More drills headed to Norman (September 30, 2002)

Drilling by FNX Mining (FNX-T) and contract miner 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 is 141.1 metres and averages 2.2% copper and 0.3% nickel, plus and 3.5 grams combined platinum-palladium-gold (PGE+Au). The hole, no. 4008, also included 34.3 metres of 3.7% copper, 0.4% nickel and 8.4 grams of the precious metals.

The remaining holes cut smaller intersections, including:

o 119.3 metres grading 1.6% copper, 0.2% nickel and 2.2 grams PGE+Au, including 7.2 metres of 8.9% copper, 0.5% nickel and 9.8 grams precious metals, in hole 4003;

o 56.7 metres of 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 4004; and

o 7.5 metres of 21.7% copper, 3% nickel and 14.6 grams PGE+Au in hole 4080. Hole 4080 represents the deepest borehole drilled on the 2000 zone so far.

The holes cut the mineralized zones at right angles; true widths are estimated to be 50-60% of core lengths.

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

The 2000 zone measures 180 metres 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 delineate the 2000 zone and test the 800 metres between the 2000 zone and the near-surface North zone. The drilling should determine whether or not the two zones are part of the same mineralized system.

Norman is one of five past-producing properties FNX acquired from Inco (N-T) in mid-2001. The company agreed to 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 of more than 272,000 tonnes 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.