Nuinsco Resources Limited
TSX : NWI

Nuinsco Resources Limited

March 29, 2010 13:45 ET

Nuinsco Resources Limited: 2010 Exploration Program at Diabase Peninsula Uranium Property Underway

Cameron Lake, Olympian and Egypt initiatives are also progressing well

TORONTO, ONTARIO--(Marketwire - March 29, 2010) - Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI) (www.nuinsco.ca) today announced that a field crew has recently completed the initial phase of exploration at the Diabase Peninsula uranium property in the Athabasca Basin of northern Saskatchewan as part of the 2010 exploration program.

Initial work included a gravity survey and geochemical sampling over parts of the property where past exploration has demonstrated the potential presence of uranium mineralization. Information from these surveys will be added to the comprehensive data-set on the project to provide additional direction and focus to diamond drilling planned for later this year.

"The results obtained from the comprehensive work program conducted by Nuinsco on the property so far confirm that Diabase Peninsula is well placed to host significant uranium mineralization," said President Paul Jones. "Our exploration shows that the project area is clearly geochemically anomalous with respect to uranium and other key indicator elements both in the Athabasca sediments and the underlying graphite- and sulphide-bearing basement rocks. Furthermore, interpretation of widespread anomalous geophysical responses provides a structural context to the geochemical results. The coincidence of the combined geochemical and structural factors suggests that unconformity-style mineralization is a distinct possibility and that additional exploration is required to assess the full potential at Diabase."

The 21,900ha Diabase Peninsula property is located on the western shore of Cree Lake approximately 5km north of the southern boundary of the Athabasca Basin. The property overlies the graphite-bearing Cable Bay Shear Zone - this structure is considered to be an important potential host for uranium mineralization in this part of the Athabasca Basin. Nuinsco holds an approximate 83% interest in the property and is the operator; Nuinsco is partnered with Trend Mining Company of Denver, Colorado.

In addition to the work at Diabase, as noted above, programs and initiatives on the Company's gold projects include:

Cameron Lake Gold Project: The Company continues to move closer to the closing of the sale of the Cameron Lake gold project to Coventry Resources Limited ("Coventry") (ASX:CVY). The transaction is expected to be completed in April 2010. As previously announced, Nuinsco will receive total consideration valued at approximately $12 million comprised of cash, Coventry shares and a 3% royalty on Cameron Lake production (see news release dated December 23, 2009).

Olympian Gold Project: Line cutting has been completed, and the Company is planning a ground geophysics program on the Olympian gold project in Ontario's highly prospective Lake of the Woods region. Drilling will commence following interpretation of geophysical results and completion of initial mapping and sampling.

As announced earlier this month (see news release dated March 8, 2010), the Olympian gold project consists of 18 mining claims and three patented mining claims totaling 14.05 km2 that are easily accessible by road and are located approximately 28 km southeast of Kenora. Mineralization consists of a series of gold, silver and copper-bearing veins traced for up to 800m and hosted by mafic metavolcanic rocks. Diamond drilling is expected to begin following completion of the planned surface programs.

Egyptian Gold Concessions: in conjunction with Quartz Core Company ("QCC"), its Egypt-based partner, negotiations are ongoing to arrive at acceptable terms of a Concession Agreement with the Egyptian Mineral Resources Authority. The Company aims to have this agreement finalized and approved by the Egyptian government prior to the parliament's summer recess at the end of June.

Nuinsco and QCC had the winning bid on two gold concessions in Egypt's 2009 International Bid Round (see release of February 24, 2010). The two concessions, covering 2,270km2, are located approximately 50km northwest of the Sukari Gold Mine, Centamin Egypt Limited's ("Centamin") flagship project where gold reserves were recently increased to 7.1 million ounces (see Centamin news release dated February 1, 2010). The measured and indicated gold resource at Sukari totals 210.2 million tonnes @ 1.52g/t Au for 10.29 million ounces; inferred resources are 66.3 million tonnes @ 1.6g/t Au for 3.4 million ounces of gold.

About Nuinsco Resources
Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is focused on uranium, copper, zinc and gold exploration in world-class mineralized belts in Canada, Turkey and Egypt. In addition to its property holdings, Nuinsco owns approximately 9% of the outstanding common shares of Gold Hawk Resources Inc. (TSX VENTURE:GHK) and approximately 2% of the outstanding common shares of 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 Chelsea@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 (including, without limitation, the receipt of all regulatory, corporate and other approvals required in connection with the option agreements relating to the Olympian Project and the approvals required in Egypt). 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, silver 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 necessary permits and approvals from government authorities, 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
    Paul Jones
    416.626.0470
    416.626.0890 (FAX)
    or
    Nuinsco Resources Limited
    Sean Stokes
    416.626.0470
    416.626.0890 (FAX)
    admin@nuinsco.ca
    or
    CHF Investor Relations
    Robin Cook
    416.868.1079
    416.868.6198 (FAX)
    robin@chfir.com
    or
    CHF Investor Relations
    Chelsea Jones
    416.868.1079
    416.868.6198 (FAX)
    chelsea@chfir.com