Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

August 18, 2010 08:05 ET

Continental Nickel Makes New Nickel Sulphide Discovery Intersecting 2.00% Nickel and 0.56% Copper Over 3.30 Metres at the St. Stephen Nickel-Copper Sulphide Project in New Brunswick

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2010) - Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or "CNI" or the "Company") is pleased to announce the first assay results from its 2010 drilling program at the St. Stephen Nickel-Copper project in New Brunswick. 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 high conductance, electromagnetic ("EM") anomalies at Triple J, G and Billy's Brook. Ten drill holes totalling 1,356.3 metres were completed during the drill program which is now finished. Assay results are reported herein for three drill holes totalling 400.0 metres (see Table I below). A location figure may be viewed using the link provided below with this release. Further assay results will be reported as they are received, compiled and validated.

The drill holes have confirmed that the EM anomalies are caused by nickel-copper sulphide mineralization. The highlights of the drilling include: 2.00% nickel and 0.56% copper over 3.3 metres, within a wider interval grading 1.0% nickel and 0.29% copper over 9.30 metres from diamond drill hole SSD10-003; and 0.68% nickel and 0.24% copper over 8.9 metres and 0.87% nickel and 0.67% copper over 3.65 metres, from diamond drill hole SSD10-001.

Triple J Anomaly

A total of five diamond drill holes totalling 722.0 metres were completed to drill test a 100 metre strike length of the Triple J anomaly to a vertical depth of 125 metres. The anomaly was modelled as a high conductance EM anomaly with a strike length greater than 400 metres. Four of the five holes intersected varying amounts of disseminated to net textured to locally massive sulphide mineralization hosted within gabbroic intrusive rocks of the St Stephen Igneous Complex.

Drill hole SSD10-001 intersected two main zones of sulphide mineralization; an upper zone grading 0.87% nickel and 0.67% copper over 3.65 metres within a wider interval of 8.80 metres grading 0.44% nickel and 0.62% copper starting at 48.35 metres down hole; and a lower zone grading 0.68% nickel and 0.24% copper over 8.90 metres, including 0.84% nickel and 0.28% copper over 4.9 metres starting at 130.0 metres down hole.

Drill hole SSD10-002 was drilled 40 metres along strike to the southwest of drill hole SSD10-001 and intersected mineralization, believed to correlate with the lower zone, grading 0.57% nickel and 0.22% copper over 7.4 metres.

Based on the results of the surface Time Domain Electromagnetic ("TDEM") survey, the Triple J zone remains open to the south for 300 metres and is open at depth below the current level of drilling.

Anomaly G

One drill hole (SSD10-003) was drilled to test Anomaly G which was only partially defined by the ground TDEM survey. This high conductance EM anomaly is similar to, and located approximately 200 metres northeast along strike from, the north end of the Triple J anomaly. Drill holes nearby, completed by previous explorers, were not positioned to intersect the anomaly.

Drill hole SSD10-003 intersected disseminated to massive sulphide mineralization at 47.0 metres down hole grading 1.0% nickel and 0.29% copper over 9.3 metres, including a semi-massive to massive sulphide interval grading 2.0% nickel and 0.56% copper over 3.3 metres hosted within similar intrusive rocks as intersected at the Triple J target.

Based on data from a property-wide airborne survey and the surface TDEM survey, as well as recently collected bore hole electromagnetic (BHEM) data , this zone extends to the north off of the current surface survey grid. Additional ground survey work will be required to fully define the extent of the associated EM anomaly in advance of further exploration drilling on this zone.

Craig MacDougall, President & CEO of Continental Nickel Limited, reported "We are very encouraged with these initial drill results which mark the first discovery of new nickel-copper sulphide zones on the property in well over 40 years. Further exploration drilling will be required to fully evaluate and delineate these new zones." 

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 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 Maritime Diamond Drilling Ltd of Nova Scotia recovering NQ sized core. Drill core samples are cut in half by a diamond saw and half of the core is retained for reference purposes. Samples are generally 1.0 metre intervals or less at the discretion of the site geologist. Core samples are placed in individual samples bags with unique sample ID tags and shipped in sealed batches to the SGS Minerals Services Laboratory in Toronto, Ontario for sample preparation and analyses. 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 ICP90Q). Analyses for Pt, Pd, and Au are by fire assay with an ICP-AES finish (Analytical Code FAI313).

About Continental Nickel

The Company has an option joint venture on the St Stephen project in New Brunswick, Canada where it has discovered new nickel-copper sulphide zones from its recently completed 2010 diamond drill program.

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 70% 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's interest in the Nachingwea project will increase to 75% upon the completion of exploration expenditures totalling $15 million, which is expected to be confirmed in the current quarter.

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$12.1 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, 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 Assay Results, St. Stephen Project, New Brunswick.

Drillhole (SSD10-) Location (UTM – WGS84) Az / Dip Length (m) From (m) To (m) Interval (m) % Ni % Cu % Co
Triple J Anomaly
001 632130E,
5007743N
090 / -70 150.0 48.35
Incl:
48.35

130.0
Incl:
134.0
57.15

52.00

138.9

138.9
8.80

3.65

8.9

4.9
0.44

0.87

0.68

0.84
0.62

0.67

0.24

0.28
0.03

0.06

0.09

0.11
002 632122E,
5007706N
090 / -76 158.0 118.6 126.0 7.4 0.57 0.22 0.07
G Anomaly
003 632278E,
5008001N
090 / -60 92.0 47.0
Incl:
53.0
56.3

56.3
9.3

3.3
1.00

2.00
0.29

0.56
0.07

0.13
 
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 the figure that accompanies this release, please visit the following link: http://media3.marketwire.com/docs/CNIfig1.pdf.

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

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