Continental Nickel Limited

Continental Nickel Limited

February 28, 2012 09:59 ET

Continental Nickel Limited: Environmental Scoping Study Submitted for Ntaka Hill Nickel Project

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2012) - Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased to announce the submission of the Environmental Scoping Study ("ESS") to the National Environment Management Council ("NEMC") of Tanzania for the Ntaka Hill Nickel Project (the "Project"). This is the first major step towards obtaining the necessary Tanzanian government environmental approval to take the Project into production in mid-2015.

The Project is part of the larger 75:25 exploration joint venture with IMX Resources Limited for the Nachingwea Project in Southern Tanzania.

The ESS is the result of the first stage of community consultation and environmental site investigation to identify potential social and environmental impacts from the Project, which require further investigation and assessment in the detailed Environmental and Social Impact Assessment ("ESIA"). It sets out the proposed Terms of Reference for these further environmental and social studies that are required. The study will be reviewed by NEMC and once approved will form the basis on which the ESIA is carried out.

Tanzanian based environmental consulting group MTL Consulting Company Limited prepared the ESS and in parallel is conducting the various site investigations and environmental baseline studies for the Project. In addition Coffey Environments Australia Pty Ltd is providing an ongoing peer review of the environmental studies and submissions to ensure that they are carried out in line with CNI's environmental policy and international standards.

Mr. Stewart Watkins, Vice President, Projects commented, "Submission of the Study is a major milestone in the development of the project. With the Company already being well advanced in carrying out the various environmental baseline studies we are on target for the submission of the ESIA and approval of our environmental permit in line with a schedule that will see the Project in production in mid-2015.

The Study and investigations carried out to date have not identified any unanticipated issues that may delay the project development. However, our investigations are ongoing and the Company will address any as yet unidentified environmental or social issues as part of its commitment to high standards of environmental and social responsibility."

Next Stages

The next stages in the environmental approval process for the Project are:

  • Review and approval by NEMC of the ESS and proposed Terms of Reference within two weeks.
  • Second stage of community consultation and site investigations commencing March 2012.
  • Wet season baseline studies commencing in April 2012.
  • Preparation of ESIA and submission to NEMC, following public display in the project area, in the fourth quarter 2012.
  • NEMC Technical Advisory Committee review of ESIA in fourth quarter 2012.
  • Approval of ESIA and granting of Environmental Permit for the Project, by NEMC and the office of the Vice President, in the first quarter of 2013 (within 90 days of submission).

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 (50,244,414 on a fully‐diluted basis) and trades on the TSX Venture Exchange under the symbol CNI. The Company remains well funded with over C$9.4 million in the treasury as at December 31, 2011.

On behalf of Continental Nickel Limited

Dave Massola, President and Chief Executive Officer

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.

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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