FNX finds nickel sniffs at Kakoulima (January 24, 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 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 an angle of about 45 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 spending US$2.4 million on exploration and a further US$2 million on development, and by providing a feasibility study. Afcan would retain a 3% NSR if FNX earns in.