Great News
Continental Nickel drills 9.55 m of 7.5% Ni, 1.15% Cu
2007-11-20 08:38 ET - News Release
Mr. Craig MacDougall reports
CONTINENTAL NICKEL ANNOUNCES INITIAL DRILL RESULTS FROM THE NACHINGWEA PROJECT, TANZANIA-NEW HIGH GRADE NI-CU SULPHIDE ZONE DISCOVERED GRADING 7.50% NI, 1.15% CU OVER 9.55 M
Continental Nickel Ltd. has provided the first drill results from its 70-per-cent-owned Nachingwea nickel sulphide project in Tanzania. The Nachingwea project is a 70:30 joint venture with Goldstream Mining NL of Australia. The drill holes in this initial program intersected six new zones of magmatic sulphide mineralization, including the new high-grade zone H intersected in drill hole NAD007-028 which grades 7.50 per cent Ni, 1.15 per cent Cu and 0.10 per cent Co over 9.55 metres. The intersection includes a 4.0 m interval of massive sulphide grading 15.31 per cent Ni, 2.53 per cent Cu and 0.19 per cent Co. Follow-up drilling at the NAD013 area discovered by Goldstream Mining in 2006 (located 300 m northwest along strike of the H zone) has also returned an intersection of 17.11 per cent Ni, 2.71 per cent Cu and 0.19 per cent Co over 1.9 m from drill hole NAD07-019.
In August and September, 2007, a ground fixed loop time domain electromagnetic (EM) survey was completed by Crone Geophysics and Exploration Ltd. Seventy-five line kilometres of surveying were completed from 11 loop positions designed to provide systematic coverage of the Ntaka intrusion where high-grade nickel sulphide mineralization was discovered by Goldstream in 2006 (NAD013 area). Subsequent modelling of the data by Crone identified at least 12 moderate to high conductance targets ranging from less than 100 m to greater than 300 m in strike length, one of which was coincident with the high-grade, Ni-Cu mineralization at NAD013.
Drilling commenced in mid-August with 53 drill holes totalling 10,514 m completed with two drill rigs. The assays from seven holes have been received and are reported in the "Summary of assay results, Nachingwea project, Tanzania" table.
The new high-grade mineralized zone was discovered while drill testing a strike limited (less than 100 m), conductor (target H) located 300 m southeast of the NAD013 area. Seven drill holes have tested the new H zone to date. Both the NAD013 and the H zones are located along the western margin of the Ntaka intrusion and are mineralogically similar consisting of massive pyrrhotite-pentlandite-millerite-chalcopyrite. The first hole to test target H (NAD07-26) intersected a narrow zone of sulphide mineralization from 61.7 m down hole which graded 3.52 per cent Ni, 0.38 per cent Cu and 0.06 per cent Co over 2.05 m including a 0.45 m interval of massive sulphide mineralization grading 14.75 per cent Ni, 1.12 per cent Cu and 0.23 per cent Co. Drill hole NAD007-028 tested a location 20 m down dip of the intersection in NAD07-26 and intersected several zones of closely spaced massive to semi-massive to stringer sulphide mineralization which graded 7.50 per cent Ni, 1.15 per cent Cu and 0.10 per cent Co over an interval 9.55 m at a depth of 66.45 m down hole. This interval includes a zone of high-grade massive sulphide grading 15.31 per cent Ni, 2.53 per cent Cu and 0.19 per cent Co over 4.0 m from 66.45 m to 70.45 m. Five additional drill holes have been completed on this target, with four intersecting massive sulphide mineralization ranging from less than 0.5 m to 2.25 m in core length. The assays results are pending from those drill holes.
The discovery of this new H zone underscores the potential for additional high-grade mineralized zones along the western margin of the Ntaka intrusion and provides a high level of confidence in the geophysical targeting methodology.
