Continental Nickel Intersects 2.03% Nickel and 0.42% Copper Over 31.5 Metres at Sleeping Giant Zone and Provides Drilling Upd...
14 September 2011 - 4:36AM
Marketwired Canada
Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased
to report that assays are now starting to be received from the drilling program
that commenced in mid-June. Highlights include drill hole NAD11-234 which
intersected Sleeping Giant mineralization grading 2.03% nickel and 0.42% copper
over 31.5 metres from within a wider interval grading 1.62% nickel and 0.36%
copper over 47.0 metres. This intersection represents one of the best sulphide
intersections to date at Ntaka Hill and is located 200 metres south of the drill
hole NAD10-220 which intersected 2.58% nickel and 0.41% copper over 23.3 metres
in 2010. The project is a 75:25 joint venture between CNI and IMX Resources
Limited ("IMX") of Australia.
The Company is implementing a CDN$8.775 million work program on the Nachingwea
project in 2011, including CDN$5.525 million for exploration and CDN$3.25
million for technical studies to 1) expand the current Mineral Resource of the
Sleeping Giant zone; 2) advance the Ntaka Hill nickel-copper sulphide deposits
towards mine development and 3) generate and explore priority targets on the
regional land holdings. The work program includes approximately 14,000 metres of
diamond drilling at Ntaka Hill to extend the Sleeping Giant zone by step out
drilling on 100 metre centres, test several other priority targets within the
Ntaka ultramafic intrusion and provide metallurgical samples for the scoping
study.
The 2011 drilling program, utilizing two diamond drill rigs, began on June 15th
with 5,495 metres completed in seventeen holes to late August. Sixteen holes
have tested the Sleeping Giant zone and one 2008 drill hole was deepened to test
an exploration target south of H zone. Initial drilling on the Sleeping Giant
zone experienced technical problems resulting in general delays and several
holes not reaching target depths. These issues have been resolved.
Assay results have been received for the deepened hole south of H zone and one
of the Sleeping Giant drill holes. Partial assay results have been received for
three additional Sleeping Giant holes. Assay results received to date, as well
as location and geological context for the seventeen holes noted above, are
reported herein and provided below in Table I. A drill hole location figure may
be viewed using the link provided with this release.
Patricia Tirschmann, VP Exploration, commented on the drilling program to date
"Each new drill hole is providing valuable information on the nature, extents
and structural control of the Sleeping Giant zone. The recent intersection in
hole NAD11-234 further enforces our interpretation that a higher grade core to
the zone exists and can be traced over a strike length of at least 500 metres
from drill hole NAD10-226 in the north to hole NAD11-238 in the south. The 2011
drilling is expected to result in extensions to both the higher grade and lower
grade portions of the Sleeping Giant zone. In addition, we continue to intersect
zones of disseminated sulphide mineralization which lie above the Sleeping Giant
zone within areas designated as "waste" in the pit shell defined by the April
2011 Mineral Resource."
Sleeping Giant Zone
Section 3600N
Drill hole NAD11-227 was drilled 100 metres up-dip of hole NAD10-225 and was
stopped at 109.2 metres when the core barrel was lost down hole. This hole did
not reach the expected depth of the Sleeping Giant zone and up-dip drill testing
on the section is still to be completed. Partial assays have been received as
shown in Table I.
Hole NAD11-230 was drilled 100 metres down-dip of hole NAD10-224 and intersected
various zones of weakly disseminated sulphides within the upper portion of the
hole for which assays are pending. A large unit of felsic gneiss was intersected
near the bottom of the hole at the anticipated depth of the Sleeping Giant zone.
Section 3500N
Drill hole NAD11-228 was drilled to test 100 metres down-dip of hole NAD10-220
which intersected 2.58% nickel and 0.41% copper over 23.3 metres in 2010.
NAD11-228 was stopped short of the Sleeping Giant zone at 382 meters when the
core barrel was lost down hole. A number of zones of disseminated sulphide
mineralization were intersected including a 59 metre interval from 305 to 363
metres which graded 0.40% nickel and 0.09% copper including 9.05 metres grading
0.63% nickel and 0.12% copper. This wide zone of mineralization may represent
the Sleeping Giant zone intersected more shallowly than expected.
