Exploration Projects

Exploration Update

Exploration received a significant boost in 2009 when it received $15 million in flow-through financing for 2009/2010 exploration activities focused primarily on the Company's non-producing properties in Sudbury. This flow-through financing provided the Exploration Group with the opportunity to dramatically increase its exploration activity in 2009, while not depleting the Company's cash position. Expenditures related to the flow-through financing totaled $6.9 million in 2009 with the bulk of the expenditures focused on the Victoria Property, where the exploration team specifically targeted the newly discovered Victoria copper-nickel-precious metal mineralized deposits. Other flow-through financing was spent at the Falconbridge Footwall Property, where the Company initiated a year-end program targeting the footwall environment. Exploration was also budgeted at the Podolsky Property, where flow-through financing could not be used. Exploration spent $1.48 million at Podolsky testing the footwall and Quartz Diorite environment near the 2000 Deposit.

2009 Exploration Drill Holes and Footage Surface Drilling
Property Holes Completed Holes in Progress Footage Completed
Podolsky 8 0 21,413
Victoria 20 4 61,285
Falconbridge JV 0 1 2,271
Total 28 5 84,969


Airborne Gravity Program

As part of an effort to further our understanding of the geology at the various Company properties in Sudbury, a comprehensive airborne gravity survey was completed over all these properties in 2009. The AIRGrav system of Sander Geophysics was chosen over traditional ground survey methodologies in an effort to achieve results in a more timely and cost effective manner. The system measures local variations in the gravitational field of the Earth, which can then be correlated with specific rock types identified on the ground. This data will be used in concert with other rock physical property data, including airborne magnetic surveys and geological data, to assist with interpretation and targeting at the various properties. The survey cost of $580,000 was partially covered by flow-through financing on those properties where it qualified.

Focus in 2010

In 2010, exploration will continue to focus on the Victoria, Podolsky and Falconbridge properties, however the Company will also complete drill programs at the Kirkwood Property and the Quadra FNX-Vale Inco Nickel Lake joint venture on the Foy Offset. The total budget for Sudbury related exploration projects (non-LFD) in 2010 is $13.0 million.