In the area of drill hole NAD013 drilled in 2006 by Goldstream which graded 11.23 per cent Ni, 1.74 per cent Cu over 3.0 m, the Crone ground EM geophysical survey confirmed the presence of a strike limited (less than 100 m), shallow dipping, strongly conductive anomaly which can be correlated with the mineralization intersected in that hole. Eleven drill holes (NAD07-18, 19, 20, 21, 22, 53, 55, 56, 58, 60 and 62) totalling 2,055 m tested the area of conductivity along strike and down dip of the NAD013 discovery hole. Assays have been received for five of the holes. Hole NAD07-19, drilled 30 m south and along strike of hole NAD013 returned 1.90 m of massive sulphide mineralization grading 17.11 per cent Ni, 2.71 per cent Cu and 0.19 per cent Co at a depth of 48.94 m down hole. Holes NAD07-18 and 20, positioned 30 m down dip of holes 13 and 19 respectively, both intersected narrow, high-grade massive sulphides. NAD07-21 and NAD07-022 were drilled 50 m south along strike of NAD07-19 and 20 and did not intersect any significant mineralization.
Targets I and L are located along a 1.3-kilometre strike length of the western part of the Ntaka intrusion respectively southeast and northwest of the NAD013 and H target areas. Drilling has intersected multiple zones of semi-massive to massive sulphide mineralization over core intervals ranging from less than 0.5 m to approximately 3.0 m. The assay results are pending.
Elsewhere on the property, targets G, J and M, which are located in the eastern and northern portions of the Ntaka intrusion, are associated with intersections of disseminated, net-textured, semi-massive, or massive sulphides over core lengths ranging from 3.0 m to 18.0 m. The assays are pending.
Management is very pleased to report that the current phase I drilling was successfully completed as planned, and in advance of the approaching wet season. Down-hole pulse EM surveying is under way on selected drill holes to assist in identifying extensions to known mineralization and to evaluate for the presence mineralized zones near existing drill holes.
A 5,900-line-kilometre airborne magnetic/EM survey has commenced with approximately 1,750 line km completed. Data collected from this survey will be processed and modelled in order to identify new regional targets for follow up in the 2008 program.
Craig MacDougall, president and chief executive officer of Continental Nickel, reported: "We are very excited to have discovered a new high-grade Ni-Cu massive sulphide zone along the western margin of the Ntaka intrusion. The potential for additional discoveries remains high. This discovery and the discovery previously made by Goldstream Mining in drill hole NAD013 exhibits grades which are exceptional for nickel sulphide mineralization. Moreover, our drilling to date has intersected nickel sulphide mineralization in five other targets for which assays are pending. I wish to congratulate our exploration team for having quickly made new discoveries on this project."
Quality control
The drilling was completed by Tandrill Ltd. 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 and half is sent for analysis. Samples are generally collected in 1.0 m 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 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 (ME-ICP81). Analyses for Pt, Pd and Au are by fire assay with an ICP-AES finish (PGM-ICP23).
The quality control, technical information and all aspects of the exploration program were supervised by Patricia Tirschmann, PGeo, vice-president of exploration for CNI. Ms. Tirschmann is a qualified person as defined by National Instrument 43-101.
SUMMARY OF ASSAY RESULTS, NACHINGWEA PROJECT, TANZANIA
Hole
Drill length From To Int. Ni Cu Co
hole Target m m m m % % %
NAD07-018 NAD13 area 283.30 19.00 23.00 4.00 0.76 0.10 0.02
89.40 89.90 0.50 5.88 0.51 0.10
NAD07-019 NAD13 area 175.60 48.95 50.85 1.90 17.11 2.71 0.19
NAD07-020 NAD13 area 275.50 72.45 72.85 0.40 9.92 1.56 0.14
194.70 207.75 13.05 0.62 0.16 0.02
NAD07-021 NAD13 area 151.20 NSA NSA NSA NSA
NAD07-022 NAD13 area 100.60 NSA NSA NSA NSA
NAD07-026 H 151.32 61.70 63.75 2.05 3.52 0.38 0.06
Incl. 63.30 63.75 0.45 14.75 1.12 0.23
NAD07-028 H 127.50 66.45 76.00 9.55 7.50 1.15 0.10
Incl. 66.45 70.45 4.00 15.31 2.53 0.19
73.50 76.00 2.50 4.02 0.21 0.05
(i) Note: 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.
(ii) NSA -- no significant assays.