Continental Nickel Reports Additional Assay Results from the Nachingwea Nickel Sulphide Project in Tanzania, Including 1.14% Nickel and 0.25% Copper Over 11.5 Metres
TORONTO, ONTARIO -- (Marketwire) -- 11/04/10 -- Continental Nickel Limited (TSX VENTURE: CNI) ('Continental' or 'CNI' or the 'Company') is pleased to report that it has received additional assay results from its recently completed 'Phase 1' diamond drilling program on the Nachingwea nickel-copper sulphide project ('Nachingwea') in Tanzania. The project is a 75:25 Joint Venture between CNI and IMX Resources Limited ('IMX') of Australia. Highlights include: 0.91% nickel and 0.20% copper over 17.1 metres, including 2.3 metres grading 2.55% nickel and 0.34% copper.
The Company has recently increased the Nachingwea 2010 exploration work plan and budget to $4.4 million from $ 4.0 million to allow for additional drilling on the newly-discovered Sleeping Giant Zone. In the original drilling program, thirty-five diamond drill holes, totalling 4,725.8 metres, were completed at Ntaka Hill, and one 266.1 metre drill hole was completed at the Lionja target, 8 kilometres to the south. Assay results have now been reported for twenty-eight drill holes totalling 3,763.3 metres, including the results of seven drill holes totalling 774.8 metres reported herein. The assay results are provided below as Table I; a location figure may be viewed using the link provided with this release.
The primary objective of the Nachingwea drilling program is to evaluate selected sulphide deposits for extensions of mineralization beyond the currently defined Mineral Resources and to test prioritized targets for new sulphide zones. Currently, NI 43-101 compliant Measured and Indicated Mineral Resources, from six separate sulphide deposits (G, H, J, L, M and NAD013) at Ntaka Hill, total 3.1 million tonnes grading 1.31% nickel and 0.24% copper at a US$23/tonne Net Smelter Return ('NSR') cut-off (Press Release July 15, 2009).
G Zone
The current Measured and Indicated Mineral Resources at G Zone (July 2009) are estimated at 688,000 tonnes grading 0.62% nickel and 0.17% copper. A geological review and modelling of existing ground electromagnetic ('EM') and bore hole electromagnetic ('BHEM') data indicated that:
1. the G zone likely extended both north and south along strike from the
current area of drilling;
2. several, high conductance EM plates located either within or above the
larger, lower conductance EM plate associated with the G Zone may
represent areas of higher grade, massive sulphide mineralization; and
3. a near-surface sulphide zone may exist to the west and above the
original G Zone (referred to as the G9 target).
Twelve diamond drill holes, totalling 1,403.3 metres, were completed to test the targets outlined above of which results were previously reported for five drill holes (Press Release, September 20, 2010). The assay results for the final seven drill holes are reported below. These remaining drill holes were completed to extend the G Zone north along strike and to test for an extension to the G9 zone located immediately to the west. Six out of seven drill holes intersected zones of sulphide mineralization.
On the G Zone, diamond drill hole NAD10-207 was drilled 50 metres to the north, along strike of, drill hole NAD10-195 which, as previously reported, intersected a 7.35 metre interval of disseminated to massive sulphide mineralization grading 1.82% nickel and 0.42% copper. Drill hole NAD10-207 intersected a 25.0 metre interval of disseminated to massive sulphide mineralization grading 0.72% nickel and 0.16% copper, including a higher grade interval of 1.14% nickel and 0.25% copper over 11.5 metres, which includes a 2.3 metre interval of massive sulphide grading 2.55% nickel and 0.34% copper. Based on this drill intersection, the G zone has now been extended 100 metres along strike to the north from the previous drilling.
Drill holes NAD10-208, 214 and 215 were positioned 40 to 50 metres up dip and down dip of drill holes NAD10-195 and 207. Drill holes 208 and 214, which were drilled down dip to the west, intersected multiple intervals of largely disseminated sulphide mineralization for which the assay results are reported in Table I. Drill hole NAD10-215 was drilled 50 metres up dip to the east did not intersect any significant mineralization.
