TORONTO, ONTARIO--(Marketwire - Feb. 13, 2013) - Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI) (www.nuinsco.ca) today announced that its 50%-owned subsidiary CBay Minerals Inc. ("CBay") has enhanced its position in the Chibougamau mining camp by optioning the advanced-stage Perch River copper project. Perch River is a shallow, flat-lying, copper deposit located approximately 80 km northeast of the town of Chibougamau. Easily accessible from the existing road network, Perch River has the potential to be a feed source for CBay's Copper Rand mill in the near term.
The Perch River copper mineralization was discovered in 1970 by the Troilus-Maracambeau Joint Venture. The Perch River mineralized horizon is similar to that of the Icon-Sullivan Mine located 15 km to the southwest, which produced 2.1 million tons grading 1.96% copper that was processed at a mill in Chibougamau.
In 1973, an exploration ramp was developed to sample 12,150 tons of material from Perch River which was also processed at a mill in Chibougamau. The Perch River project may contain a total of about 1 million tons at grades in excess of 1.0% copper according to a non-NI-43-101-compliant property report produced by A.J.R Geoconsulting in March 2007.
"CBay's plans are to assess the potential of the Perch River copper mineralization to provide feed for its Copper Rand mill and supplement future production from CBay's partially-developed, high-grade Corner Bay copper project which is located about 45 km south of Chibougamau," said CBay's CEO Roland Horst.
Copper mineralization occurs at 50-100m depth and is predominantly chalcopyrite in a quartz-carbonate host at the footwall of a well-defined horizon of graphitic argillite above dolomite. The deposit is not fully delineated and there is considerable potential to define more mineralization to the north and east. As described in the non-NI-43-101-compliant 2007 A.J.R Geoconsulting report, vertical drill holes intersected near-surface mineralization (~50 m deep) in 15 holes averaging 1.94% copper over 3.12 m.
CBay has made an initial payment of $30,000 and has agreed to pay an additional $170,000 over the next four years to earn a 100% interest in the Perch River project. A 2% net smelter royalty has been retained by the vendors; CBay has the right to buy back 50% of the royalty for $1 million. Paul Jones, President of Nuinsco, acts as a Qualified Person under National Instrument 43-101 and has reviewed and approved the technical contents of this news release.
About Nuinsco Resources Limited
Nuinsco is a growth-oriented, multi-commodity mineral exploration company that is focused on world-class mineralized belts in Canada and internationally. In addition to its property holdings in Ontario, Saskatchewan and Turkey, Nuinsco owns common shares in Coventry Resources Limited (TSX VENTURE:CYY) and Victory Nickel Inc.(TSX:NI),and a 50% interest in CBay Minerals Inc. (50% Nuinsco, 50% Ocean Partners Investments Limited), a private company that is a dominant player in Quebec's Chibougamau mining camp with assets including a permitted mill and tailings facility, eight past-producing copper/gold mines and a 96,000 acre land position. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.
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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, 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.