Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased
announce that the estimated measured and indicated mineral resources at a
cut-off grade of 0.2% nickel have increased by 150% from the last reported
mineral resource estimate (April 2011) to 12,786,000 tonnes grading 1.21% nickel
and the inferred mineral resources have increased to 45,037,000 tonnes grading
0.30% nickel at its Ntaka Hill Nickel Project (the "Project"). The Project is
part of the larger 75:25 joint venture between CNI and IMX Resources Limited
(ASX:IXR) covering the Nachingwea property in Southern Tanzania.
Highlights
-- Contained nickel in measured and indicated mineral resources increased
by over 150% to 154,700 tonnes at a grade of 1.21% nickel (0.2% nickel
cut-off for all mineralized zones) from 60,900 tonnes at a grade of
1.22% nickel.
-- Contained nickel in inferred mineral resources increased to 135,000
tonnes at a grade of 0.30% nickel (0.2% nickel cut-off for all
mineralized zones) from 131,000 tonnes at a grade of 0.76%.
-- Sleeping Giant and NAD013 zones are now considered to be a part of the
same mineralized zone based on 2011 drilling results.
-- Contained nickel in measured and indicated resources in the combined
Sleeping Giant and NAD013 zone has increased to 102,400 from 6,000
tonnes (previously NAD013 only) with an additional 125,200 tonnes in an
inferred mineral resource (0.2% nickel cut-off).
-- The high-grade core of Sleeping Giant has been defined over a continuous
strike length of 600 metres and remains open down plunge to the south.
Detailed results of the updated mineral resource estimate are presented in Table
1. Comparisons made above are with reference to the previous mineral resource
estimate announced in April 2011 (Press Release, April 15, 2011).
Mr. David Massola, President and CEO, commented: "Continental is very excited
about the large increase in estimated mineral resources at Ntaka Hill. This
result increases our confidence in the Project and greatly reduces risk moving
forward."
"Such a large increase in the mineral resources clearly confirms and surpasses
the Upside Sensitivity Case presented in our 2011 Preliminary Economic
Assessment (see Press Release November 15, 2011). Importantly, the new resource
estimate is also expected to reduce stripping ratios and lead to reductions in
cash operating costs compared to the Upside Sensitivity Case once optimized and
incorporated into the development plan for the Project."
"This new resource estimate validates our strategy of advancing the project
evaluation, permitting and development of Ntaka Hill while maintaining a strong
commitment to exploration."
Detailed Results
This National Instrument 43-101 compliant mineral resource estimate was
completed by Roscoe Postle Associates Inc. ("RPA") and incorporates the
additional drilling completed on the Sleeping Giant zone since the April 2011
mineral resource estimate. The estimate is based on data obtained from 284
diamond drill holes totalling 50,716 metres completed to explore for and
delineate the various zones at a nominal 25 to 100 metre drill section spacing.
The drilling data included 12,981 metres (42 holes) of exploration diamond
drilling completed in 2011.
Mineral resources were derived from a geostatistical block model using GEMS
software and reported at various nickel cut-off grades constrained by
preliminary pit shells constructed by Whittle software. Only mineralized
intervals located within the pit shells are reported as mineral resources.
Estimated mineral resources at 0.15%, 0.20% and 0.25% nickel cut-offs are
provided in Table 1. A subdivision of the estimated mineral resources broken
down by mineralized zone is included in Appendix 1 of this release.
Table 1 -Mineral Resources for Ntaka Hill Project at Various Cut-Off Grades
----------------------------------------------------------------------------
Tonnes Contained Ni
Category (000's) % Ni % Cu % Co (tonnes)
----------------------------------------------------------------------------
Cut-Off: 0.15% Ni
----------------------------------------------------------------------------
Measured 1,662,000 1.71 0.29 0.05 28,400
----------------------------------------------------------------------------
Indicated 11,147,000 1.13 0.25 0.03 126,300
----------------------------------------------------------------------------
M+I 12,809,000 1.21 0.25 0.03 154,700
----------------------------------------------------------------------------
Inferred 58,846,000 0.27 0.06 0.01 159,400
----------------------------------------------------------------------------
Cut-Off: 0.20% Ni
----------------------------------------------------------------------------
Measured 1,662,000 1.71 0.29 0.05 28,400
----------------------------------------------------------------------------
Indicated 11,125,000 1.14 0.25 0.03 126,300
----------------------------------------------------------------------------
M+I 12,786,000 1.21 0.25 0.03 154,700
----------------------------------------------------------------------------
Inferred 45,037,000 0.30 0.07 0.01 135,000
----------------------------------------------------------------------------
Cut-Off: 0.25% Ni
----------------------------------------------------------------------------
Measured 1,659,000 1.71 0.29 0.05 28,400
----------------------------------------------------------------------------
Indicated 11,105,000 1.14 0.25 0.03 126,200
----------------------------------------------------------------------------
M+I 12,764,000 1.21 0.25 0.03 154,600
----------------------------------------------------------------------------
Inferred 28,481,000 0.34 0.08 0.01 97,700
----------------------------------------------------------------------------
Notes to Mineral Resources in Table 1
1. Mineral resource estimates 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 acceptable results.
3. Resource models were prepared based on drill section interpretation
using nominal nickel grade wireframes of 0.1%, 0.5% and 1.0% nickel
grade cut-offs. 3D solids were constructed cooperatively between CNI and
RPA geologists, then reviewed and revised as necessary by RPA.
