Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

November 24, 2009 08:00 ET

Continental Nickel Reports New Sulphide Intersections at Nachingwea, Including Massive Sulphides Grading 4.31% Nickel and 0.60% Copper Over 2.4 Metres

TORONTO, ONTARIO--(Marketwire - Nov. 24, 2009) - Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or the "Company") is pleased to announce first results of the twenty-two hole 2009 drill program at the Nachingwea Project in Tanzania. Highlights include three new potential sulphide zones at Ntaka Hill, including 2.53% nickel and 0.42% copper over 5.3 metres, including 2.4 metres of massive sulphide grading 4.31% nickel and 0.60% copper in drill hole NAD09-180; and the first high grade nickel sulphide intersection outside of the Ntaka Hill area at Lionja of 2.03% nickel and 0.41% copper over 2.25 metres in drill hole LID08-005. The Nachingwea project is a 70:30 Joint Venture between Continental Nickel and IMX Resources Limited ("IMX") of Australia.

In 2009, thirty-five regional and Ntaka Hill area airborne VTEM targets were evaluated by geological mapping and ground geophysical EM surveying from 25 fixed loops, totalling 98.7 line kilometres of survey. A drill program completed during September and October 2009 tested eleven EM anomalies confirmed and prioritised from the ground surveys, with twenty-two drill holes totalling 3,922.9 metres. Results from fourteen drill holes, totalling 2,311.9 metres, are reported herein (Table I). Drill hole and target locations are shown on the attached figures. The remaining results will be reported as the assays are received, compiled and validated.

Ntaka Hill

Earlier this year, the Company announced its first NI 43-101 compliant Mineral Resource estimate from nickel sulphide bodies at Ntaka Hill. The Mineral Resources calculated from six separate sulphide deposits totalled 3,085,000 tonnes grading 1.31% nickel and 0.24% copper at a US$23/tonne Net Smelter Return (NSR) cut-off or 1,835,000 tonnes grading 1.82% nickel and 0.31% copper at a US$50/tonne NSR cut-off (see Press Release dated July 15, 2009).

As part of the 2009 exploration program, the Company continued to identify targets with potential to add to the existing Mineral Resources at Ntaka Hill. A review of the 2007-2008 airborne VTEM survey data identified four anomalies which had not been adequately evaluated with previous ground EM surveys. These anomalies were re-surveyed which confirmed the presence of two priority anomalies, referred to as anomalies B and C, out of the four anomalies surveyed. Ten drill holes (including one abandoned hole which was restarted) totalling 1,617.3 metres were completed to test these new anomalies. Results have been received for five holes (reported herein) and are pending for the remaining five drill holes.

Anomaly C has a 500 metre strike length and is modelled as a high conductance anomaly, centrally located within the Ntaka Hill intrusion. Drill hole NAD09-180 was drilled at the northern end of the anomaly and intersected two zones of nickel-bearing sulphide. The upper zone was intersected at 37.0 metres down hole and consisted of disseminated, net textured to massive, sulphide mineralization over a 9.0 metre interval which grades 1.64% nickel and 0.29% Cu. Included within this interval is a higher grade section grading 2.53% nickel and 0.42% copper over 5.3 metres within which a 2.4 metre interval of massive sulphide mineralization grades 4.31% nickel and 0.60% copper. The lower sulphide interval was intersected at a down hole depth of 86.35 metres and consists of disseminated to semi-massive sulphide mineralization which grades 1.23% nickel and 0.28% copper over 2.95 metres.

Drill hole NAD09-178 was drilled approximately 100 metres south along strike of hole 180, but failed to intersect nickel sulphide mineralization. A follow up bore hole EM survey confirms the presence of a very strong EM conductor located just east of the hole, but modelling indicates that the conductor, although strong, is fairly narrow at this location. Three other drill holes were completed to test anomaly C elsewhere along strike for which results are pending.

