Creighton Mine (Sudbury)

Inco announced significant new exploration results at all three of its Canadian integrated mining operations. At the Voisey's Bay Mine in Labrador, drilling has extended the Upper Reid Brook Zone and has confirmed the exploration potential of the recently discovered Lower Reid Brook Zone; at the Copper Cliff South and Creighton Mine exploration drilling discovered new mineralized zones and/or confirmed and extended the inferred resource; while drilling at Thompson has demonstrated the exploration potential of two potential mineral deposits that can be exploited by open pit mining.

High-grade nickel, copper and PGE mineralization has been discovered at depth between the 2380 metre and 3050 metre levels. Exploration drilling has extended the known inferred resource of the 400 Orebody 150 metres along strike and 250 metres down dip, and approximately 175 metres along strike and 200 metres down dip of the inferred resource of the 461 Orebody. Both zones continue to be open at depth and along strike. Exploration drilling is continuing to extend this mineralization at depth.

An advanced exploration program continued at Creighton Mine in 2005 to test the extensions of the 402 orebody up-plunge along a trend to Gertrude Mine above the 3,500-foot level. The 402 orebody is currently being mined at the 3,800-foot level. The second phase of the Creighton Deep project, which includes the development of a production level at the 7,810-foot level of the mine to access estimated proven ore reserves totalling about 1.7 million tonnes grading 3.62 per cent copper and 3.11 per cent nickel, was approved by Inco’s Board of Directors in December 2005 and is expected to cost $38 million. In 2001, production from the first stoping block defined by drilling on the Creighton Deep Project, started in 1998 commenced. Production in 2002 is expected to be 81,000 tonnes grading 4.6 per cent nickel and 2.4 per cent copper and ore development on the second production level (the 7660-foot level) is expected to begin in 2003. Production is expected to ramp up to 300,000 tonnes of ore annually at full production by 2008.