Continental Precious Minerals Inc.
TSX VENTURE : CZQ

Continental Precious Minerals Inc.

January 16, 2006 17:31 ET

Continental Precious Minerals Inc.-Press Release

TORONTO, ONTARIO--(CCNMatthews - Jan. 16, 2006) - Continental Precious Minerals Inc. (TSX VENTURE:CZQ) (the "Company") previously announced in its October 5, 2005 press release that it had acquired additional exploration licences in Sweden. As part of such acquisition, the Company now holds 18 exploration licences referred to as the Multi Metal Sediment Licences ("MMS Licences"). The mineral licences cover approximately 95 square kilometres in northwest Sweden, in an area with developed infrastructure. The licences are underlain by the thinly overburden covered Alum Shale Formation, which has a maximum thickness of 180 metres in this area, and extends for 10s of kilometres in all directions. The main metallic commodities of interest hosted in the shale are uranium, vanadium, molybdenum and nickel. The MMS Licenses were taken out for vanadium and molybdenum, but include a number of other minerals including uranium and nickel.

Analytical work by the Geological Survey of Sweden in the late 1970s and early '80s, that are publicly available, indicates that the Alum Shale in the vicinity of the licences contains on average 0.38 lbs/tonne U3O8, 0.11 lbs/tonne molybdenum, 4.7 lbs/tonne V2O5 and 0.61 lbs/tonne Ni. These average concentrations were calculated using data from 28 diamond drill cores within a 250 square kilometre area. The Geological Survey of Sweden research results, published in 1985, also indicate that approximately 89-93% of the uranium, 15-17% of the molybdenum, 60-70% of the vanadium and approximately 66% of the nickel can be recovered using conventional leaching techniques. In the 1965-69 period, AB Atomenergi recovered uranium from the Alum Shale by a leaching process at their research facility in nearby Ranstad.

Current high commodity prices for the metals present in the shale suggest that recovery of the metals is potentially economic, as the deposit can be exploited by low cost open pit mining techniques.

Future exploration and development of the MMS Licenses will, among other things, require a compilation of historical exploration data, in-fill drilling and additional analytical work as a Phase I program. A Phase II program would consist of detailed metallurgical studies using bulk samples, followed by the need for resource/reserve estimation and a pre-feasibility study. The Company has not completed any work on the MMS Licenses and does not currently have the financing necessary to do so.

The content of this press release has been reviewed by G.A. Harron, P.Eng., an independent consultant, and a qualified person as defined in NI 43-101.

Information regarding forward looking statements: Except for historical information contained herein, this press release contains forward looking statements. Forward looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things: errors in the interpretation of previous work, availability of financing to pursue any exploration or development, volatility of natural resource prices, product demand, market competition, regulatory hurdles and other risks inherent in mineral exploration and mining.

THIS NEWS RELEASE WAS PREPARED BY CONTINENTAL, WHICH ACCEPTS RESPONSIBILITY FOR ITS ACCURACY AND THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Continental Precious Minerals Inc.
    Ed Godin
    President
    (416) 805-3036
    (905) 276-4862 (FAX)