FNX Reports Initial Resources from Middle Portion of the Levack Footwall Deposit

FNX Mining Company Inc. (Toronto:FNX.TO – News)(“FNX” or “Company”) announces an initial indicated mineral resource estimate of 754,000 tons averaging 8.09% Cu, 1.26% Ni and 7.76 g/t (0.22 opt) Pt+Pd+Au within a small portion of the high-grade, Cu-Ni-Pt-Pd-Au Levack Footwall Deposit (“LFD”) that has received sufficient underground drifting, mapping, sampling and drilling to allow a NI43-101 compliant resource estimate to be determined. This initial mineral resource only represents a 250 vertical ft cut through the LFD mineral envelope (see Figures 2 and 3), which, as currently drilled, is approximately 2,500 ft long down-plunge by 1,000 ft along strike by 200 ft wide, and remains open at depth. The overall LFD mineral envelope hosting the above indicated mineral resource is significantly larger than the resource and also contains numerous wider spaced, high-grade Cu-Ni-Pt-Pd-Au drill intersections that could not yet be included in the initial indicated mineral resource being reported today (see Figure 3).

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The initial indicated mineral resource is similar in grade to the 10,683 ton bulk sample (8.29% Cu, 1.40% Ni, and 8.79 g/t (0.26 opt) Pt+Pd+Au) extracted from the LFD and recently shipped for processing through the Clarabelle Mill. Extraction of this bulk sample was not designed to maximize grade, but was a non-selective bulk sample extracted from the 17 ft by 17 ft access drift through the LFD at the 4000 ft level.

The initial LFD indicated mineral resources are based on the results of detailed geological mapping, sampling and underground drilling from the 4000 Level Exploration Drift driven from Xstrata’s Craig Mine (See Figure 1). This initial resource estimate is considered by the Company to be conservative and is based on only the main ‘trunk’ vein network, and does not include the smaller second order vein network, where there is less understanding of the dominant vein trends at this time (See Figure 3). Definition drilling is ongoing east and west of the current resource block and the opportunity exists to expand today’s initial mineral resources.

In addition, as more underground drill stations become available over the entire plunge length of the LFD, the portions of the LFD above and below these initial indicated mineral resources will be drilled in detail to allow additional mineral resource estimates for the entire LFD. The drilling completed to date has intersected wide, high-grade, Cu-Ni-Pt-Pd-Au mineralization throughout the entire LFD mineralized envelope, and in the footwall, hangingwall and at depth.

Terry MacGibbon, Chairman and CEO of FNX noted that, “FNX has always believed that the LFD represents the future of FNX and today we are able to provide the first, albeit conservative and limited, indicated mineral resource estimate to support our significant expectations and projections for the LFD. Rapidly developing the LFD for initial production in 2009 and full production in 2010 remains FNX’s highest priority and today’s resource estimate clearly demonstrates the importance of achieving this objective as quickly as possible”.

The indicated mineral resource block announced today is centered about the 4000 Level Exploration Drift driven into the LFD from Xstrata Nickel’s Craig Mine infrastructure. The 4000 Level drift has permitted the definition drilling of today’s mineral resource at 50-ft drill centers at drill angles adequate for an indicated mineral resource estimate of typical Sudbury footwall-hosted, ‘sharp-walled’ Cu-Ni-Pt-Pd-Au vein deposits, and has allowed for excavation of more than 360 ft of lateral continuity of a trunk vein within the larger vein system (See Figure 3). Both the definition drilling and successful physical intersection of the vein system allowed for detailed geological interpretation of the reported block, including the interpretation of dominant vein trends necessary for appropriate interpolation of grade for block modeling. This approach to building the LFD mineral resource will continue as definition drilling is facilitated by new drill platforms both higher and lower in the deposit (See Figure 4).

Assumptions

The geological model that underpins these resource estimates was interpreted on 50-ft spaced 2-D plans and sections to capture the detail of the host Sudbury Breccia, the main ‘trunk’ vein system, the distribution of narrower second order vein sets and to interpret the 3D mineral resource envelope. The mineral resource estimate was completed with 4 ft3 cells using Datamine® software. Selective cut and fill is the proposed mining method in this part of the LFD and has been used to dilute the resource estimate using 8 ft minimum widths and a CDN$150/ton cut-off, based on selective mining costs elsewhere in FNX production environments. The in-situ value was calculated based the following long-term price schedule: Cu equals US$1.50/lb; Ni equals US$6.50/lb; Pt equals US$800/oz; Pd equals US$350/oz; Au equals US$400/oz and a US$-CDN$ exchange rate of $0.80.

LFD Exploration

Expansion drilling of the LFD from the 4000 Level Exploration Drift and the Craig Mine 4300 Level has intersected significant Cu-Ni-Pt-Pd-Au mineralization outside the current mineral envelope in the vicinity of the Lower LFD and below the LFD. However, given the location of current platforms, these underground diamond drill holes tend to be greater than 1,500 ft long, and, in many cases, more than 2,000 ft long. Detailed diamond drilling of the Lower LFD and below the current LFD mineral envelope will require optimized drill platforms. Current definition drilling and exploration in the upper LFD/Rob’s environment is with three underground drills from platforms in Rob’s development workings. Two underground drills are also currently testing the LFD on the 4000 Level Exploration Drift.

The LFD is similar in style and character to other Sudbury-area footwall-hosted deposits currently in production or under development, including FNX’s McCreedy West 700 Complex and Podolsky 2000 Deposit, Xstrata Nickel’s Fraser Copper and Nickel Rim South Footwall deposits, and Vale Inco’s 153 and 170 deposits. The massive sulphide veins range from centimeter-scale to locally wider than 20 feet, and are characterized by chalcopyrite-rich veins, with significant cubanite, pentlandite and millerite.

Detailed drilling continues at the LFD from platforms associated with the 4000 Level Exploration Drift, and in Rob’s Deposit, where pre-production development on three levels has been completed or is underway. Ramp development from the Rob’s Deposit down into the LFD is currently at 3055 Level (10,065 ft elevation). Definition drilling of the LFD below Rob’s Deposit (See Figure 4) will be facilitated by further down ramp development and a diamond drill drift on approximately the 10,000 foot elevation (See Figure 4). On-going drilling between the two deposits continues to confirm the current interpretation that they are part of the same sulphide mineralized system.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/Levack1.pdf
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/Levack2.pdf
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/Levack3.pdf
To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/Levack4a.pdf