Northern Continental Resources Inc.
TSX VENTURE : NCR
September 10, 2008 09:00 ET
Northern Continental Begins Geophysical Survey at Russell Lake Uranium Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2008) - Northern Continental Resources Inc. ("Northern Continental") (TSX VENTURE:NCR) announced today that a geophysical surveying program has commenced at the Russell Lake Uranium Project ("Russell Lake" or the "Project"), located in the Athabasca Basin of northern Saskatchewan, Canada. The program consists of 19.2 kilometres of electromagnetic ("EM") surveying near the Grayling Zone, an area of the Project that has several significant occurrences of uranium mineralization within prospective geological structure. The purpose of the survey is to confirm the presence of certain historical conductors that may be linked to the known conductive system at the Grayling Zone.
Russell Lake is a joint venture between Northern Continental and Hathor Exploration Ltd. ("Hathor"), in which Northern Continental holds a 60% interest and Hathor holds a 40% interest. Northern Continental is currently the operator of the Project. Russell Lake lies within the Key Lake-MacArthur River corridor, one of the most prolific uranium mining districts in the world.
2008 Grayling Zone Area EM Survey
Northern Continental's current focus of exploration in the Grayling Zone is to explore for possible cross-cutting fault systems and structural features adjacent to the main Grayling Zone conductor trend that may exhibit controls on the uranium mineralization found to date. Evaluation of historical data received in June 2008 from the Government of Saskatchewan has revealed the existence of two EM conductors within the boundaries of the Project, named conductors "B" and "C" that have not been directly followed-up since their initial discovery and interpretation during a regional 1987 UTEM survey.
Conductors B and C were first detected approximately 600 to 700 metres west of the main Grayling Zone conductors. The two conductors were found by surveying perpendicular to the general northeast-southwest geological trend, which allowed for optimum coupling with the conductors. Conductor B was interpreted as a weak, northeast-trending conductor that could represent the geophysical signature of a major fault. Conductor C was only detected on the easternmost line of the 1987 survey and was described in an assessment report as "...the strongest of the three conductors on Grid 87-1...presumably, it extends to the north and may be related in some way to the Grayling Grid conductors (B. Powell, K. Kwan, 1987)." However, the main Grayling Zone conductor received exploration preference in ensuing years, and the influence of the later-constructed McArthur River mine road and powerline generally inhibited electromagnetic surveying in the west Grayling area.
Northern Continental's 2008 EM survey is planned on a modified northwest-southeast oriented grid used for a 2007 gravity survey that outlined areas of prospective structure to the west of the Grayling Zone. Resistivity surveys carried out by the Russell Lake joint venture in 2007 and 2008 have also demonstrated evidence for prospective structure and conductors located west of the Grayling Zone but the results of those surveys were obscured by the "noise" from the powerline, and the lack of supporting knowledge of any conductive lithologies in that area. Aurora Geosciences, the 2008 EM survey operator, plans to minimize the effect of the powerline with data processing tools.
Northern Continental plans to integrate the results of the 2008 Grayling Zone EM survey with all other available geophysical and geological data in order to recommend new drill targets to the Russell Lake joint venture. Evaluation and interpretation of the 2008 exploration data received to date is ongoing to assist the joint venture in preparation for a future drilling program.
About Russell Lake
Northern Continental acquired Russell Lake in 1999, and staked additional claims contiguous to the original property in 2000. In 2004, Northern Continental optioned a 40% interest in the Project to Roughrider Uranium Corporation, which was acquired in 2006 by Hathor. After Hathor incurred a further $2.0 million of exploration expenditures on the Project, a joint venture was formed with Hathor holding a 40% participating interest and Northern Continental holding a 60% participating interest.
The technical information in this news release regarding Russell Lake has been reviewed by Don Simmons, P.Geol. Vice-President, Exploration, a qualified person as defined by National Instrument 43-101.
For further information on Northern Continental and Russell Lake, visit our website at www.northerncontinental.ca.
NORTHERN CONTINENTAL RESOURCES INC.
Warren Stanyer, President & CEO
Forward Looking Statements
This news release contains "forward-looking statements" that are based on Northern Continental's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding Northern Continental's outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of Northern Continental. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by Northern Continental will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Northern Continental disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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