Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

September 08, 2010 08:05 ET

Continental Nickel Reports Additional Assays From Ntaka Hill, Including 4.15% Nickel and 0.49% Copper Over 5.35 Metres From the L Zone on the Nachingwea Nickel Sulphide Project in Tanzania

TORONTO, ONTARIO--(Marketwire - Sept. 8, 2010) - Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or "CNI" or the "Company") is pleased to report further assay results from its diamond drill program on the Nachingwea nickel-copper sulphide project ("Nachingwea") in Tanzania. The project is a 70:30 Joint Venture between CNI and IMX Resources Limited ("IMX") of Australia. Highlights include: 4.15% nickel and 0.49% copper over 5.35 metres, including a higher grade interval grading 10.04% nickel and 1.00% copper over 1.9 metres from a "step-out" diamond drill hole, NAD10-199 at L Zone. 

The Company is currently implementing a $4 million exploration program at Nachingwea. In the current program, thirty-five diamond drill holes, totalling 4,722.7 metres, were completed at Ntaka Hill, and one 266.1 metre drill hole was completed at Lionja, 8 kilometres to the south. Assay results have now been reported for fourteen of the thirty-six drill holes, including the results of nine holes totalling 986.7 metres reported herein. The assay results are provided below as Table I and a location figure may be viewed using the link provided with this release. The remaining assay results will be reported as they are received, compiled and validated. 

The Ntaka Hill drilling program was designed:

  1. to evaluate selected sulphide deposits for extensions to mineralization beyond the currently defined Mineral Resources;
  1. to evaluate several other sulphide zones which could be included in the Mineral Resources. 

Currently defined NI 43-101 compliant, Measured and Indicated Mineral Resources, from six separate sulphide deposits (G, H, J, L, M and NAD013) at Ntaka Hill, total 3.1 million tonnes grading 1.31% nickel and 0.24% copper at a US$23 / tonne Net Smelter Return ("NSR") cut-off (Press Release dated July 15, 2009).

L Zone

The current Measured and Indicated Mineral Resources at L Zone (July 2009) are estimated at 221,000 tonnes grading 1.71% nickel and 0.32% copper. Two drill holes, totalling 201.8 metres, were positioned along strike to the north and to the south of the current resource limit to test for potential extensions of the mineralized zone.

Diamond drill hole NAD10-198 was drilled up-plunge, 50 metres to the north. This hole failed to intersect significant mineralization and the zone probably pinches out in this direction. 

Drill hole NAD10-199 was positioned to test for an extension of the high grade mineralization intersected 30 metres to the north in drill hole NAD08-124, which had intersected 5.47% nickel and 0.96% copper over 4.0 metres. NAD10-199 intersected a 5.35 metre mineralized interval grading 4.15% nickel and 0.49% copper, including 1.9 metres of massive sulphide mineralization grading 10.04% nickel and 1.00% copper. Bore hole electromagnetic ("BHEM") surveys have indicated that the high conductance plate associated with this zone is now largely tested.

This drilling has extended the high grade mineralization at least 30 metres to the south, increasing the total strike length of the zone to 180 metres. These results will be incorporated in a revised resource model for the L Zone.

M Zone

The current Measured and Indicated Mineral Resources at M Zone (July 2009), contained in a preliminary pit shell, are estimated at 344,000 tonnes grading 1.73% nickel and 0.38% copper. Three diamond drill holes totalling 318.4 metres were completed to test the potential for extensions to the deposit along strike to the north and south. 

Two drill holes were positioned at the northern end of M Zone to test for mineralization up-plunge and near surface. NAD10-193 was drilled approximately 25 metres up-dip above drill hole NAD08-169 which intersected 0.50% nickel and 0.08% copper over 9.0 metres (previously reported January 28, 2009). NAD10-193 intersected a wide zone of disseminated to net-textured mineralization grading 0.89% nickel and 0.22% copper over 21.0 metres, including higher grade intervals grading 1.20% nickel and 0.36% copper over 10.0 metres and 1.92% nickel and 0.22% copper over 2.4 metres. Drill hole NAD10-196 was positioned 50 metres along strike of NAD10-193 and did not intersect any mineralized rock.

Drill hole NAD10-197 was drilled at the south end of the zone and intersected a narrow zone of disseminated to net textured sulphide mineralization grading 0.80% nickel and 0.14% copper over 2.0 metres. 

The drilling at the M Zone successfully intersected higher grade mineralization up-dip and near surface at the north end of the deposit. Results of BHEM surveys indicate the zone is now largely tested. The new results will be incorporated into an updated resource model for use in a pit optimization study. This study will evaluate whether mineralization currently extending below the original preliminary pit shell can be upgraded to a Mineral Resource category which would increase the current Mineral Resources at M Zone.

C Zone

The C Zone was discovered in 2009 while drill testing a strong, 500 metre long, surface electromagnetic ("EM") anomaly. Diamond drill hole NAD09-180 intersected sulphide mineralization grading 2.53% nickel and 0.42% copper over 5.3 metres, including an interval of massive sulphide grading 4.31% nickel and 0.60% copper over 2.4 metres (Press Release dated November 24th, 2009).

