Continental Nickel Limited
TSX VENTURE : CNI

Continental Nickel Limited

January 25, 2012 08:05 ET

Continental Nickel Reports New Nickel Sulphide Discovery Grading 2.35% Nickel and 1.06% Copper Over 5.45 Metres at the St. Stephen Nickel-Copper Sulphide Project, New Brunswick

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2012) - Continental Nickel Limited (TSX VENTURE:CNI) ("Continental" or "CNI" or the "Company") is pleased to announce the assay results from its 2011 drilling program on the St. Stephen Nickel-Copper project in New Brunswick which have confirmed the discovery of new nickel-copper sulphide mineralization. Highlights include: 2.35% nickel and 1.06% copper over 5.45 metres from drill hole SSD11-013 at the new Hanson Brook target, and 0.68% nickel and 0.41% copper over 58.2 metres, including 0.85% nickel and 0.48% copper over 20.8 metres from drill hole SSD11-011 at G 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.

The Company commenced a diamond drilling program in early December to test new electromagnetic ("EM") targets identified in the 2011 airborne EM survey and to further test nickel-copper mineralization intersected in 2010 in the St. Stephen intrusion (see Press Release dated December 2, 2011). Five drill holes totalling 772 metres were completed in December and borehole electromagnetic surveys ("BHEM") were also carried out in each of the holes. The drilling program was suspended on December 15th due to wet ground conditions and resumed on January 17th. Assay results are reported herein for the five completed holes (see Table I below). A location figure may be viewed using the link provided with this release.

Patricia Tirschmann, VP Exploration of Continental Nickel Limited, commented "We are very encouraged by the recent drilling results, particularly the new nickel-copper sulphide discovery at Hanson Brook and the expansion of mineralization at G zone, both located along the western side of the St. Stephen intrusion. EM geophysical surveys and drilling are proving very effective at identifying new mineralization and we look forward to both evaluating the new discoveries and to testing additional new targets. St Stephen is shaping up to be a high quality exploration project which complements our flagship Nachingwea Project in Tanzania."

G Zone

In 2010, drill hole SSD10-003 intersected disseminated to massive sulphide mineralization within gabbro at G zone located near the north western edge of the St. Stephen intrusion. This mineralization graded 1.0% nickel and 0.29% copper over 9.3 metres from 47.0 to 56.3 metres including a semi-massive to massive sulphide interval grading 2.0% nickel and 0.56% copper over 3.3 metres (see Press Release dated August 18, 2011).

Two holes (SSD11-011 and 012) were completed in late 2011 to follow-up the G zone discovery. Hole SSD11-011 was drilled 140m along strike to the northwest of hole SSD10-003 to test for the northern extension of G zone and was targeted based on both airborne and borehole geophysical data. The hole intersected a wide zone of mineralization in gabbro between 113.80 and 172.0 metres, consisting of heavily disseminated sulphides transitioning down hole into net-textured and semi-massive sulphides. The entire interval graded 0.68% nickel and 0.41% copper over 58.2 metres and included 0.85% nickel and 0.48% copper over 20.8 metres from 151.20 to 172.0 metres.

Hole SSD11-012 was drilled to test 50m down-dip of hole SSD11-003 and intersected intermixed metasedimentary rocks and gabbro. The gabbro contained minor disseminated sulphides which returned a best value of 0.45% nickel and 0.19% copper over 0.95m from 29.50 to 30.45 metres.

Results of the BHEM surveys in holes SSD11-011 and SSD11-012 have been received and will be used to target additional drilling to further define the extents of G zone.

Hanson Brook Target

One hole, SSD11-013, was drilled to test a new airborne EM anomaly located 350 metres northwest of SSD10-003 (G Zone). SSD11-013 intersected a zone of massive sulphides grading 2.35% nickel and 1.06% copper over 5.45 metres from 45.5 to 50.95 metres. The sulphides are hosted in metasedimentary rocks and are interpreted to be remobilized from the mafic rocks of the St. Stephen intrusion. BHEM data indicates that the conductor was intersected near its southern edge and additional drilling is planned to further test the Hanson Brook Target.

Todd Mountain Target

Two holes, SSD11-014 and SSD11-015, were drilled to test a new, >1 kilometre long airborne EM anomaly located in the south-western portion of the St. Stephen intrusion where no previous drilling has been carried out. SSD11-014 was drilled near the southern extent of the airborne EM anomaly and hole SSD11-015 was drilled near the northern extent. Both holes intersected intrusive gabbroic rocks but failed to intersect an EM conductor and did not return any significant assays. Borehole EM surveys were conducted and strong off-hole anomalies were detected in the immediate vicinity of both holes. The BHEM results indicate the presence of multiple conductors and complex geometry when compared to the airborne EM data. Additional drilling is planned to more fully test the Todd Mountain target.

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 $60,000 in support of its 2011 drill program at the St. Stephen Project.

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

Quality Control

The drilling was completed by Logan Drilling Limited of Nova Scotia. Drill core samples (NQ) are cut in half by a diamond saw and half of the core is retained for reference purposes. Samples are generally 1.5 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-AES finish (Analytical Code ICP90Q). Analyses for Pt, Pd, and Au are by fire assay with an ICP-AES finish (Analytical Code FAI313).

About Continental Nickel

The Company has an option joint venture on the St. Stephen project in New Brunswick, Canada where it discovered new nickel-copper sulphide zones during the 2010 diamond drilling program.

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.

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$11.8 million in the treasury as at September 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 Recent Assay Results, St. Stephen Project, New Brunswick.
Drill hole
(SSD11-)
Location
(UTM -
WGS84)
Az / Dip

Length
(m)
From
(m)
To
(m)
Interval
(m)
% Ni

% Cu

% Co

G Zone
011 632166E,
5008084N
090 / -60

260.0

113.80
Incl.
151.20
172.00

172.00
58.20

20.80
0.68

0.85
0.41

0.48
0.05

0.07
012 632214E,
5007999N
090 / -60
140.0
29.50
30.45
0.95
0.45
0.19
0.07
Hanson Brook Target
013 631992E,
5008204N





090 / -60






95.0






45.50
Incl.
45.50
46.00
47.00
48.00
49.00
50.00
50.95

46.00
47.00
48.00
49.00
50.00
50.95
5.45

0.50
1.00
1.00
1.00
1.00
0.95
2.35

0.61
2.50
2.61
2.47
2.52
2.55
1.06

1.71
0.56
1.04
1.34
1.20
0.84
0.16

0.05
0.17
0.18
0.16
0.17
0.17
Todd Mountain Target
014 632348E,
5003016N
270 / -60
140.0
NSA
NSA
NSA
015 632245E,
5003317N
270 / -60
137.0
NS
NS
NS
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;
NS - No sampling

To view the location figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/CNI2501map.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