Nuinsco Resources Limited

Nuinsco Resources Limited

June 09, 2008 15:57 ET

Gravity Survey Enhances Potential of Nuinsco's Diabase Uranium Project

Identifies characteristics similar to major Athabasca Basin uranium deposits

TORONTO, ONTARIO--(Marketwire - June 9, 2008) - Nuinsco Resources Limited (TSX:NWI) ( today announced that results from a gravity survey conducted at the Diabase Peninsula uranium project in Saskatchewan's Athabasca Basin during April has identified several domains of lower-density rock that are consistent with the presence of hydrothermally altered, desilicified, sandstone often found in proximity to uranium mineralization in the Athabasca Basin. These results, combined with the assays from released on June 6, 2008 from the 2007-2008 winter drilling program continue to highlight the exploration potential at Diabase.

"The gravity survey identified several gravity 'lows' with characteristics similar to those found at major uranium deposits in the Athabasca Basin such as Key Lake, Rabbit Lake, Midwest Lake and Sue," said Paul Jones, President. "The gravity anomalies identified at Diabase provide further evidence of the significant potential for the presence of an economic uranium deposit, and are particularly attractive given their dimensions (600 metre strike-length) and location coincident with the 35 kilometre long Cable Bay Shear Zone graphitic basement conductor identified by Nuinsco through geophysics in 2005 through 2007."

The 2008 gravity survey focused on a five kilometre long segment of the Cable Bay Shear Zone/basement conductor trend located in the northern half of the Diabase Peninsula Property. The data traces the characteristic gravity high trend of the Cable Bay Shear Zone and identifies several gravity variations which are thought to be caused by changes in sandstone density. Features of this type are commonly caused by reactivated faults in the basement rock penetrating the overlying sandstones and by hydrothermal alteration, particularly desilicification of the sandstone (causing local gravity lows).

The gravity survey was part of a $2.5 million winter work program, which included 6,534 metres of drilling conducted over 23 kilometres of strike along the prospective Cable Bay Shear Zone. Strongly anomalous uranium mineralization, with results released to date peaking at 707ppm (0.07%) uranium at the unconformity, has been obtained from the drill core and is typical of values at the margins of economic uranium deposits which, in conjunction with strongly anomalous arsenic, nickel, cobalt and base metals, abundant clay alteration and a distinct boron anomaly within the overlying sandstone all provide compelling evidence of a uranium mineralizing event nearby.

The 21,900 hectare Diabase Peninsula Project, located approximately five kilometres north of the southern boundary of Saskatchewan's Athabasca Basin, has seen an ongoing, comprehensive, exploration program that comprises 28 widely spaced drill holes totalling 11,205 metres. Nuinsco is the operator, holds an approximate 82% interest in the property and is partnered with Trend Mining Company of Hilton Head, SC (PINK SHEETS:TRDM). The project is being supervised by C.A. Wagg, Manager of Canadian Exploration for Nuinsco, who acts as QP under National Instrument 43-101 and who has read and approved the contents of this press release.

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About Nuinsco Resources

Nuinsco is focused on identifying mineral investment opportunities worldwide using its exploration programs and operating and financial expertise to crystallize value for its shareholders. In addition to its property holdings in Canada and Turkey, Nuinsco owns approximately 22% of the outstanding common shares of Victory Nickel Inc. (TSX:NI) and approximately 11% of the outstanding common shares of gold and copper producer Campbell Resources Inc. (TSX:CCH). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

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FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historical fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from government authorities, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Contact Information

  • Nuinsco Resources Limited
    Rene Galipeau
    (416) 626-0470
    Nuinsco Resources Limited
    Paul Jones
    (416) 626-0470
    Nuinsco Resources Limited
    Sean Stokes
    (416) 626-0470