Continental Nickel Limited (TSX VENTURE: CNI) ("CNI") is pleased to
advise that the Technical Report supporting the recently released
Mineral Resource Estimate (Press Release March 2, 2011) has been
filed with SEDAR. This Mineral Resource Estimate, using a
US$17/tonne Net Smelter Return ("NSR") cut-off, increases the
Measured and Indicated Mineral Resources at Ntaka Hill to 4,981,000
tonnes grading 1.22% nickel and 0.24% copper and identifies
Inferred Mineral Resources totalling 1,860,000 tonnes grading 0.68%
nickel and 0.15% copper. The Inferred Mineral Resources calculated
at a US$17/tonne NSR cut-off for the new Sleeping Giant discovery
is 15,400,000 tonnes grading 0.77% nickel and 0.17% copper. Mineral
Resources for various NSR cut-off values are provided in Table 1.
The NI 43-101 Mineral Resource estimate was completed by Roscoe
Postle Associates Inc. of Toronto, Ontario. It incorporates data
obtained from 230 diamond drill holes, totalling 35,361 metres,
completed to explore for and delineate the seven separate sulphide
deposits at nominal 25 to 100 metre drill section spacing.
Highlights:
-- The nickel metal contained in the Measured and Indicated Mineral
Resources (US$17/tonne NSR cut-off) at Ntaka Hill is 60,900 tonnes.
-- The nickel metal contained in the Inferred Mineral Resources
(US$17/tonne NSR cut-off) at Ntaka Hill was 13,000 tonnes and for the
newly-discovered Sleeping Giant deposit is 119,000 tonnes.
-- The Sleeping Giant deposit remains open in all directions and additional
"step out" drilling to expand the deposit is a priority in drilling
season that will commence in June 2011.
-- Mineral characterization work (press release February 9, 2011) has
confirmed high recoveries of nickel are possible from the sulphide
mineralization at the Sleeping Giant deposit using conventional mineral
processing.
-- A scoping study to assess potential production options is planned for
2011.
John Nitschke, Executive Chairman and Acting Chief Executive
Officer of Continental, commented "the Technical Report provides a
much better understanding of the nature and potential of the new
Sleeping Giant deposit which has advanced from discovery to an
Inferred Mineral Resource in just six months. The discovery remains
open in all directions and we believe that it has the potential to
develop into a major new nickel sulphide deposit. The primary
objective of the 2011 step out drilling which will commence in June
is to define the extent of the Sleeping Giant deposit. The high
grades of the near surface Ntaka Hill Resources, indications of
good metallurgical recovery and the project's location within 300
kms of a deep water port in the mining friendly jurisdiction of
Tanzania will be important positive factors in the upcoming scoping
study."
Mineral Resources were calculated from a geostatistical block
model using GEMS software and reported at various NSR cut-off
values per tonne, constrained by preliminary pit shells constructed
by Whittle software. Only resources falling within the pit shells
are reported as Mineral Resources. A minimum NSR cut-off of
US$17/tonne was utilized to design the preliminary pit shells.
Table 1 below shows Mineral Resources calculated at US$17/tonne,
S$40/tonne and US$80/tonne NSR cut-offs.
Table I: Mineral Resources calculated at US$17, US$40 and US$80 /tonne NSR
cut-offs for the Ntaka Hill and Sleeping Giant deposits (Note: Ntaka Hill
is comprised of the G, H, J, L, M and NAD013 sulphide zones).
----------------------------------------------------------------------------
Tonnes NSR Contained Ni
Zone Category (000's) % Ni % Cu % Co (US$/t) (tonnes)
----------------------------------------------------------------------------
NSR Cut-off: US$17/tonne
----------------------------------------------------------------------------
Ntaka Hill Measured 1,871 1.74 0.30 0.05 275 32,500
----------------------------------------------------------------------------
Ntaka Hill Indicated 3,110 0.91 0.20 0.04 148 28,400
----------------------------------------------------------------------------
Total M + I 4,981 1.22 0.24 0.04 196 60,900
----------------------------------------------------------------------------
Ntaka Hill Inferred 1,860 0.68 0.15 0.03 110 13,000
----------------------------------------------------------------------------
Sleeping
Giant Inferred 15,400 0.77 0.17 0.02 120 119,000
----------------------------------------------------------------------------
Total Inferred 17,260 0.76 0.17 0.02 120 131,000
----------------------------------------------------------------------------
NSR Cut-off: US$40/tonne
----------------------------------------------------------------------------
Ntaka Hill Measured 1,862 1.74 0.31 0.05 276 32,500
----------------------------------------------------------------------------
Ntaka Hill Indicated 3,102 0.92 0.20 0.04 149 28,400
----------------------------------------------------------------------------
Total M + I 4,964 1.23 0.24 0.04 196 60,800
----------------------------------------------------------------------------
Ntaka Hill Inferred 1,860 0.68 0.15 0.03 110 13,000
----------------------------------------------------------------------------
Sleeping
Giant Inferred 15,400 0.78 0.17 0.02 120 120,000
----------------------------------------------------------------------------
Total Inferred 17,260 0.77 0.17 0.02 120 133,000
----------------------------------------------------------------------------
NSR Cut-off: US$80/tonne
----------------------------------------------------------------------------
Ntaka Hill Measured 1,575 1.99 0.34 0.05 315 31,400
----------------------------------------------------------------------------
Ntaka Hill Indicated 2,108 1.16 0.24 0.05 188 24,500
----------------------------------------------------------------------------
Total M + I 3,683 1.52 0.28 0.05 242 55,800
----------------------------------------------------------------------------
Ntaka Hill Inferred 1,110 0.90 0.18 0.03 140 10,000
----------------------------------------------------------------------------
Sleeping
Giant Inferred 9,790 0.99 0.22 0.02 160 96,000
----------------------------------------------------------------------------
Total Inferred 10,900 0.98 0.22 0.02 160 106,000
----------------------------------------------------------------------------
Notes on Mineral Resources:
1. Mineral Resources were prepared in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM") definition
standards regarding Mineral Resources and Mineral Reserves.
