Coleman (Sudbury)

Underground exploration continued on the 170 footwall high-grade precious metals deposit at McCreedy/Coleman Mine in 2005. Additional holes were drilled from the exploration drift. In-fill drilling was currently underway and is scheduled to be completed by June 2006. The $31.2 million Phase 3 project to develop a section of McCreedy East/Coleman Mine’s main and west orebodies was nearing completion as of year-end 2005. All development work and construction of the major facilities were completed in 2005. Production of ore from this area began on schedule in December 2004 and ore production in 2005 reached an average of 307 tonnes per day, well above the design capacity of 219 tonnes per day. Ore production in 2006 is scheduled to be 591 tonnes per day. The final design capacity of 1,070 tonnes per day is expected to be achieved in 2008. Also in 2001, the down-ramp has been completed and the initial silling in the orebody is in progress as part of the 2000 mine expansion project. This project is expected to allow McCreedy East Mine to increase its production by approximately 55 per cent from current levels by 2004 when it is expected to be in full production. In 2001, underground exploration drilling continued in 2001 in the footwall at McCreedy East Mine to explore for new high-grade platinum-group metal deposits similar to the 153 orebody which is currently being mined at the 1340 metre level and which contains proven and probable ore reserves of 3.8 million tonnes grading 1.14 per cent nickel, 10.41 per cent copper and 9.3 grams per tonne of combined platinum, palladium and gold. Drilling continued with encouraging results on a new zone of footwall mineralization containing grades similar to the 153 orebody which was discovered in 2000. Drilling is expected to continue in 2002 to confirm the quantity and grade of mineralization for feasibility studies.

Narrow veins were discovered comprising very high grade platinum group mineralization. This new mineralization is believed to be a faulted extension of McCreedy East's 153 orebody which has similar high-grade platinum-group metals. The new zone has been intersected in nine holes over a strike length of 600 metres and with a down dip for 300 metres. Further exploration is needed to establish the continuity of the mineralization and estimate a mineral resource. Intersections from this new zone are listed in the in the chart on p. 2 of Pa062179.pdf. The highest grade occurs over 1.4 m core length and grades 2% Ni, 2% Cu, and 104 g/t precious metals (not specified).

Inco Ltd. reported several significant platinum and palladium mineralization discoveries at three of its Sudbury, Ontario operations. New high grade ore discoveries are part of its ongoing efforts to increase palladium and platinum production from Totten, McCreedy East and Copper Cliff North mines. Inco plans to produce 416,000 ounces of platinum group metals in 2001, a 21% increase over 2000 production.