Continental Nickel Limited (TSX VENTURE: CNI)("Continental" or the
"Company") is pleased to report that it has outlined two new and
untested, highly conductive electromagnetic (EM) anomalies near
known nickel-copper sulphide zones, from a ground geophysical
survey recently completed at its St. Stephen nickel-copper project
in New Brunswick. The project is under option from Abitex Resources
(TSX VENTURE: ABE) of Val D'Or Quebec and the Company can acquire
up to a 75% interest in the project.
Based on a compilation of historic data completed earlier this
year, the Company selected two priority areas to be surveyed with a
large loop, time domain electromagnetic (TDEM) survey, the first
survey of this type to be conducted on the property. A total of
twelve line kilometres of TDEM surveying from two fixed loops was
completed as shown on the attached figure. The aim of the survey
was to explore for extensions of known mineralization in the area
of the Rogers Farm Deposit and to confirm new, untested, anomalies
identified from a review of the airborne VTEM survey flown by
Abitex in 2004.
In the Rogers Farm area, the survey detected a new high
conductance anomaly (referred as the Billy's Brook Anomaly),
located approximately 700 metres west of the Rogers Farm Deposit.
The anomaly is 175 metres long and is untested by previous
drilling. Surveying over the Rogers Farm Deposit, as expected,
detected an extremely high conductance anomaly, over a 250 metre
strike length, coincident with the deposit. Although no new
extensions to the deposit were detected by the survey, historic
drilling indicates that the deposit is open at depth. The survey
also confirmed that a down dip extension is likely to the E Zone,
located 200 metres east of the Rogers Farm Deposit, where historic
drilling intersected up to 0.95% nickel and 0.45% copper over 9.15
metres. The survey results indicate that this zone is open at depth
below the level of historic drilling.
In the second survey area, a second new high conductance anomaly
(referred to as the Triple J Anomaly) was detected, 1.5 kilometres
southwest of the Rogers Farm Deposit. This anomaly has similar
conductivity to the anomaly of the Rogers Farm Deposit and has been
modelled over a strike length of greater than 400 metres. It is
also untested by previous drilling.
Based on these favourable results, including the discovery of
two new, untested, high conductance EM anomalies, as well as
potential depth extensions at the Rogers Farm and E Zones, the
Company intends to design a drill program to test these targets in
2010.
Craig MacDougall, President & CEO of Continental Nickel
Limited, reported "the completion of the first, modern, large loop,
TDEM survey on this property has yielded, as we hoped, a number of
compelling targets for drill testing. In addition to a significant
down dip extension indicated at the E Zone, we have also discovered
two new high conductance anomalies, of which the Triple J anomaly
is not only similar in strength, but larger in size than the
anomaly coincident with the Rogers Farm Deposit. This anomaly is in
an unexplored area of the property and is untested by any previous
drilling. We look forward with anticipation to the start of a drill
program to test these quality targets in 2010."
The Company would like to acknowledge that the geophysical
program completed at the St. Stephen Project was supported by a
grant of $25,000 under the New Brunswick Junior Mining Assistance
Program (NBJMAP).
Background
The project consists of 129 contiguous claims totalling 2,064
hectares near the town of St. Stephen in southwestern New
Brunswick. The project is exceptionally well positioned with
respect to infrastructure such as power and transportation with
road links to bulk shipping port facilities located within 120
kilometres at Saint John.
The property hosts some seventeen, historic, sub-cropping,
nickel-copper, magmatic, sulphide occurrences within Devonian mafic
to ultramafic intrusive rocks of the St. Stephen igneous complex.
Resources have been previously estimated for three deposits at
Rogers Farm, Hall-Carroll, and C Zones, but pre-date and are not
compliant with the reporting standards of NI 43-101. Based on the
historic resource estimates, the Rogers Farm deposit, which is the
largest deposit found to date, has an exploration target potential
of approximately 500,000 tonnes grading 1% nickel and 0.45% copper
to a depth of 150 metres. The Company considers this as a
conceptual exploration target and is not treating the historical
estimate as a current mineral resource. The historical resources
should not be relied upon and should only be considered to be
mineral occurrences that have the potential to be upgraded to
resources by the application of exploration and evaluation to NI
43-101 standards.
The Company entered into an Option and Joint Venture Agreement
with Abitex Resources (TSX VENTURE: ABE) of Val D'Or Quebec in
April of 2008. Under the terms of the option agreement, the Company
can earn an initial 50% interest in the project by completing
scheduled cash payments totalling $150,000, issuing a total of
270,000 shares of Continental and completing $1.0 million in work
expenditures by April 3, 2013. The Company can increase its
interest to hold a 60% interest by completing additional cash
payments and share issuances of Continental totalling $60,000 and
80,000 shares, respectively, and completing additional work
expenditures totalling $1.0 million by April 3, 2015.
Upon completion of a feasibility study within five years of
earning a 60% interest, the Company's interest will increase to 65%
and can further increase to 75% if the study recommends a positive
development recommendation and the Company gives notice that it
intends to implement the study recommendation within two years of
tabling the study.
Qualified Persons
The quality control, technical information and all aspects of
the exploration program were 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 Chief Executive Officer for Continental Nickel
Limited. Both Ms. Tirschmann and Mr. MacDougall are qualified
persons as defined by National Instrument 43-101.
About Continental Nickel
Continental Nickel Limited is focused on the exploration and
discovery of nickel sulphide deposits in geologically prospective,
but under-explored regions globally. Current projects include its
70% controlling interest in the Nachingwea project in Tanzania,
where NI 43-101 Mineral Resources have been defined, and an option
joint venture on the St. Stephen project in New Brunswick, Canada.
Continental Nickel has 30,132,395 shares issued and outstanding
(32,799,895 on a fully-diluted basis) and trades on the TSX Venture
Exchange under the symbol CNI. The Company remains well funded with
over C$10.1 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 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.
To view the figure associated with this Press Release, please
visit the following link:
http://media3.marketwire.com/docs/cni1209.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 (416) 364-7111 (416) 364-8114 (FAX)
info@continentalnickel.com www.continentalnickel.com
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