Continental Nickel Expands H Zone With Intersections Up to 6.54% Nickel and 0.30% Copper Over 3.25 Metres, at the Nachingwea Nickel-Copper Sulphide Project in Tanzania
TORONTO, ONTARIO -- (Marketwire) -- 07/28/10 -- Continental Nickel Limited (TSX VENTURE: CNI) ('Continental' or 'CNI' or the 'Company') is pleased to announce that it has received the first assay results from its 2010 diamond drilling program on the Nachingwea nickel-copper sulphide project ('Nachingwea') in Tanzania. Highlights include drill intersections from H Zone of 6.54% nickel and 0.30% copper over 3.25 metres (including 15.93% nickel and 0.65% copper over 1.1 metres) from hole NAD10-189; and 2.45 % nickel and 0.15% copper over 6.0 metres from hole NAD10-186. The project is a 70:30 Joint Venture between CNI and IMX Resources Limited ('IMX') of Australia.
In 2010, the Company is implementing a $4 million exploration program at Nachingwea which will include 9,000 metres of diamond and reverse circulation ('RC') drilling. This program has two objectives:
1) expand the current Mineral Resources at Ntaka Hill; and
2) continue to explore the vast regional land holdings for additional
nickel sulphide deposits.
The currently estimated NI 43-101 compliant Measured and Indicated Mineral Resources from six separate deposits at Ntaka Hill (including the H Zone) total 3.1 million tonnes grading 1.31% nickel and 0.24% copper (see Press Release dated July 15, 2009).
Diamond Drilling
Diamond drilling commenced at Ntaka Hill in June, 2010 and twenty-six drill holes totalling 3057.7 metres have been completed to date. Assay results have been received for four of five drill holes totalling 541.0 metres completed at H zone and are reported herein. A summary table of drill hole locations and assay results are provided below as Table I. A location figure may be viewed using the link provided below in this release. Further assay results will be reported as they are received, compiled and validated. Diamond drilling continues at Ntaka Hill and is expected to be completed by the end of August. Following completion of the Ntaka drill program, a reverse circulation drill program will test priority targets developed from the ongoing regional exploration program.
H Zone
The five holes reported herein were completed to explore for extensions of the H Zone and were positioned to intersect the zone beyond the limits of the currently defined Mineral Resources. Areas targeted by drilling included down plunge and along strike to the south, up dip to the east, and down dip to the west.
All five holes intersected variable disseminated to net-textured to massive sulphide mineralization, which establish extensions to the H Zone. The results will be incorporated into an updated Mineral Resource estimate upon completion of the diamond drill program.
Diamond drill hole NAD10-186 was drilled approximately 40 metres down plunge to the south of previous drill intersections of H Zone. Modelling of borehole electromagnetic ('BHEM') data from nearby drill holes indicated that the mineralization likely extended to the south. The drill hole intersected sulphide mineralization at the expected target depth comprised of disseminated sulphides with several narrow veins of very high grade massive sulphide over core lengths of up to 0.55 metres. The mineralization intersected has an average grade of 2.45% nickel and 0.15% copper over 6.0 metres starting at 144.65 metres down hole (including 18.95% nickel and 0.26% copper over 0.55 metres from a massive sulphide vein).
The zone remains open to the south and further drilling will be considered upon completion of a BHEM survey which will help position additional drill holes.
Drill holes NAD10-187 and NAD10-188 were drilled to define the near surface up dip extent of the central portion of H Zone. Drill hole 187 intersected several zones of lower grade disseminated mineralization including 0.63% nickel and 0.11% copper over 1.4 metres and 0.72% nickel and 0.21 % copper over 2.05 metres starting at depths of 56.0 and 72.45 metres respectively. Drill hole 188 intersected a disseminated to semi-massive sulphide interval grading 1.66% nickel and 0.13% copper over 3.2 metres (including 4.52% nickel and 0.07% copper over 0.55 metres) starting at a drill hole depth of 40.15 metres. These drill holes successfully defined the up dip edge of H-Zone and extended the mineralization to within 40 metres of surface.
Drill hole NAD10-189 was drilled at the interpreted northern limit of the zone, 40 metres down dip, to the west of drill hole NAD09-160 which had previously intersected mineralization grading 2.93% nickel and 0.11% copper over 5.0 metres starting at 31.0 metres down hole (see press release January 28, 2009). NAD10-189 intersected disseminated to massive sulphides grading 6.54% nickel and 0.30% copper over 3.25 metres, including a 1.1 metre interval of high grade massive sulphide mineralization grading 15.93% nickel and 0.65 % copper.
Drill hole NAD10-206 was drilled 50 metres down dip of NAD10-189 and intersected a 0.8 metre interval of 10 to 30% disseminated to net-textured sulphide mineralization at 58.5 metres down hole corresponding to the zone. Although the intersection is narrow, H zone remains open down dip at this location. Assays are pending for this drill hole.
Airborne Magnetic and Radiometric Survey
The Company also confirms that it has completed a 33,500 line kilometre, airborne, magnetic and radiometric survey designed to cover the entire 7,500 square kilometre project area. The purpose of the survey is to identify potential areas of mafic and ultramafic intrusions which may host nickel sulphide mineralization. Upon receipt of the final data, anomalies will be prioritized and explored with stream and soil geochemical sampling, geological mapping, prospecting and EM surveys. Selected targets will be tested during a reconnaissance reverse circulation drilling program scheduled to commence after the completion of the diamond drilling program at Ntaka Hill. Approximately 3,000 metres of RC drilling are planned for calendar 2010.