4. The estimation employed statistical analysis and variography of nickel
values with construction of block models by zone. Block cell size was
2.5 x 5 x 5 metres for zones J, G, M, L and H. Block size for Sleeping
Giant and NAD013 was 10 x 10 x 10 metres with level 3 sub-celling (8 x
8).
5. Grade interpolation to assign grade values to cells used Inverse
Distance squared ("ID2") methods for zones J, G, M, L and H with
Ordinary Kriging used for Sleeping Giant and NAD013.
6. More than 3,500 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 cut-off values of 0.15%, 0.20% and
0.25% nickel and are based on open pit mining.
8. No minimum mining width was used.
9. Resource classification involved a review of geological and grade
continuity and was based on drill hole spacing.
10. Preliminary pits used to constrain the mineral resources reported were
constructed using Whittle software based on the metallurgical and cost
assumptions from the PEA completed in November 2011 (Press Release,
November 15, 2011).
11. Totals may differ due to rounding.
12. 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 resource estimate.
13. The mineral resource estimate is effective as of March 2, 2012.
14. A copy of the mineral resource estimation report completed by RPA will
be posted on SEDAR and the Company's web site within 45 days of this
release.
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 Ms. Tirschmann who is a qualified person as defined by National
Instrument 43-101.
About Continental Nickel Limited
Continental 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 its Nachingwea property
in Tanzania. The project is a 75:25 exploration joint venture between the
Company and IMX Resources Limited.
The Company also has an option to joint venture on the St. Stephen project in
New Brunswick, Canada where the 2010 and 2011 diamond drill programs discovered
new Ni-Cu sulphide zones.
As at the date of this release, the Company has 42,738,508 common shares issued
and outstanding (50,244,414 on a fully-diluted basis) and trades on the TSX
Venture Exchange under the symbol CNI.
On behalf of Continental Nickel Limited
Dave Massola, President and 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,
cut-off grades, exploration results, future plans and objectives of Continental
Nickel Limited, is forward-looking information that involves various risks and
uncertainties. There can be no assurance that such information will prove to be
accurate and actual results and future events could differ materially from those
anticipated in such information. 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.
Appendix 1 -Mineral Resources by Mineralized Zone at 0.2% Ni Cut-Off
----------------------------------------------------------------------------
Tonnes Contained Ni
Category (000's) % Ni % Cu % Co (tonnes)
----------------------------------------------------------------------------
J Zone
----------------------------------------------------------------------------
Measured 845,000 1.67 0.25 0.06 14,100
----------------------------------------------------------------------------
Indicated 108,000 0.42 0.09 0.02 500
----------------------------------------------------------------------------
M+I 953,000 1.53 0.23 0.06 14,600
----------------------------------------------------------------------------
G Zone
----------------------------------------------------------------------------
Indicated 1,765,000 0.65 0.18 0.04 11,500
----------------------------------------------------------------------------
Inferred 934,000 0.48 0.15 0.03 4,500
----------------------------------------------------------------------------
M Zone
----------------------------------------------------------------------------
Measured 279,000 1.95 0.42 0.04 5,400
----------------------------------------------------------------------------
Indicated 126,000 1.67 0.35 0.04 2,100
----------------------------------------------------------------------------
M+I 405,000 1.86 0.40 0.04 7,500
----------------------------------------------------------------------------
L Zone
----------------------------------------------------------------------------
Measured 150,000 2.45 0.45 0.05 3,700
----------------------------------------------------------------------------
Indicated 50,000 3.07 0.60 0.05 1,500
----------------------------------------------------------------------------
M+I 200,000 2.60 0.49 0.05 5,200
----------------------------------------------------------------------------
NAD-013 Zone
----------------------------------------------------------------------------
Indicated 116,000 6.24 1.59 0.09 7,300
----------------------------------------------------------------------------
Inferred 1,088,000 0.52 0.12 0.02 5,600
----------------------------------------------------------------------------
H Zone
----------------------------------------------------------------------------
Measured 389,000 1.34 0.21 0.02 5,200
----------------------------------------------------------------------------
Indicated 622,000 1.33 0.18 0.03 8,300
----------------------------------------------------------------------------
M+I 1,011,000 1.33 0.19 0.03 13,500
----------------------------------------------------------------------------
Inferred 539,000 0.98 0.14 0.02 5,300
----------------------------------------------------------------------------
Sleeping Giant Zone
----------------------------------------------------------------------------
Indicated 8,338,000 1.14 0.25 0.02 95,200
----------------------------------------------------------------------------
Inferred 42,476,000 0.28 0.07 0.01 119,600
----------------------------------------------------------------------------
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