Continental Nickel Files the NI 43 101 Technical Report Which Supports the Recently Released Major Increase in Mineral Resources
15 April 2011 - 11:22PM
Marketwired Canada
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.
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