Nuinsco Reports Additional Drill Results From Prairie Lake Rare Metals Project Positive Results Enhance Overall Economic Potential of Multi-Commodity Project
Positive Results Enhance Overall Economic Potential of Multi-Commodity Project
TORONTO, ONTARIO -- (Marketwire) -- 10/20/11 -- Nuinsco Resources Limited ('Nuinsco') (TSX: NWI) (www.nuinsco.ca) today reported the balance of drill results from the most recent program conducted at its superbly located, readily accessible, Prairie Lake rare metals project in northwestern Ontario. The holes returned widespread and extensive niobium (Nb2O5) and phosphorous (P2O5) analyses in conjunction with tantalum and rare earths.
'The ongoing accumulation of impressive and prospective results from the project only serves to reinforce the Company's opinion that Prairie Lake is an undervalued asset within its property portfolio,' said Paul Jones, President.
The results from the six holes reported here continue to demonstrate strong niobium and phosphorus mineralization, with rare earth elements (REEs) and tantalum (Ta), over very significant sampling lengths. Intervals of elevated assays were obtained from all holes and include 183.88m grading 3.49% P2O5 and 0.109% Nb2O5 in NP1002 and 294m grading 3.14% P2O5 and 0.121% Nb2O5 in NP1004. When combined with previous drilling and trenching results they define an enormous domain of rock mineralized with elements of economic interest.
'These results will enhance the Exploration Target Mineralization Inventory (ETMI) already estimated at 330-360 Mt,' Mr. Jones added. 'In addition to the niobium grade, which compares favourably with the Nb2O5 resource grade reported for other projects in Canada, positive phosphorous, tantalum and rare earth element results combined with a location adjacent to power, road, rail and shipping facilities enhance the prominence of Prairie Lake.'
From Width Ta Y La Ce Nd Sm
Hole ID (m) To (m) (m) P2O5(%) Nb2O5(%) U (ppm) (ppm) (ppm)
----------------------------------------------------------------------------
NP1002 1.12 185 183.88 3.49 0.109 42.7 6.0 1351
200 230 30 3.39 0.083 27.4 11.6 1441
NP1003 2.76 40.45 37.69 3.18 0.175 60.6 14.2 1754
93.2 147.5 54.3 4.63 0.141 86.4 21.0 1679
181.7 274.8 93.1 3.05 0.141 41.2 12.3 1421
299 397.5 98.5 3.33 0.127 37.2 14.8 1231
410.6 601 190.4 3.36 0.106 34.0 7.8 1444
NP1004 157.24 169.4 12.16 5.40 0.053 28.0 9.2 1925
176 193.6 17.6 5.17 0.049 25.3 8.9 1728
218 225.5 7.5 10.13 0.073 43.9 20.0 2982
284 289.9 5.9 7.04 0.069 37.5 17.7 2815
305 599 294 3.14 0.121 42.9 11.9 1672
NP1005 0 259.9 259.9 2.84 0.138 45.9 12.2 1593
323.8 362 38.2 5.02 0.053 23.9 9.5 1616
including 336.27 336.71 0.44 23.08 0.024 41.6 7.8 5618
NP1006 154.3 193.05 38.75 4.32 0.074 23.2 3.6 3780
255.45 290 34.55 3.02 0.050 19.7 11.5 1200
302 599 297 3.92 0.072 33.1 7.1 1549
NP1007 4.5 200 195.5 3.74 0.106 47.4 19.3 1908
211.15 214.5 3.35 5.21 0.062 70.9 21.6 1614.2
255.5 282.5 27 3.68 0.039 15.4 8.6 1286.6
427.16 429.06 1.9 0.08 0.040 32.5 0.2 8715
During November and December 2010, Nuinsco conducted approximately 4,000 m of drilling at Prairie Lake. Seven inclined holes, each 500-605m in length, were drilled in the eastern part of the 2.8km2 near circular Prairie Lake Carbonatite Complex. Drilling was conducted in a scissor pattern with holes oriented at 60 and 240 degrees. A total of 1,263 samples were collected from the holes comprising a total of about 1,709m of sampled core length (predominantly carbonatite). Drilling was done near the 'High Grade Showing' zone, SE of Anomaly Lake (see map) in anticipation of extending the SW Target Zone defined in the 2010 Exploration Target Mineralization Inventory (ETMI) to the northeast.
