Nuinsco Resources Limited
TSX : NWI

Nuinsco Resources Limited

September 30, 2005 10:01 ET

Nuinsco Completes Acquisition of Athabasca Uranium Property, Drilling Planned

TORONTO, ONTARIO--(CCNMatthews - Sept. 30, 2005) - Nuinsco Resources Limited (TSX:NWI) announces that it has completed a definitive agreement formalising the Letter of Intent with Trend Mining Company of Denver, Colorado (press release, 14 December 2004) covering the Diabase Peninsula uranium project. This agreement and the work completed in 2005 allows Nuinsco to prepare for a diamond drilling program.

Nuinsco earns a 50% interest in the project by spending US$1,000,000 in exploration over three years and paying Trend 250,000 common shares of Nuinsco Resources.

During 2005 Nuinsco has spent $350,000 advancing the project. Work completed includes:

a) Quadrupling the size of the original claim group to 18,600ha (press release 2 March 2005).

b) Conducting a TEM ground geophysics survey on the original claim (press release 11 May 2005).

c) Completing a prospecting and sampling program (results pending) on the original claim to enhance prior geochemical coverage which demonstrated that the sandstone of the Diabase Peninsula area has been affected by hydrothermal fluids consistent with those known to be associated with uranium mineralization elsewhere in the Athabasca Basin.

d) Conducting a MegaTem airborne EM survey (results pending) on the expanded claim group to test for the extensions of the Cable Bay Shear Zone, a favourable structure for uranium deposition known to underlie the original claim group.

Drill targets have been identified as a result of the work to date and drilling is planned to commence in the fourth quarter.

The Diabase Peninsula Property encompasses coincident, highly prospective, alteration and geophysical signatures indicative of possible uranium mineralization. Located on the western shore of Cree Lake approximately five kilometres north of the southern boundary of the Athabasca Basin, the Diabase Peninsula Property overlies the graphite-bearing Cable Bay Shear Zone - an important potential host for uranium mineralization. The claim group hosts hydrothermally altered sandstone boulders. It is also underlain by EM geophysical anomalies indicating the possible presence of graphitic conductors in the basement rocks. These are diagnostic indicators of uranium mineralization.

Nuinsco is an exploration and development company. In addition to the Diabase Peninsula Project the Company has nickel projects in Manitoba and Quebec, base metal projects in Turkey and Ontario and a gold project in Ontario. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI. U.S.S.E.C. exemption: 12g3-2(b)#82-1846. The website address is www.nuinsco.ca.

FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding future plans and objectives of are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

Contact Information

  • Nuinsco Resources Limited
    Warren Holmes
    CEO
    (416)626-0470
    or
    Nuinsco Resources Limited
    Brian Robertson
    President
    (416)626-0470
    admin@nuinsco.ca
    or
    The Windward Agency
    Kelly Boatright
    (704) 632-9920 or Toll Free: (866) 583-6300
    kboatright@windwardagency.com