Completion of hole NAD11-228 to target depth is planned and will be attempted by
setting a wedge near the bottom of the hole in order to drill past the core
barrel.
Section 3400N
Drill hole NAD11-229 was drilled 100 metres down-dip of hole NAD10-211 which
intersected 1.07 % nickel and 0.19% copper over 19.1 metres in 2010. NAD11-229
deviated off section with the end of hole located approximately 80 metres to the
north. Various zones of disseminated sulphides were intersected throughout the
hole, the most significant of which were a 14.2 metre interval grading 0.73%
nickel and 0.14% copper from 264.2 to 278.4 metres and a 6.95 metre interval
grading 0.51% nickel and 0.15% copper from 287.05 to 294 metres. These two
intersections are interpreted to correlate with the Sleeping Giant zone,
intersected more shallowly than expected as seen in hole NAD11-228. Final assay
results are pending for the bottom portion of this hole.
Section 3300N
Drill hole NAD11-231 was drilled to test 100 metre down-dip of drill hole
NAD07-023EXT which intersected disseminated nickel mineralization grading 0.64%
nickel and 0.12% copper over 80 metres in 2010. NAD11-231 intersected various
metre scale intervals of weakly disseminated sulphide mineralization throughout
the hole, the lowermost of which correspond to the Sleeping Giant zone. Assays
are pending.
Hole NAD11-234 was drilled to test 100 metres up dip of NAD07-023EXT. This hole
intersected a wide zone of Sleeping Giant mineralization consisting of
disseminated to blebby sulphides as well as partially remobilized sulphide
stringers which graded 1.62% nickel and 0.36% copper over 47.0 meters including
a higher grade interval grading 2.03% nickel and 0.42% copper over 31.5 meters.
NAD11-234 is located 200 metres south of the hole NAD11-220 (2.58% nickel and
0.41% copper over 23.3 metres) and 100 metres south of hole NAD10-216 (1.22 %
nickel and 0.21% copper over 15.9 metres). The mineralization in hole NAD11-234
is one of best intersections obtained to date at Ntaka Hill. Final assays are
pending for the upper portion of this hole.
NAD11-235 was drilled 100 metres up-dip of hole NAD11-234 and intersected
various metre scale zones of disseminated sulphides including a 9 metre interval
from 219 to 228 metres which correlates with the Sleeping Giant zone. Assays are
pending.
Sections 3200N
Drill holes NAD11-237, 238 and 242 were drilled 100 metres to the south on
section 3200N to test for the down-plunge extension of the Sleeping Giant zone.
NAD11-237 was lost at 19.65m and was re-collared as hole NAD11-238. NAD11-238
intersected two separate mineralized intervals, including a 15 metre interval
from 360 to 375 metres and a 9 metre from 395 to 404 metres, consisting of
disseminated to net-textured to stringer sulphides as well as narrow massive
sulphide veins. These two intervals are similar in appearance to the
mineralization intersected in hole NAD11-234.
NAD11-242 was drilled 100 metres up-dip of NAD11-238 and intersected an 18 metre
interval of disseminated to locally net-textured sulphides from 288 to 306
meters which correlates with the Sleeping Giant zone.
Mineralization intersected in holes NAD11-238 and 242 represent an additional
100 metre down plunge extension to the Sleeping Giant zone. Assays are pending.
Section 3700N
Drill hole NAD11-232 was drilled to test 100 metres up-dip of hole NAD11-226
which intersected 2.28% nickel and 0.57% copper over 17.25 metres in 2010.
NAD11-232 intersected a 48 metre interval from 143 to 191 metres consisting of
disseminated, blebby and stringer sulphides which is interpreted to represent
the up-dip extension of the Sleeping Giant zone.
Drill hole NAD11-233 was drilled to test 100 metres down-dip of hole NAD11-226
and intersected a 7 metre interval of disseminated to blebby sulphides from 282
to 289 metres corresponding to the Sleeping Giant zone. This hole also
intersected an additional 7 metre interval of disseminated to net-textured
sulphides located 150 metres up-hole of the Sleeping Giant zone from 127 to 134
metres.
