Continental Precious Minerals Inc.
NEX BOARD : CZQ.H

Continental Precious Minerals Inc.

July 29, 2005 15:10 ET

Continental Precious Minerals Inc.: Results of NI 43-101 Geological Report

TORONTO, ONTARIO--(CCNMatthews - July 29, 2005) - Continental Precious Minerals Inc. (NEX:CZQ.H) (the "Company" or "Continental") is pleased to announce that a National Instrument 43-101 compliant technical report (the "Technical Report") covering eight exploration licenses in northern Sweden, has been completed and is being filed on SEDAR (www.sedar.com). Seven of the properties covered by these licenses contain drilled uranium deposits and one contains an uranium boulder train occurrence. Continental is continuing to acquire licenses in this region.

The Technical Report is entitled "Introductory Geotechnical Report On Eight Uranium Properties In Northern Sweden" and was prepared for Continental by Andrew Phillips of Telluride & Associates ("Telluride"), a "qualified person" within the meaning National Instrument 43-101 of the Canadian Securities Administrators.

Telluride states in its Technical Report that all of the uranium mineralization is epigenetic in nature and is fracture related. The deposits sub-outcrop beneath variable thicknesses of glacial deposits of up to approximately 18 metres thick. The primary uranium mineral is uraninite. Apart from the Lilljuthatten and Nojdfjallet deposits, the mineralisation is PreCambrian in age. Salient features of the deposits' geology are:

- Skuppesavon Deposit - Mineralisation is associated with stratabound fracturing and sodium metasomatism and desilication, in north trending, steep westerly dipping, part skarnified acid meta-volcanics. These have been intruded immediately to the east by the Hallnass Granite, apophysis of which cut the mineralisation. The drilled strike length is 420 metres, total thicknesses can reach 30 metres and it has been drilled down, along dip for up to 210 metres.

- Pleutajokk Deposit - Several zones (A through G) of north to northeasterly trending mineralisation occur in folded, flat lying meta-rhyolites in the Guorbavare license area. Continental's license includes both the B and A zones, no data being available for the latter (though it has been drilled). The B Zone mineralization is made up of the north-trending B0 (max. mineralized strike of approximately 300 metres) and the intersecting northeast trending B1 through B4 fracture zones (max. mineralized strike again approximately 300 metres), all of which dip steeply eastward. The intersection of the B0 and B2/B3 zones has produced a steeply plunging to the south-southeast 'ore shoot', some 150-200 metres wide, which has been drilled down plunge for more than 300 metres. The B Zone is cut off by a west-northwest trending fault at its northern end and has not been located north of this fault. The uranium enriched, but younger Guorbavare Granite intrudes the meta-rhyolites west of the B Zone of mineralisation.

- Kvarnan Deposit - Disseminated and veinlet associated, anastomosing lenses of mineralisation occur in weakly foliated, biotite and chlorite rich zones in partially granitised quartzose meta-arenites, which are intruded by the Edfors Granite. Total mineralisation thickness is approximately 55 metres interleaved with barren zones. Maximum strike length is approximately 700 metres and the mineralisation has been drilled down (along) dip for 180 metres.

- Bjorkramyran Deposit - Metamict zircon-uraninite mineralisation is associated with silicified mylonitic material in an en-echelon series of three, south of east trending portions of a fault zone cutting the Revsund Granite. The mineralisation is accompanied by sodium and zirconium metasomatism. The overall mineralized strike length is 760 metres, not all of which is mineralized. The mineralisation can reach up to 45 metres thick and plunges down to the west. It has been drilled down (along) dip for up to 150 metres in places.

- Abborrviken Boulder Train - This prospect is based on two boulder trains whose mineralisation characteristics are similar to the fault related Bjorkramyran mineralisation.

- Lilljuthatten Deposit - The mineralisation occurs in sheeted vein zones associated with mafic minerals which strike northeasterly and dip at 60-75 degrees to the northwest within the Olden Granite. The zone of veining has a strike length of approximately 350 metres and it is approximately 60 metres wide on surface. The mineralisation plunges down to the west and has been drilled down dip for 100 to 140 metres. The deposit lies east of a major, north trending, steep westerly dipping dolerite dyke. A second, northeast trending, northwest dipping dolerite dyke occurs in depth, i.e. the mineralisation plunges down into a southward closing, wedge shaped block of granite between dolerite dykes. This deposit, and Nojdfjallet, are considered to be some approximately 420 Mya old and formed during the Caledonian tectonometamorphic event.

- Nojdfjallet Deposit - This highly irregular deposit occurs in the fractured hangingwall zone of a shallowly (15-25 degrees), to the northeast plunging, 20 to 40 metres thick dolerite dyke which has intruded the Olden Granite. The mineralisation occurs along a plunge distance of some 250 metres to an approximate depth of 150 metres and it occurs irregularly on the crest and flanks of the arched doleritic intrusion. The mineralisation, which is fluorite bearing, can reach up to 30 metres thick in places.

