Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

September 15, 2010 08:05 ET

Continental Nickel Reports Final Assay Results Including 0.63% Nickel and 0.22% Copper Over 21.4 Metres at the St. Stephen Nickel-Copper Sulphide Project in New Brunswick

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2010) - Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or "CNI" or the "Company") is pleased to announce that it has received the final assay results from its 2010 drilling program at the St. Stephen Nickel-Copper project in New Brunswick. Highlights include: 21.4 metres grading 0.63% nickel and 0.22% copper at the newly discovered Triple J Zone. Continental can acquire up to a 75% interest in the project, under the terms of an option agreement with Abitex Resources of Val d'Or, Quebec.

As previously announced (Press Release, August 18, 2010), the Company reported the discovery of new nickel-copper sulphide zones at Triple J and G targets, which were intersected in the first three diamond drill holes of a ten hole, 1,356.3 metre, diamond drilling program. The highlights from the first three drill holes included 2.00% nickel and 0.56% copper over 3.3 metres, within a wider interval grading 1.0% nickel and 0.29% copper over 9.30 metres from diamond drill hole SSD10-003 drilled at Target G; and 0.68% nickel and 0.24% copper over 8.9 metres and 0.87% nickel and 0.67% copper over 3.65 metres, from diamond drill hole SSD10-001 drilled at the Triple J Target. The final assay results for the remaining seven drill holes, totalling 956.3 metres, are reported below (see Table I). A location figure may be viewed using the link provided below with this release. 

Triple J Anomaly

Five diamond drill holes totalling 722.0 metres were completed to drill test a 100 metre strike length of the Triple J target to a vertical depth of 125 metres. The assay results from the first two holes were previously reported (August 18, 2010) and the remaining three drill holes, totalling 414.0 metres, are reported herein. 

Drill hole SSD10-004 was drilled approximately 15 metres northeast along strike of, and 40 metres up-dip of, drill hole SSD10-001, which as previously reported, had intersected several nickel and copper bearing sulphide zones. SSD10-004 intersected a 21.4 metre zone of disseminated to net-textured sulphide mineralization grading 0.63% nickel and 0.22% copper, including a higher grade interval of 0.78% nickel and 0.25% copper over 8.4 metres. 

Drill hole SSD10-005 was drilled 40 metres up-dip of SSD10-004 and intersected a narrow zone of semi-massive to massive sulphide mineralization grading 1.02% nickel and 0.19% copper over 0.65 metres. 

Drill hole SSD10-010 was positioned 50 metres northeast along strike from holes SSD10-004 and 005 and intersected a fault zone at the expected depth of the mineralized zone. 

The drilling conducted to date on the newly discovered Triple J zone has intersected up to 21.4 metres of nickel and copper bearing sulphide mineralization to a depth of 125 metres. The zone is open along strike to the southwest and the results from the 2009 ground electromagnetic ("EM") survey indicate that the zone remains open for at least 300 metres in that direction from the current area of drilling.

E Zone

Two diamond drill holes, totalling 226.8 metres, were completed to test an EM anomaly below the level of previous drilling at the previously discovered E Zone. Drill hole SSD10-006 was drilled to a depth of 170.0 metres and intersected several zones of disseminated sulphides with minor nickel and copper. A follow-up bore hole electromagnetic survey ("BHEM") has indicated that the targeted conductor was intersected, but increases in strength down-dip below the drill hole. 

A second hole, SSD10-007, also designed to test the E zone at depth, was abandoned because of poor drilling conditions.

Roger's Farm Zone

One drill hole (SSD10-008) was drilled to a depth of 175.5 metres to test for an extension of the Roger's Farm Zone to the north along strike of previous drilling. The hole intersected several zones of disseminated to net textured mineralization over widths ranging from 0.5 metres to 3.05 metres. Assay results indicate that these zones contain minor nickel and copper. A BHEM survey has indicated that SSD10-008 drilled under the edge of a strong, near surface conductor, thought to be an extension of the Roger's Farm Zone. The survey results indicate the zone has a limited dip extent at this location.

