Continental Nickel Limited (TSX VENTURE: CNI) ("Continental" or
"CNI" or the "Company") is pleased to announce that it has
commenced a diamond drilling program on the St. Stephen
nickel-copper sulphide project in New Brunswick. The project is
under option from Abitex Resources of Val d'Or, Quebec and the
Company can acquire up to a 75% interest in the project.
This drilling program will consist of up to eight diamond drill
holes, totalling approximately 1,500 metres. The drill holes will
test the following targets:
1. extensions to mineralization beyond the limits of previous drilling at
the historic sulphide zones at Rogers Farm and E zone,
2. newly discovered and untested, high conductance, electromagnetic ("EM")
anomalies detected in a ground, Time Domain Electromagnetic ("TDEM")
geophysical survey completed in 2009 (see Press Release December 9,
2009).
At the Rogers Farm zone, two drill holes are planned. The first
drill hole will test an EM anomaly that may represent a possible
extension of the zone to the north along strike, and the second
drill hole will test for a possible extension of mineralization at
a depth of approximately 250 metres, largely below the level of
previous drilling. Two holes are also planned at the E Zone to test
a moderate strength EM anomaly where the results of EM plate
modelling indicate that conductance increases with depth. Historic
drilling at the E Zone has intersected mineralization grading up to
0.95% nickel and 0.45 % copper over 9.15 metres at shallow depths
(less than 100 metres).
Two new EM anomalies, Billy's Brook and Triple J, that were
discovered in the 2009 TDEM survey, will be drill tested in this
drill program. The Billy's Brook anomaly is located approximately
700 metres west of the historic Rogers Farm Deposit and has been
modelled as a high conductance anomaly with a 175 metre strike
length. The Triple J Anomaly is located approximately 1.5
kilometres southwest of the Rogers Farm Deposit and is also
modelled as a high conductance anomaly with a strike length greater
than 400 metres. Drilling is also planned at the G anomaly where EM
plate modelling has suggested that this anomaly was not adequately
tested by previous drilling.
It is anticipated that the drilling program will be completed by
early July and that the first assay results will be received in
late July.
Craig MacDougall, President & CEO of Continental Nickel
Limited, reported "We were very encouraged with the success of our
2009 TDEM geophysical survey, which discovered new, high
conductance EM anomalies near and adjacent to known nickel-copper
sulphide zones. The current program is focussed on drill testing
these new EM targets as well as drilling for possible extensions of
nickel-copper sulphide mineralization at the Rogers Farm and E
Zones."
The Company has been awarded a matching grant of up to $40,000
from the New Brunswick Junior Mining Assistance Program in support
of its 2010 drill program at the St. Stephen Project. In the
recently released Fraser Institute "Annual Survey of Mining
Companies 2009/2010", the province of New Brunswick ranks second
worldwide (behind the province of Quebec) in the list of the
world's most attractive jurisdictions for mineral exploration and
development.
Background
The project consists of 129 contiguous claims totalling 2,064
hectares near the town of St. Stephen in south western New
Brunswick. The project is exceptionally well-positioned with
respect to infrastructure such as power and transportation with
road links to bulk-shipping port facilities, all within 120
kilometres at Saint John.
The property hosts some seventeen historic, sub-cropping,
nickel-copper, magmatic, sulphide occurrences within Devonian mafic
to ultramafic intrusive rocks of the St. Stephen igneous complex.
Resources have been previously estimated for three deposits at
Rogers Farm, Hall-Carroll and C Zones, but pre-date and are not
compliant with the reporting standards of NI 43-101. Based on the
historic resource estimates, the Rogers Farm deposit, which is the
largest deposit found to date, has an exploration target potential
of approximately 500,000 tonnes grading 1% nickel and 0.45% copper
to a depth of 150 metres. The Company considers this as a
conceptual exploration target and is not treating the historical
estimate as a current mineral resource. The historical resources
should not be relied upon and should only be considered to be
mineral occurrences that have the potential to be upgraded to
resources by the application of exploration and evaluation to NI
43-101 standards.
The Company entered into an Option and Joint Venture Agreement
with Abitex Resources of Val d'Or, Quebec, in April of 2008. Under
the terms of the Agreement, the Company can earn an initial 50%
interest in the project by completing scheduled cash payments
totalling $150,000, issuing a total of 270,000 shares of
Continental and completing $1.0 million in work expenditures by
April 3, 2013. The Company can increase its interest to hold a 60%
interest by completing additional cash payments and share issuances
of Continental totalling $60,000 and 80,000 shares, respectively,
and completing additional work expenditures totalling $1.0 million
by April 3, 2015.
Upon completion of a feasibility study within five years of
earning a 60% interest, the Company's interest will increase to 65%
and can further increase to 75% if the study recommends a positive
development recommendation and the Company gives notice that it
intends to implement the study recommendation within two years of
tabling the study.
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 (46,211,514 on a fully-diluted basis) and trades on the
TSX Venture Exchange under the symbol CNI. The Company remains
well-funded with over C$13.2 million in the treasury.
On behalf of Continental Nickel Limited
Craig MacDougall, President & Chief Executive Officer
CAUTIONARY STATEMENT: No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein. 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.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: Continental Nickel Limited Craig MacDougall, P. Geo.
President and CEO (905) 815-0533 (905) 815-0532 (FAX)
info@continentalnickel.com www.continentalnickel.com Marguerite
Manshreck-Head Investor Relations (613) 395-4487
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