TORONTO, ONTARIO--(CCNMatthews - June 18, 2007) - Victory Nickel Inc. ("Victory Nickel" or the "Company")(TSX:NI)(www.victorynickel.ca) today announced that it has intersected significant grades over mineable widths, including 1.11% nickel over 13.67 metres, in an aggressive winter drilling program designed to evaluate near-term production potential at the Mel Project, the Company's joint venture with CVRD Inco on Manitoba's Thompson Nickel Belt.
"This program provides further indication of the widespread and continuous nickel mineralization at Mel, and will have a positive impact on the resource which has an average grade of 0.88% nickel," said Paul Jones, Vice-President, Exploration. "The updated resource model will form part of a comprehensive assessment of the economics of the Mel deposit to evaluate the potential for near-term nickel production, possibly as soon as 2009."
The winter work program consisted of 30 completed drill holes for a total of 5,733 metres covering approximately 800 metres of strike to a depth of approximately 215 vertical metres. The deposit remains open at depth. In total, 29 drill holes were collared to test continuity of mineralization within and adjacent to the existing resource and to enhance the resource. Holes DDH 1128460 and DDH 1128500 intersected strong mineralization on the southern margin of the resource area, indicating the potential for extending mineralization in the deposit to the south. In addition, a single drill hole (DDH 1128540) was collared to assess a geophysical response approximately 700 metres north of the Mel deposit, and assays from this hole show that nickel mineralization is widespread in the local environment. Significant intersections from 18 drill holes are tabulated below:
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DDH No. From To Ni Core True
Grade Length Width
m m % m m
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1128260 421.1 425.6 1.01 1.37 1.13
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1128330 252.5 269.0 1.35 5.03 3.99
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1128350 557.8 565.9 1.05 2.47 2.16
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1128360 559.4 561.0 1.10 0.49 0.30
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1128370 331.8 337.7 1.03 1.80 1.22
589.8 590.2 2.65 0.12 0.09
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1128380 689.2 692.8 1.37 1.10 0.88
724.5 728.1 1.48 1.10 0.94
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1128390 776.7 783.7 2.26 2.13 2.26
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1128400 703.9 705.6 1.87 0.52 0.34
771.0 774 3.29 0.91 0.64
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499.1 558.7 1.11 18.17 13.67
1128410 580.1 592.5 1.23 3.78 3.20
621.9 624.9 1.71 0.91 0.79
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650.7 657.5 1.55 2.07 1.46
1128420 664.9 667.2 1.55 0.70 0.49
785.9 791.2 1.17 1.61 1.19
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1128440 347.4 348.4 3.14 0.30 0.24
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1128450 426.0 434.9 2.37 2.71 2.16
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1128460 642.5 673.7 1.56 9.66 5.70
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1128470 513.1 514.2 1.87 0.33 0.24
517.4 519.1 1.54 0.51 0.43
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1128480 379.8 386.3 3.06 1.98 1.65
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1128490 408.7 413.0 1.35 1.31 1.07
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1128500 600.9 638.8 1.09 11.55 7.59
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1128540 778.0 782.3 0.44 1.31 0.76
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The Mel sulphide nickel deposit has a National Instrument 43-101-compliant indicated resource of 4,300,000 tonnes grading 0.88% nickel (approximately 83,000,000 pounds in-situ nickel) and an additional inferred resource of 1.0 million tonnes grading 0.84% nickel (approximately 19,000,000 pounds in-situ nickel). This near-surface resource, along with CVRD Inco's contractual obligation to mill ore mined from the Mel deposit at cost plus 5% (provided that the product meets CVRD Inco specifications and that CVRD Inco has sufficient mill capacity), makes near-term nickel production from the Mel deposit a possibility that the Company is currently evaluating.
In addition to being incorporated into a new resource estimate, these results will form part of a comprehensive evaluation of the deposit that will include environmental, metallurgical and hydrogeological studies.
The Mel Project is located on the prolific Thompson Nickel Belt, approximately 25 kilometres north of the city of Thompson in northern Manitoba. Victory Nickel has substantially completed the required exploration expenditures to earn a 100% interest from CVRD Inco Limited; CVRD Inco has a back-in right on the project which could lead to a 50:50 joint venture going forward.
The program was managed by CVRD Inco. Paul Jones, Vice-President, Exploration, is Victory Nickel's Qualified Person for the project under National Instrument 43-101. Mr. Jones has reviewed and approved the contents of this news release. Samples were submitted to ALS Chemex through its Thunder Bay preparation laboratory. Results from all holes are available on the Company's website at www.victorynickel.ca. For further information on the Mel resource, please see Technical Report on the Mel Deposit, Northern Manitoba, March 9, 2007 by Wardrop Engineering, which is available on SEDAR at www.sedar.com.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with over 660,000,000 pounds of in-situ nickel in National Instrument 43-101-compliant measured (154,000,000 pounds) and indicated (511,000,000 pounds) resources in three sulphide nickel projects: Minago and Mel on Manitoba's Thompson nickel belt, and the high-grade Lac Rocher deposit in northwestern Quebec, and an additional 530,000,000 pounds of in-situ nickel in inferred resources. Created from the nickel assets of Nuinsco Resources (TSX:NWI), Victory Nickel is well financed and focused on becoming a producer by developing its existing properties and evaluating opportunities to expand its asset base.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historical fact, that address activities, events or developments that Victory Nickel believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Victory Nickel based on information currently available to Victory Nickel. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Victory Nickel to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Victory Nickel. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper, nickel and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Victory Nickel disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Victory Nickel believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Victory Nickel Inc.
Rene Galipeau
(416) 626-0470
Email: admin@victorynickel.ca
Victory Nickel Inc.
Sean Stokes
(416) 626-0470
Email: admin@victorynickel.ca
Website: www.victorynickel.ca