Billy's Brook

One drill hole (SSD10-009) was drilled to a depth of 140.0 metres to test a new, high conductance, EM anomaly, detected in the 2009 ground EM survey and located approximately 700 metres west of the Roger's Farm Zone. The drill hole intersected a 21.9 metre interval of disseminated to net textured sulphide mineralization, including six, 10 to 30 centimetre wide, veins of massive sulphide. The best interval from the mineralized zone graded 0.51% nickel and 0.41% copper over 3.3 metres.

A follow up BHEM survey completed on drill SSD10-009 confirmed that drill hole successfully intersected the original ground EM anomaly and no off-hole anomalies were detected. 

Next Steps

With the final drill hole assays and results of the BHEM surveys now in hand, the Company will complete an interpretation of the data in order to outline recommendations for further exploration. Further drilling at the newly discovered Triple J and G nickel-copper sulphide zones is warranted and will be incorporated in future exploration programs. In addition, numerous untested and poorly tested, airborne versatile time domain electromagnetic anomalies exist on the property which will be prioritized for exploration with additional ground EM surveys.

Craig MacDougall, President & CEO of Continental Nickel Limited, reported "the 2010 drill program has achieved considerable success with the discovery three new nickel-copper sulphide zones at Triple J, G and Billy's Brook while drill testing new, high conductance, ground EM anomalies. The Company will now work to design a follow-up exploration program to further explore the newly discovered sulphide zones at Triple J and G zones, as well as other unexplored targets.

The Company would like to acknowledge the support it has received from the New Brunswick Junior Mining Assistance Program, under which it has been awarded a matching grant of up to $40,000 in support of its 2010 drill program at the St. Stephen Project. In the recently released Fraser Institute "Annual Survey of Mining Companies 2009/2010", the province of New Brunswick ranks second worldwide (behind the province of Quebec) in the list of the world's most attractive jurisdictions for mineral exploration and development.

Project Summary

A project summary on the St. Stephen Project is provided on the Company's web site at www.continentalnickel.com.

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 Maritime Diamond Drilling Ltd of Nova Scotia recovering NQ sized core. Drill core samples are cut in half by a diamond saw and half of the core is retained for reference purposes. Samples are generally 1.0 metre intervals or less at the discretion of the site geologist. Core samples are placed in individual samples bags with unique sample ID tags and shipped in sealed batches to the SGS Minerals Services Laboratory in Toronto, Ontario for sample preparation and analyses. 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-OES finish (Analytical Code ICP90Q). Analyses for Pt, Pd, and Au are by fire assay with an ICP-OES finish (Analytical Code FAI313).

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.

The Company also an option to earn up to a 75% interest in the St. Stephen nickel project in New Brunswick, Canada, where it has discovered new nickel-copper sulphide zones from its recently completed 2010 diamond drill program.

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.

Table I: Summary of Recent Assay Results, St. Stephen Project, New Brunswick.

Drillhole (SSD10-) Location (UTM – WGS84) Az / Dip Length (m) From (m) To (m) Interval (m) % Ni % Cu % Co
Triple J
004 632190mE,
5007761mN
270/-70 143.0 23.55

88.0
Incl:
101.0
23.95

109.4

109.4
0.40

21.4

8.4
1.67

0.63

0.78
0.11

0.22

0.25
0.66

0.08

0.10
005 632189mE,
5007761mN
270/-50 134.0 18.8

98.20
19.6

98.85
0.8

0.65
0.48

1.02
0.15

0.19
0.07

0.08
010 632200mE,
5007805mN
270/-65 137.0       NSA NSA NSA
E Zone
006 633315mE,
5008903mN
090/-57 170.0       NSA NSA NSA
007 633315mE,
5008881mN
090/-73 56.8*       NSA NSA NSA
Roger's Farm Zone
008 633132mE,
5009052mN
270/-50 175.5       NSA NSA NSA
Billy's Brook
009 632373mE,
5008936mN
180/-62 140.0 83.0

95.6

98.15
86.3

96.6

98.65
3.3

 1.0

0.50
0.51

0.59

0.55
0.41

0.10

0.08
0.07

0.08

0.07
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
* - Hole Abandoned

To view the figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/CNIimage1.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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