Continental Nickel Limited (TSX VENTURE: CNI) ("CNI" or the
"Company") is pleased to announce the production of high grade
concentrates from the initial "sighter" flotation tests on
composites from the various ore zones at the Ntaka Hill Nickel
Project ("Ntaka Hill"). Highlights of the initial tests include
concentrates containing between 16.7% Ni and 18.6% Ni at between
84.2% and 90.2% recovery from Sleeping Giant zone composites, 17.2%
Ni at 88.1% recovery from M zone composite and 15.0% Ni at 88.1%
recovery from H zone composite. The flotation tests were carried
out by G & T Metallurgical Services Ltd, part of the ALS Group
of companies, quality accredited under ISO 9000:2008.
For detailed results see Table 2.
Ntaka Hill is part of the 75:25 Nachingwea exploration joint
venture property in southern Tanzania with IMX Resources Limited of
Australia. Ntaka Hill has currently identified resources as
outlined below in Table 1.
Table 1 - Ntaka Hill Resources Summary
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Tonnes
Resource Category (000's) % Ni % Cu Contained Ni (tonnes)
----------------------------------------------------------------------------
Measured & Indicated 4,981 1.22 0.24 60,900
Inferred 17,260 0.76 0.17 131,000
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Note: Resources calculated at a US$17/tonne Net Smelter Return ("NSR") cut-
off. See CNI press release April 15, 2011.
Low Contaminant Levels
All concentrates have exhibited low contaminant levels and,
especially significant for nickel concentrates, magnesium oxide
(MgO) graded between 1.5% MgO and 3.9% MgO, which is low by global
standards.
Also very significant, analysis of other contaminant elements,
such as arsenic (As), antimony (Sb), chromium (Cr), lead (Pb) and
zinc (Zn), returned low levels. For detailed results see Table 3
which may be viewed using the link provided with this release.
Conventional Processing Technique
The flotation tests were at a moderately coarse grind size of
106 micrometres (P80) using only a simple reagent scheme of
collector and frother, and three stages of cleaning. This
represents a very conventional processing technique for the
production of nickel concentrate from nickel sulphide ore.
Comminution Testing
The results for the Bond Rod Mill Work Index tests on three ore
zone composites ranged between 4.7 to 8.9 kWh/t with an average of
6.7 kWh/t (not all composites had sufficient sample available). The
results for the Bond Ball Mill Work Index tests on all ore zone
composites range between 12.2 to 15.9 kWh/t with an average of 14.8
kWh/t.
These work index results are typical for hard rock sulphide ores
and as such confirm the suitability of a conventional comminution
circuit with typical operating costs.
Mr. David Massola, President and CEO, commented, "I am extremely
pleased with the results of these metallurgical tests which confirm
that concentrate produced from this project will be highly
marketable and compare favorably to the best nickel sulphide mines
in the world. In addition, indications are that high nickel
recoveries are achievable using conventional processing technology
which greatly reduces technical and start-up risk. The high grade
concentrate will also further reduce our low expected transport
costs to the Port of Mtwara which is less than 300km from the
project site with only around 95km of the route on unsealed
road."
Sample Selection
The samples were selected in co-operation with Ms Patricia
Tirschmann, CNI's VP Exploration, to represent the range of
mineralisation exhibited in the various ore zones and to spatially
intersect the larger areas of the ore zones. Samples were not
selected from all ore zones with L and NAD13 zones excluded due to
their geological similarity with other ore zones and their
relatively small size.
Next Steps
Following the completion of detailed quantitative mineralogy
examination utilising QEMSCAN and optical methods, further
flotation test work will address improving both concentrate grade
and recovery through optimisation of grind size and reagent
additions. The test work program will also be used expand the
understanding the geo-metallurgical domains within the various ore
zones and enable development of grade recovery relationships that
will allow various optimisation studies to be undertaken for the
project.
Fresh core from additional metallurgical drilling planned in
2011 will allow an extensive metallurgical test work program to be
undertaken which will provide definitive performance and
engineering design data for the project. It is intended that this
test work program will be undertaken in the first half of 2012.
