Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

December 14, 2011 08:00 ET

Continental Nickel Extends Sleeping Giant Zone at Ntaka Hill Project, Tanzania

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2011) - Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased to report that additional assays have been received from the recently completed drilling program at Ntaka Hill. Highlights include drill hole NAD11-243 which intersected Sleeping Giant mineralization grading 0.52% Ni and 0.13% Cu over 53.0m including 1.04% Ni and 0.27% Cu over 13.0m. This intersection extends the Sleeping Giant zone an additional 150 metres down plunge to the south. The project is a 75:25 joint venture between CNI and IMX Resources Limited ("IMX") of Australia.

The Company completed a step-out drilling program at Ntaka Hill in early December. This program was being carried out to expand the current Mineral Resource of the Sleeping Giant and to test selected other targets within the Ntaka intrusion. A total of 13,336 metres of diamond drilling was completed in thirty-eight holes and three deepened holes. Results for ten drill holes at Sleeping Giant are reported herein and provided below in Table I. A drill hole location figure may be viewed using the link provided with this release. Results for fourteen additional holes are pending and will be reported as results are received and compiled.

Highlights

  • Sleeping Giant zone extended 150 metres down plunge to the south.

  • Sleeping Giant zone extended 70 to 100 metres up dip to the east.

  • Numerous additional intersections of disseminated nickel sulphide mineralization grading between 0.2 and 0.9% nickel over wide widths intersected in the hanging wall of the Sleeping Giant zone within the pit shell.

Mr. David Massola, President and CEO, commented "We are pleased to have concluded a successful in-fill drilling program which has confirmed extensions to Sleeping Giant, particularly in the up-plunge, up-dip and down plunge directions. The confirmation and expansion of the hanging wall disseminated sulphide zones is also a significant development for the project and is expected to positively impact potential nickel production and lower stripping ratios. We are now focussing our efforts on delivering an updated and expanded Mineral Resource in early 2012".

Drilling Results

Assay results for ten holes are given in Table I. Drill holes are arranged by drill section starting from the south end of Sleeping Giant and progressing north. The table includes a summary of intersections for the Sleeping Giant zone ("SLG") as well as various hanging wall ("HW") and footwall ("FW") zones. Significant results are given in more detail below.

Extension of Sleeping Giant Down Plunge to South on Section 3100N

Drill holes NAD11-243, 249 and 251 were drilled on section 3200N, 150 metres to the south of hole NAD11-238 which intersected 2.66% nickel and 0.60% copper over 14.3 metres (Press Release November 2, 2011). NAD11-243 intersected a wide zone of disseminated sulphides which graded 0.52% nickel and 0.13% copper over 53.0m from 488 to 541 metres including a higher grade section which assayed 1.04% nickel and 0.27% Cu over 13.00 meters. This hole deviated 50 metres off section to the south and extends the Sleeping Giant zone and additional 150 metres down plunge to the south from previous drilling.

NAD11-249 was drilled 100 meters up dip and approximately 50 metres up plunge of NAD11-243 and intersected narrow widths of heavily disseminated to net-textured to semi-massive sulphides interpreted to correlate with the Sleeping Giant zone. This mineralization graded 1.23% nickel and 0.71% copper over 4.65 metres from 355.35 to 360 meters. A similar looking, but more pyrrhotite-rich, footwall zone returned 0.51% nickel and 0.17% copper over 12.8 metres from 436.2 to 449 metres.

NAD11-251 was drilled 100 metres down-dip and approximately 50 metres up plunge of NAD11-243 and intersected disseminated Sleeping Giant mineralization grading 0.52% nickel and 0.09% copper over 12.0 metres from 485 to 497 metres.

Up Dip Extension of Sleeping Giant on Sections 3600N and 3700N

Drill hole NAD11-245 was a re-drill of abandoned hole NAD11-227 on section 3600N and tested for the extension of the Sleeping Giant zone 70 metres up-dip of hole NAD10-225. NAD11-245 intersected disseminated, bleb and net-textured sulphides grading 0.51% nickel and 0.17% copper over 18.0 metres from 188 to 206 metres. This mineralization is located near the down hole edge of a much wider halo of weakly disseminated sulphides which returned 0.23% nickel and 0.06% copper over 98.0 metres from 131 to 229 metres.

A NAD013 zone drill hole completed in 2008 (NAD08-127) was deepened to test for the extension of the Sleeping Giant zone 100 metres up-dip of hole NAD11-232. NAD08-127EXT intersected two zones of disseminated and bleb sulphides which graded 0.52% nickel and 0.07% copper over 8.7 metres from 141.3 to 150 metres and 0.53% nickel and 0.09% copper over 15.10 metres from 171 to 186 metres, respectively. This hole was collared on section 3650N but was drilled at an azimuth of 050° and intersected Sleeping Giant between sections 3700-3725N.

These holes will extend the Sleeping Giant zone by an additional 70 to 100 metres up dip to the east in the immediate vicinity of the NAD013 zone.

Hanging Wall Disseminated Sulphide Mineralization

Disseminated nickel sulphides were intersected in the hanging wall of Sleeping Giant on all drill sections reported herein and represent mineralization identified as being potentially economic in the recently released Preliminary Economic Assessment (Press Release October 5, 2011). Similar to previously reported results, the new intersections typically returned values ranging from 0.2 to 0.6% nickel over widths of 5 to 55 metres. These hanging wall zones lie within the pit shell used to define the 2011 Mineral Resource estimate and will be included in the updated Mineral Resource estimate to be completed in early 2012.

