Falconbridge analyzing core from Ungava nickel project

Core from a 75,000-ft. drill program completed this summer at a remote nickel deposit in Ungava, Que., will be analyzed over the next few months by officials at Falconbridge Ltd. But drilling results may not necessarily be released to the public, according to Falconbridge spokesman Tom Pugsley. As Falconbridge is now a privately owned subsidiary of Noranda (TSE) and Trelleborg of Sweden, Pugsley said his company doesn’t necessarily have to issue information to the public.

A former president of New Quebec Raglan Mines, before the company was absorbed into Falconbridge last year, Pugsley is intimately familiar with the Ungava property.

Falconbridge has always maintained that nickel prices would have to average US$4 per lb. for a considerable time in order to justify development of the project. With reserves standing at 12 million tons of grade 3.11% nickel and 0.79% copper per ton, Ungava is regarded as one of the world’s finest undeveloped nickel deposits.

But Pugsley said the long-term outlook for nickel still is not good enough to make the project look like a good investment.

“We will probably go up there next year and do some more work,” he told The Northern Miner recently.