Craig MacDougall, President & CEO of Continental Nickel Limited, said 'Our first drill results for 2010 have successfully confirmed the extension of high grade nickel mineralization beyond the currently defined Mineral Resources at H Zone. These new results will be incorporated into an updated resource estimate. Drilling continues to target potential additional Mineral Resources at other sulphide zones at Ntaka Hill and we look forward to reporting ongoing results as they are received and validated.'
Qualified Persons
The quality control, technical information and all aspects of the exploration program are supervised by Patricia Tirschmann, P. Geo., Vice President, Exploration for CNI. The information in this release was prepared under the direction of Craig MacDougall, P. Geo., President and CEO for Continental Nickel Limited. Both Ms. Tirschmann and Mr. MacDougall are qualified persons as defined by National Instrument 43-101.
Quality Control
The drilling was completed by Tandrill Limited of Tanzania. Drill core samples (NQ) are cut in half by a diamond saw on site. Half of the core is retained for reference purposes. Samples are generally 1.0 metre intervals or less at the discretion of the site geologists. Sample preparation is completed at the ALS Chemex preparation lab in Mwanza, Tanzania. Sample pulps are sent by courier to ALS Chemex analytical laboratory in Vancouver, Canada. Blank samples and commercially prepared and certified Ni sulphide analytical control standards with a range of grades are inserted in every batch of 20 samples or a minimum of one per sample batch. Analyses for Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES finish (Analytical Code ME-ICP81). Analyses for Pt, Pd, and Au are by fire assay with an ICP-AES finish (Analytical Code PGM-ICP23).
About Continental Nickel
Continental Nickel Limited is focused on the exploration, discovery and development of nickel sulphide deposits in geologically prospective, but under-explored regions globally. The Company's key asset is its 70% interest in the Nachingwea project in Tanzania, where NI 43-101 Mineral Resources have defined 40,000 tonnes of contained nickel, and ongoing exploration is underway to evaluate the potential to expand these Resources. The Company also has an option joint venture on the St. Stephen project in New Brunswick, Canada where it has recently completed a diamond drill program and is awaiting assay results. Continental Nickel Limited has 38,943,664 shares issued and outstanding (46,211,514 on a fully-diluted basis) and trades on the TSX Venture Exchange under the symbol CNI. The Company remains well-funded with over C$12.5 million in the treasury.
On behalf of Continental Nickel Limited
Craig MacDougall, President & Chief Executive Officer
CAUTIONARY STATEMENT: This News Release includes certain 'forward-looking statements'. All statements other than statements of historical fact included in this release including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, future plans and objectives of Continental Nickel Limited, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Continental Nickel Limited's expectations are the risks detailed herein and from time to time in the filings made by Continental Nickel Limited with securities regulators.
Information in this announcement relating to exploration results is based on data collected under the supervision of or compiled by Patricia Tirschmann, P. Geo., who holds the position of Vice President, Exploration and is a full time employee of Continental Nickel Limited. Ms. Tirschmann is a registered member of the Association of Professional Geoscientists of Ontario and has sufficient relevant experience to qualify as a Competent Person under the 2004 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms. Tirschmann consents to the inclusion of the data in the form and context in which it appears.
Table I: Summary of Recent Assay Results - H Zone, Nachingwea Project,
Tanzania.
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Location
East/
North Length From To Interval
Drillhole UTM:WGS84 Az / Dip (m) (m) (m) (m) % Ni % Cu % Co
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(NAD10) H Zone, Ntaka Hill
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186 450564mE 90 / -69 180.3 130.4 135.0 4.6 0.81 0.15 0.04
8883200mN 144.65 150.65 6.0 2.45 0.15 0.03
(i)incl:
150.1 150.65 0.55 18.95 0.26 0.20
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187 450682mE 90 / -61 103.5 56.0 57.4 1.4 0.63 0.11 0.02
8883275mN 72.45 74.50 2.05 0.72 0.21 0.03
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188 450687mE 40.15 43.35 3.20 1.66 0.13 0.02
8883325mN 90 / -70 76.5 (i)incl:
41.6 42.15 0.55 4.52 0.07 0.05
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189 450558mE 44.4 47.65 3.25 6.54 0.30 0.08
8883375mN 90 / -57 79.6 (i)incl:
44.4 45.5 1.1 15.93 0.65 0.20
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206 450513mE 90 / -68 101.1 58.5 59.3 0.8 (i) (i) (i)
8883375mN
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Total 541.0
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(i) Assays pending
Note: Intervals represent core lengths, not necessarily true widths.
Pt, Pd and Au assay results are not reported because in general, they are
less than 1.0 g/t on a combined basis.
NSA - No Significant Assays
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contacts:
Continental Nickel Limited
Craig MacDougall, P. Geo.
President and CEO
(905) 815-0533
(905) 815-0532 (FAX)
info@continentalnickel.com
www.continentalnickel.com
Marguerite Manshreck-Head
Investor Relations
(613) 395-4487