CNI Continental Nickel Limited

Continental Nickel Limited (TSX VENTURE:CNI) ("CNI" or the "Company") is pleased
to announce that, based on analysis of recently received assays by CNI's
consulting metallurgist, good recovery of nickel by conventional flotation is
currently anticipated from the disseminated hanging wall mineralization in the
Sleeping Giant zone at the Ntaka Hill Nickel Project (the "Project"). This
analysis was based on nickel assays conducted on samples from drilling of
mineralization included in the recently announced mineral resource update (CNI
press release of March 2, 2012).


Based on preliminary work it is estimated that the disseminated hanging wall
mineralization represents approximately 50% of the contained nickel in the
mineral resource estimate for the Sleeping Giant zone. Evaluation work to
further define the amount of the resource attributable to the hanging wall will
continue over the next year. The Project is part of the larger 75:25 joint
venture between CNI and IMX Resources Limited covering the Nachingwea property
in Southern Tanzania.


Highlights



--  Average estimate of non-sulphide nickel from 116 representative samples
    was 0.072% nickel ("Ni") and remained largely constant across the range
    of nickel grades and was consistent with similar analysis on samples
    from the main body of the Sleeping Giant zone. 

--  The low estimate of non-sulphide nickel mineralization combined with the
    low levels of MgO-bearing minerals prevalent at Ntaka Hill provides
    support for expected good nickel recovery by conventional flotation from
    the disseminated hanging wall mineralization in the Sleeping Giant zone.

--  These results are similar to those reported from other disseminated
    nickel sulphide projects such as the Kevitsa copper nickel project in
    Finland and the Ronnbacken nickel project in Sweden. 



Mr. Stewart Watkins, Vice President Projects, commented: "The low level of
non-sulphide nickel is a good indication that the Sleeping Giant disseminated
hanging wall mineralization is amenable to conventional flotation processes and
should demonstrate good metallurgical performance in line with our expectations
from the flotation test work already carried out on samples from the main body
of the Sleeping Giant zone."


"These results show that the inclusion of the disseminated hanging wall
mineralization in the estimated mineral resource and proposed processing plan
will have a positive impact on the Ntaka Hill project as highlighted in the
Upside Sensitivity Case presented in the October 2011 PEA (CNI press releases of
October 5 and November 15, 2011)."


Samples and Assay Techniques

A total of 116 representative samples were selected from 2010 and 2011 drill
core to provide a range of nickel grades for analysis and to spatially represent
the disseminated hanging wall mineralization at the Sleeping Giant zone. The
range of total nickel grades for the samples ranged between 0.02%Ni and 2.35%Ni
with the average being 0.36%Ni.


The samples were assayed at ALS Minerals laboratory in Canada using their
ME-ICP81 and Ni-ICP05 methods. The ME-ICP81 technique is designed to assay for
total nickel using a sodium peroxide fusion followed by hydrochloric acid digest
and an ICP-AES finish. This is the assay method used to date to analyse
geological samples from the Project, which in turn was used in the preparation
of mineral resource estimates. The Ni-ICP05 technique is designed to only assay
for nickel contained in sulphide minerals, such as pentlandite, using an
ammonium citrate and hydrogen peroxide digest followed by an ICP-AES finish. The
assay of non-sulphide nickel was then calculated by using the difference between
the two assay techniques.


Analysis of Data

The assay dataset was analyzed with outliers (two samples) and samples with a
total nickel assay of below 0.15%Ni or above 1.0%Ni (36 samples) removed.
Non-sulphide nickel versus total nickel was then plotted from the dataset. The
plot of this data may be viewed using the link provided with this release.


The plotted data shows that there is no significant correlation between the
assay of non-sulphide nickel and total nickel across the range of total nickel
assays analyzed. Variability in the non-sulphide nickel assay increased with
increasing total nickel.


This data was also compared to similar data for the main body of the Sleeping
Giant zone (47 samples), which had a higher average total nickel grade of
0.89%Ni. This showed that the average estimate of non-sulphide nickel was
similar for these samples when compared to the disseminated hanging wall
samples.


Indications of Metallurgical Performance

CNI's metallurgical consultant, Mr. Peter Munro of Mineralurgy Pty Ltd, assessed
the nickel assay data as an indicator of expected nickel recovery by
conventional flotation. He concluded that, since the estimate of non-sulphide
nickel was essentially constant with total nickel, and there were low levels
MgO-bearing minerals requiring depression during flotation, the nickel recovery
by conventional flotation from all mineralization included in the resource
estimate for the Sleeping Giant zone should conform to a "constant tailing"
model. A "constant tailing" model was the assumption proposed by Mr. Munro and
used in the Upside Sensitivity Case in the October 2011 PEA (CNI press releases
of October 5 and November 15, 2011) to estimate nickel recovery from the assumed
disseminated mineralization.


In addition, Mr. Munro carried out a literature review of public documents on
current and proposed lower grade nickel operations. He found that the analysis
of the samples from the disseminated hanging wall mineralization fell within the
expected range of average non-sulphide nickel when compared to other lower grade
nickel projects such as the Kevitsa copper nickel project in Finland (0.292%Ni
average resource grade) and the Ronnbacken nickel project in Sweden (0.177% Ni
average resource grade).


Next Steps

A second phase of metallurgical characterization is planned to determine the
final metallurgical parameters for the Project. Approximately 12 tonnes of drill
core samples are currently being shipped to G & T Metallurgical Services Ltd in
Kamloops, British Columbia. Test work will specifically include quantitative
mineralogical examination of the disseminated hanging wall mineralization by
QEMSCAN and bench scale flotation testing. This study will be completed during
the first half of 2012 for inclusion in the Project development plan.


Qualified Persons

The quality control, technical information and all aspects of the exploration
program, including sample selection and assaying, were supervised by Ms.
Patricia Tirschmann, P. Geo., Vice President, Exploration, for CNI. The analysis
of the data and conclusions drawn on metallurgical performance were made or
reviewed by Mr. Peter Munro FAusIMM, Senior Principal Consulting Engineer with
Mineralurgy Pty Ltd. an independent consultant to CNI.


Ms. Tirschmann and Mr. Munro are qualified persons as defined by National
Instrument 43-101 and consent to the inclusion of the data in the form and
context in which it appears.


About Continental Nickel Limited

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 measured and indicated mineral
resources have been estimated at 12.8 Mt grading 1.21% nickel and inferred
mineral resources have been estimated at 45 Mt grading 0.30% nickel (CNI press
release March 2, 2012). The project is a 75:25 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 (51,126,914 on a fully-diluted basis) and trades on the TSX
Venture Exchange under the symbol CNI. The Company remains well funded with over
$9.4 million in the treasury as at December 31, 2011.


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, metallurgical results,
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. 


To view the figure associated with this release, please visit the following
link: http://media3.marketwire.com/docs/CNIfig322.pdf.

Continental Nickel Limited (TSXV:CNI)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024

Continental Nickel Limited (TSXV:CNI)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024