Anomaly B was modelled as a moderate conductance anomaly with a strike length of nearly 500 metres. It is geophysically similar to the anomaly associated with the mineralization at M Zone. Drill holes NAD09-177 and 179 have confirmed that this anomaly is due to the presence of a graphitic horizon. However, while testing this target, drill hole NAD09-177 intersected a 3.0 metre interval grading 1.64% nickel and 0.29% copper in disseminated to net textured sulphide mineralization visually similar to M Zone which is located 300 metres to the north. Drill hole NAD09-179 was collared 100 metres to the south of NAD09-177 and failed to intersect any significant mineralization. Assay results are pending for two additional drill holes testing for extensions of this new intersection and for parallel zones.

Lionja

In 2008, four of seven widely spaced drill holes intersected ultramafic intrusive rocks with minor sulphide mineralization and anomalous nickel concentrations while testing a large, complex, conductive anomaly in the Lionja area, located approximately eight kilometres south of the Ntaka Hill Intrusion. Subsequent bore hole EM surveying identified two conductive anomalies which were not tested by the 2008 drilling.

The first conductor was tested by re-entering and deepening hole LID-08-005 which successfully intersected an interval of disseminated to massive sulphide mineralization with visible coarse pentlandite at 196.2 metres which grades 0.91% nickel and 0.20% copper over 7.75 metres, including a higher grade interval grading 2.03% nickel and 0.41% copper over 2.25 metres. Drill hole NRD09-012, testing the mineralization 50 metres up dip, intersected a narrow zone of sulphide mineralization which grades 1.48% nickel and 0.33% copper over 1.0 metre. Bore hole EM survey results indicate the conductive target is centered to the west of the drill holes and further drilling is warranted to establish the extent of the mineralization.

A very strong, second conductor, tested by deepening drill hole NAD016 by 115.6 metres, intersected minor amounts of pyrrhotite and graphite largely within gneissic rocks, which was not thought to be the cause of the EM anomaly. A follow up bore hole EM survey detected two strong off-hole anomalies at 255 and 285 metres down hole to the east of the drill hole. Drill hole NRD09-019, drilled to a depth of 392.3 metres to test these off-hole conductors, intersected numerous bands of graphitic gneiss with minor amounts of pyrrhotite. A bore hole EM survey of the drill hole confirmed that the targets were intersected. Assay results are pending.

Regional Targets

In addition to the Lionja area, a total of six regional targets were drill tested with eight drill holes totalling 1,450 metres. Assay results are reported for six holes tabulated in Table I and target locations are provided in the attached figure.

Drill testing of EM anomalies at the Ntaka 10 and Mtua 2 regional targets intersected two new mineralized ultramafic intrusions. At the Mtua 2 target, located approximately 30 kilometres south of Ntaka Hill, drill hole NRD09-014 intersected a 25.4 metre interval comprised dominantly of altered ultramafic rocks with trace to 10% disseminated, fine-grained, pyrrhotite and trace chalcopyrite. Assay results indicate only low concentrations of nickel and copper. Drill hole NRD09-018 tested a second, parallel conductor, approximately 300 metres to the east, and intersected graphitic metasediments at the target depth.

At the Ntaka 10 anomaly, located approximately 10 kilometres southeast of Ntaka Hill, drill hole NRD09-015 intersected a 20.9 metre interval of altered ultramafic rocks containing graphite and disseminated to semi-massive pyrrhotite with trace chalcopyrite. Assays confirmed only low concentrations of nickel and copper associated with the sulphide mineralization.

The intersection of sulphide-bearing ultramafic rocks at both the Ntaka 10 and Mtua 2 targets has confirmed the presence of favourable, sulphur saturated, host rocks and therefore potential for nickel mineralization. The VTEM survey data from these areas will be further evaluated in order to identify additional targets for exploration.

Targets Nambugu 2, Nkonjela, and Lionja 5 were tested with drill holes NRD09-11, 013 and 017. All of the drill holes intersected graphitic gneisses explaining the conductive targets tested. Assay results confirmed that the rocks do not contain any nickel or copper concentrations. These targets have been downgraded and are not considered a priority for follow up work.

Craig MacDougall, President & CEO of Continental Nickel Limited, reported "we are very pleased that our 2009 exploration program has continued to intersect new nickel sulphide intervals in drilling at Ntaka Hill which have potential to add to our existing Mineral Resources. In addition, we have intersected the first high grade nickel sulphide outside of the Ntaka Hill area at Lionja and have discovered other sulphide-bearing, ultramafic intrusions regionally. These results continue to underscore that the Nachingwea project is potentially a new nickel district.