Hole NAD11-236 was drilled 100 metres down-dip of hole NAD11-223 and did not
intersect significant widths of ultramafic rock or mineralization.
Assays are pending.
Section 3800N
Drill hole NAD11-239 was drilled to test for the up-plunge extension of the
Sleeping Giant zone and, similar to hole NAD11-233, intersected two separate
zones of mineralization. The upper zone consisted of 24 metres of disseminated
sulphides from 32 to 56 metres and the lower zone comprised 12 metres of
disseminated to blebby sulphides from 212 to 224 metres. The lower zone is
interpreted to correlate with the Sleeping Giant zone.
Hole NAD11-241 was drilled to test 100 metres down-dip of NAD11-239 and
intersected several zones of disseminated sulphides including a 7 metre interval
from 303 to 310 metres which represents the down-dip extension of the Sleeping
Giant zone.
Assays are pending.
Sections 3875N
Drill hole NAD11-240 was drilled to test a bore hole EM anomaly located down-dip
of L zone and also to test for the up-plunge extension of the Sleeping Giant
zone. This hole intersected several zones of disseminated sulphides between 83
and 105 metres which explain the bore hole EM anomaly and may correlate with the
upper sulphide intersections in holes NAD11-233 and 239. Assays are pending.
Exploration Target South of H Zone
Drill hole NAD08-171EXT was deepened by 74.5 meters from 212 to 286.5 meters in
order to test for "Sleeping Giant-type" mineralization south of H zone. In 2008,
this hole intersected 0.63% Ni over 4.0m in mineralized peridotite occurring at
the former end of hole. This mineralization did not extend from the point of
hole deepening. However, the hole did intersect 2.85 metres of disseminated,
net-textured and stringer sulphide from 259.40 to 262.25 metres which graded
1.57% nickel and 0.27% copper.
Preliminary bore hole electromagnetic (BHEM) survey results indicate that a weak
in-hole anomaly detected at 260 meters is associated with this mineralization.
The conductor associated with this anomaly is centered both down-dip and south
of NAD08-171EXT and is interpreted to lie on the same plane as mineralization
intersected in hole NAD08-119 (3.56% Ni & 0.61% Cu / 0.70 metres) at I Target
located 300 metres up-dip to the east. The BHEM results also show a building
off-hole anomaly beyond the end of hole NAD08-171EXT. This anomaly is
interpreted to be caused by a moderate to strong conductor located both down-dip
and south of the hole. Additional drilling will be required to more fully test
these new targets.
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. Ms. Tirschmann is a qualified person as defined by National
Instrument 43-101. The information in this release was prepared under the
direction of Dave Massola, President and CEO for Continental Nickel Limited.
Quality Control
The drilling was completed by Tandrill Limited of Tanzania. Drill core samples
(NQ) are cut in half by a diamond saw on site. Half of the core is retained for
reference purposes. Samples are generally 1.0 metre intervals or less at the
discretion of the site geologists. Sample preparation is completed at the ALS
Chemex preparation lab in Mwanza, Tanzania. Sample pulps are sent by courier to
the ALS Chemex analytical laboratory in Vancouver, Canada. Blank samples and
commercially prepared and certified Ni sulphide analytical control standards
with a range of grades are inserted in every batch of 20 samples or a minimum of
one per sample batch. Analyses for Ni, Cu and Co are completed using a peroxide
fusion preparation and ICP-AES finish (Analytical Code ME-ICP81). Analyses for
Pt, Pd, and Au are by fire assay with an ICP-AES finish (Analytical Code
PGM-ICP23).
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 the Nachingwea project
in Tanzania, where Mineral Resources (Measured and Indicated) have been
estimated at 60,900 tonnes of contained nickel, and an additional 131,000 tonnes
of contained nickel in Inferred Mineral Resources (CNI press release April 15,
2011). 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 diamond drill program discovered new Ni-Cu
sulphide zones.
