Nuinsco Resources Limited
TSX : NWI

Nuinsco Resources Limited

October 19, 2009 12:12 ET

Nuinsco Announces Positive Metallurgical Test Results From Prairie Lake

Processing provides enhanced rare earth, tantalum and niobium grades in concentrate

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2009) - Nuinsco Resources Limited ("Nuinsco") (TSX:NWI) (www.nuinsco.ca) announced today that it has received positive results from metallurgical testing of surface samples from its 100% owned, Prairie Lake Project in northwestern Ontario. The testing indicates that Dense Media Separation and Magnetic Separation processing are a means of producing concentrates from Prairie Lake containing mineralization of sufficiently elevated grade to be of potential economic interest. This mineralization includes rare earth elements (REE) (including lanthanum (La), cerium (Ce), samarium (Sm), neodymium (Nd) and yttrium (Y)), niobium (Nb), tantalum (Ta), phosphorous (P) and uranium (U).

"The initial results clearly demonstrate that rock from Prairie Lake can be upgraded to produce concentrates with enhanced content of mineral commodities of economic interest such as phosphorous, niobium, tantalum, and rare earth elements," said Paul Jones, President. "In particular the non-magnetic concentrate returned mean values of 9.4% P2O5, 0.29% Nb2O5, 35.9 ppm Ta, and 2808.2 ppm combined rare earth elements. The next step is to optimise a process to specifically suit the Prairie Lake rocks to provide better separation of the mineral species to further enhance the recoveries."

Additional sample process testing is being conducted to determine if floatation concentration produces even better results. Samples have been selected from drill core and submitted for these tests. Results will be reported upon receipt.

The mineralization at Prairie Lake is hosted in a very large carbonatite complex (2.8 km2 at surface) which provides an enormous target and source for rare earth elements, niobium and other commodities. In particular, niobium and phosphorous values from drill core, beginning at surface, compare favourably with those identified by Commerce Resources Corp. ("Commerce Resources") at its Upper Fir cabonatite in BC. By way of comparison, average grades for the 17 diamond drill holes completed by Commerce Resources during 20061 at Upper Fir were 0.11% Nb2O5, and 3.69% P2O5 and 0.018% Ta2O5, whereas the weighted average of all core samples drilled at Prairie Lake from 1969 to 2008 is 0.13% Nb2O5, and 3.93% P2O5 and 0.003% Ta2O5.

Twelve samples were collected from surface pits excavated by backhoe from the carbonatite and ijolite rocks that comprise the Prairie Lake Complex. Ten of these samples, weighing between 37.5 kg and 42.8 kg each, were submitted to the Kennecott mineral processing laboratory in Thunder Bay for dense media separation and magnetic separation processing. Three sub-samples were produced from each of the original ten samples submitted and geochemical analyses were conducted by Activation Laboratories in Thunder Bay. Paul Jones, President acts as QP under NI 43-101 and has reviewed and approved the contents of this news release. Sample processing details and a detailed table of results can be found at www.nuinsco.ca.

1 Technical Report on the Upper Fir Tantalum-Niobium-Bearing Carbonatite June 20, 2007

About Prairie Lake

Located about 45 kilometres northwest of Marathon, Ontario, Nuinsco's Prairie Lake property covers the entire 2.8 km2 (at surface) Prairie Lake Carbonatite Complex and is easily accessible from the TransCanada Highway. The Prairie Lake Project hosts a near-surface historic (non-NI-43-101-compliant) resource of over 180,000 tonnes grading 0.09% U308 (1.656 lb/tonne) and 0.25% niobium identified in limited exploration dating from the mid-1960s. The Prairie Lake Carbonatite intrusion is a vast exploration target that forms a prominent circular hill. Anomalous uranium mineralization is widespread throughout the intrusion in association with the minerals pyrochlore, uranpyrochlore and betafite.

About Nuinsco Resources

Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is focused on uranium, copper, zinc and gold exploration and development in world-class mineralized belts in Canada and Turkey. In addition to its property holdings, Nuinsco owns approximately 9% of the outstanding common shares of precious and base metals producer Gold Hawk Resources Inc. (TSX VENTURE:CGK) and an interest in the Corner Bay copper project owned by Campbell Resources Ltd. (TSX:CCH). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

Please visit the Company's website at www.nuinsco.ca. Should you wish to receive Company news via email, please email catarina@chfir.com and specify "Nuinsco Resources" in the subject line.

The resource estimate quoted herein is based on prior data and reports obtained and prepared by previous operators and the Company. The Company has not completed the work necessary to verify the classification of the mineral resource estimate. The Company is not treating the mineral resource estimate as NI 43-101 defined resources verified by a qualified person. The historical estimate should not be relied upon. This property requires considerable further evaluation which Nuinsco's management and consultants intend to carry out in due course. FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historical fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Contact Information

  • Nuinsco Resources Inc.
    Rene Galipeau or Sean Stokes
    416.626.0470
    416.626.0890 (FAX)
    admin@nuinsco.ca
    www.nuinsco.ca
    or
    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    416.868.1079 ext. 228
    416.868.6198 (FAX)
    robin@chfir.com
    or
    CHF Investor Relations
    Catarina Cerqueira
    Associate Account Manager
    416.868.1079 ext. 251
    416.868.6198 (FAX)
    catarina@chfir.com