (beginning 1,356 metres below surface) grading 24.76% copper, 2.76% nickel, plus 6.33 grams platinum, 17.83 grams palladium, and 7.49 grams gold per tonne, and 2.1 metres (from 2.1 metres) of 26.96% copper, 3.84% nickel, 11.57 grams platinum, 27.36 grams palladium, and 0.69 gram gold;
• Hole 6046B 6.3 metres (from 1,368.9 metres) running 25.45% copper, 5.36% nickel, 7.95 grams platinum, 17.09 grams palladium, and 4.49 grams gold;
• Hole 6047A 15.2 metres (from 1,312.7 m) averaging 8.84% copper, 0.85% nickel, 1.19 grams platinum, 3.6 grams palladium, and 6.31 grams gold, including 8.4 metres (from 1,319.5 m) containing 12.22% copper, 1.39% nickel, 1.72 grams platinum, 5.94 grams palladium, and 11.4 grams gold;
• Hole 7026 6.8 metres (from 387 m) of 13.46% copper, 3.88% nickel, 5.6 grams platinum, 9.23 grams palladium, and 3.01 grams gold, including 3.1 metres (from 390.7 m) of 23.12% copper, 7.06% nickel, 9.21 grams platinum, 15 grams palladium, and 1.08 grams gold, and 2.7 metres (from 422.6 m) of 23.75% copper, 0.97% nickel, 12.45 grams platinum, 22.38 grams palladium, and 1.65 grams gold;
• Hole 7027 6 metres (from 361.2 m) of 21.73% copper 3.03% nickel, 7.21 grams platinum, 13.99 grams palladium, and 0.97 gram gold;
• Hole 7032 2.4 metres (from 367.9 m) of 27.59% copper, 4.33% nickel, 8.63 grams platinum, 21.2 grams palladium, and 4.65 grams gold;
• Hole 7035A 11.1 metres (from 415 m) of 6.4% copper, 1.16% nickel, 2.39 grams platinum, 5.66 grams palladium, and 0.29 gram gold, including 1 metre (from 425 m) of 28.03% copper, 3.49% nickel, 8.25 grams platinum, 22.15 grams palladium, and 0.29 gram gold; and
• Hole 7038 3.9 metres (from 393.7 m) of 25.03% copper, 3.77% nickel, 4.73 grams platinum, 16.61 grams palladium, 2.62 grams gold.

Three other holes collared outside the known limits of the mineralized vein system generally yielded similar grades over narrower intervals. These holes will be subject to borehole geophysical surveys. So far, borehole electromagnetic surveying suggests a tabular body with a strike length of 153 metres, dip extent of 366 metres, and width of 15.3-30.5 metres.

In all, the high-grade vein system has now been traced by drilling along 153 metres of strike between depths of 1,190 metres and 1,342 metres. The zone remains open in all directions, except to the west where it appears to thin.

The sharp-walled massive sulphides veins vary from less than a metre up to 6 metres in thickness, and comprise chalcopyrite, cubanite, pentlandite and millerite and platinum group metals.

FNX CEO Terry MacGibbon says the grades and widths encountered so far are similar to those in nearby footwall ore bodies currently being mined along strike to the east. Still, he cautions that further drilling, underground bulk sampling, and mapping are required to determine the size, tonnage, and economic significance of the mineralized vein system.

FNX and Dynatec have four drill rigs testing the deposit from surface, with another two sinking holes from underground at Falconbridge‘s (FAL-LV-T) adjacent Craig mine. Drilling will continue throughout the rest of the year.

In all, the partners have 15 drill rigs operating in the Sudbury area under the Sudbury Joint Venture banner. Two drills are testing for new deposits and extensions from surface at the McCreedy West mine; another three rigs are in the midst of an underground reserve delineation program. Two drills are also active on each of the Falconbridge mine and Foy properties.

The company plans to drill test the Podolsky property and the recently discovered Segway deposit on the Kirkwood property later this year.

The above properties (plus the Victoria property) were acquired by the Sudbury Joint Venture from Inco in 2003. FNX owns 75% of the joint venture, with Dynatec holding the remainder.