Drill holes NAD10-210, 212 and 213 were drilled to test for an extension to the G9 zone to the north along strike of drill hole NAD10-200 which had intersected a 10.25 metre interval grading 1.27% nickel and 0.36% copper (previously reported). NAD10-210 was drilled approximately 50 metres to the northwest along strike of NAD10-200 and intersected an interval of disseminated to semi-massive sulphides grading 0.96% nickel and 0.23% copper over 5.0 metres. Drill holes NAD10-212 and 213 were drilled approximately 50 metres west, down dip and 50 metres north, along strike of NAD10-210, respectively. Both drill holes intersected several intervals of low grade sulphide mineralization (Table I).
Overall, the drilling conducted at the G Zone in the 2010 program has: i) successfully extended mineralization at least 100 metres along strike to the north and 50 metres to the south of the previous drilling and the zone remains open in both directions, ii) intersected intervals of higher grade massive sulphide mineralization corresponding to the targeted, high conductance EM anomalies, and iii) confirmed the presence of near surface, nickel-copper bearing sulphide mineralization at the G9 target area immediately west of the G Zone. With the final assay results from the G Zone drilling now in hand, work has begun on an updated resource model.
Next Steps:
A reverse circulation ('RC') drilling program is currently underway to test various priority targets developed from the ongoing regional exploration program.
In addition, as mentioned above, $0.4 million of additional funding has been allocated to complete up to seven additional drill holes totalling approximately 1,850 metres at the Sleeping Giant discovery. The program is expected to commence in November.
Updating of geological interpretations of the various Ntaka Hill sulphide zones is in progress in preparation for commissioning of a revised Mineral Resource Estimate.
Craig MacDougall, President & CEO of Continental Nickel Limited, said 'The drilling program completed at G Zone has successfully extended mineralization along strike in both directions, intersected zones of higher grade, massive sulphide mineralization and confirmed the presence of nickel-copper bearing sulphide mineralization, near surface in the G9 area. These results are expected to add to our current Mineral Resource inventory for this deposit.'
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 the 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 75% 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 discovered new Ni-Cu sulphide zones from its recently completed 2010 diamond drill program.
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$10.8 million in the treasury.
On behalf of Continental Nickel Limited
Craig MacDougall, President & Chief Executive Officer
CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. 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 - G Zone,
Nachingwea Project, Tanzania.
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Drill Location
hole East/North Length From To Interval
(NAD10-) UTM:WGS84 Az/Dip (m) (m) (m) (m) %Ni %Cu %Co
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G Zone
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207 451180mE 270/-84 112.9 48.0 73.0 25.0 0.72 0.16 0.06
8884650mN Incl:
51.2 68.3 17.1 0.91 0.20 0.08
55.5 67.0 11.5 1.14 0.25 0.10
60.7 63.0 2.3 2.55 0.34 0.21
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208 451099mE 90/-72 137.1 40.05 45.40 5.35 0.58 0.15 0.04
8884608mN
95.35 96.85 1.50 0.84 0.22 0.05
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210 451100mE 090/-80 103.7 73.0 78.0 5.0 0.96 0.23 0.07
8884500mN Incl:
73.9 76.1 2.2 1.61 0.35 0.11
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212 451054mE 090/-82 128.1 71.25 75.0 3.75 0.31 0.11 0.02
8884500mN
99.0 111.7 12.7 0.39 0.10 0.02
----------------------------------------------------------------------------
213 451104mE 090/-70 129.7 46.8 53.9 7.1 0.36 0.16
8884550mN 0.03
67.75 80.50 12.75 0.30 0.08 0.02
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214 451123mE 090/-80 83.1 29.0 37.4 8.4 0.45 0.15 0.04
8884650mN
47.0 83.1 36.1 0.33 0.07 0.03
60.25 69.00 8.75 0.44 0.10 0.04
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215 451204mE 090/-80 80.2 NSA NSA NSA
8884650mN
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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
To view 'NACHINGWEA PROPERTY NTAKA HILL, Drill Plan - G Zone RTP Vertical Gradient Magnetics Map', please visit the following link:
http://media3.marketwire.com/docs/cnmap.pdf
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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