Continental Nickel Limited (TSX VENTURE: CNI) ("Continental" or
"CNI" or the "Company") is pleased to provide an update on its
planned 2010 exploration program on the Nachingwea nickel-copper
sulphide project in Tanzania. The project is a 70:30 Joint Venture
between CNI and IMX Resources Limited ("IMX") of Australia.
The Nachingwea Joint Venture has approved a $4 million
exploration program and budget, which will include the completion
of 9,000 metres of diamond and reverse circulation (RC) drilling in
2010. The program has two objectives:
1) to expand the current Mineral Resources at Ntaka Hill towards the
exploration target of 100,000 tonnes of contained nickel; and
2) to continue to explore the vast regional land holdings to identify
additional nickel sulphide deposits.
Planning for the 2010 program is now well advanced, and field
crews have mobilized to the project in preparation for the diamond
drill program at Ntaka Hill which is expected to commence in
June.
Ntaka Hill
At Ntaka Hill, the Company has outlined NI 43-101 compliant
Measured and Indicated Mineral Resources totalling 3.1 million
tonnes grading 1.31% nickel and 0.24% copper with 40,000 tonnes of
contained nickel (see Press Release dated July 15, 2009).
In 2010, a 5,000 metre diamond drilling program is planned with
the goal of expanding the current Mineral Resource inventory
towards the exploration target of 100,000 tonnes of contained
nickel. The potential to increase the Mineral Resource inventory is
derived from the following target areas (see Figure 1
attached):
1) drilling along potential extensions to the known sulphide deposits
(H, G, L, M) which remain open beyond the current limits of drilling;
2) systematic drill testing of a new sulphide zone discovered in 2009
referred to as Ntaka C. Drilling will test a 500 metre long
electromagnetic ("EM") conductor associated with the zone.
Previous drill intersections included 2.53% nickel and 0.42% copper over
5.3 metres from drill hole NAD09-180 (see Press Release November 24,
2009);
3) infill diamond drilling of nickel sulphide zones intersected in
2006-2009. Drill holes to be evaluated for their resource potential
include NAD09 (0.95% nickel and 0.27% copper over 10.0 metres),
NAD07-024 (0.62% nickel and 0.13% copper over 62.8 metres) and NAD07-033
(0.72% nickel and 0.20% copper over 13.2 metres), and
4) drilling of untested TDEM ("Time Domain Electromagnetic") anomalies,
such as the Grizzly and H North for potential new zones of nickel
sulphide mineralization.
If the drilling at Ntaka Hill is successful, the Company plans
to complete an updated Mineral Resource Estimate and commission a
scoping study, if warranted, by year end.
At Lionja, approximately 8 kilometres south of Ntaka Hill,
drilling completed in 2009 intersected nickel sulphide
mineralization in drill hole LID09-055 near the base of an
ultramafic sill at a depth of approximately 200 metres. The
intersection graded 0.91% nickel and 0.20% copper over 7.75 metres,
including 2.03% nickel and 0.41% copper over 2.25 metres (see Press
Release November 24, 2009). In 2010, approximately 1,000 metres of
diamond drilling is planned to further explore the basal contact of
the mineralized sill.
Regional Exploration
The Company intends to complete a detailed, 32,000 line
kilometre, airborne magnetic and radiometric survey over the entire
7,500 square kilometre project area. This extensive survey will
provide first pass airborne coverage beyond the areas previously
covered by the 2007 and 2008 airborne VTEM ("Versatile Time Domain
Electromagnetic") surveys, which covered approximately 30% of the
Nachingwea project area. The survey will help identify areas with
possible mafic and ultramafic intrusions which have potential to
contain undiscovered nickel sulphide deposits. Of particular
interest in this year's program, is an area located approximately
35 kilometres northeast of Ntaka Hill, where stream sediment
geochemical sampling conducted in late 2009, in an area of
anomalies discovered by IMX, confirmed anomalous values for nickel,
cobalt and chromium over a widespread area. Anomalies up to 1,950
parts per million ("ppm") nickel, 137 ppm cobalt and 1470 ppm
chromium in stream sediment were obtained which are comparable to
sampling results at Ntaka Hill where the current Mineral Resources
have been outlined.
