Canadian Royalties Inc.

Canadian Royalties Inc.

March 03, 2009 08:34 ET

Canadian Royalties Inc.: Nunavik Nickel Project Allammaq and Exploration Update

54.95 Metres of Sulphide Mineralization Intersected at Allammaq

MONTREAL, QUEBEC--(Marketwire - March 3, 2009) - Canadian Royalties Inc. (TSX:CZZ) announces the following suite of Allammaq and exploration drilling results from its 2008 Nunavik Nickel exploration program. Thick intervals of high-grade mineralization were traversed by hole MX-08-65, which intersected 54.95 metres grading 1.07% Nickel and 1.12% Copper, 0.54 g/t Platinum and 2.47 g/t Palladium, including a 21.60 metre interval that ran 1.34% Nickel, 1.41% Copper, 0.65 g/t Platinum and 3.38 g/t Palladium, and a further 12.30 metre section that graded 1.56% Nickel, 1.20% Copper, 0.62 g/t Platinum and 2.49 g/t Palladium.

The Allammaq deposit was discovered in 2007 and is favourably located approximately 3 kilometres east of the road-accessible Mesamax deposit. As part of the company's stated exploration objectives, the Allammaq deposit was the target of drilling to delineate deposit extensions, and definition drilling to upgrade resource classifications. Results from drillholes MX-08-65 to 67 confirm and extend the thick core of mineralization, present on eastern sections, southwards on section 2250E.

Drilling results are reported for seventeen (17) drillholes, including seven (8) Allammaq and nine (9) exploration holes. Further results from the 2008 Allammaq delineation drill program will be reported in a subsequent news release.

Table 1 - Allammaq and Exploration Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
MX-07-54 140.85 141.95 1.10 1.16 1.49 0.35 1.11
MX-08-65 72.00 126.95 54.95 1.07 1.12 0.54 2.47
MX-08-65 83.60 105.20 21.60 1.34 1.41 0.65 3.38
MX-08-65 113.60 125.90 12.30 1.56 1.20 0.62 2.49
MX-08-66 52.00 65.75 13.75 0.35 0.67 0.32 1.41
MX-08-66 83.85 87.10 3.25 0.85 0.76 0.45 1.94
MX-08-67 41.10 43.50 2.40 0.61 0.54 0.79 5.96
MX-08-67 81.00 87.40 5.40 0.62 0.72 2.26 8.95
MX-08-68(expl) 72.40 76.45 4.05 0.91 0.79 0.43 2.02
MX-08-69(expl) No significant results
MX-08-70(expl) No significant results

MX-08-71(expl) 4.00 6.60 2.60 0.52 0.39 0.33 1.30
MX-08-72(expl) No significant results
MX-08-73(expl) No significant results
MX-08-74(expl) No significant results
MX-08-75 53.90 61.50 7.60 0.46 0.44 0.26 1.09
MX-08-75 73.50 78.00 4.50 0.58 1.01 0.24 1.12
MX-08-76 51.40 53.10 1.70 1.95 0.92 0.47 5.55
MX-08-76 73.45 82.00 8.55 0.55 0.48 0.19 0.71
MX-08-77 80.50 81.85 1.35 1.15 0.49 0.18 0.73
MX-08-78 124.70 125.20 0.50 2.14 2.49 0.48 6.40
MX-08-79(expl) 115.50 134.00 18.50 0.39 0.44 0.27 1.11

MX-08-80(expl) 127.65 129.65 2.00 0.55 0.37 0.32 1.92

Table 2 - Allammaq and Exploration Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (degree)(degree) (m)
MX-07-54 595358E 6827566N 178.0 -62 300.00
MX-08-65 595406E 6827531N 178.0 -65 150.00
MX-08-66 595406E 6827531N 178.0 -53 156.00
MX-08-67 595406E 6827530N 178.0 -45 150.00
MX-08-68 594707E 6827505N 178.0 -88 239.65
MX-08-69 594898E 6827484N 178.0 -88 264.00
MX-08-70 595761E 6827194N 178.0 -62 252.00
MX-08-71 595887E 6827490N 178.0 -88 252.00
MX-08-72 595107E 6827535N 178.0 -55 165.00
MX-08-73 595107E 6827535N 178.0 -67 216.00
MX-08-74 595107E 6827535N 178.0 -81 189.00
MX-08-75 595360E 6827504N 178.0 -59 171.00
MX-08-76 595360E 6827504N 178.0 -69 174.35
MX-08-77 595360E 6827504N 178.0 -86 195.00
MX-08-78 595359E 6827533N 178.0 -86 159.00
MX-08-79 595006E 6827540N 178.0 -55 165.00
MX-08-80 595006E 6827540N 178.0 -81 180.00

