McNickel completes Lac St. Jean drill program

Using a cutoff grade of 0.20% nickel, intersections in 21 of the first series of holes graded 0.27% nickel, 0.15% copper and 0.04% cobalt over an average core length of 47 ft.

The main objective of the initial phase of drilling was to outline areas of potential low grade, open pit mineralization.

The company has spent $1 million on the property so far, including 46,000 ft of drilling in 140 holes. That expenditure has earned McNickel a 25% direct interest in the property. Other partners are Vancouver-based St. Phillips Resources (VSE) with a 30% interest and sister company Ramcor Resources (VSE) with a 10% interest.

Assay results for 58 of the first 140 holes drilled to date have returned lower than expected values, causing shares of both McNickel and St. Phillips to plunge by more than 50% in the past few weeks.McNickel shares have dropped to a low of 75 cents from an earlier high of more than $3, while shares of St. Phillips have tumbled to 42 cents from a previous high of $4.50.

Most nickel producers in Canada mine ore with grades of at least 1% nickel or better.

McNickel President John McAdam said drilling is continuing with one machine as part of a second $1-million program to earn an additional 20% interest in the claims.

As part of its regional exploration program in the Lac St. Jean area, McNickel has staked four additional properties totalling 388 claims. The properties cover various geophysical anomalies and surface showings.

]]>