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: 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.

Information in this announcement relating to exploration results is based on data collected under the supervision of or compiled by Patricia Tirschmann, P. Geo., holds the position of Vice President, Exploration and is a full time employee of Continental Nickel Limited. Ms. Tirschmann is a registered member of the Association of Professional Geoscientists of Ontario and has sufficient relevant experience to qualify as a Competent Person under the 2004 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms. Tirschmann consents to the inclusion of the data in the form and context in which it appears.



Table I: Summary of Recent Assay Results, Nachingwea Project, Tanzania.

----------------------------------------------------------------------------
Drill- Location Az / Dip Length From To Interval % Ni % Cu % Co
hole (UTM - (m) (m) (m) (m)
WGS84)
----------------------------------------------------------------------------
(NAD09) Ntaka Hill (Anomalies B & C)
----------------------------------------------------------------------------
177 450558E 270 / -70 233.3 121.65 124.65 3.00 1.64 0.29 0.04
8884200N
----------------------------------------------------------------------------
178 450794E 270 / -70 150.3 72.15 76.00 3.85 0.59 0.11 0.03
8883900N
----------------------------------------------------------------------------
179A 450558E 270 / -71 45.0 Abandoned
8884100N
----------------------------------------------------------------------------
179 450558E 270 / -71 281.1 NSA NSA NSA
8884100N
----------------------------------------------------------------------------
180 450767E 90 / -76 116.3 37.00 46.00 9.00 1.64 0.28 0.07
8883995N Incl:
38.40 43.70 5.30 2.53 0.42 0.10
Incl:
38.40 40.80 2.40 4.31 0.60 0.17

86.35 89.30 2.95 1.23 0.28 0.06
----------------------------------------------------------------------------
Lionja Target Area
----------------------------------------------------------------------------
LID08- 448793E 360 / -80 248.5 186.25 189.45 3.20 0.50 0.15 0.02
005Ext 8875744N (i)Ext
93.4 196.15 203.90 7.75 0.91 0.20 0.03
from Incl:
155.1 196.15 198.40 2.25 2.03 0.41 0.06
----------------------------------------------------------------------------
NRD09- 448793E 360 / -65 254.35 182.35 183.35 1.00 1.48 0.33 0.04
012 8875745N
----------------------------------------------------------------------------
NAD016 448885E 360 / -60 335.7 NSA NSA NSA
Ext 8876076N (i)EXT
115.6
from
220.1
----------------------------------------------------------------------------
NRD09- 448900E 010 / -70 392.3 (i) (i) (i) (i)
019 8876040N
----------------------------------------------------------------------------
Nambugu 2 Target Area
----------------------------------------------------------------------------
NRD09- 467925E 300 / -54 146.6 NSA NSA NSA
011 8888998N
----------------------------------------------------------------------------
Nkonjela Target Area
----------------------------------------------------------------------------
NRD09- 457819E 315 / -67 182.5 NSA NSA NSA
013 8863948N
----------------------------------------------------------------------------
Mtua 2 Target Area
----------------------------------------------------------------------------
NRD09- 455104E 90 / -80 161.5 NSA NSA NSA
014 8851800N
----------------------------------------------------------------------------
NRD09- 454821E 90 / -75 212.3 NSA NSA NSA
018 8851900N
----------------------------------------------------------------------------
Ntaka 10 Target Area
----------------------------------------------------------------------------
NRD09- 454777E 270 / -75 200.3 NSA NSA NSA
015 8875200N
----------------------------------------------------------------------------
Lionja 5 Target Area
----------------------------------------------------------------------------
NRD09- 450595E 270 / -60 119.3 NSA NSA NSA
017 8859305N
----------------------------------------------------------------------------
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; (i) - Assays Pending
Ext - Drill hole deepened


To view figure 1, please visit the following link: http://media3.marketwire.com/docs/cni1124a.pdf

To view figure 2, please visit the following link: http://media3.marketwire.com/docs/cni1124b.pdf

To view figure 3, please visit the following link: http://media3.marketwire.com/docs/cni1124c.pdf

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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