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Message: West Graham Ni 43-101 Indicated Mineral Resource Estimate: 8.55 Million Tonnes
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West Graham Ni 43-101 Indicated Mineral Resource Estimate: 8.55 Million Tonnes

posted on Feb 10, 2009 01:28PM
February 10, 2009
First Nickel Inc.-West Graham Ni 43-101 Indicated Mineral Resource Estimate: 8.55 Million Tonnes at a Grade of 0.45% Ni And 0.31% Cu
TORONTO, ONTARIO--(Marketwire - Feb. 10, 2009) - First Nickel Inc. (TSX:FNI) is pleased to report the initial mineral resource estimate for the West Graham property, Conwest Zone located approximately 1.5 kilometres to the east of the #2 headframe of First Nickel's Lockerby Mine. The West Graham property is under option from Landore Resources Canada Inc. and the details of the option agreement were provided in a press release dated August 4, 2005.

The Mineral Resource estimate is tabulated as follows:

Tonnes            Ni%    Cu%    Co%  Au gpt  Pt gpt  Pd gpt  Ag gpt       S%
(000's)
----------------------------------------------------------------------------
                               Indicated Resource
8,550           0.45   0.31   0.01     0.03    0.07    0.02    1.91    2.43
                               Inferred Resource
2,000           0.38   0.30   0.01     0.04    0.09    0.03    2.11    2.15
                                Boundary Pillar
270             0.57   0.33   0.02     0.02    0.06    0.02    1.29    3.00

Notes
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated within a mineralization wireframe cut-off
   grade of 0.3% nickel equivalent. The cut-off grade is based on geologic
   continuity, as well as a preliminary estimate of bulk underground
   incremental operating costs, an average longterm nickel price of
   US$7.00/lb, and a C$/US$ exchange rate of $0.90.
3. Nickel equivalent is derived from the equation,
   NiEq% equals Ni% + (0.32xCu%) + (0.53xCo%).
4. Resources are estimated from a depth of 45 metres below surface to a
   depth of 557 metres.
Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) was retained by First Nickel Inc. to carry out a resource estimate and prepare an independent Technical Report for the Conwest Zone on the West Graham property, Sudbury area, Ontario. This technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects. Scott Wilson RPA visited the property on November 26, 2008.

Scott Wilson RPA independently estimated Mineral Resources for the Conwest Zone on the West Graham property. The Conwest Zone is interpreted to represent a large, low grade Ni-Cu-Co-Ag+/-PGE+/-Au bearing contact-type disseminated sulphide deposit hosted by dark norite and located stratigraphically above sublayer norite at the base of the Sudbury Igneous Complex. The Conwest Zone tops at 45 m depth, extends for some 375 m on strike and 573 m along dip and is up to 66 m thick. The zone dips moderately at approximately 53ยบ to the north and is 500 m up dip from the Lockerby Mine East Zone. The resource estimate is terminated to within five metres of the west boundary to allow for a boundary pillar.

To view the "3D Screen Capture of the Mineralized Wireframe of the Conwest Zone", please visit the following link: http://media3.marketwire.com/docs/FN... .

The Conwest Zone is near surface and contains in excess of 84 million pounds of nickel and 58 million pounds of copper within the Indicated Resource category. The West Graham property is unique for First Nickel in that the contained nickel and copper is not obligated to either Xstrata Nickel or Vale Inco. First Nickel is in the process of completing bench scale, metallurgical tests on the Conwest Zone and is investigating various processing and treatment options. Exploration will continue on the West Graham property in 2009, targeting the footwall lithologies to the south of the Conwest Zone.

The resource estimate was prepared by conventional 3D computer block modeling based on surface diamond drill hole data and utilizing ordinary kriging for grade interpolation. Grade was estimated for Ni, Cu, Co, Pt, Pd, Au, Ag, S and NiEq. The estimate was constrained by geological interpretation and a wireframe model based on contouring a NiEq grade of 0.3%. NiEq factors are based on Ni, Cu and Co grades and are derived by the following equation: NiEq% equals Ni% + (0.32 x Cu%) + (0.53 x Co%). The precious metals are generally low.

The estimate was undertaken using Datamine Studio Version 2.1.1518.0, using Standard Precision and creating Standard Precision files. Drill hole data (collar coordinates, downhole surveys, assays and lithology) were exported from the FNI Fusion database in CSV (comma delimited) format and imported into Datamine. The cut-off date for the geological and analytical data was October 10, 2008.

The resource modeling and estimate was carried out by Bruce Churchill, B.A., PGeo., Associate Consulting Geologist with Scott Wilson RPA, under the supervision of Richard Routledge, M.Sc. Applied, PGeo. of Scott Wilson RPA. Both are "qualified person(s)" as defined by National Instrument 43-101. The information in this release was prepared under the direction of Paul Davis, PGeo, Vice President of Exploration for First Nickel Inc., a "qualified person" as defined by National Instrument 43-101.

First Nickel is a Canadian mining and exploration company. Its current activities are primarily focused on the Sudbury Basin in northern Ontario, the location of the company's Lockerby Mine and four of its exploration properties. First Nickel also has two exploration properties in the Timmins region of northern Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.
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