2010 assessnlent work 2-45746 first nickel inc

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2010 Assessnlent Work 2-45746

Marmora East Claims - Prospecting Field Report

First Nickel Inc.

JUL 2 9 2010

GEOSCH:!Nce AS~t!SSMSNi OFFICE

Submitted to: MNDMF

Geoscience Assessment Office Sudbury, Ontario

Tel: 705,670.5742

Date: July 29,2010

Scot Halladay, P.Geo. Sf. Geologist

First Nickel Inc.

S{~7

Report prepared by:

and Alison Ryan (G.I.T.) Geologist

First Nickel Inc.

ASSESSMENT WORK REPORT ON MARMORA EAST CLAIMS· BELMONT PROJECT, 2010 FIRST NICKEL INC.

Table of Contents .................................................................................. 1

Project Summary .................................................................................. 2

2010 Marmora - Exploration

Introduction .............................................................................. 3 Location and Access ..................................................................... 3 Geology .................................................................................... 4 Work done (Exploration Traverses and Sampling) ............................. .4 Results - Geology, Samples and Assays ............................................... 6 Health, Safety and Environment ........................................................... 7 Quality Assurance I Quality Control (QAlQC) .......................................... 7

Acknowledgements ....................................................................... 7 Conclusion ................................................................................. 7

List of Figures Figure 1 - Plan Map with Location of Claims ........ , .............. , .............. , ............... 3 Figure 2 - 2010 Field Sample locations overlain on surface geology plan ...................... 5 Figure 3 - Plan Map with Topographic Data, Claims, Sample Points and Traverses ....... 6

List of Tables Table 1 - List of Claims .................................................................................. 4

Table 2 - 2010 Rock Sample GPS Points ............................................................ 5

Table 3 - 2010 Work Summary - Marmora Claims ................................................... 6

Appendices Appendix 1: Appendix 2:

Appendix 3:

Description of samples ................ , .............. , ................................ 8 Prospecting - Pictures, Sampling .................................................... 9

Assay Certificates ........................................................................ 10

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ASSESSMENT WORK REPORT ON MARMORA EAST CLAIMS- BELMONT PROJECT, 2010 FIRST NICKEL INC.

Project Summary

This is a summary report for the work done on the First Nickel Inc. area known as the Marmora East claims (three adjoining claims): SO 4222718, SO 4222719, SO 4222720 (SO, Southern Ontario) within its Belmont Project.

Prospecting and sampling in search of nickel, copper and platinum group elements (PGE's) on Marmora claims in east central Ontario took place in June 20 I O. The area of focus was the electro-magnetic (AEM) anomalies from the 2008 AeroTEM III airborne geophysical survey contracted out by First Nickel Inc.

A total of II surface grab samples were described and sent for analysis ofNi, Cu, Co, S, Au, Pt, Pd, and Ag. A standard (MM-175B, 900-3) and blank (MM-168, Granite) were added to the samples before shipment to SGS Laboratories. Assay results are all at the minimum detection levels.

No medical aids or time lost during this time.

Future exploration should include more prospecting along all rock contacts, sampling and potentially ground geophysics and diamond drilling to explain the source of the AEM anomaly.

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Introduction

The Marmora claims were staked on June 20, 2007 and recorded on June 26, 2007 [SO 4222718, SO 4222719, SO 4222720 (SO, Southern Ontario)]. Work has been done on two of the three adjoining claims (4222719 and 4222720).

A team of four First Nickel employees traveled from Sudbury Ontario and lived in a rented house in Cardiff, 17km west of Bancroft to explore the various Belmont Project properties. Two trucks were used to access the properties.

Location and Access

Claims 4222719 and 4222720 (see Figure 1 and Table 1) is located 40km Southeast of Bancroft, along highway 62. Proceed right on Deloro Road (going west) for 6 km. Tum right on Centre Line Road and continue southwest for 2.Skm then turn right onto Bronson Road (unpaved) going north for 2km . Access Bronson Road which splits claim 4222720 in half. Access to the claim 4222719 is an overgrown trail and a dirt A TV trail going northwest off of Bronson Road.

