FEASIBILITY STUDY – Koniambo nickel could start up in 2009

NEW CALEDONIA - Toronto-based FALCONBRIDGE has completed the bankable feasibility study for the Koniambo ferronickel development well ahead of its Jan. 1, 2006, deadline. As soon as it places firm orders for at least US$100 million of equipment and services relating to the project, Falconbridge will become 49%-owner. Its partner, SOCIETE MINIERE DU SUD PACIFIQUE will hold the remaining 51%.

The Koniambo project is located in the Northern Province of New Caledonia, near the provincial capital of Kone. At a 1.5% nickel cut-off grade, the deposit contains measured plus indicated resources totaling 142.1 million tonnes at 2.13% Ni. Together with additional inferred resources of 156 million tonnes at 2.2% Ni, Koniambo is one of the world's largest and highest grade nickel laterite deposits. At a 2.0% nickel cut-off grade, the deposit contains measured plus indicated resources of 75.6 million tonnes at 2.47% Ni. In addition, the project has an inferred limonite resource estimated at 100 million tonnes at 1.6% Ni and 0.2% Co which could be developed at a later date. A production rate of 60,000 tonnes/year nickel in ferronickel is anticipated.

The project is described in detail at www.NorandaFalconbridge.com. Click on the link to Falconbridge.