Exploration Drilling: Holes MX-08-68 to 71 inclusive were drilled on targets generated during the winter SQUID geophysical program, which was successful in identifying new anomalies along the favourable Mesamax to Allammaq corridor. SQUID sensors measure very small magnetic fields and are capable of discriminating high-conductance sulphide mineralization from other localised lower conductance features. Diamond drilling confirmed the presence of high-conductance sulphide mineralization in every hole, however, these sulphides were associated with formational sediments and were not nickel bearing. In the case of MX-08-68, the hole traversed a known favourable ultramafic and intersected magmatic sulphides, reported herein, prior to testing the deeper SQUID target, estimated at approximately 150 metres vertical depth. Nonetheless, the results obtained demonstrate that SQUID is an effective exploration tool, capable of discriminating and isolating sulphide targets within a much larger area of favourable stratigraphy.

Exploration Section 1850E: Holes MX-08-79 and 80 were drilled 50 metres west of section 1900E where holes MX-07-60 and MX-07-62 returned narrow widths of high-grade mineralization. Both holes intersected the favourable ultramafic and anomalous mineralization, though not of similar grade to the holes drilled on L1900E (MX-07-60: 1.70 metres of 2.82% Nickel and 1.89% Copper; MX-07-62 2.00 metres of 1.72% Nickel and 1.30% Copper).

Exploration Section 1950E: Holes MX-08-72 to 74 inclusive were drilled 50 metres east of section 1900E where holes MX-07-60 and MX-07-62 returned narrow widths of high-grade mineralization. Although the favourable ultramafic was present, none of the holes returned significant results.

Section 2200E: Holes MX-08-75 to 78 were collared as part of a fan of drilling that targeted the possible western strike extension of Allammaq mineralization on section 2200E. Hole MX-07-54 was drilled at the close of the 2007 exploration season and was neither logged nor sampled until crews mobilized in early July. Drill results obtained on this section show a thinning of the favourable ultramafic host and waning of mineralization, thus demarking the western limit of the Allammaq deposit. Nonetheless, mineralization is present on section 2200E as evidenced by the intervals intersected in holes MX-07-54 and MX-08-76 to MX-08-78 which returned 1.95% Nickel and 0.92% Copper over 1.70 metres, 1.15% Nickel and 0.49% Copper over 1.35 metres and 2.14% Nickel and 2.49% Copper over 0.50 metres, respectively. Thicker intercepts of lower-grade mineralization are also reported.

Section 2250E: Holes MX-08-65 to 67 targeted the untested southern extension of mineralization left open by hole MX-07-57 (44.15 metres of 1.19% Ni and 1.06% Cu) on section 2250E. Hole MX-07-65 intersected two thick zones of predominantly net-textured sulphides having an average composite grade of 1.07% Nickel and 1.12% Copper over 54.95 metres. Further to the south, holes MX-08-66 and 67 intersected significant widths of lower-grade nickel and platinum group element mineralization, respectively.

Sampling and Assays

Core samples are either split or sawn on-site, individually sealed in bags and shipped off-site on a regular basis to the ALS Chemex laboratory in Val d'Or, Quebec for sample preparation. Analyses are performed at the ALS Chemex laboratory in Vancouver, British Columbia. Base metal analyses including Nickel and Copper are determined by sodium peroxide fusion with ICP-AES analysis. Platinum, Palladium and Gold analyses are determined by fire assay and ICP-AES finish. The company quality control (QA/QC) program includes regular insertions of blanks and standards. Reported values are uncut and composite intervals are reported as length along the core axis. Below detection limit assays are considered zero values when calculating composites for release purposes.

Qualified Persons

W. Grant Arnold (P.Geo.), Vice-president Exploration for Canadian Royalties Inc., is a Qualified Person in accordance with National Instrument (NI) 43-101, and is responsible for the geological information presented in this news release.

About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located 20 kilometres south of Xstrata Nickel's Raglan Mine in Nunavik, Quebec. Canadian Royalties has received its Environmental Certificate of Authorization and Mine Leases for the Expo, Mesamax, Ivakkak and Mequillon sites.

Forward-looking Statement

This news release contains certain forward-looking statements or forward-looking information. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Corporation's ability and control, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Some of these risks and uncertainties are identified and disclosed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2007 and dated March 31, 2008. Accordingly, all of the forward-looking information contained in this press release is qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by the Corporation, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Corporation or its business operations. All forward-looking statements speak only as of the date of this news release and the Corporation does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on forward-looking statements.

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