Continental Precious Minerals Inc.
TSX VENTURE : CZQ

Continental Precious Minerals Inc.

November 20, 2006 11:07 ET

Drilling Activity at Continental Precious Minerals Properties in Sweden

TORONTO, ONTARIO--(CCNMatthews - Nov. 20, 2006) - Continental Precious Minerals Inc. (TSX VENTURE:CZQ) (the "Company" or "Continental") is pleased to announce that assays for one of eleven diamond drill holes (Myrviken 06-002) on the Viken licence are now available and they confirm the analytical data published by the Geological Survey of Sweden ("SGU") concerning the mineral potential of the Alum Shale Formation.

Viken Licence (MMS)

The Viken licence, one of the forty MMS licences held by Continental is located in Jamtland County approximately 20 kilometres south of the town of Ostersund. Since August 2006 the Company has completed eleven diamond drill holes designed to corroborate historical analytical data and to further define the dimensions of the black shale deposit. Historical work on this licence includes data from over twenty reconnaissance diamond drill holes spread over a 250 square kilometre area drilled by the SGU in 1978-79 period.

The Myrviken 06-002 diamond drill hole was sited approximately 25 m south of historical hole 78-005, which in turn was sited to test a tectonically thickened section of Alum Shale. The 78-005 vertical hole was sampled over a 193.5 metre interval from 19.7 to 216 m, and the 06-002 hole was sampled over a 153.1 m interval from 47.28 to 200.4 metres. A 10 m interval of black shale at the top of the hole, from 3.44 to 13.44 metres, and separated from the lower sequence by a limestone was not included in the comparative analysis. A close correlation of analytical values between the samples from the two holes is documented in the following table. The increases in the reported organic carbon and vanadium contents are probably due to improved analytical techniques (since 1978) and a larger sample size. The excellent correlation of metal concentrations in the two holes indicates that the SGU data is credible and can be integrated into the current exploration programs.



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Interval (m) Width (m) C org% U ppm V ppm
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Myr 06-002 47.28-200.4 153.12 12.1 172 1808
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78-005 19.72-216.3 193.5 approximately 11.1 174 1513
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Mo ppm U3O8 lbs/ton V2O5 lbs/ton MoS2 lbs/ton
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Myr 06-002 312 0.41 6.45 1.04
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78-005 305 0.41 5.40 1.02
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Drilling operations and core sample sawing are contracted to Taiga Drilling of Mala (Skelefte), Sweden. Program management and core logging are contracted to Geoforum Scandinavia AB, with analytical services contracted to ALS Chemex (ISO 9001:2000 accreditation) of North Vancouver, Canada.

Core samples were two metres long or shorter where constrained by lithologic contacts. Sample lengths are approximately true widths. All samples sent for analyses were prepared using a jaw crusher, which was cleaned with compressed air between samples. A 250 gram split of the crushed sample with 70% passing through a 9 mesh screen was pulverized with 85% passing through a 200 mesh screen. A four acid sample digestion allows complete digestion of the elements of interest, followed by a combination of ICP-MS (inductively coupled plasma mass spectroscopy) and ICP-AES (inductively coupled plasma atomic emission spectrophotometry) determination techniques. Total carbon was determined by a Leco furnace and the inorganic carbon was analysed by a Coulometer.

Analyses of the cores from ten other Viken licence drill holes are in progress using the same sampling and analytical methods as described above, and/or the addition of a down hole gamma probe which can assist in the correlation of lithological units. Additional drilling planned on the Viken and surrounding licences will focus on determining grades of economic mineralization and tonnage.

Pleutajokk (HRU)

Drilling has commenced at the Pleutajokk uranium deposit on the Guorbavare licence located near Arjeplog in northern Sweden. The uranium deposit is associated with fracture fillings in granitic rocks, and was previously explored by the SGU and other companies. Three diamond drill holes designed to fill in gaps in the historical drill sample pattern have been completed. Two of the cores have been logged and the third one is in the process of being logged. Weak uranium mineralization has been detected in two of the drill holes using a STRAT SPP2 scintillometer. The third drill hole has been sited on the north side of a potential fault, which bounds the B2 mineralized zone, to test for a possible extension of this deposit. A fourth hole is also planned in this area to further test for possible extensions of the mineralization. In addition a "mini" environmental survey has been completed in the vicinity of the current drilling.

Bjorkramyran (HRU)

The licence is situated approximately midway between the towns of Lycksele and Asele in northern Sweden. Previous work by the SGU partially defined a fracture filling uranium deposit hosted in granitic rocks. Diamond drilling on this licence will be delayed until the terrain is completely frozen, in order to minimize potential damage to wetlands and forested areas. In the interim a "mini" environmental study has been undertaken.

Lill-Juthatten (HRU)

Diamond drilling is contemplated for the Lill-Juthatten licence, which is situated in the northern part of Jamtland County in northwest central Sweden close to the Norwegian border. Historical drilling by the SGU outlined a fracture filling type of uranium deposit in granitic host rocks. Currently a "mini" environmental study is nearing completion over the area to be drilled.
The Lill-Juthatten licence was appealed by an indigenous group on the grounds that exploration will interfere with their reindeer herding and concerns about uranium mining. The appeal was dismissed by the County Administrative Court, but as the complainants have not yet been served the Court's decision, the appeal period has not yet expired. Certain other of the Company's licences have appeals outstanding against them, but the Company considers these appeals to be normal course.

General

It should be noted that assay laboratories worldwide are currently inundated with samples, resulting is considerable delays in obtaining analytical results. This will affect the timing of releases from Continental's drill programs.

A qualified person has not verified the data disclosed because the geologists overseeing the drilling program are not qualified persons, although one geologist is in the process of re-instating himself. 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.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the analysis of core from ten other Viken licences, the fact that additional drilling is planned at the Viken and surrounding licences as well as other licences. Actual developments may differ materially from those contemplated by these statements depending upon, among other things, the decisions made by regulators and Courts, and 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 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