As at the date of this release, the Company has 42,713,508 common shares issued
and outstanding (51,031,914 on a fully-diluted basis) and trades on the TSX
Venture Exchange under the symbol CNI. The Company remains well funded with over
C$8.7 million in the treasury as at March 31, 2011.
On behalf of Continental Nickel Limited
Dave Massola, President and CEO
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,
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.
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.
Table I: Summary of Holes Completed and Recent Assay Results
Ntaka Hill, Nachingwea Project, Tanzania.
----------------------------------------------------------------------------
Drill Location Az / Dip Length From To Interval % Ni % Cu % Co
hole East/ North (m) (m) (m) (m)
(NAD11-) UTM:WGS84
----------------------------------------------------------------------------
Sleeping Giant Zone, Ntaka Hill
----------------------------------------------------------------------------
227(ii) 450212mE 090 / -63 109.20 23.00 23.40 0.40 0.82 0.92 0.03
8883600mN
Hole not completed to target depth;
wedge or re-drill planned
----------------------------------------------------------------------------
228 449964mE 090 / 382.00 247.65 252.00 4.35 0.41 0.08 0.02
8883500mN -75.5
305.00 364.00 59.00 0.40 0.09 0.01
Incl.
354.95 364.00 9.05 0.63 0.12 0.02
Hole not completed to target depth;
wedge planned
----------------------------------------------------------------------------
229(ii) 449906mE 090 / -63 520.45 246.00 249.00 3.00 0.66 0.09 0.01
8883400mN
264.20 278.40 14.20 0.73 0.14 0.02
287.05 294.00 6.95 0.51 0.15 0.02
326.30 327.00 0.70 1.52 0.88 0.03
----------------------------------------------------------------------------
230 449960mE 090 / -68 385.55 (i) (i) (i)
8883600mN
----------------------------------------------------------------------------
231 449987mE 100 / -83 496.65 (i) (i) (i)
8883300mN
----------------------------------------------------------------------------
232 450167mE 095 / -66 217.60 (i) (i) (i)
8883700mN
----------------------------------------------------------------------------
233 449990mE 100 / -69 371.10 (i) (i) (i)
8883700mN
----------------------------------------------------------------------------
234(ii) 450150mE 100 / -79 388.85 309.00 356.00 47.00 1.62 0.36 0.03
8883300mN Incl.:
313.50 345.00 31.50 2.03 0.42 0.04
362.00 364.00 2.00 1.33 0.20 0.03
----------------------------------------------------------------------------
235 450198mE 100 / -71 364.50 (i) (i) (i)
8883300mN
----------------------------------------------------------------------------
236 449900mE 105 / -73 434.00 (i) (i) (i)
8883700mN
----------------------------------------------------------------------------
237 450154mE 090 / -79 19.65 Hole lost and re-collared as NAD11-238
8883200mN
----------------------------------------------------------------------------
238 450154mE 090 / -79 466.50 (i) (i) (i)
8883198mN
----------------------------------------------------------------------------
239 450096mE 095 / -73 253.00 (i) (i) (i)
8883800mN
----------------------------------------------------------------------------
240 450090mE 090 / -70 250.00 (i) (i) (i)
8883877mN
----------------------------------------------------------------------------
241 449946mE 090 / -55 328.00 (i) (i) (i)
8883800mN
----------------------------------------------------------------------------
242 450155mE 090 / -64 433.40 (i) (i) (i)
8883198mN
----------------------------------------------------------------------------
Exploration Target South of H Zone, Ntaka Hill
----------------------------------------------------------------------------
NAD08-171 450592mE 050 / -61 286.45 259.40 262.25 2.85 1.57 0.27 0.07
EXT 8883115mN (deep- Incl.:
ened by 259.65 260.30 0.65 3.84 0.79 0.08
74.50m)
----------------------------------------------------------------------------
Note:
(i) - Assays Pending
(ii) - Additional Assays Pending
Intervals represent core lengths, not necessarily true widths.
Pt, Pd and Au assay results are not reported because in general, they are
less than 1.0 g/t on a combined basis.
NSA - No Significant Assays
To view a drill hole location figure, please visit the following link:
http://media3.marketwire.com/docs/CNIfig1.jpg.
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