Falconbridge announced in September 2005 that it had discovered two new significant nickel deposits on its Araguaia nickel-laterite properties in the Para State of northern Brazil. An extensive exploration program on these promising properties is being conducted.

These are completely new grassroots discoveries in an area where the first recorded drilling for base metals was completed by Falconbridge's exploration team in October 2004. Drilling has taken place at Serra de Tapa and Vale dos Sonhos, which are about 10 kilometres apart. The drill spacing is too wide to properly determine an inferred resource. However, in-fill drilling to 160 metre line spacing is ongoing, with an ultimate plan to complete drilling to 80 metres by 80 metres in order to provide sufficient data to commence scoping level economic studies in 2006.

Work is ongoing to classify the laterite mineralization. Based on the initial analysis, the mineralization is predominantly a combination of saprolite and transitional nickel laterite with only a minor component that would be classified as limonitic. The deposit is hosted within the Cinzeiro ophiolite complex, which extends 90 kilometres in a north-south orientation and is a similar geological setting to many of the large nickel-laterite deposits globally, including the Falcondo operations in the Dominican Republic and all of the deposits in New Caledonia. The project is located in the Municipality of Xinguara in Para State of northern Brazil, approximately 100 kilometres southeast of the Carajas mineral province, which is the centre for major iron ore production in Brazil. The area is well serviced by roads, hydroelectric power and rail.

The deposits occur on properties owned by Falconbridge or where Falconbridge has the right to earn a 100% interest by completing a series of cash payments totalling $2.4 million staged over eight years. On the basis of airborne surveys covering approximately 22,000 square kilometres in the region, Falconbridge has consolidated its ground position over the key targets such that it now controls mineral rights (Exploration Licenses) to 3,800 square kilometres (380,000 hectares). Falconbridge has also submitted applications for an additional 200,000 hectares in the same belt.

For more information, please contact exploration@falconbridge.com.