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. Ms. Tirschmann is a qualified person as defined by National Instrument 43-101.

Quality Control

The drilling was completed by Tandrill Limited of Tanzania. Drill core samples (NQ) are cut in half by a diamond saw on site. Half of the core is retained for reference purposes. Samples are generally 1.0 metre intervals or less at the discretion of the site geologists. Sample preparation is completed at the ALS Chemex preparation lab in Mwanza, Tanzania. Sample pulps are sent by courier to the ALS Chemex analytical laboratory in Vancouver, Canada. 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 ME-ICP81). Analyses for Pt, Pd, and Au are by fire assay with an ICP-AES finish (Analytical Code PGM-ICP23).

About Continental Nickel Limited

Continental 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 75% interest in the Nachingwea project in Tanzania, where Mineral Resources (Measured and Indicated) have been estimated at 60,900 tonnes of contained nickel, and an additional 131,000 tonnes of contained nickel in Inferred Mineral Resources (CNI press release April 15, 2011). The project is a 75:25 exploration joint venture between the Company and IMX Resources Limited.

The Company also has an option to joint venture on the St. Stephen project in New Brunswick, Canada where the 2010 diamond drill program discovered new Ni‐Cu sulphide zones.

As at the date of this release, the Company has 42,738,508 common shares issued and outstanding (51,156,914 on a fully‐diluted basis) and trades on the TSX Venture Exchange under the symbol CNI. The Company remains well funded with over C$13.6 million in the treasury as at June 30, 2011.

Table I: Summary of Assay Results
Sleeping Giant Zone, Ntaka Hill
Drill
hole
(NAD11-)
Location
East/ North
UTM:WGS84
Az / Dip Length
(m)
From
(m)
To
(m)
Inter-
val
(m)
%
Ni
%
Cu
Zone
Section 3100N
243 450005mE
8883098mN
100 / -64 559.75 395.00
Incl.
488.00
Incl.
517.00
541.00

541.00

530.00
146.00

53.00

13.00
0.31

0.52

1.04
0.08

0.13

0.27
HW/
SLG

249 450213E
8883098N
095 / -79 457.85 202.00

239.00

318.00

355.35

436.20
207.00

249.00

327.00

360.00

449.00
5.00

10.00

9.00

4.65

12.80
0.87

0.28

0.26

1.23

0.51
0.17

0.08

0.09

0.71

0.17
HW

HW

HW

SLG

FW
251 450003E
8883094N
098 / -75 550.75 293.00
Incl.
309.15

389.00

459.00
Incl.
485.00
347.00

330.00

404.00

507.95

497.00
54.00

20.85

15.00

48.95

12.00
0.31

0.50

0.27

0.30

0.52
0.05

0.10

0.04

0.06

0.09
HW



HW

SLG
Section 3200N
242 450155E
8883198N
090 / -64 433.40 235.00

262.00

287.00
Incl.
289.75

417.75
244.00

269.45

308.25

297.70

429.25
9.00

7.45

21.25

7.95

11.50
0.20

0.22

0.29

0.57

0.37
0.04

0.03

0.07

0.12

0.13
HW

HW

SLG



FW
247 449963E
8883198N
095 / -82 547.75 259.00

296.00

399.00
269.00

344.00

399.40
10.00

48.00

0.40
0.22

0.20

2.13
0.02

0.04

0.14
HW

HW

SLG
Section 3400N
244 449906E
8883389N
95 / -65 495.75 199.00

241.90
Incl.
247.00
and
272.20
and
303.00
and
343.40
218.00

350.00

258.00

291.00

311.00

346.10
19.00

108.10

11.00

18.80

8.00

2.70
0.23

0.38

0.54

0.51

1.31

1.27
0.04

0.10

0.15

0.10

0.31

0.29
HW

HW/
SLG
Section 3500N
228W 449964mE
8883500mN
090 / -75.5 478.10 478.10 NSV NSV
Section 3600N
245 450211E
8883597N
095 / -65 232.38 25.55

105.00

131.00
Incl.
188.00
55.00

114.55

229.00

206.00
29.45

9.55

98.00

18.00
0.22

0.21

0.23

0.51
0.04

0.07

0.06

0.17
HW

HW

SLG
Section 3650/3700N
127EXT 450263E
8883655N
050 / -50 217.40
Extended
by 102m
141.30

171.00
150.00

186.10
8.70

15.10
0.52

0.53
0.07

0.09
HW

SLG
Section 3800N
241 449946mE
8883800mN
090 / -55 379.50 164.00

231.50

303.10
167.55

244.00

311.20
3.55

12.50

8.10
0.46

0.26

0.21
0.14

0.05

0.05
HW

HW

SLG
Notes:
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
HW = Hanging Wall
FW = Foot Wall
SLG = Sleeping Giant Zone

On behalf of Continental Nickel Limited

Dave Massola, President and CEO

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, potential or estimated metal recoveries, resources and reserves, exploration results, future plans and objectives of Continental Nickel Limited, is forward‐looking information that involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such information. 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., who 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.

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/752805_Sleeping_Giant_Drill_Plan.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.

Contact Information

  • Continental Nickel Limited
    Dave Massola
    President and CEO
    (905) 815-0533 (ext 228)
    (905) 815-0532 (FAX)

    Continental Nickel Limited
    Patricia Tirschmann
    Vice President, Exploration
    (905) 815-0533 (ext 224)
    (905) 815-0532 (FAX)
    info@continentalnickel.com
    www.continentalnickel.com