Continental Precious Minerals Inc.
TSX VENTURE : CZQ

Continental Precious Minerals Inc.

January 17, 2007 09:54 ET

Drilling Activity at Continental Precious Minerals Properties in Sweden

TORONTO, ONTARIO--(CCNMatthews - Jan. 17, 2007) - Continental Precious Minerals Inc. (TSX VENTURE:CZQ) (the "Company" or "Continental") is pleased to provide an update on drilling at the Pleutajokk uranium deposit on its Guorbavare licence located near Arjeplog in northern Sweden. The uranium deposit is associated with fracture fillings in granitic rocks, and was previously explored by the Swedish Geological Survey and other companies. Nine diamond drill holes designed to fill gaps in the historical drill sample pattern have been completed. Three of these holes have been sited on the north side of a potential fault, which bounds the B2 mineralized zone, to test for a possible extension of this deposit. All of the cores from such nine diamond drill holes have been logged. Mineralization has been detected in eight drill holes using a STRAT SPP2 scintillometer. The mineralized drill core samples are in the process of being analyzed by the Swedish laboratory Analytica, which is owned by ALS Laboratory Group. In addition, the Company has completed a preliminary environmental study concerning the drilled area.

The Company is continuing to follow its strategy of advancing those of its licences that it believes has a higher probability of proceeding to development and production within a two to three year time-frame. This will help the Company to achieve its goal of maintaining a good working capital position and minimizing dilution to shareholders. To this end, the Company is continuing its focus on its Viken licence (MMS), the Pleutajokk deposit on its Guorbavare licence (HRU), its Bjorkramyran licence (HRU) and its Lill-Juthatten licence (HRU).

It should be noted that assay laboratories worldwide are currently inundated with samples, resulting in considerable delays in obtaining analytical results. This will affect the timing of releases from the Company's drill programs.

The contents of this press release have been reviewed by G.A. Harron, P.Eng., an independent consultant and a qualified person as defined in National Instrument 43-101.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the analysis of core from its Guorbavare licence and statements as to strategy. Actual developments may differ materially from those contemplated by these statements depending upon, among other things, the decisions made by regulators and Courts, and any change in the Company's exploration and drilling programs which could occur as the result of a variety of factors including the Company's ongoing assessment of results thereof. The forward looking statements contained in this press release represent the Company's views and expectations as of the date of this release and should not be relied upon as representing its views and expectations at any subsequent date.

THIS PRESS RELEASE WAS PREPARED BY CONTINENTAL, WHICH ACCEPTS RESPONSIBILITY FOR ITS ACCURACY. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THE INFORMATION CONTAINED HEREIN.

Contact Information

  • Continental Precious Minerals Inc.
    Ed Godin
    President
    (416) 805-3036