Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

November 02, 2011 08:30 ET

Continental Nickel Intersects 2.66% Nickel and 0.60% Copper Over 14.3 Metres and Extends High Grade Zone at Ntaka Hill Project, Tanzania

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2011) - Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased to report that additional assays have been received from the on-going drilling program that commenced in mid-June at Ntaka Hill. Highlights include drill hole NAD11-238 which intersected Sleeping Giant mineralization grading 2.66% nickel and 0.60% copper over 14.3 metres and 2.0% Ni and 0.24% Cu over 9.65 metres from within a wider interval grading 1.40% nickel and 0.29% copper over 43.95 metres. This intersection is located 100 metres south of previously reported drill hole NAD10-234 which intersected 2.03% nickel and 0.42% copper over 31.5 metres (September 13, 2011 Press Release). The project is a 75:25 joint venture between CNI and IMX Resources Limited ("IMX") of Australia.

The Company is implementing a 14,000 metre drilling program at Ntaka Hill to expand the current Mineral Resource of Sleeping Giant and to test selected other targets within the Ntaka intrusion. A total of 8,703 meters have been completed in twenty-three drill holes and two deepened holes to the end of September. Results for fourteen 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.

Highlights

  • Sleeping Giant extended up plunge to the north as well as up-dip to the east.

  • High grade core of Sleeping Giant extended an additional 100 metres down plunge to the south and remains open to the south.

  • Numerous intersections of disseminated nickel sulphide mineralization grading between 0.2 and 0.6% nickel over 5-45 metres intersected in the hanging wall of Sleeping Giant zone within the pit shell used to define the 2011 Mineral Resource estimate.

Patricia Tirschmann, VP Exploration, commented on the recent drilling results "On-going drilling has extended Sleeping Giant and, in particular, has confirmed the continuity of the high grade core down plunge to the south. Continuity of the high grade core has been demonstrated over a 500 metre strike extent and it remains open to the south beyond the pit shell used to define the 2011 Mineral Resource estimate. The drilling has also significantly improved our understanding of the extent of the disseminated hanging wall sulphide mineralization which was identified as having the potential to add significant value to the project in the recently released Preliminary Economic Assessment. This new information will form the basis of a Mineral Resource estimate update which we expect to complete in the second quarter of 2012."

Drilling Results

Assay results for fourteen 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 ("SGL") as well as various hanging wall ("HW") and footwall ("FW") zones. Significant results are given in more detail below.

Extension of the High Grade Core to Section 3200N

Drill holes NAD11-237, 238 and 242 were drilled on section 3200N, 100 metres to the south of hole NAD11-234 which intersected 2.03% nickel and 0.42% copper over 31.5 metres (Press Release September 13, 2011). NAD11-237 was lost at 19.65m and was re-collared as hole NAD11-238. NAD11-238 intersected a strong and wide zone of disseminated to net-textured to stringer sulphides which graded 1.40% nickel and 0.29% copper over 43.95 metres from 359.8 to 403.75 metres. Included within this zone were two higher grade intervals which returned values of 2.66% nickel and 0.60% copper over 14.3 metres and 2.00% nickel and 0.24% copper over 9.65 metres.

NAD11-242 was drilled 100 metres up-dip of NAD11-238. As previously reported, this hole intersected an 18 metre interval of disseminated to locally net-textured sulphides from 288 to 306 meters which appears to correlate with the intersection in NAD11-238. Assays are still pending.

The mineralization intersected in holes NAD11-238 and 242 extends the high grade core of Sleeping Giant by 100 metres down plunge to south and beyond the pit shell used to define the 2011 Mineral Resource estimate. The high grade core of the zone remains open to the south and will be the target of future drilling programs.

Up-Plunge Extension of Sleeping Giant on Section 3800N

Drill holes NAD11-239 and NAD11-241 tested for the up-plunge extension of Sleeping Giant on section 3800N. NAD11-239 intersected 0.31% nickel and 0.06% copper over 73.40 metres from 31.7 to 105.10 metres and 0.84% nickel and 0.21% copper over 5.20m from 212.15 to 217.35 metres.

Drill hole NAD11-241, located 100 metres down-dip of NAD11-239, intersected a 7-10 metre long interval of disseminated sulphides for which assays are still pending.

These holes will extend Sleeping Giant by an additional 100 metres up plunge to the north.

Up-Dip Extension of Sleeping Giant on Section 3700N

Drill hole NAD11-232 was drilled to test 100 metres up-dip of hole NAD11-226 which intersected 2.28% nickel and 0.57% copper over 17.25 metres in 2010. NAD11-232 intersected disseminated nickel sulphides grading 0.26% nickel and 0.05% copper over 21.0 metres from 62 to 83 metres and 0.44% nickel and 0.10% copper over 22.5 metres from 90 to 112.5 metres as well as disseminated, blebby and stringer sulphides grading 0.41% nickel and 0.11% copper over 56.30 meters from 136 to 192.3 metres.

Drill hole NAD11-233 was drilled to test 100 metres down-dip of hole NAD11-226 and intersected disseminated nickel sulphides grading 0.67% nickel and 0.13% copper over 23.25 metres from 124.0m to 147.25 metres and disseminated to blebby sulphides grading 1.13% nickel and 0.22% copper over 11.85 metres from 279.8 to 291.65 metres.

Hole NAD11-236 was drilled 100 metres down-dip of hole NAD11-223 and did not intersect significant widths of ultramafic rock or mineralization.

