Nuinsco Resources Limited
TSX : NWI

Nuinsco Resources Limited

April 15, 2011 06:00 ET

Nuinsco Reports Drill Results from Prairie Lake Rare Metals Project

Positive Results Continue to Add to Potential Economic Significance of Multi-Commodity Project

TORONTO, ONTARIO--(Marketwire - April 15, 2011) - Nuinsco Resources Limited ("Nuinsco")(TSX:NWI), (www.nuinsco.ca) today reported that diamond drilling at its Prairie Lake rare metals project in Northern Ontario returned grades up to 0.957% niobium (Nb2O5) and 8.68% phosphorous (P2O5) as part of a 246m interval grading 0.118% Nb2O5 and 3.41% P2O5.

"These impressive results continue to make clear the widespread presence of minerals and the economic potential of Prairie Lake," explained Paul Jones, President. "To put this into context, the niobium grade compares favourably with the Nb2O5 resource grade reported by Commerce Resources Corp. at its Upper Fir carbonatite deposit in BC. Also, the positive phosphorous, tantalum and rare earth element (REE) results combined with a location adjacent to power, road, rail and shipping facilities enhance the prominence of Prairie Lake."

Given the significant scale of the mineralization identified at Prairie Lake and the results of the exploration programs conducted so far, Nuinsco is actively advancing its program of recovery process testing on the project. Past efforts have shown that the mineralization at Prairie Lake, which is easily excavated using simple quarry mining methods, can be upgraded to produce a concentrate containing more than 23% P2O5 using low cost flotation methods (see news release dated 4 February 2010). The process testing program will be expanded upon to evaluate production of a niobium concentrate.

DDH NP-1001 was drilled to a length of 575m; 456.95m of the hole was sampled, with a weighted average grade of 0.119 Nb2O5 and 3.31 P2O5.
Hole IDFrom
(m)
To
(m)
Width
(m)
Nb2O5
(%)
P2O5
(%)
Ta
(ppm)
REEs
(Y+La+Ce+Nd+Sm)
(ppm)
NP100149.0295.5246.50.1183.414.61016.2
NP1001314.0324.510.50.1272.314.3885.5
NP1001356.0393.337.30.0893.203.4894.4
NP1001404.0479.575.50.1093.575.61052.1
NP1001485.5491.455.950.1433.3212.0998.6
NP1001496.3575.078.70.1193.1311.6938.7

Approximately 4,000m of drilling took place during November and December 2010 in the western part of the Prairie Lake Complex (see attached map). The results from this first hole demonstrate strong niobium and phosphorus mineralization, with REEs and tantalum over very substantial sampling lengths which, along with recently reported trenching results, indicate good potential to augment the existing Exploration Target Mineralization Inventory (ETMI1) estimated at between 330 and 360 million tonnes.

About Prairie Lake

Located about 45 kilometres northwest of Marathon, Ontario, Nuinsco's Prairie Lake property covers the entire 2.8 km2 (at surface) Prairie Lake Carbonatite Complex and is easily accessible from the TransCanada Highway. The Prairie Lake Project hosts a near-surface historic (non-NI-43-101-compliant) resource of over 180,000 tonnes grading 0.09% U308 (1.656 lb/tonne) and 0.25% niobium identified in limited exploration dating from the mid-1960s. In addition, a 330 million-360 million tonne National Instrument 43-101-compliant Prairie Lake ETMI1 averages 3.5% to 3.7% PΓééOΓéà and 0.12% to 0.14% NbΓééOΓéà (1.2 to 1.4 kg/tonne) (see news release dated 13 January 2010). The 2010 ETMI is based on only 12% of the total surface area of the Prairie Lake project, therefore the significant results from the subsequent 2010 trenching and drill programs, both undertaken outside of the ETMI area, enhance the possibility of increasing the known tonnage and potential economic significance of this multi-commodity deposit. In addition to phosphorous and niobium, the suite of minerals of economic significance includes tantalum (Ta), uranium (U) and REEs (1,490-1,536 ppm combined, including lanthanum (La), cerium (Ce), samarium (Sm), neodymium (Nd) and yttrium (Y)).

1 The potential quantity and grade of the ETMI is conceptual in nature and there has been insufficient exploration to define a NI 43-101 mineral resource. Therefore, it is uncertain that further exploration will result in the delineation of the ETMI as a mineral resource deposit.

All intervals are core lengths, not true widths. Analyses were conducted by Activation Laboratories of Ancaster, Ontario. All exploration work is supervised by Paul Jones, President, who acts as QP under National Instrument 43-101 and has reviewed and approved the contents of this news release.

Nuinsco Warrants: Expiry Pending

As a reminder to shareholders, Nuinsco closed a rights offering of units in April 2009. As part of each unit, participating shareholders received warrants. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.10, and must be exercised prior to 4:00 p.m. (Toronto time) on April 23, 2011.

About Nuinsco Resources Limited

Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is focused on uranium, copper, zinc and gold exploration and development in world-class mineralized belts in Canada, Turkey and Egypt. In addition to its property holdings, Nuinsco owns common shares in Coventry Resources Limited (ASX:CVY) and Victory Nickel Inc.(TSX:NI). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

Please visit the Company's website at www.nuinsco.ca. Should you wish to receive Company news via email, please email nadine@chfir.com and specify "Nuinsco Resources" in the subject line.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historic 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 tenure to properties and/or necessary permits and approvals from government authorities in Egypt and elsewhere, 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.

To view the map included with this release, please visit the following link:
http://media3.marketwire.com/docs/nwi0414map.pdf

Contact Information

  • Nuinsco Resources Limited
    Rene Galipeau or Sean Stokes
    416.626.0470
    416.626.0890
    admin@nuinsco.ca

    CHF Investor Relations
    Cathy Hume
    416.868.1079
    416.868.6198
    cathy@chfir.com