Northern Continental Resources Inc.
TSX VENTURE : NCR

Northern Continental Resources Inc.

July 17, 2007 08:15 ET

Northern Continental Resources Inc.: Diamond Drilling Begins on the Russell Lake Uranium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Northern Continental Resources Inc. (TSX VENTURE:NCR) ("NCR") and Hathor Exploration Limited (TSX VENTURE:HAT) ("Hathor") are pleased to announce that a diamond drill has been mobilized to the Russell Lake uranium property and drilling has started. The Russell Lake project is a joint venture, with 60% interest to NCR and 40% to Hathor.

The initial claims on the Russell Lake property were acquired by NCR from Japan's nuclear power company JCU in 1999, based on the presence of uranium mineralization intersected by their drilling program. The remaining claims were acquired by staking shortly thereafter. A 40% interest was subsequently acquired by Roughrider Uranium Corp., Hathor's wholly-owned subsidiary, in return for $2 million in expenditures. NCR acquired the Russell Lake property when uranium was priced at $7 a pound, and was one of the first exploration companies to recognize the future potential of the Athabasca Basin.

Fourteen drill holes, totaling about 7,200 metres, are planned for the Grayling Zone, where previous diamond drilling intersected 3.45% U3O8 over 0.3 metres in one hole and 0.4% U3O8 over 3.75 metres in another hole located 500 metres to the north. Many of the proposed drill holes will test potential uranium-bearing structures identified by high-resolution reflection seismic surveys completed since 2004.

Geoanalytical Laboratories of the Saskatchewan Research Council, which is licensed to handle and store radioactive materials and has been providing high-quality uranium analysis for over 35 years, will be analyzing the drill core. SRC's geoanalytical facilities operate in accordance with ISO/IEC 17025:2005 (CAN-P-4E) General Requirements for the Competence of Mineral Testing and Calibration Laboratories.

The large, 45,742-hectare (113,031-acre) Russell Lake project is located within the eastern Athabasca Basin of northern Saskatchewan. The Grayling Zone is located equidistant (about 35 km) from each of Cameco Corp. and AREVA Resources Canada Inc.'s McArthur River mine and their Key Lake mill facilities. The geological setting of this region hosts the highest-grade uranium ore deposits in the world, which account for approximately 25 per cent of the world's annual mine production of uranium.

The Russell Lake property is directly bordered by: the McArthur River mine property to the north; Denison Mines Corp. and JNR Resources Inc.'s Moore Lake property to the east; Denison and Cameco's Wheeler River property to the west; and Cameco and AREVA's Getty Russell and Cree Zimmer properties to the southwest. Access to the project is provided by an all-weather road located along the northwest boundary of the Russell Lake property, along which uranium ores from Cameco and AREVA's McArthur River mine are trucked to their formerly-producing Key Lake mine for processing.

NORTHERN CONTINENTAL RESOURCES INC.

Alan Crawford, President & CEO

This release may contain forward-looking statements including expectations of future drilling, capital expenditures and production which involve risks and uncertainties.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northern Continental Resources Inc.
    Alan Crawford
    President & CEO
    (604) 685-9255
    (604) 685-9676 (FAX)
    Website: www.northerncontinental.ca