Sudbury Basin

The Sudbury Basin, a 60 km by 30 km elliptical structure located just north of the City of Greater Sudbury (400 km north of Toronto), is generally held to be the geological expression of events triggered by the impact of a giant meteorite approximately 1.85 billion years ago. The resulting crater penetrated the earth´s crust and resulted in the introduction of an igneous melt sheet known as the Sudbury Igneous Complex (SIC).
The original crater caused by the meteorite was more than 150 km in diameter. Erosion has exposed the smaller, lower portion of the crater and tectonic deformation and thrusting has deformed the once circular structure into the elliptical shape of today. Sulphide mineralization within the melt collected in traps (topographic irregularities) at and near the base of the SIC, in radiating ?Offset?dykes in the footwall rocks and also within fractured and brecciated footwall rocks (Sudbury Breccia). The mining industry in Sudbury has been built on exploitation of the rich nickel deposits at the base of the SIC.

Initial FNX mine production at McCreedy West was from the contact nickel deposits (Inter Main, East Main and Upper Main) and the next generation of production, marked by that from the footwall PM Deposit in the second quarter of 2005, has coincided with significant increases in the prices of Cu-total precious metals (TPM). All FNX properties in Sudbury have potential for footwall deposits. Rehabilitation of the Levack shaft is progressing and access to underground was achieved early in 2006. The discovery of the exciting Levack Footwall Deposit (Cu-PGM +Ni) in February 2005 has confirmed the excellent potential of the Company´s footwall environment targets. Shaft sinking on advanced exploration at the Podolsky 2000 Deposit has reached the target depth of 2,660 ft and it is anticipated, if the feasibility study is positive, that the Cu-PGM-Ni ore from this deposit, together with that from the adjacent North Deposit, will accelerate our evolution to a more balanced Ni-Cu-TPM producer.