Continental Precious Minerals Inc.
TSX VENTURE : CZQ

Continental Precious Minerals Inc.

October 31, 2006 16:30 ET

Continental Precious Minerals Commences Drilling on Guorbavare Licence

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2006) - Continental Precious Minerals Inc. (TSX VENTURE:CZQ) (the "Company" or "Continental") is pleased to announce that it has now commenced drilling the Guorbavare licence, which contains the Pleutajokk uranium deposit, as planned. The drilling on the Guarbavare licence will follow the general outline in Continental's National Instrument 43101 report dated September 2005, namely, a program of twinned-hole diamond drilling for grade checks, infilling gaps in existing drill grids and for deposit extensions.

The Guorbavare licence (covering 77 hectares or 0.77 square kilometres) is one of six HRU Licences held by Continental considered to be advanced stage exploration prospects with gridded resource definition drilling having been carried out in the late 1970's and early 1980's by the Sveriges Geologiska Undersokning or Geological Survey of Sweden ("SGU"). In the case of Guorbavare, a total of 192 diamond drill holes for a total of approximately 17,400 metres were drilled. The National Instrument 43-101 report contains an indicated resource estimate for the Guorbavare of 470,000 tonnes grading 0.117 %U, being 649.6 tonnes of uranium oxide (or 1,430,000 pounds of uranium oxide) and an inferred resource estimate for the Guorbavare of 1,460,000 tonnes grading 0.101%U, being 1,743.7 tonnes of uranium oxide (or 3,843,000 pounds of uranium oxide). For all of Continental's HRU Licences as a whole, including the Guorbavare, the National Instrument 43-101 report contains an indicated resource estimate of 4,987,000 tonnes at grades ranging from 0.068%U to 0.117%U, being 6,043.8 tonnes of uranium oxide (or 13,320,000 pounds of uranium oxide) and an inferred resource estimate of 3,654,000 tonnes at grades ranging from 0.026%U to 0.101%U, being 3,290 tonnes of uranium oxide (or 7,251,000 pounds of uranium oxide). The inferred and indicated resources referred to in this paragraph conform to CIM criteria for inferred and indicated categories. The reader is cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability.

Eleven diamond drill holes have been completed on the Viken licence (one of the MMS Licences) at a cost of approximately Cdn$200,000, with a total of approximately 1,953 metres drilled. Partial analytical results are expected to be available in early November. The drilling is being conducted to verify historical drilling results from 1978.

Continental has also initiated the preparation of an environmental report for the Guarbavare licence and the Lill-Juthatten licence.

The contents of this press release have been reviewed by G.A. Harron, P.Eng., an independent consultant, and a qualified person as defined in National Instrument 43-101. The qualified person for the resource estimates contained in the National Instrument 43-101 report referred to in this press release is Andrew Phillips, FIMM, C. Eng. of Telluride & Associates.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding exploration programs currently underway and the anticipated timeframe for partial analytical results. Actual developments may differ materially from those contemplated by these statements depending upon, among other things, any change in the Company's exploration and drilling programs which could occur as the result of a variety of factors including the Company's ongoing assessment of results thereof, the decisions made by regulators or public or environmentalist opposition. The forward looking statements contained in this press release represent the Company's views and expectations as of the date of this release and should not be relied upon as representing its views and expectations at any subsequent date.

THIS PRESS RELEASE WAS PREPARED BY CONTINENTAL, WHICH ACCEPTS RESPONSIBILITY FOR ITS ACCURACY.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THE INFORMATION CONTAINED HEREIN.

Contact Information

  • Continental Precious Minerals Inc.
    Ed Godin
    President
    (416) 805-3036