Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

June 23, 2010 08:05 ET

Continental Nickel Intersects New Sulphide Zones at the St. Stephen Nickel-Copper Sulphide Project in New Brunswick

TORONTO, ONTARIO--(Marketwire - June 23, 2010) - Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or "CNI" or the "Company") is pleased to announce that it has intersected several zones of sulphide mineralization from its current diamond drilling program while testing electromagnetic ("EM") anomalies on the St. Stephen nickel-copper sulphide project in New Brunswick. Sampling of the mineralized intersections is currently in progress and the first assay results are expected by mid-July and will be reported once they have been reviewed and validated. Continental can acquire up to a 75% interest in the project, under the terms of an option agreement with Abitex Resources of Val d'Or, Quebec.

As previously announced (see Press Release dated June 9, 2010), the Company commenced a diamond drill program to test various targets identified on the St. Stephen Project, including recently discovered, high conductance, EM anomalies at Triple J and Billy's Brook. The 2010 exploration program is budgeted at $300,000 and initially was planned to complete up to eight drill holes, totalling approximately 1,500 metres. To date, five drill holes totalling 677 metres have been completed. 

Drill hole collar locations and a summary description of the sulphide zones intersected are provided in Table I (below). A drill hole plan is provided in the attached figure. The drill program is continuing with remaining drill holes planned to test the Billy's Brook EM anomaly, as well as drill for extensions at historic sulphide zones at Rogers Farm and E Zone. 

Triple J Anomaly

The Triple J anomaly is located approximately 1.5 kilometres southwest of the Rogers Farm Deposit and is modelled as a high conductance EM anomaly with a strike length greater than 400 metres. Four drill holes (SSD10-001, 002, 004 and 005) have been completed to test the conductor along a 50 metre strike length to a vertical depth of approximately 125 metres. All of the holes have intersected multiple zones of variably disseminated to net textured to locally massive sulphide mineralization dominated by pyrrhotite with trace chalcopyrite.

Anomaly G

Anomaly G is a high conductance EM anomaly similar to and located approximately 300 metres northeast along strike from the Triple J anomaly. Drill Hole SSD10-003 was completed to test the anomaly after EM plate modelling of ground EM survey data suggested that it had not been adequately tested by nearby historic drill holes. The drill hole intersected a 2.85 metre interval of massive sulphide mineralization dominated by pyrrhotite with visible chalcopyrite. 

Craig MacDougall, President & CEO of Continental Nickel Limited, reported "We are very pleased with these initial drill results which have intersected several new sulphide zones associated with previously untested or poorly tested EM anomalies. The results have confirmed the potential for the discovery of new sulphide zones on the property and have validated the methodology and capability of the initial geophysical survey work to identify quality targets for exploration. We look forward to more positive drill results from the rest of the program."

The Company would like to acknowledge the support it has received from the New Brunswick Junior Mining Assistance Program, under which it has been awarded a matching grant of up to $40,000 in support of its 2010 drill program at the St. Stephen Project. In the recently released Fraser Institute "Annual Survey of Mining Companies 2009/2010", the province of New Brunswick ranks second worldwide (behind the province of Quebec) in the list of the world's most attractive jurisdictions for mineral exploration and development.

Project Summary

A project summary on the St Stephen Project is provided on the Company's web site at www.continentalnickel.com.

Qualified Persons

The information in this release was prepared under the direction of Craig MacDougall, P. Geo., President and CEO for Continental Nickel Limited. Mr. MacDougall is a qualified person as defined by National Instrument 43-101.

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 assets are its 70% interest in the Nachingwea project in Tanzania, where NI 43-101 Mineral Resources have defined 40,000 tonnes of contained nickel and its option joint venture on the St. Stephen project in New Brunswick, Canada. 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$13 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.

Table I: Summary of Recent Sulphide Drill Intersections, St. Stephen Project, New Brunswick.

  Location   Length From To Interval    
Drillhole  (UTM – NAD83) Az / Dip (m) (m) (m) (m)   Intersection
(SSD10-) Triple J and G EM Anomalies
001 632130E, 090 / -70 150.0 48.5 52.4 3.9   Net textured to local massive sulphide with 35-80% Po and trace to 3% Cp.
5007748N
        92.0 110.0 18.0   5-12% disseminated and blebby Po, trace Cp.
        110.0 133.85 23.85   10-20% disseminated and blebby Po with trace Cp.
        133.85 138.9 5.05   Net textured sulphide with narrow intervals of massive sulphide, 50% Po and trace to 0.5% Cp
002 632125E, 090 / -76 158.0 22.9 25.0 2.1   10-20% coarse aggregates of Po, trace Cp.
5007700N
        91.6 118.6 27.0   3-10% disseminated Po, trace Cp.
        118.6 126.6 8.0   25% disseminated to blebby Po, trace Cp.
003 632281E, 090 / -60 92.0 53.15 56.00 2.85   Massive sulphide, 70-90% Po, trace to 3% Cp.
5007997N
004 632189E, 270 / -70 143.0 70.5 87.6 17.1   8-10% disseminated Po, trace Cp.
5007757N
        87.6 97.8 10.2   20-35% disseminated and blebby Po with trace Cp
        97.8 109.4 11.6   Net textured sulphide, 25-40% Po, trace Cp
        109.4 111.5 2.1   Semi-massive to massive sulphide, 50-75% Po, trace Cp
005 632189E, 270 / -50 134.0 18.8 19.6 0.8   20% disseminated Po, trace Cp.
5007757N
        92.7 97.25 4.65   >5% disseminated Po-Cp.
        98.2 98.85 0.65   Massive sulphide breccia, 70% Po.
Total     677.0  
 
Po – Pyrrhotite; Cp – Chalcopyrite
Note: Intervals represent core lengths, not necessarily true widths.

To view the accompanying map, please visit the following link: http://media3.marketwire.com/docs/CNIimage623.pdf.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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