Nuinsco Extends Diabase Peninsula Uranium Project Agreement
Continued Exceptional Results Warrant Further ExplorationTORONTO, ONTARIO -- (Marketwire) -- 06/12/12 -- Nuinsco Resources Limited ("Nuinsco" or the "Company")(TSX: NWI) (www.nuinsco.ca) today announced an agreement has been reached with Dr. Lloyd Clark to extend the joint venture agreement concerning the Diabase Peninsula Project, located in the Athabasca Basin, northern Saskatchewan.
"The extension is warranted because of the continued excellent results that indicate that the rocks underlying the property have been subjected to a uranium mineralizing event capable of causing the formation of uranium bearing zones," said Paul Jones, President.
Under the terms of the original agreement between Dr. Clark and Trend Mining Company ("Trend") dated September 2, 2004, a cash payment of $935,000 was due to Dr. Clark on September 2, 2012. Nuinsco subsequently assumed responsibility for the original agreement when the Company entered into an option/joint venture agreement with Trend. The agreement with Dr. Clark has been extended for one year in exchange for a payment consisting of cash and common shares of Nuinsco totalling $75,000 and allows for an option to extend the agreement further. In reaching the agreement with Dr. Clark, Nuinsco will be well placed to direct more funds to exploring and advancing this excellent project that has been evaluated as a leader in the race to find the next uranium "Super Deposit" in the Athabasca Basin by the Northern Prospector magazine.
Of particular note with regard to results obtained to date, which indicate high potential for an Athabasca Basin-type deposit, are the following:
1. 42 drill holes have been completed on the project to date; 14 holes have
returned samples with very substantial uranium content exceeding 50ppm
and peaking at 707ppm uranium (greater than 10ppm uranium in sandstone
is evidence of a mineralised system and proximity to concentrations of
high-grade mineralisation). In total, 28 drill holes have returned
values greater than 10ppm uranium - serving to further reinforce and
highlight the outstanding scale of anomalous mineralization at Diabase.
2. The combination of uranium-arsenic-nickel-cobalt-magnesium oxide, which
typifies several of the mines in the Athabasca district, is present in
drill holes and indicates the influence of a mineralizing system in the
area - pointing to the presence of some form of unconformity
mineralization nearby.
3. The widespread presence of significant clay alteration in the sandstone
which indicates the passage of hydrothermal fluids capable of
transporting uranium mineralization.
4. Uranium/lead ratios which provide evidence of local excess uranium in
the Athabasca Basin sediments and suggest upward leakage of uranium-
bearing hydrothermal fluids.
5. The presence, established by more than 100m vertical displacement of the
unconformity occurring between adjacent drill holes, of reactivated
faults which provide permeable conduits that trap and concentrate
uranium-bearing mineralizing fluids to create the small footprint but
high-grade deposits found in the Athabasca Basin.
The Diabase Peninsula Project is located in the south-central part of Saskatchewan's Athabasca Basin, home to the highest grade uranium deposits in the world. A combination of uranium-arsenic-nickel-cobalt-magnesium oxide is typical of the mines in the Athabasca Basin. The widespread presence of this combination of elements in the holes drilled by Nuinsco indicates the influence of a mineralizing fluid, capable of forming deposits of uranium, on the Diabase Peninsula property.
The 21,959 hectare Diabase Peninsula Project is located approximately five kilometres north of the southern boundary of the Athabasca Basin. It encompasses a 35 km strike length above the regional-scale Cable Bay Shear Zone deformation zone in the basement rock units below the basin sandstone.
C.A. Wagg, Manager, Canadian Exploration for Nuinsco, who acts as a QP for the project under National Instrument 43-101, has reviewed the technical contents of this press release.
About Nuinsco Resources Limited
Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is focused on uranium, copper, zinc and gold exploration and development in world-class mineralized belts in Canada and internationally. In addition to its property holdings, Nuinsco owns common shares in Coventry Resources Limited (ASX: CVY) and Victory Nickel Inc. (TSX: NI), and a 50% interest in CBay Minerals Inc., a private company that is a dominant player in Quebec's Chibougamau mining camp with assets including a permitted mill, tailings facility, eight past producing copper/gold mines and a 96,000 acre land position. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.
Please visit the Company's website at www.nuinsco.ca. Should you wish to receive Company news via email, please email juliet@chfir.com and specify "Nuinsco Resources" in the subject line.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historic fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain tenure to properties and/or necessary permits and approvals and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Contacts:
Nuinsco Resources Limited
Paul Jones
416.626.0470
416.626.0890 (FAX)
admin@nuinsco.ca
CHF Investor Relations
Juliet Heading
416.868.1079 X239
416.868.6198 (FAX)
juliet@chfir.com