ccnm
TORONTO, ONTARIO--(Marketwire - Jan. 17, 2011) - Victory Nickel Inc. (the "Company") (TSX:NI) today announced that preparations are underway for drilling in the Nose Deposit and North Limb at its 100%-owned Minago sulphide nickel project in Manitoba. Drilling is expected to begin toward the end of January.
The Nose Deposit currently incorporates all known resources and reserves at Minago (620 million pounds in-situ nickel Measured and Indicated resource, 170 million pounds in-situ nickel inferred resource - see below); the North Limb is an underexplored and highly prospective zone of sulphide nickel mineralization with a known strike length of 1.5 kilometres to the north of the Nose Deposit.
The drill program will incorporate the following:
A single deep hole targeting the down-plunge extension of the significant nickel resource currently known to exist in the Nose Deposit at Minago. In part, this deep drill hole will target a large magnetic mass shown to extend to a depth in excess of 1.5 kilometres vertically and over two kilometres in length incorporating the Minago Nose Deposit and the North Limb (see "Figure 1: Magnetic Inversion Study" attached).
Ten holes to define a nickel resource in the North limb. The North Limb's existing 17 diamond drill holes demonstrate continuity and significant thickness of nickel-mineralized rock identical in character to that which comprises the Nose Deposit.
Five holes in the local area of the Nose Deposit to examine the geology and assess local conditions with regard to infrastructure placement.
"Near-surface mineralization already identified in past drilling shows that the North Limb is a prime target for significant expansion of the Minago resource," said Paul Jones, Vice-President, Exploration. "The airborne survey shows that the potential exists for the Nose Deposit and North Limb to comprise a single continuous mineralized body. If this is the case, the nickel resource at Minago would increase dramatically, potentially to district proportions."
Victory Nickel's Qualified Person under the NI 43-101 guidelines is Paul Jones, Vice-President, Exploration. Mr. Jones has reviewed and approved the contents of this news release.
Permitting Update
As announced in its news release of May 4, 2010, Victory Nickel has submitted its Environmental Impact Statement (EIS) to regulators in Manitoba. This submission represented a key step in the permitting process. In addition, the Company has responded to all technical questions since then regarding the EIS and fulfilled its obligations with respect to public and community engagement meetings in the individual Aboriginal communities in the Minago area. Victory Nickel maintains ongoing communication with the Aboriginal communities that will be impacted by the development of a large-scale mining operation at Minago, and is committed to working with these parties in a manner that will benefit all stakeholders, including the province of Manitoba. The Company is waiting for the government of Manitoba to undertake its duty to consult with Aboriginal communities as required under the Canadian Constitution Act, 1982.
About Minago
Victory Nickel's l00%-owned Minago sulphide nickel project is located approximately 225 kilometres south of Thompson, Manitoba on the Thompson Nickel Belt. Minago is one of Canada's largest undeveloped sulphide nickel deposits, with a nickel resource (0.25% cutoff, total nickel basis) as follows: Measured: 11.1 million tonnes grading 0.56% Ni; Indicated: 43.1 million tonnes grading 0.51% Ni; Inferred: 14.6 million tonnes grading 0.53% Ni. The Minago feasibility study indicates an internal rate of return of 19.8% at US$11.19/lb Ni and a net present value (6% discount rate) of $487.6 million (see news release dated June 21, 2010).
About Victory Nickel
Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake in Manitoba, and Lac Rocher in northwestern Quebec, and by evaluating opportunities to expand its nickel asset base. Victory Nickel also owns shares in Prophecy Resource Corp. (TSX VENTURE:PCY) and Wallbridge Mining Company Limited (TSX:WM), the third largest landholder in the Sudbury Basin which in turn owns approximately 13% of Duluth Metals Limited.
Please visit the Company's website at http://www.victorynickel.ca/">www.victorynickel.ca. Should you wish to receive Company news via email, please email nadine@chfir.com and specify "Victory Nickel" in the subject line.