Drilling on this section confirms the extension of Sleeping Giant 100 metres up-dip and down-dip of the 2010 drilling and the zone remains open up-dip to the east.

Hanging Wall Disseminated Sulphide Mineralization

Disseminated nickel sulphides have been intersected in the hanging wall of Sleeping Giant on all drill sections and represent mineralization identified as being potentially economic in the recently released Preliminary Economic Assessment (Press Release October 5, 2011). These intersections typically returned values ranging from 0.2 to 0.6% nickel over widths of 5 to 45 metres and lie within the pit shell used to define the 2011 Mineral Resource estimate. These intersections will be included in the updated geological interpretation and Mineral Resource estimate to be carried out at the conclusion of the 2011 drilling program.

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. The information in this release was prepared under the direction of Dave Massola, President and CEO for Continental Nickel Limited.

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 (50,956,914 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.

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.

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)
Interval
(m)
%
Ni
%
Cu
Zone
Section
3200N
237 450154mE
8883200mN
090 / -79 19.65 Hole lost
and
re-collared
as
NAD11-238
238 450154mE
8883198mN
90 / -79 466.50 293.40
359.80
Incl.
359.80
389.00
Incl.
396.90
443.20
Incl.
448.00
339.00
403.75

374.10
398.65

398.65
458.00

454.00
45.60
43.95

14.30
9.65

1.75
14.80

6.00
0.29
1.40

2.66
2.00

7.90
0.38

0.58
0.08
0.29

0.60
0.24

0.93
0.07

0.09
HW
SGL





FW
242 450155mE
8883198mN
090 / -64 433.40 * * HW/
SGL
Section
3300N
231 449984mE
8883300mN
100 / -83 496.65 225.00
Incl.
226.50 280.00 289.00 307.30 357.00 384.10
239.00

229.70
285.00
292.75
322.00
361.00
390.50
14.00

3.20
5.00
3.75
14.70
4.00
6.40
0.47

1.37
0.45
0.71
0.32
0.39
0.48
0.06

0.19
0.08
0.14
0.12
0.08
0.11
HW


HW
HW
HW
SGL
SGL
234 450151mE
8883300mN
100 / -79 388.85 242.00
Incl.
260.00
279.00

274.00
37.00

14.00
0.33

0.55
0.07

0.11
HW
235 450199mE
8883300mN
100 / -71 364.50 159.80
Incl.
163.00
218.60
Incl.
218.60
224.20
173.00

168.00
226.45

219.10
226.45
13.20

5.00
7.85

0.50
2.25
0.33

0.61
0.37

0.82
0.61
0.07

0.11
0.11

0.30
0.20
HW


SGL
Section
3400N
229 449906mE
8883400mN
090 / -63 520.45 362.00
Incl.
362.00
420
365.35

362.65
422
3.35

0.65
2.00
0.89

3.40
0.51
0.32

1.15
0.16
HW


SGL
Section
3500N
228 449964mE
8883500mN
090 / -75.5 478.10 Wedge
completed
* * HW/
SGL
Section
3600N
227
***
450212mE
8883599mN
090 / -63 109.20 26.00
36.00

10.00

0.29

0.06

HW
230 449960mE
8883600mN
090 / -68 385.55 121.40
138.20
232.00
262.00
Incl.
262.00
294.00
127.00
178.00
249.00
303.00

274.00
301.00
5.60
39.80
17.00
41.00

12.00
7.00
0.52
0.28
0.26
0.32

0.46
0.50
0.12
0.05
0.07
0.10

0.11
0.17
HW
HW
HW
SGL
Section
3700N
232 450167mE
8883700mN
095 / -66 217.60 62.00
90.00
Incl.
90.00
136.00
Incl.
169.20 209.00
83.00
112.50

98.00
192.30

192.30
214.00
21.00
22.50

8.00
56.30

23.10
5.00
0.26
0.44

0.81
0.41

0.53
0.55
0.05
0.10

0.17
0.11

0.16
0.10
HW
HW


SGL


FW
233 449990mE
8883700mN
100 / -69 371.05 103.70
124.00
Incl.
127.00
279.80
Incl.
281.50
113.30
147.25

137.00
291.65

287.50
9.60
23.25

10.00
11.85

6.00
0.39
0.67

1.13
1.13

1.72
0.10
0.13

0.22
0.22

0.32
HW
HW

SGL
236 449900mE
8883700mN
105 / -73 434.00 NSA
NSA
NSA
NSA
HW
SGL
Section
3800N
239 450096mE
8883800mN
095 / -73 253.6 17.40
31.70
Incl.
31.70
162.50
180.00
212.15
23.00
105.10

55.10
176.00
185.00
217.35
5.60
73.40

23.40
13.50
5.00
5.20
0.32
0.31

0.57
0.23
0.60
0.84
0.09
0.06

0.10
0.05
0.10
0.21
HW
HW


HW
HW
SGL
241 449946mE
8883800mN
090 / -55 328.00 * * HW/
SGL
Section
3875N
240 450090mE
8883877mN
090 / -70 250.50 16.95
32.10
79.00
32.10
57.60
108.00
15.15**
25.50
29.00
0.46
0.30
0.29
NSA
0.04
0.05
0.08
NSA
HW
HW
HW
SGL
Notes:
* Assays Pending
** Mineralized Zone Oxidized
*** Attempts to recover hole failed, re-drill planned
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
SGL = Sleeping Giant Zone

To view the figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/CNIfigure1102.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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