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INDEPENDENT NICKEL CORP. NEWS RELEASE September 25, 2006
Independent Nickel Corp. Receives Preliminary Economic Assessment for Lynn Lake Nickel MineSudbury, Ontario – September 25, 2006 – Independent Nickel Corp. (INI: TSX-V) is very pleased to report the receipt of a positive NI 43-101 compliant Preliminary Economic Assessment (“PEA”) for the Lynn Lake nickel mine in Manitoba. The report is authored by Wardrop Engineering Inc. of Winnipeg, Manitoba. Material points of the PEA include:
It is important to note that, historically, the mine produced significant amounts of byproduct cobalt, however, insufficient cobalt assay data precludes including these credits in this study at this time. “This study proves that Lynn Lake has real economic potential. The full extent of the upside remains to be established,” stated Independent Nickel Corp. President and CEO, Richard Murphy,”Only the elite of Canadian junior resource issuers own assets of this magnitude.” The study relied on the London Metals Exchange (“LME”) average spot price for the past 36 months for the financial analysis. These prices were US$6.95/lb for nickel and US$1.74/lb for copper. These prices are far below actual market prices for these metals during this year. The PEA contemplates mining 3,300 tons per day of ore grading an average of 0.7% nickel and 0.35% copper. The current life of mine schedule is 9.6 years. However, there are 15 prime exploration targets in the mine environment. These targets are supported by the intersection of mineralization from prior drilling and will add significantly to the mine life if they can be brought into the resource/reserve category. The current measured and indicated resource at Lynn Lake is 16.1 million tons of 0.7% nickel and 0.4% copper and the current inferred resource at Lynn Lake is 4.6 million tons of 0.6% nickel and 0.3% copper (see NI 43-101 report filed Oct. 11, 2005 on SEDAR). Metal recoveries were assumed to be 83% for nickel and 90% for
copper. These recoveries are in line with historical recoveries achieved
by previous operators at the mine. As there have been significant
advances in metallurgical technology since the mine last operated 30
years ago, it is realistic to expect higher recoveries with the
construction of a new mill. Wardrop Engineering has concluded that the Lynn Lake nickel mine has a high probability of economic viability. They have recommended that the Company proceed with a pre-feasibility study for the project. The pre-feasibility will include metallurgical test work, rock mechanics and groundwater studies. Since the mine has 24 years of production records, these studies will rely in part on factual, historic records. In addition, the authors have recommended the continuation of exploratory drilling designed to add to the existing resource. There is a high probability of bringing targets into the resource category with additional drilling, as these targets are supported by historic intersections of mineralization at grades at or above that of the current resource. Independent Nickel Corp. holds a 100% ownership in the Lynn Lake nickel property. The Company has no obligations regarding offtake from the property. The current net present value of the project is $133.7 million, which is currently represented by 25,776,064 shares issued and outstanding. A copy of the full PEA report will be available on the SEDAR website within 30 days of this press release. The PEA was prepared by Wardrop Engineering Inc., an independent consulting firm, under the direction of Dave West P. Eng. Mr. West has reviewed and approved of the technical content of this news release. The PEA is based on a technical report and deposit model of mineral resources completed by Wardrop in 2005. This technical report and deposit model, dated October 7, 2005, is available on the SEDAR website at www.sedar.com. The Company also wishes to report that it has re-designed its website, to provide for improved navigation and additional information concerning its Lynn Lake property. The Company’s web site is www.independentnickel.com. FOR FURTHER INFORMATION PLEASE CONTACT: Independent Nickel Corp. 957 Cambrian Heights Drive This document may contain forward-looking statements relating to Seymour Exploration Corp.’s operations or to the environment in which it operates. Such statements are based on operations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and may be beyond Seymour’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements, including those set forth in other public filings. In addition, such statements relate to the date on which they are made. Consequently, undue reliance should not be placed on such forward-looking statements. Seymour disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE. |
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| INDEPENDENT NICKEL CORP. (Head Office) | 705-521-8444 (Phone) | Site Design by |
| 102-957 Cambrian Heights Drive, Sudbury, Ontario P3C 5M6 | 705-521-1845 (Fax) | Trev's Webs |
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