FNX finds nickel sniffs at Kakoulima (January 12, 2005)

Drill holes at the Mt. Kakoulima nickel project in Guinea, where FNX Mining (FNX-T) is earning a 100% interest from Afcan Mining (AFK-T), have intersected disseminated sulphides and favourable host rocks for a nickel-copper deposit.

Six drill holes tested the base of the Kaloum Igneous Complex, a gabbroic intrusive body, finding that the intrusion’s basal contact with the gneissic country rock dips at about a 45 angle, suggesting that any undulations in the contact could trap magmatic sulphides. Locally the mafic rocks are brecciated, with some disseminated sulphides.

Gneissic rocks also occur as xenoliths in the intrusion, which is also usually favourable for sulphide mineralization with nickel, copper and platinum-group elements.

FNX is earning its interest by incurring US$2.4 million in exploration expenditures, and a further US$2 million in development expenditures on the property, and providing a feasibility study. Afcan would retain a 3% net smelter return if FNX earns in.