Figure 1 - Plan Map with Location of Claims

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Table 1- List of Claims

Claim Details (SO - Southern Ontario)

Company Claims Township No. of Lots, Con (SO) Units

FNI 4222718 Mannora (G-1270) 4 lot 22, con 8 4222719 Mannora (G-1270) 8 lots 26 and 27, con 9 4222720 Mannora (G-1270) 4 E1/2 Lot 25 Con 9, W'1I2 Lot 25 Con 10

Geology The Mannora Claims are located within the Grenville Province ofthe Precambrian Shield. The

area displays complex structure, multiple folding events followed by brittle and ductile defonnation.

The geological units sampled in the field are the intrusive mafic volcanic and gabbroic rocks that have been intruded into the metasediment, calcitic and dolomitic marble units (refer to Figure 2).

Work Done (Exploration Traverses and Sampling)

Surface sampling in June 2010 was focused on the areas where airborne geophysical electromagnetic (AEM) anomalies were identified (see Figure 2). Field work included 3 days of prospecting with a geotech and field assistants (19 to 21-June-20 1 0), locating outcrops and taking hand samples for further analysis. Sample locations (Table 2) were marked using a hand held GPS (Gannin, Model: GPSmap 60CSx).

The surrounding outcrops were described (Appendix I), along with 13 rock samples (including a standard and blank). The samples were sent to the SGS Lab in Toronto on June 25, 2010. A hand lens, magnet and scratch knife were used in helping describe the outcrops. A Gannin was also used to "track" our routes. Our tracks cover approximately Ilkm in and around our Mannora claims (including walking and ATV travel). A compass (with adjusted magnetic declination) aided us in orienting the outcrops. Two representative pieces of the each field sample were flagged, one left on site to mark the position and one taken back to the office, photographed, described and filed.

Assay results were received July 26th and additions were made to the original June 25th report.

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ASSESSMENT WORK REPORT ON MARMORA EAST CLAI MS- BELMONT PROJECT, 20 J 0 FIRST NICKEL INC.

Figure 2 - 2010 Field Sample locations overlain on surface geology plan (Geology from OGS Mapping, UTM Zone 18 NAD 83)

Table 2 - 2010 Rock Sample CPS Points

Sample Easting Northing

UTM NAD 83 (Zone 18)

MM-165 290421 4942407 MM-166 290419 4942550 MM-167 290143 4942623 MM-168 BLANK MM-169 289752 4942566 MM-170 290631 4942133 MM-171 290445 4942073 MM-l72 290388 4942058 MM-173 290445 4942218 MM-175 290958 4942355

MM-175B STO MM-176 290664 4942263 MM-177 290758 4942183

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Elevation (m)

250 m 255 m 256 m

255 m 244 m 246 m 249 m 248 m 245 m

250 m 245 m

ASSESSMENT WORK REPORT ON MARMORA EAST CLAIMS· BELMONT PROJECT, 2010 FLRST NICKEL fNC.

Figure 3 - Plan Map with Topographic Data, Claims, Sample Points and Traverses

Results - Geology, Samples and Assays

The geology of the samples taken was a mixture of metasediment, mafic metavolcanic and marble, that strike northwest lie within and around the AEM anomaly, on the Marmora East claims.

A total of 13 surface samples were sent to the SGS Lab for analysis ofNi, Cu, Co, S, Au, Pt, Pd, and Ag. A standard (MM-175B, 900-3) and a blank (MM-168, Granite), was added to the samples for shipment on June 25, 2010. Assay results (Appendix 3) are all at the minimum detection levels however, the sulphur values were in the 0.03-0.06 %S range. Figure 3 above, is a detailed topographic map depicting the traverses and sample points on the Marmora claims.