Upon completion of the airborne survey, selected targets will be
prioritized and explored with additional stream and soil
geochemical sampling, geological mapping, prospecting, and EM
surveys. Selected targets from this work, plus anomalies already
identified in the 2007 and 2008 airborne VTEM surveys will be
prioritized and tested with reconnaissance reverse circulation
("RC") drilling. Approximately 3,000 metres of RC drilling are
planned in 2010.
Continental's Interest in the Nachingwea Project is Expected to
Increase 75% in 2010
Under the terms of the Nachingwea Joint Venture, the Company is
to fund the first $15 million in exploration expenditures on the
project, upon which its equity interest in the project will
increase by 5% to hold a 75% interest. At 75:25, ongoing JV
expenditures are to be funded by the joint venture parties pro rata
or a non-participating party will have its interest diluted. As at
March 31, 2009, the Company had expended $13.9 million and expects
to satisfy the sole funding commitment by mid-year 2010. IMX has
indicated that it intends to fund its respective share of the 2010
program.
Craig MacDougall, President & CEO of Continental Nickel
Limited, said "Our objective in 2010 is to increase the Mineral
Resources at Ntaka Hill towards 100,000 tonnes of contained nickel.
Exploration funds are also being deployed towards regional
exploration because of our strong belief in the potential of the
Nachingwea area to host additional nickel sulphide deposits. The
first drill results from Ntaka Hill are expected in late July."
Qualified Persons
The quality control, technical information and all aspects of
the exploration program are supervised by Patricia Tirschmann, P.
Geo., Vice President, Exploration for CNI. The information in this
release was prepared under the direction of Craig MacDougall, P.
Geo., President and CEO for Continental Nickel Limited. Both Ms.
Tirschmann and Mr. MacDougall are qualified persons as defined by
National Instrument 43-101.
About Continental Nickel
Continental Nickel Limited is focused on the exploration,
discovery and development of nickel sulphide deposits in
geologically prospective, but under-explored regions globally. The
Company's key asset is its 70% interest in the Nachingwea project
in Tanzania, where NI 43-101 Mineral Resources have defined 40,000
tonnes of contained nickel. The Company is targeting an exploration
threshold of 100,000 tonnes of contained nickel in Mineral
Resources at Nachingwea. The Company also has an option joint
venture on the St. Stephen project in New Brunswick, Canada.
Continental Nickel Limited has 38,943,664 shares issued and
outstanding (46,206,514 on a fully-diluted basis) and trades on the
TSX Venture Exchange under the symbol CNI. The Company remains
well-funded with over C$13.5 million in the treasury.
On behalf of Continental Nickel Limited
Craig MacDougall, President & Chief Executive Officer
CAUTIONARY STATEMENT: This News Release includes certain
"forward-looking statements". All statements other than statements
of historical fact included in this release including, without
limitation, statements regarding potential mineralization,
resources and reserves, exploration results, future plans and
objectives of Continental Nickel Limited, are forward-looking
statements that involve various risks and uncertainties. There can
be no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from Continental Nickel
Limited's expectations are the risks detailed herein and from time
to time in the filings made by Continental Nickel Limited with
securities regulators.
Information in this announcement relating to exploration results
is based on data collected under the supervision of or compiled by
Patricia Tirschmann, P. Geo., who holds the position of Vice
President, Exploration and is a full time employee of Continental
Nickel Limited. Ms. Tirschmann is a registered member of the
Association of Professional Geoscientists of Ontario and has
sufficient relevant experience to qualify as a Competent Person
under the 2004 Edition of the Australasian Code for the Reporting
of Exploration Results, Mineral Resources and Ore Reserves. Ms.
Tirschmann consents to the inclusion of the data in the form and
context in which it appears.
To view the figure associated with this release, please visit
the following link:
http://media3.marketwire.com/docs/CNIimage.pdf
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release. No stock exchange, securities
commission or other regulatory authority has approved or
disapproved the information contained herein.
Contacts: Continental Nickel Limited Craig MacDougall, P. Geo.
President and CEO (905) 815-0533 (905) 815-0532 (FAX)
info@continentalnickel.com www.continentalnickel.com MMH Investor
Relations Inc. Marguerite Manshreck-Head President (613)
395-4487
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