More drills headed to Norman (September 18, 2002)

Ongoing drilling by partners FNX Mining (FNX-T) and contract miner and consultant Dynatec (DY-T) continues to cut wide zones of copper-rich massive sulphide mineralization at the Norman property, near Sudbury, Ont.

The widest of the recent intersections stretches 141.1 metres and averages 2.2% copper, 0.3% nickel, and 3.5 grams of combined platinum, palladium and gold (PGE+Au). The hole, FNX4008, also included 34.3 metres of 3.7% copper, 0.4% nickel plus 8.4 grams of the precious metals. The hole represents the widest and best mineralization discovered on the zone so far.

The remaining holes cut smaller intersections and include:

• 119.3 metres of 1.6% copper, 0.2% nickel and 2.2 grams PGE+Au, including 7.2 metres running 8.9% copper, 0.5% nickel and 9.8 grams precious metals in hole FNX4003;
• 56.7 metres averaging 2.1% copper, 0.2% nickel and 2.5 grams PGE+Au, including 4.8 metres of 10.9% copper, 1.4% nickel and 6.6 grams PGE+Au in hole FNX4004; and
• 7.5 metres grading 21.7% copper, 3% nickel and 14.6 grams PGE+Au in hole FNX4080.

Hole 4080 represents the deepest borehole drilled on the 2000 Zone.

FNX says the holes cut the mineralized zones at right angles; true widths aare estimated at about 50-60% of core lengths.

Earlier this summer, two drill holes on the zone, about 600 metres below the depleted Whistle open pit, returned up to 19.8 metres of 6% copper, 0.2% nickel, 1.9 grams platinum, 2.8 grams palladium and 3.4 grams gold.

The 2000 zone measures about 180 metes on side and remains open in all directions. Mineralization occurs as massive sulphide veins consisting mainly of chalcopyrite, pentlandite and millerite.

The partners are adding two drills to accelerate delineation of the 2000 zone and to test the 800 metres between the 2000 zone and the near-surface North zone, to see if the two zones are part of the same mineralized system.

Norman is one of five past producing properties that FNX inked a deal to acquire in mid-2001. Under the deal, FNX must spend $30 million over 52 months starting in January 2002, including $14 million by May 2003. Dynatec grabbed a 25% share earlier this year by agreeing to cover half the initial $14 million work commitment, and a quarter of subsequent expenditures.

Inco retains a first-refusal right and a right to hold on to 51% of any property where the joint venture outlines a resource with more than 600 million lbs. nickel; during the joint venture’s option period, Inco can buy back in by spending twice what the joint venture had spent. After the joint venture has full ownership, Inco can finance development and production to earn 51% back.

The major also gets a 19.9% stake in FNX and an exclusive offtake agreement for any production from the properties.