Victory Nickel Inc. (TSX:NI) today announced that its 3,500 metre winter drilling program has commenced at its 100%-owned Mel sulphide nickel project, 25 kilometres north of Thompson, Manitoba.
Eight drill holes will target the extension of the Mel deposit resource – they will be located between lines 84S and 101S on the local grid to evaluate 518m (1700ft) of strike length of the deposit, between 185 and 300m vertically, for down-dip extension of the existing resource. Two additional holes will be drilled on lines 4800S and 5000S, approximately 600 metres north of, and on strike with, the Mel deposit to assess prospective nickel results obtained from semi-massive sulphide mineralization returning 1.24% Ni over 2.41m in an earlier drill hole.
The Mel Project consists of one mineral lease (the "Mel Lease") covering approximately 750 Ha and 37 unpatented mineral claims (the "Mel Claims"), encompassing approximately 8,770 Ha. The Mel Lease contains the entire nickel resource and has been the focus of the bulk of past exploration.
Mineralization on the Mel Lease remains open along strike and at depth. The known resource is located between 46 and 183 metres, making low-cost ramp access for mining a possibility. This near-surface resource, along with an agreement that Vale shall mill ore mined from the Mel deposit at its cash cost plus 5% (provided that the product meets Vale's specifications and that Vale has sufficient mill capacity), makes near-term nickel production with a low capital requirement a possibility. Vale has a 10% net profits royalty.
The Mel property is considered to be a dislocated segment of the Thompson Nickel Belt and the larger group of Mel Claims also offers significant upside potential in all directions.
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.
Source: Victory Nickel Inc.