Continental Nickel Provides Exploration Update on Chilalo Copper Prospect, Nachingwea Property, Tanzania
26 September 2011 - 10:00PM
Marketwired
Continental Nickel Limited (TSX VENTURE: CNI) ("CNI" or the
"Company") is pleased to provide an exploration update on the new
regional copper showing reported earlier this year (Press Release
May 25, 2011). The showing is located approximately 23 kilometres
northeast of Ntaka Hill on the Company's "Chilalo" prospecting
license. The area surrounding the showing has been the subject of
on-going exploration including sampling, prospecting and ground
electromagnetic surveys. Representative grab samples have returned
up to 1.48% copper and 3.05 g/t silver. Anomalous copper values of
greater than 100 ppm up to 1,780 ppm in soil samples have been
identified over a strike length of 600 metres. In addition, a
second gossan occurrence has been identified 6.5 kilometres
northeast of the Chilalo malachite pits and has returned values of
up to 0.42% Cu and 0.34% Zn in grab samples. The project is a 75:25
joint venture between CNI and IMX Resources Limited ("IMX") of
Australia.
Laboratory geochemical results are provided in Table I below and
also summarized in the location figure provided with this
release.
In May of this year, the Company confirmed the existence of a
new malachite-bearing copper showing and related artisanal mining
activity located on one of its regional prospecting licenses
located approximately 23 kilometres northeast of Ntaka Hill. At
that time, the malachite mineralization was reported to be hosted
in both graphitic gneisses and ultramafic rock. The company wishes
to report that subsequent site visits have been made by the
Company's Vice President of Exploration and that the malachite
mineralization appears to be hosted primarily in high metamorphic
grade felsic gneisses and amphibolite, typically adjacent to a
highly oxidized, gossanous copper-bearing sulphide horizon. The
gossanous sulphide horizon and related malachite mineralization can
be traced in a series of pits extending in a northeast-southwest
direction over a strike length of 400 metres. The mineralized
horizon, where exposed, appears to be fairly narrow (less than 5
metres in width) and dips moderately to the south. Representative
grab samples of the heavily oxidized sulphide gossan and altered,
mineralized felsic gneisses and amphibolite from the pits returned
values of up to 1.48% copper and 3.05 g/t silver.
Detailed (50 x 25 metre) soil sampling has been carried out in
the immediate area of the malachite pits, with more widely spaced
(200 x 50 metre) soil sampling along strike to the east and west.
Preliminary geochemical analyses were completed in the field using
portable NITON XRF instruments and selected samples were
subsequently sent for multi-element laboratory analysis. The latter
are reported herein. Anomalous copper values of greater than 100
ppm up to 1,780 ppm in soil samples have been identified over a
strike length of 600 metres extending in a southwest direction
along the trend of the main malachite pits and trenches. A second,
700 metre long trend of anomalous copper values ranging from 100 -
250 ppm is located further along strike to the southwest. Several
other areas with anomalous copper values in soil samples have been
detected including values of up to 625 ppm Cu and 925 ppm Zn in the
vicinity of a second gossan showing ("Chilalo East") located 6.5
kilometres northeast of the Chilalo malachite pits. Grab samples of
surface gossan from this location returned values of up to 0.42%
copper and 0.34% zinc.
Surface time domain electromagnetic ("EM") surveys totalling 34
line kilometres have been completed over two grids and data
interpretation and modeling is in progress. Preliminary results
indicate the presence of several EM anomalies, including a high
priority anomaly located west of the malachite pits and an EM
anomaly coincident with the elevated copper and zinc values in soil
samples in the vicinity of the Chilalo East gossan occurrence to
the northeast.
The Company has contacted and met with local authorities in
order to secure their support in efforts to remove the artisanal
miners from the Chilalo malachite pits. The Company's land tenure
has been acknowledged by the local authorities who also support
on-going efforts to terminate the artisanal mining activities.
Patricia Tirschmann, VP Exploration, commented "The copper
gossan and oxide occurrences on the Company's Chilalo license
represent an exciting new target type within our regional land
holdings. Soil sampling to date indicates that anomalous copper
values in soils are widespread and may be stratigraphically
controlled. We are looking forward to drill testing these
developing geochemical and geophysical targets later this
year."
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 and is
responsible for the preparation of this release.
Quality Control
All soil and rock samples are shipped to the ALS Chemex
preparation lab in Mwanza, Tanzania. Sample pulps are sent by
courier to the ALS Chemex analytical laboratory in Vancouver,
Canada. Field duplicates and a field standard from the project site
are inserted in every batch of soil samples at intervals of a
maximum of every 50 samples. Multi-element analyses for the soil
samples are completed by HF-HNO3-HClO4 acid digestion and an HCl
leach followed by an ICP-MS finish (Analytical Code ME-MS61).
Multi-element analyses for the rock samples are completed either by
HF-HNO3-HClO4 acid digestion and an HCl leach followed by an ICP-MS
finish (Analytical Code ME-MS61) or by lithium metaborate fusion
and ICP-MS finish (Analytical Code ME-MS81d). Cu analyses for
selected rock samples are also completed by sodium peroxide fusion
and dissolution with an ICP finish (Analytical Code CU-ICP81).
Analyses for Pt, Pd and Au are completed by fire assay with either
an ICP-AES finish (Analytical Code PGM-ICP23; soil samples) or an
ICP-MS finish (Analytical Code PGM-MS23; rock samples).
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$13.6 million in the
treasury as at June 30, 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 1: Geochemical Results for Rock Grab Samples,
Chilalo Prospecting License PL6073/2009, Nachingwea Project, Tanzania.
----------------------------------------------------------------------------
Sample Easting Northing Cu % Zn % Ag g/t Description
No.
----------------------------------------------------------------------------
Chilalo Malachite Pits
----------------------------------------------------------------------------
23453 469200 8899310 0.43 0.04 less than 1 Malachite-
bearing
amphibolite
----------------------------------------------------------------------------
23454 469314 8899374 0.74 0.27 2.47 Oxidized
sulphide gossan
----------------------------------------------------------------------------
23455 469250 8899354 1.48 0.04 3.05 Oxidized
sulphide gossan
----------------------------------------------------------------------------
23457 469162 8899320 0.84 0.02 0.70 Altered felsic
gneiss
----------------------------------------------------------------------------
23458 468965 8899221 0.34 0.03 0.08 Altered felsic
gneiss
----------------------------------------------------------------------------
23459 468965 8899221 0.32 0.05 0.23 Altered felsic
gneiss
----------------------------------------------------------------------------
Chilalo East Gossan Occurrence
----------------------------------------------------------------------------
23451 475521 8902242 0.42 0.16 less than 1 Gossan
----------------------------------------------------------------------------
23452 475440 8902113 0.20 0.34 less than 1 Gossan
----------------------------------------------------------------------------
Notes:
Samples 23451 - 23453: Cu and Ag analyses by lithium metaborate fusion and
ICP-MS finish;
Ag lower detection limit = 1 g/t
Samples 23454 - 23459: Cu analyses by sodium peroxide fusion and
dissolution with an ICP finish
To view the Chilalo Geochem and Geophysics image associated with
this release, please visit the following link:
http://media3.marketwire.com/docs/CNIF926.pdf.
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 Dave Massola President and
CEO (905) 815-0533 (ext 228) (905) 815-0532 (FAX) Continental
Nickel Limited Patricia Tirschmann Vice President, Exploration
(905) 815-0533 (ext 224) info@continentalnickel.com
www.continentalnickel.com
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