Nuinsco Resources Limited

Nuinsco Resources Limited

October 26, 2011 11:48 ET

Nuinsco Reports Significant Increase in ETMI at Prairie Lake Project

ETMI now stands at 515-630 million tonnes with continued scope for expansion

TORONTO, ONTARIO--(Marketwire - Oct. 26, 2011) - Nuinsco Resources Limited ("Nuinsco")(TSX:NWI)( today announced that the Updated Exploration Target Mineralization Inventory ("ETMI") at its easily accessible, Prairie Lake rare metals project in northwestern Ontario has been increased to 515–630 million tonnes grading between 0.09-0.11% niobium (0.9 to 1.1 kg/tonne) and 3.0-4.0% phosphorus (1.2 to 1.4 kg/tonne), making it one of the largest deposits of its kind in the world.

"The ETMI increase places Prairie Lake well within the ranks of the ten largest carbonatite-hosted niobium deposits in the world, and in North America it is second only to the Iron Hill Project in Colorado owned by Colorado Rare Earths Inc., in contained tonnes (the average grade at Prairie Lake is however greater)," said Paul Jones, President. "The increase follows from the incorporation into the ETMI of the drill and trench results obtained from the 2010 work program that returned widespread and extensive niobium (Nb2O5) and phosphorus (P2O5) analyses."

The significant size of the ETMI at Prairie Lake, its location near existing infrastructure and transportation networks, the relative ease with which it could be exploited from surface using quarry methods and the continuing potential for expansion of the ETMI, all point to Prairie Lake being an undervalued asset within Nuinsco's property portfolio. In addition to niobium and phosphorus, the suite of minerals of significant economic potential also includes tantalum (Ta), uranium (U3O8) and rare earth elements (REE) (including lanthanum (La), cerium (Ce), samarium (Sm), neodymium (Nd) and yttrium (Y)), as follows:

Prairie Lake ETMI1
Main/SW Jim's Showing East NE Total
Tonnes (million) 435-530 35-45 40-50 7-8 515-630
P2O5(%) 3.0-4.0 3.5-4.5 2.5-3.0 2.5-3.5 3.0-4.0
Nb2O5(%) 0.095-0.115 0.100-0.120 0.040-0.050 0.085-0.105 0.090-0.110
Ta2O5(ppm) 18-25 25-30 5-7 10-12 18-21
U3O8(%) 0.005-0.007 0.015-0.020 0.002-0.003 0.004-0.005 0.006-0.007
La (ppm) 275-340 295-360 305-370 200-250 280-340
Ce (ppm) 650-790 670-820 670-820 450-550 650-790
Sm (ppm) 55-70 55-70 55-70 50-60 55-70
Nd (ppm) 295-360 290-360 320-390 235-290 300-360
Y (ppm) 85-100 90-110 80-100 135-170 85-100
La+Ce+Sm+Nd+Y (ppm) 1360-1660 1400-1720 1430-1750 1070-1320 1370-1660
Volume - m3(million) 140-175 12-14 13-16 2-3 170-210
1 The potential quantity and grade of the ETMI is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the discovery of a mineral resource.

The original ETMI (see Press Release January 13, 2010) was defined for two drill-tested target areas, the SW Zone and Jim's Showing, at between 330 and 360 million tonnes averaging 3.5% to 3.7% P2O5 and 0.12% to 0.14% Nb2O5 (1.2 to 1.4 kg/tonne). The 2010 drilling and trenching has added two more target areas, the East and NE Zones, and expanded the existing domains. The updated ETMI represents an overall increase of 185 to 270 million tonnes (56 to 75%), with an increase of 142 to 211 million tonnes (48 to 66%) in the SW Zone.

Only a small percentage of the surface area of the Prairie Lake carbonatite has been explored and is included in the ETMI, meaning the potential for further expansion is high. In the immediate future, attention will focus on advancing the program of process testing to determine an optimized process to produce phosphorus and niobium concentrates. Past efforts have shown that the mineralization at Prairie Lake can be upgraded using non-optimized techniques to produce a concentrate containing more than 23% P2O5 using low cost flotation methods (see press release dated February 4, 2010); concentrates exceeding 30% P2O5 are considered possible using an optimized process.

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.

About Nuinsco Resources Limited

Nuinsco is a growth-oriented, multi-commodity mineral exploration company that is focused on world-class mineralized belts in Canada, Turkey, Egypt and Sudan. 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.

The ETMI estimate was undertaken by Eugene Puritch, P.Eng. and Antoine Yassa, P.Geo of P&E Mining Consultants Inc. of Brampton, Ontario. All exploration work is supervised by Paul Jones, P.Geo, President, who acts as Nuinsco's Qualified Person under National Instrument 43-101. Mr. Jones and Mr. Puritch have reviewed and approved the technical contents of this news release.

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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.

Contact Information

  • Nuinsco Resources Limited
    Rene Galipeau
    416.626.0890 (FAX)

    CHF Investor Relations
    Juliet Heading
    416.868.1079 X 239
    416.868.6198 (FAX)