Table 3 - 2010 Work Summary - Marmora East Claims

Dates Type of Work Hours Samples Taken

19-21 June 20 \0 Travel to Field, Surface Sampling 48 MM-165 to MM-I77

June 24, 2010 Descriptions and sorting for lab analysis 4

June 20, 2010 Pictures, filing 6

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June 22-23,2010 Writing Report and filing assessment 32

July 26-29,2010 Assay, QAQC, additions to report

Health, Safety and Environment

No accidents or lost time injuries occurred during the time spent working on the Marmora claims in June 20 10, nor in the field office or core shack.

QAJQC Commentary - First Nickel Procedures

Quality Assurance and Quality Control (QAIQC) protocols were used for the Marmora Property, similar to other Belmont project properties. A summary of our QAIQC procedures include the following: Rock types with descriptions, structure, sulphide estimates are logged directly into our digital computer database at the secure FNI Exploration core shed facility. Photographs are stored on our network. All representative field samples and their pulps and rejects have been kept in locked storage. A representative sample, approx. I Ocm by 10cm is taken from each sample bag and kept on site (Bancroft core shed facility). Each set of samples has a blank and certified nickel standard. Samples are sent to the SGS Labs preparation facility in Toronto, where they are dried, crushed to 75% passing 2mm, split to 250g and pulverized to 85% passing 75 microns, and specific gravity is measured by a pycnometer. One extra selected pulp per lot is retained for future testing at a second independent laboratory. The lab does analysis of nickel, copper, cobalt (sodium peroxide fusion with ICP-OES finish), gold, platinum, palladium (fire assay lead collection with ICP-OES finish), sulphur (Leco), and silver (aqua regia digestion, AAS). Results are received digitally including final certificates, and are compared to expected visual estimates. Standards and blanks are checked for their expected results. Surface location hand held GPS surveying was completed for surface sample locations.

Acknowledgements

Thanks to field assistants Filomena Benevides Johnson and Pierre Lalonde and other First Nickel Exploration Team members- Paul Davis - V.P. Expl., Shirley Peloquin - Principal Geologist, Emily Laakso - Environmental and GIS Technician who also participated in the realization of this project.

Conclusion

Additional work should be done on these claims to further understand the nature of the geology, alterations and mineralization in relationship to the AEM anomalies. More prospecting and sampling is needed along all rock contacts, especially the gabbroic intrusive to the west portion of the claims and potentially ground geophysics and diamond drilling if warranted.

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Appendix 1: Descriptions of samples

Sample Description

MM-165 Fine grained medium light grey, felsic, non-mag, no vis sulf, occ rusty spots. MM-166 Marble with occ pinkish tint. No vis sulf, non-mag MM-167 Fine grained, felsic (marble, possible meta-sed), no vis sulf, non-mag. MM-168 Blank. MM-169 Fine grained, light-med grey, rusty meta-sediment, some pink layers. Non-mag, no

visible sulf. MM-170 Medium grey, dark grey, abundant in amph, mod magnetic, and no vis sulf. MM-l71 Medium grained granite with pink to deep pink (k-spar) fsp, amph and biotite.

Generally non-mag with mod magnetic spots, no visible sulf MM-l72 Medium grained, med dark grey, gabbro, pink and white fsp, mod mag, no visible

sulf, rusty spots. MM-173 Medium grained with some very coarse grained amph, blk, abundant in amph, non-

mag, no vis sulf, rusty spots MM-175 Fine grained, felsic, med light grey, rusty spots, no vis sulf, non-mag MM-175B STD. MM-176 Fine grained with rare coarse grained fsp, light medium grey up to 3% biotite, no

visible sulf, non-mag, rusty spots. MM-l77 Fine grained-medium grained, medium light grey, very felsic, non-mag, no vis sulf

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ASSESSMENT WORK REPORT ON MARMORA EAST CLAlMS- BELMONT PROJECT, 2010 FIRST NICKEL INC.

Appendix 2: Prospecting- Pictures, Sampling

Marmora Twp. Claim # 4222719 Sample: MM-165, Metasediment. Fine grained, medium to light grey, felsic, non-mag, no visible sulfide, occasional rusty spots.