Given the significant scale of the mineralization identified at Prairie Lake and the results of the exploration programs conducted so far, Nuinsco is actively advancing its program of process testing. Initial testing has shown that the mineralization at Prairie Lake, which is easily excavated using simple quarry mining methods, can be upgraded using non-optimized techniques to produce a concentrate containing more than 23% P2O5 using low cost flotation methods (see press release dated February 4, 2010). Concentrates exceeding 30% P2O5 are considered achievable using an optimized process. The process testing program, currently ongoing, will also evaluate production of a niobium concentrate.
About Prairie Lake
Located about 45 kilometres northwest of Marathon, Ontario, Nuinsco's Prairie Lake property covers the entire 2.8 km2 (at surface) Prairie Lake Carbonatite Complex and is easily accessible from the TransCanada Highway. The Prairie Lake Project hosts a near-surface historic (non-NI-43-101-compliant) resource of over 180,000 tonnes grading 0.09% U308 (1.656 lb/tonne) and 0.25% niobium identified in limited exploration dating from the mid-1960s. In addition, a 330 million-360 million tonne National Instrument 43-101-compliant Prairie Lake ETMI(1), announced by news release on January 13, 2010, is based on only 12% of the total surface area of the Prairie Lake project, demonstrating the huge scale and potential economic significance of this multi-commodity deposit. The ETMI estimates known mineralization at between 330 and 360 million tonnes averaging 3.5% to 3.7% P2O5 and 0.12% to 0.14% Nb2O5 (1.2 to 1.4 kg/tonne). In addition to phosphorous and niobium, the suite of minerals of economic significance includes tantalum (Ta), uranium (U) and REEs (1,490-1,536 ppm combined, including lanthanum (La), cerium (Ce), samarium (Sm), neodymium (Nd) and yttrium (Y)).
(1)The potential quantity and grade of the ETMI is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the discovery of a mineral resource.
About Nuinsco Resources Limited
Nuinsco is a growth-oriented, multi-commodity mineral exploration company that is focused on world- class mineralized belts in Canada, Turkey, Egypt and Sudan. In addition to its property holdings, Nuinsco owns common shares in Coventry Resources Limited (ASX: CVY) and Victory Nickel Inc. (TSX: NI). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.
All intervals are core lengths, not true widths. Analyses were conducted by Activation Laboratories of Ancaster, Ontario. All exploration work is supervised by Paul Jones, President, who acts as QP under National Instrument 43-101 and has reviewed and approved the technical contents of this news release.
Please visit the Company's website at www.nuinsco.ca. Should you wish to receive Company news via email, please email juliet@chfir.com and specify 'Nuinsco Resources' in the subject line.
FORWARD-LOOKING STATEMENTS: This news release contains certain 'forward-looking statements.' All statements, other than statements of historic fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as 'seek,' 'anticipate,' 'believe,' 'plan,' 'estimate,' 'expect,' and 'intend' and statements that an event or result 'may,' 'will,' 'can,' 'should,' 'could,' or 'might' occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain tenure to properties and/or necessary permits and approvals from government authorities in Egypt and elsewhere, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward- looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/NWIfig.jpg.
Contacts:
Nuinsco Resources Limited
Rene Galipeau or Sean Stokes
416.626.0470
416.626.0890 (FAX)
admin@nuinsco.ca
CHF Investor Relations
Juliet Heading
416.868.1079 X239
416.868.6198 (FAX)
juliet@chfir.com