- Sagtjarn Deposit - The mineralisation occurs in biotite-rich acid pegmatoid veins, sheets and 'knots' cutting across gently northwesterly plunging, open synformal folded meta-argillite gneisses. These meta-sediments have been partially skarnified. The pegmatoids strike west-northwesterly and dip at 40 to 60 degrees to the southwest. The mineralisation occurs over a strike length of approximately 700 metres. The individual tabular bodies appear relatively narrow, varying from 1 to 8 metres wide, though numerous veins occur. The deposit is underdrilled and the total mineralised zone width is unknown.

Six of the eight properties are 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 the Geological Survey of Sweden (the "SGU") and associated State companies. A seventh property, named Sagtjarn, was partially drilled on a wide grid and is under-drilled. The eighth property or Abborrviken license and a possible additional occurrence on the Kvarnan license represent boulder train, grass roots exploration targets.

The following table sets forth the drilling completed by SGU in the late 1970's and early 1980's:



Continental Swedish Property Drilling Data
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Deposit No. Drill Drill Fence Spacing Along
Name holes Spacing Drill Fence
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Skuppesavon 55 Inferred Generally 25 m, Generally 25 m,
& Indicated up to 50 m up to 50 m apart
---------------------------------------------------------------------
Pleutajokk 55 Inferred/101 Generally 25 m, Generally 25 m
Indicated up to 50 m (22 to 30 m)
---------------------------------------------------------------------
Kvarnan 96 Inferred. 35 to 40 m apart 35 to 40 m apart
& Indicated
---------------------------------------------------------------------
Bjorkramyran 81 Inferred 25 m square grid Generally 25 m,
& Indicated (in 3 parts) up to 30 m apart
---------------------------------------------------------------------
Lilljuthatten 51 Inferred/ Approx 27.5 m Generally 27.5 m,
63 Indicated from 10 to 50 max
---------------------------------------------------------------------
Nojdfjallet 47 Inferred. 25 m apart Gen. 25 m, up to
& Indicated 50 m at extremes
---------------------------------------------------------------------
Sagtjarn 47 Inferred Only Generally 100 m, Gen. 70 to 100 m
(some 50 m) (some 20-25 m)
---------------------------------------------------------------------


All seven properties have relevant historical reserve estimates based on length and volume weighted blocks. These estimates did not take the observed log normal nature of the mineralization's sampling grade populations into account. In consequence, all of the deposits' resource grades are likely to be overstated to an unknown, but probably minor extent.

The field work and reserve estimates were carried out by SGU some 25 to 30 years ago and much of the documentation is archived and not immediately available. Many of the deposits were analyzed radiometrically (in 5 centimetre increments) by total count borehole probe and normal and radiometric analytical log listings and core logs are available at the SGU. In the case of Government analytical laboratories, standardized procedures would have been followed. In the case of the radiometric analysis (or pulse gamma logging), although corrections were never applied for thorium, analytical work was carried out to check for thorium content in most cases. There is no accurate description of the quality assurance program and quality control measures adopted by the SGU in its work.

Based on the analysis undertaken by Telluride in connection with the preparation of the Technical Report, using the methodology described below, the historical reserve estimates are considered by Telluride to be relevant and reliable as basis for inferred and indicated resources which meet CIM standards. The following table sets forth Telluride's resource estimate at the properties as at July 15, 2005:



Continental Swedish Uranium Resource Estimates, as at July 15, 2005
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Resource Cut-off Resource
Deposit Name Type ppm Tonnes Grade U%
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Skuppesavon Inferred 300 304,000 0.076
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Skuppesavon Indicated 300 674,000 0.069
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Pleutajokk Inferred approxima- approxima- approxima-
tely 500 tely 1,460,000 tely 0.101
---------------------------------------------------------------------
Pleutajokk # Indicated 300 470,000 0.117
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Kvarnan Inferred 300 315,000 0.058
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Kvarnan Indicated 300 1,625,000 0.076
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Bjorkramyran Inferred 250 380,000 0.099
---------------------------------------------------------------------
Bjorkramyran Indicated 250 954,000 0.100
---------------------------------------------------------------------
Lilljuthatten Inferred approxima- approxima- approxima-
tely 300 tely 168,000 tely 0.026
---------------------------------------------------------------------
Lilljuthatten # Indicated 300 779,000 0.206
---------------------------------------------------------------------
Nojdfjallet Inferred 200 271,000 0.041
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Nojdfjallet Indicated 200 485,000 0.068
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Sagtjarn Inferred 200 756,000 0.058
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Continental Swedish Uranium Resource Estimates, as at July 15, 2005
---------------------------------------------------------------------
Tonnes Tonnes Kg U(3)O(8)
Deposit Name Uranium U(3)O(8) /Tonne
---------------------------------------------------------------------
Skuppesavon 230.0 271.2 0.89
---------------------------------------------------------------------
Skuppesavon 458.3 540.3 0.81
---------------------------------------------------------------------
Pleutajokk approxima- approxima- approxima-
tely 1,479.0 tely 1,743.7 tely 1.19
---------------------------------------------------------------------
Pleutajokk # 551.0 649.6 1.38
---------------------------------------------------------------------
Kvarnan 184.1 217.0 0.68
---------------------------------------------------------------------
Kvarnan 1,238.0 1,459.6 0.89
---------------------------------------------------------------------
Bjorkramyran 378.0 362.0 0.95
---------------------------------------------------------------------
Bjorkramyran 943.1 1,111.9 1.16
---------------------------------------------------------------------
Lilljuthatten approxima- approxima- approxima-
tely 43.0 tely 50.7 tely 0.30
---------------------------------------------------------------------
Lilljuthatten # 1,608.- 1,895.8 2.43
---------------------------------------------------------------------
Nojdfjallet 109.8 129.4 0.47
---------------------------------------------------------------------
Nojdfjallet 327.9 386.6 .80
---------------------------------------------------------------------
Sagtjarn 437.7 516.0 0.68
---------------------------------------------------------------------

