Nuinsco Resources Limited

Nuinsco Resources Limited

December 06, 2006 08:27 ET

Promising Results Continue From Nuinsco's Diabase Peninsula Uranium Property

Significant drill program in 2007 is next step

TORONTO, ONTARIO--(CCNMatthews - Dec. 6, 2006) - Nuinsco Resources Limited (TSX:NWI) ( today announced results from drilling at its Diabase Peninsula uranium property in Saskatchewan's Athabasca Basin. This recent 2,800 metre, four-hole program returned uranium values as well as key indicator minerals associated with uranium deposits in the Basin which, combined with past drilling and other studies, indicates that uranium mineralizing processes have been active on the property and points toward the local presence of unconformity style mineralization. With these positive results, an expanded drill program is planned for 2007.

"The drilling and other studies we have completed, such as lineament analysis, geophysical response, geochemistry, mineralogy-petrography and lead-isotope studies, continue to confirm that the Diabase Peninsula Property is well located to find a uranium deposit," said Paul Jones, Vice-President, Exploration. "The Cable Bay Shear Zone, a potential trap for uranium-bearing fluids, is widespread on the property and is cross-cut by late, reactivated faults which enable the concentration of uranium-bearing mineralizing fluids. All of this suggests that unconformity-style mineralization is a distinct possibility. Additional exploration is required to assess the property's full potential, and our next step is a significant drill program in 2007 combining both infill holes and testing of the widespread targets identified from work to date."

Drill holes ND-06-08, 06-06, 06-05 and 05-01 (to see the drill plan click the following link and see, along with full drill results) all contain numerous anomalous uranium values (anomalous threshold greater than 2.0 ppm) ranging up to 29.8 ppm uranium in ND-06-05, and anomalous nickel, cobalt and arsenic values ranging from anomalous thresholds of 5.0 ppm, 1.2 ppm and 4.0 ppm respectively and peaking at 275.0 ppm, 162.0 ppm and 358.0 ppm respectively. All holes intersected the sulphide-graphite-bearing Cable Bay shear Zone demonstrating the widespread distribution of a host rock favourable to uranium mineralization.

Analysis of geochemistry from sampled drill core was recently completed by Dr. J.M. Franklin, former Chief Geoscientist with the Geological Survey of Canada, who concluded that: 1) the combination of uranium-arsenic-nickel-cobalt-magnesium oxide, which typifies several of the mines in the Athabasca district, indicate that there is a distinctive influence of a mineralizing system in the area; 2) the presence of clay alteration (illite-kaolin) is another distinct indicator of the passage of hydrothermal fluids capable of transporting uranium mineralization; and, 3) elevated uranium/lead ratios provide evidence of local excess uranium in the sedimentary pile suggesting upward passage of uranium-bearing hydrothermal fluid into the sediments.

"As previously discussed, Nuinsco remains committed to creating a separate public company to advance its Minago, Mel and Lac Rocher nickel assets," added CEO Rene Galipeau. "When the nickel transaction is completed early next year, the focus within Nuinsco will remain on realizing the value of our other projects in Canada and Turkey, and exploration of our two highly prospective uranium properties, Diabase and Prairie Lake, is an important part of this strategy."

The 21,900 hectare Diabase Peninsula property is located on the western shore of Cree Lake approximately five kilometres north of the southern boundary of the Athabasca Basin. Nuinsco is the operator and is partnered with Trend Mining Company of Denver, Colorado (OTCBB:TRDM). Nuinsco holds an approximate 70% interest in the property; Trend is entitled to a one time opportunity to back-in to the project for a 50% interest.

The project is being supervised by P.L. Jones, V.P. Exploration for Nuinsco, who acts as QP under National Instrument 43-101.

About Nuinsco Resources

Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is prepared for production and focused on growth through nickel, uranium, copper, zinc and gold exploration and development in world-class mineralized belts in Canada and Turkey. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historical 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, nickel 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
    Rene Galipeau
    (416) 626-0470
    Nuinsco Resources Limited
    Sean Stokes
    (416) 626-0470