Marmora Twp. Claim # 4222719 Sample: MM-167, Marble Outcrop.

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Marmora Twp. Claim # 4222719 Sample: MM-167, Marble. Fine grained, no visible sulfide, non-mag.

Marmora Twp. Claim #4222719 Sample: MM-169, Metasediment. Fine grained, light-med grey, rusty, some pink layers. Non-mag, no visible sulfide.


Appendix 3: Assay Certificates

SG$ To: Scot HalJaday

First Nid!ellnc. Sudbury Exploration 2799-2 Belisle Dlive VAl CARON ON P3N 1B3

P.O. No. Project No. No. Of Samples Date SUbmitted Report Comprises

Certificate of Analysis Work Order: T0110840

~:ExplorationJMM-165-173,MM-175-177

EXPlORATION 13 Jun 28,2010 Pages 1 to 2 (Indusive of Cover Sheet)

Distribution of Wlused material: Return to dient

Certified By :

Date: Jul 26, 2010

Operations Manager

SGS Min.".,. SeIYices (TotOft:1» is .~ by SrandaJds CounCIl ofCm;oda (SeC) and confonm ro ~ "",_ oflSOiIEC 17025 fn,

&pecffic tum .. _,ed on the"""" of .ecredir.iIion 10 be found at 1mp~ . ..:c.""~rograra""'blminer.d.6hIml

LN.R. = Us:ed not ri!Oefved n.a. = No;: applicable

1.5. = lnsI.t.!iciem S''''ple = No result

"INF = ~ of this ~e mall". -... impos.a.te by !IUs method

ItA a.~ a result denotes ppb to ppm conversion. liD denotes ppm to c;o ~

Methods """"'"" with an asterisk (e.g. "NAA08V),..,. suI>oor1:r3e:ed Methods rrorted with 1he@S'J'"I'boI (e.g.@AAS21E) denote ~ .....

Tt..:s COClImEr.% I5l:&.$ued by me Company Un02r ttl G~nffiil ComJl:On$ or SEMCi acceatIli at t:!p:JIfIft.!¢i.ccm.'ter.&i .me cor.cutor4.htm. ~~ 15 CUirlin to mE ~orn ct 1.lDIt:y. tnCE-tI".:IClcaIlon iL"1d ~~ Ii6Uei ~..n~ t:lER:ln.

WAfUIING: rne- iin'.me(s.)towNcn metm::ngs ~ I'leIm (eJe "f~lreli!iWai flIH~)cr.n ano.'Of pro"lkIe4nytne- CD2ntOl'"Df.i tI"JotIpa."t)' acmg ~ t!Je CUiM. a:NCUOIl tnii' flt'.39 cor.a.::ttUta no .,3:fanty 01 the u:r.,:lli'. r~preJ&maC'ny Of ~ goocli ."1d cr.aIy reta:a to 1M umple('). Tne comp.my accep::s :to ~ WOl ~ to the- o:Igl1 0: ioCWJree :rom whICh the 6ampte(ti) l5Iare 5.oatI to be ~ed. Tlle Gr.dJng5 repotI on the ~e5 pro'/tCe:l by the- ClIent md af2 noIl:ItenaecI ror commen:tJI or confr.rduaI ~~ purpos.ei- A-"1} un6UtIoItled aitel'&:lOn. fDtgery Of ~on Of Ene con:ent or appurznce or tt'.:a: aocumem Ii untD~ ~o CL'I'er.Om rna,. De PfO'easteO 1:0 Cle ruDs ex:i.-n or CIe I.i ...

SGSGanadalnc. MinernlSerVices 1885les1ieStreet Toronto t(416)445-S755 (1416)445-4152 .......,.casgs.com

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SGSGanadaInc. MinernlServices 18aSLesliestreet Toronto 1(416)445-5755 1(416)445-4152 WlN\.v.co.sgs.com

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2010 assessnlent work 2-45746 first nickel inc

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