Note: # denotes resource bases estimated by geostatistical methods;
indicated resources taking precedence in tonnage and content
allocation over inferred resources.


The methodology used by Telluride to estimate indicated resources involved generating them out of the inferred resources using sectional data blocks. Isolated and low tonnage sections (less than approximately 50,000 tonnes) at strike extremities were excluded and 'over-projected' dip intersections were reduced. However, the intersection grades were left unchanged as the same cut-off applied as in the original estimate. Telluride has accepted historical, geostatistical reserve estimates at two of the deposits (Pleutajokk and Lilljuthatten) as also being equivalent to CIM indicated resources. The drill hole density at Sagtjarn is considered to be too low by Telluride for indicated resource generation (see Drilling Data above). The likely minor, log normal grade overstatement mentioned above also applies to Telluride's estimate of resources. Inferred resources were largely taken from historical block estimates. Key assumptions were that the grid drilling undertaken by the SGU was sufficiently close such that continuity of mineralization could be assumed. In addition, in the cases where radiometric analysis (passive pulse gamma logging) was carried out, it was accepted by Telluride as being equivalent to chemical analysis. Although Telluride has carefully reviewed the available information and has carried out base data and inter- and intra-tabulation checks of SGU documentation and resource calculations, Telluride has not checked certificates of analysis, has not conducted independent field investigations or any sampling. Telluride was unable to conduct independent field investigations because of till overlying the mineralization and did not have permission to sample the core held by the SGU at their core shed in Mala. A component of Telluride's recommendation is that with SGU permission, Continental should sample or resample any core held by the SGU. Mineral resources, as estimated by Telluride as at July 15, 2005, are not mineral reserves and do not have a demonstrated economic viability.

At present, there are no known outstanding environmental liabilities on any of the licenses. No environmental permitting is required for geological mapping and minor scattered hand till sampling. Permits are however required from the district authorities for systematic till sampling, trenching and drilling programmes. Telluride recommends that environmental baseline studies should commence on the potentially economic properties if and when they appear to be likely to be viable. The SGU currently maintains a countrywide radiometric baseline study which will materially benefit Continental. As required by Swedish law, all landowners have been informed by the Swedish Inspectorate of Mines (Bergsstaten) that the exploration licenses have been issued. The licenses can be renewed annually for increased fees following the initial three year licensing period, providing the Inspectorate of Mines is satisfied with the nature of the work being carried out. Swedish mining law provides that surface and mining title can be applied for once potentially viable mineralization has been demonstrated to the satisfaction of the Inspectorate of Mines. No surface or mining rights have yet been applied for by Continental.

Telluride has concluded that Continental should view six of these eight properties (i.e. excepting Abborrviken and Sagtjarn) as being generally suitable for immediate economic scoping studies. Part of these studies should be uniform method, resource generation studies on every deposit.


Continental intends to carry out preliminary scoping studies using uniform resource estimation methods, including the sampling and analysis of stored borehole core at a cost of approximately US $89,000. If these initial results are positive, Continental intends (subject to financing) to carry out a drilling programme estimated to cost between US $468,000 to US $1.283 million depending on results and work done. The drilling programme is expected to include twinned hole drilling for grade checks, infilling gaps in current drill grids and for deposit extensions. Greenfield percussion drill exploration is also expected to take place at Abborrviken, following on from preliminary geophysics.

Andrew Phillips of Telluride & Associates, a Qualified Person under National Instrument 43-101, is responsible for the technical disclosure contained in this press release.

Information regarding forward looking statements: Except for historical information contained herein, the statements in this press release are forward looking statements that are made pursuant to the safe harbor provisions in the private Securities Legislation Reform Act of 1985. Forward looking statements involve known and unknown risks and uncertainties, which may cause Continental's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things: volatility of natural resource prices, product demand, market competition and 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.


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    ED GODIN
    President
    (416) 805-3036
    (905) 276-4862 (FAX)