Four diamond drill holes, totalling 466.5 metres, were completed to test the continuity of the zone near the surface in the area of drill hole NAD09-180, as well as along strike to the south to test a strong off-hole BHEM anomaly.

Diamond drill holes NAD10-190 and 191 were positioned 25 metres up-dip and down-dip, respectively, of drill hole NAD09-180 to provide an east-west section across the zone. Both drill holes failed to intersect significant mineralization, indicating that the zone has limited dip extent on this section.

Drill hole NAD10-192 was drilled 50 metres north and along strike of NAD09-180 and intersected strongly oxidized sulphide mineralization grading 1.18 % nickel and 0.26% copper over 4.0 metres. This intersection is interpreted as the northern limit of the sulphide zone.

Drill hole NAD10-194 was drilled 210 metres to the south and along strike of NAD09-180 and was positioned to test a strong off-hole BHEM anomaly detected from hole NAD09-181, which intersected sulphide mineralization grading 1.06% nickel and 0.30% copper over 7.60 metres (Press Release dated December 16, 2009). The hole intersected several wide, mineralized intervals including: 10.0 metres grading 0.58% nickel and 0.18% copper, starting at 27.0 metres down hole; and 0.74% nickel and 0.17% copper over 13.25 metres, starting at 125.0 metres down hole. A BHEM survey of drill hole NAD10-194 has confirmed that the targeted off-hole BHEM anomaly detected from drill hole NAD09-181 has been intersected.

The new drill results will be interpreted along with the 2009 drill results in order to assess if a Mineral Resource can be outlined and estimated for this zone. 

Next Steps:

With the completion of the Ntaka Hill drill program, a reverse circulation drilling program is planned to commence in October to test priority targets developed from an ongoing regional exploration program.

Craig MacDougall, President & CEO of Continental Nickel Limited, said "the drilling completed at M and L zones, and as previously reported at H Zone, has extended the mineralization in all three zones. This new information will now be incorporated into the resource models ahead of an updated Mineral Resource Estimation study which will commence after all of the outstanding assay data is received. We continue to look forward to additional assay results from the Ntaka Hill area, including follow-up holes at the recent discovery of a wide zone of disseminated sulphide mineralization at the Sleeping Giant Zone." 

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. The information in this release was prepared under the direction of Craig MacDougall, P. Geo., President and CEO for Continental Nickel Limited. Both Ms. Tirschmann and Mr. MacDougall are qualified persons 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

Continental Nickel Limited 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 70% interest in the Nachingwea project in Tanzania, where NI 43-101 Mineral Resources have defined 40,000 tonnes of contained nickel, and ongoing exploration is underway to evaluate the potential to expand these Resources. The Company's interest in the Nachingwea project will increase to 75% upon the completion of exploration expenditures totalling $15 million, which is expected to be confirmed in the current quarter.

Continental Nickel Limited has 38,943,664 shares issued and outstanding (46,211,514 on a fully-diluted basis) and trades on the TSX Venture Exchange under the symbol CNI. The Company remains well-funded with over C$11.6 million in the treasury.

On behalf of Continental Nickel Limited

Craig MacDougall, President & 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, resources and reserves, exploration results, future plans and objectives of Continental Nickel Limited, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 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 Recent Assay Results – C, M and L Zones, Nachingwea Project, Tanzania.
 
Drillhole
(NAD10-)
Location
East/North
UTM:WGS84
Az / Dip Length
(m)
From
(m)
To
(m)
Interval
(m)
%
Ni
%
Cu
%
Co
  C Zone
190 450792mE
8884000mN
090 / -76 88.7       NSA NSA NSA
191 450741mE
8884000mN
090 / -76 103.7       NSA NSA NSA
192 450773mE
8884050mN
090 / -79 86.0 5.0 9.0 4.0 1.18 0.26 0.09
194 450681mE
8883790mN
090 / -68 188.1 27.0
125.0
37.0
138.25
10.0
13.25
0.58
0.74
0.18
0.17
0.02
0.04
  M Zone
193 450417mE
8884800mN
270 / -66 73.9 20.0
Incl:
21.0

37.9
41.0

31.0

40.3
21.0

10.0

2.4
0.89

1.20

1.92
0.22

0.36

0.22
0.02

0.02

0.05
196 450443mE
8884850mN
270 / -52 70.7       NSA NSA NSA
197 450434mE
8884500mN
270 / -67 173.8 153.0 155.0 2.0 0.80 0.14 0.03
  L Zone
198 450184mE
8884100mN
090 / -55 73.8       NSA NSA NSA
199 450149mE
8883900mN
090 / -69 128.0 90.0

111.0
Incl:
114.1
90.55

116.35

116.0
0.55

5.35

1.90
1.68

4.15

10.04
0.32

0.49

1.00
0.03

0.06

0.16
 
Note:
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;

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/cni0908fig1.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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