2. Assays of drill core were completed at ALS Minerals of Vancouver, BC and
included a comprehensive Quality Assurance / Quality Control ("QA/QC")
program. All aspects of the core sampling, assay procedures and QA/QC
program have been reviewed by RPA and were judged to be of industry
standard and suitable for use in the estimation of Mineral Resources.
RPA also completed a data verification exercise including independent
core sampling and assaying with satisfactory results.
3. Resource models were prepared based on drill section interpretation
using a nominal 0.25% nickel grade cut-off. 3D solids were constructed
by CNI geologists using GEMS software, then reviewed and revised as
necessary by RPA.
4. The estimation employed statistical analysis and variography of nickel,
copper and cobalt values with construction of block models by zone using
GEMS software. Block cell size was 2.5 x 5 x 5 metres.
5. Grade interpolation to assign grade values to cells used Inverse
Distance squared ("ID(2)") methods. Grades were also determined for Pt,
Pd and Au but are not reported here as, on a combined basis, they fall
below 1.0 gram/tonne.
6. A total of 736 bulk density determinations on core using the immersion
method were used for the estimate, with densities assigned where data
were not available, based on an analysis of the correlation between
specific gravity and sulphur.
7. Mineral Resources are reported at NSR cut-off values of US$17/t, US$40/t
and US$80/t and are based on open pit mining.
8. NSR values derived from grade were determined using average long-term
nickel, copper and cobalt prices of US$10.00/lb, US$3.50/lb, and
US$20.00/lb, respectively; preliminary metal recoveries estimated at 87%
for nickel, 81% for copper and 80% for cobalt, and allowances for
transportation of concentrate and standard industry treatment charges
for smelting and refining.
9. No minimum mining width was used.
10. Resource classification involved a review of geological and grade
continuity and was based on drill hole spacing.
11. Preliminary pits used to constrain the Mineral Resources reported were
constructed using Whittle software based on slope walls of 45 degrees, 5
metre bench heights, and production costs of US$2.50/tonne mined,
US$12.00/tonne processed and US$5.00/tonne general and administration
costs.
12. Totals may differ due to rounding.
13. The Company is not aware of any environmental, permitting, legal, title,
taxation, socio-political or marketing issues that are material to the
statement of the Mineral Resources.
14. The Mineral Resource Estimate is effective March 2011.
Qualified Persons / Quality Control
The Mineral Resource Estimate was prepared by Roscoe Postle
Associates Inc. of Toronto, Ontario under the supervision of
Chester Moore, P. Eng., Principal Geologist. Mr. Moore is an
independent qualified person as defined by National Instrument
43-101.
The quality control, technical information and all aspects of
the exploration program were supervised by Patricia Tirschmann, P.
Geo., Vice President, Exploration for CNI. The information in this
release was prepared under the direction of John Nitschke,
Executive Chairman and Acting Chief Executive Officer for
Continental Nickel Limited. Ms. Tirschmann is a qualified person 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 75% interest in the Nachingwea project
in Tanzania, where NI 43-101 compliant Mineral Resources (Measured
and Indicated) have defined 60,900 tonnes of contained nickel, and
an additional 131,000 tonnes of contained nickel in Inferred
Mineral Resources. The project is a 75:25 Joint Venture between the
Company and IMX Resources Limited ("IMX") of Australia.
The Company also has an option joint venture on the St. Stephen
project in New Brunswick, Canada where the 2010 diamond drill
program discovered new Ni-Cu sulphide zones.
Continental Nickel Limited currently has 39,096,508 shares
issued and outstanding (47,051,514 on a fully-diluted basis) and
trades on the TSX Venture Exchange under the symbol CNI. The
Company remains well-funded with C$10.0 million in the treasury as
at December 31, 2010.
On behalf of Continental Nickel Limited
John Nitschke, Executive Chairman and Acting 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,
potential or estimated metal recoveries, 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 the estimation of
Mineral Resources is based on data verified and estimation
methodologies supervised by Mr. Chester Moore who is a Principal
Geologist with Roscoe Postle Associates Inc. of Toronto Ontario,
Canada. Information relating to exploration results and data used
in the Mineral Resource estimate was gathered and compiled under
the supervision of Ms. Patricia Tirschmann who holds the position
of Vice President, Exploration and is a full time employee of
Continental Nickel Limited. Mr. Moore is a registered member of the
Association of Professional Engineers of Ontario. Ms. Tirschmann is
a registered member of the Association of Professional
Geoscientists of Ontario. Each 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. Mr. Moore and Ms. Tirschmann both
consent to the inclusion of the data in the form and context in
which it appears.
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 John Nitschke Executive
Chairman and Acting CEO (905) 334-4309 (905) 815-0532 (FAX)
info@continentalnickel.com www.continentalnickel.com Marguerite
Manshreck-Head Investor Relations (613) 395-4487
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