SOURCE: Nuinsco Resources Limited

April 11, 2006 11:52 ET

Nuinsco Continues to Advance Minago Nickel Project With Diamond Drilling and Environmental Baseline Study

Drilling, Met Testing, Scoping & Environmental Studies All Underway to Move Minago Toward Production

TORONTO -- (MARKET WIRE) -- April 11, 2006 -- Nuinsco Resources Limited (TSX: NWI) (www.nuinsco.ca), continues to move ahead with development of its Minago nickel project, today announcing that Wardrop Engineering has been engaged to undertake an environmental baseline study. The environmental study will complement the scoping study that Wardrop is currently completing to evaluate open pit and underground mining at the 100%-owned project.

"Minago is a significant and under-recognized nickel asset in Nuinsco's property portfolio, with both a large existing resource and impressive exploration potential," said CEO Warren Holmes. "With nickel prices running at historically high levels, the environmental baseline study is the most recent initiative by Nuinsco to advance Minago toward production. Diamond drilling is ongoing, met testing is underway as part of the scoping study and the environmental baseline study will begin in the second quarter."

Diamond drilling restarted in March 2006 to test the extension of the existing resource at depth, as well as to provide additional metallurgical samples and to verify grades from historic drilling.

The Minago Project is a large sulphide nickel deposit with a NI43-101 compliant measured and indicated resource as follows:

Minago Resource - 43-101 (January 2005)
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Classification at 0.4% Nickel Cut-off Grade (1)        Tonnes      % Nickel
---------------------------------------------------------------------------
Measured Resource                                   7,330,000          0.7
Indicated Resource                                 22,510,000          0.62
Total Measured and Indicated                       29,840,000          0.64
Inferred Resource                                  27,230,000          0.67

Classification at 0.7% Nickel Cut-off Grade (2)
---------------------------------------------------------------------------
Measured Resource                                   3,020,000          0.94
Indicated Resource                                  6,310,000          0.87
Total Measured and Indicated                        9,330,000          0.89
Inferred Resource                                   9,760,000          0.91
---------------------------------------------------------------------------
(1) The 0.4% cut-off grade was used to assess open-pit mineable material.
(2) The 0.7% cut-off grade was used to assess underground mineable
    material.
The entire resource is contained in an area known as the Nose Deposit; however in 2005 Nuinsco also drilled a single hole in the little explored North Limb, which extends at least 1.5 kilometres to the north of the Nose Deposit. This hole intersected 337.9 metres grading 0.33% nickel, including 52.5 metres grading 0.64% nickel and 9.71 metres grading 1.03% nickel in similar rock types to that hosting the resource. These results provide ample indication of the potential to add resources outside of the Nose Deposit.

Minago is located approximately 225 kilometres south of Thompson, Manitoba. The project has superb infrastructure -- paved Provincial Highway 6 traverses the eastern part of the property, as does a high capacity powerline, while the rail line to the Port of Churchill is located nearby. In 2005 Nuinsco conducted substantial work, including diamond drilling, a verification and re-sampling program in order to reinforce confidence in historic data and metallurgical studies that show very favourable ore characteristics and concur with historic studies that indicate that a very high grade, and hence high value, nickel concentrate would be produced from Minago ore.

Because of the potential size of a mining operation at Minago the environmental baseline study falls under the Comprehensive Study requirements of the Canadian Environmental Assessment Act. A Comprehensive Study requires site-specific natural resource information for all environmental components that are likely to be affected by the project and therefore demands a detailed baseline study. Studies of water quality, hydrology and fish habitat will be conducted.

The project is being supervised by P.L.Jones, V.P. Exploration for Nuinsco, who acts as QP under National Instrument 43-101.

About Nuinsco Resources

Nuinsco Resources Limited is a growth-oriented, multi-commodity mineral exploration and development company focused on uranium, nickel, copper, zinc and gold exploration in world-class mineralized belts in Canada and Turkey. 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


  • FOR FURTHER INFORMATION PLEASE CONTACT:

    W. Warren Holmes, CEO
    or
    Brian Robertson, President
    Nuinsco Resources Ltd.
    (416) 626-0470
    Email Contact

    or

    Kelly Boatright
    The Windward Agency
    (866) 583-6300
    Email Contact