Qualified Persons
The quality control, technical information and all aspects of
the metallurgical test work program are supervised by Mr Peter
Munro FAusIMM, Senior Principal Consulting Engineer with
Mineralurgy Pty Ltd an independent consultant to CNI. The
information in this release was prepared under the direction of Mr
Munro. Mr Munro, a Fellow within the Australasian Institute of
Mining and Metallurgy, is a qualified person as defined by National
Instrument 43-101 and consents to the inclusion of the data in the
form and context in which it appears.
About Continental Nickel Limited
Continental 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 its Nachingwea property in Tanzania,
where Mineral Resources (Measured and Indicated) have been
estimated at 60,900 tonnes of contained nickel, and an additional
131,000 tonnes of contained nickel in Inferred Mineral Resources
(CNI press release April 15, 2011). The project is a 75:25
exploration joint venture between the Company and IMX Resources
Limited.
The Company also has an option to joint venture on the St.
Stephen project in New Brunswick, Canada where the 2010 diamond
drill program discovered new Ni-Cu sulphide zones.
As at the date of this release, the Company has 42,713,508
common shares issued and outstanding (51,031,914 on a fully-diluted
basis) and trades on the TSX Venture Exchange under the symbol CNI.
The Company remains well funded with over C$8.7 million in the
treasury as at March 31, 2011.
On behalf of
Continental Nickel Limited
Dave Massola, President and 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,
potential or estimated metal recoveries, resources and reserves,
exploration results, future plans and objectives of Continental
Nickel Limited, is forward-looking information that involves
various risks and uncertainties. There can be no assurance that
such information will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such information. 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.
Table 2 - Detailed Flotation Test Results
----------------------------------------------------------------------------
Ore Zone Resources (1)
-------------------------------------------------------------
Category Tonnes (000) Grade % Ni Grade % Cu
----------------------------------------------------------------------------
H M + I 1,003 1.303 0.187
Inferred 620 0.98 0.14
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M M + I 526 1.673 0.350
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J M + I 1,026 1.444 0.224
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G Indicated 1,990 0.652 0.175
Inferred 1,240 0.53 0.16
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Sleeping Giant Inferred 15,400 0.77 0.17
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L M + I 202 2.591 0.487
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NAD013 M + I 234 2.562 0.567
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Ore Zone Composite Head Grade Concentrate Grade Recovery
-------------------------------------------------
%Ni %Cu %Ni %Cu %MgO Ni Cu
----------------------------------------------------------------------------
H H 0.77 0.11 15.0 2.26 3.90 88.1 93.1
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M M 1.49 0.49 17.2 6.10 2.31 88.1 95.5
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J J (2) 1.46 0.25 8.6 1.58 1.64 83.9 89.4
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G G (2) 0.45 0.15 3.2 1.13 2.40 82.3 87.4
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Sleeping Giant SG1 (3) 0.70 0.13 16.7 3.58 2.46 84.2 94.7
-------------------------------------------------------------
SG2 (3) 0.68 0.15 17.7 4.33 2.10 90.0 97.6
-------------------------------------------------------------
SG3 (3) 1.51 0.33 18.6 4.36 1.51 90.2 97.4
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L Not Tested
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NAD013 Not Tested
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Notes:
1. Resources calculated at a US$17/tonne Net Smelter Return ("NSR") cut-off.
See CNI press release April 15, 2011.
2. J and G Zone flotation performance, in particular concentrate grade, was
predicted to be slightly retarded due to the higher pyrrhotite levels in
the mineralisation in these ore zones (previous work by Xstrata Process
Support, June 2009 and February 2011, indicated Po:Pn ratios of 4.1 for J
zone and 11.1 for G zone, compared with a range of between 0.25 to 2.1
for the other ore zones). The concentrate may therefore be diluted by
high levels of pyrrhotite as the test scheme included no specific
additions, such as lime, to depress pyrrhotite flotation.
3. SG 1, SG 2 and SG 3 composites represent three different mineralisation
types from the Sleeping Giant ore zone being disseminated, stringer and
bleb and semi massive sulphide.
4. M + I = Measured + Indicated
To view Table 3 - Minor Element Assays, please visit the
following link:
http://media3.marketwire.com/docs/cnitab3.pdf
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: Continental Nickel Limited Dave Massola President and
Chief Executive Officer (905) 815-0533 (905) 815-0532 (FAX)
info@continentalnickel.com www.continentalnickel.com Stewart
Watkins Study Manager - Ntaka Hill Nickel Project +61 403 242
954
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