Nuinsco Resources Limited

Nuinsco Resources Limited

October 24, 2013 15:14 ET

Nuinsco Successfully Upgrades Phosphorus Concentrate from Prairie Lake Project

Potential markets include fertilizer and a variety of widely-used industrial products

TORONTO, ONTARIO--(Marketwired - Oct. 24, 2013) - Nuinsco Resources Limited ("Nuinsco" or the "Company") (TSX:NWI) ( today reported that it has identified a simplified metallurgical extraction process resulting in a concentrate with improved phosphorus recoveries and very low levels of impurities from mineralization at its Prairie Lake phosphorus/rare metals/niobium project in northwestern Ontario. The project hosts a suite of elements of economic significance which range in application from leading-edge technologies to such fundamentally important products as fertilizer grade phosphorus concentrate.

"We are undertaking a comprehensive evaluation of the economic potential of this exceptional property in light of continuing evaluation concerning the processing and commercial marketability of concentrates produced from mineralization in Prairie Lake rock," said CEO Paul Jones. "These phosphorus results are only one step in this process, but are indicative of the potential value of this asset to Nuinsco as a provider of products to the fertilizer, detergent and industrial minerals sectors and beyond."

This most recent round of testing indicates that an apatite concentrate grading in excess of 29% phosphorus ("P2O5") can be produced at a 71% P2O5 recovery. It is very significant that this recovery is a substantial improvement over that reported in previous testing (see press release dated March 26, 2013) and has important implications with regard to the commercial viability of concentrate production. Apatite is the phosphorus-bearing mineral in a rock that also contains calcite, dolomite, biotite, magnetite and rutile.

A significant step in the laboratory test work was the development of a process flowsheet that is vastly simpler than processes used in previous tests, yet still capable of producing the above-listed grade and recovery of P2O5. This could have a favourable impact on the economics and marketability of any future production of P2O5 concentrate at Prairie Lake, as should the presence of only very low levels of impurities (0.43 to 0.76% fluorine, 0.01% chlorine and 2.85 to 6.63% carbon).

The phosphorus process test work reported here was conducted under the leadership of Dr. Huang Liming by Corem in Quebec City, the same laboratory which, to date, has completed other phases of metallurgical testing on the Prairie Lake mineralization. Tests were conducted on rock collected as part of a 1,000kg sample grading 3.18% P2O5 (and 0.13% niobium ("Nb2O5") with a specific gravity of 2.99 g/cc and a bulk density of 1.59 g/cc (after crushing to -1.7mm). The apatite contains on average 43.1% P2O5 and occurs in the form of clear, well-formed crystals up to 250 μm in size. The primary use of apatite is in the manufacture of fertilizer but it also has important industrial applications, including industrial cleaners, pharmaceuticals, dyes and ceramic glazes.

About Prairie Lake

Located about 45 kilometres northwest of Marathon, Ontario, Nuinsco's 100%-owned Prairie Lake property covers the entire 2.8 km2 (at surface) Prairie Lake carbonatite complex and is easily accessible from the TransCanada Highway. In January, 2012, Nuinsco bought back a 2% production royalty making the property royalty-free.

The NI-43-101-compliant Exploration Target Mineralization Inventory ("ETMI") (see news release issued October 26, 2011) is 515 - 630 million tonnes grading between 0.09-0.11% Nb2O5 (0.9 to 1.1 kg/tonne) and 3.0-4.0% P2O5 - making Prairie Lake one of the world's ten largest carbonatite-hosted niobium deposits (and in North America second only to the Iron Hill Project in Colorado, USA, in contained tonnes - the grade at Prairie Lake is however greater). The current metallurgical work establishes the project as a substantial, recoverable, phosphorus inventory. The suite of minerals of potentially economic significance also includes tantalum (Ta), uranium (U) and REEs (including lanthanum (La), cerium (Ce), samarium (Sm), neodymium (Nd) and yttrium (Y)). The ETMI was undertaken by Eugene Puritch, P.Eng. and Antoine Yassa, P.Geo of P&E Mining Consultants Inc. of Brampton, Ontario.

All exploration work at Prairie Lake is supervised by Laura Giroux, P.Geo, Senior Geologist, who acts as Nuinsco's Qualified Person under National Instrument 43-101. Ms. Giroux has reviewed and approved the technical contents of this news release. 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.

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 Victory Nickel Inc. (TSX:NI), Coventry Resources Limited (TSX VENTURE:CYY), 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, three potential near-term copper producers and a 96,000 acre land position. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

Please visit the Company's website at Should you wish to receive Company news via email, please email 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, 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.

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