Timmins camp still heating up.

Timmins -- The Timmins mining scene continues to heat up as juniors busily perform airborne surveys, geophysical groundwork and drilling in partnership with larger players such as the Porcupine Joint Venture (PJV) and Falconbridge.

Temex Resources Corp. has announced an agreement with the PJV, where Temex acquired the option to earn up to 60 percent of the Whitney Township Property, 2.5 kilometres west of the new Pamour site. The company will spend $4 million over four years, according to a May 30 news report.

"Considering the work they're (PJV) doing around Hoyle Pond and other developments, we believe it's a good deal for Temex in terms of the amount of money that has to be expended on the property," says Temex president and CEO Brian Groves.

As a project in its infancy, the company is identifying targets for drilling based upon their compilation of previously existing data.

Groves says they have the right to explore 300 metres below the former Hallnor Mine site, which produced 1.6 million ounces of 0.4 ounces of gold per ton (high-grade) when it was active. The focus will now be on the development of a three-dimensional geological model for the Hallnor and Broulan Reef areas.

Sixty km east of Timmins, a Toronto-based junior exploration company First Nickel is spending $11.5 million on drilling and underground exploration at their Dundonald property.

The company reports an area of exploration called the G-Zone continues to yield extremely high grade nickel intercepts including 25.6 percent nickel over 0.8 m in hole 79 and 20.9 percent nickel over 0.8 m in hole 75. Drilling continues on 12.5 m centres in this immediate area to better define the extent of the high grade nickel zone.

The company plans to complete 5,000 m of drilling focused on this G-Zone area, followed by a major project evaluation. First Nickel may decide to mount an underground exploration program on Dundonald South next year; meanwhile, environmental permitting for such an undertaking has commenced.

The Dundonald property was acquired from Falconbridge who own 21 percent of the shares of First Nickel, according to the latest August 18 report.

Northwest of Timmins, Falconbridge's Montcalm Mine is in full production (Nov. 2004) where they have mined 500,000 tonnes of the 4.8 million reserves that existed at the start of the year, according to mine manager John McDonald.

Its expected life is until 2011, with 750,000 tonnes of ore per year being extracted.

The nickel grade is 1.46 percent and the copper is 0.7 percent, or medium grade. The ore goes to the Kidd Metallurgical Site (Met Site), where a concentrator was converted to nickel/copper, made operational for production in November of last year. The nickel concentrate is transported to the company's Sudbury smelter.

$100 million was spent to get the mine working, with an annual budget between $70 million to $80 million to mine, process, smelt and refine the ore, says McDonald.

He added that an estimated 168 direct jobs resulted, with two to three spin-off jobs created per full-time job at the mine.

Nearby, Pacific Northwest Capital Corp. (PFN) has completed its aeroTEM airborne surveys over the Montcalm Mafic Intrusive Compex (MFI), where they've optioned the property from Falconbridge as a joint venture, says John Londry, vice-president of exploration for the Vancouver-based junior mining company.

"We have the option to earn 100 percent of the property subject to an NSR (net smelter return) and a buy-back by Falconbridge," Londry says.

Seven priority conductor anomalies were selected for ground follow-up evaluation on the 355-square-kilometre intrusive since accesibility is not an issue.

Ground-line cutting and EM surveys were initaited to define drill targets, according to a company report. A number of other selected conductor targets throughout the property have been prospected and tested with recon MMI geochemical sampling.

"We're excited about the claim," Londry says.

Based upon the results, a minimum of 3,000 m drill program began in September 2005.

PFN will spend $4 million over a four-year period. Falconbridge will retain a two-percent NSR and under certain circumstances, back in and earn up to a 65 percent interest by either completing a feasibility study or spending $20 million on a feasibility study.

www.temexcorp.com/s/Home.asp

www.firstnickel.com/

www.falconbridge.com/profile.htm

www.pfncapital.com/s/Home.asp

By ADELLE LARMOUR

Northern Ontario Business