Continental Nickel Limited announce additional assay results from drilling on its 70% owned Nachingwea nickel sulphide project in Tanzania. The Nachingwea project is a 70:30 Joint Venture with IMX Resources NL (”IMX”) of Australia. Continental Nickel is conducting a C$7.0 million exploration program at Nachingwea in 2008 and is well funded with over C$14.9 million in the treasury.

The 2008 drill program is now complete and the two diamond drills which have been operating since early July have demobilized from the project site. One hundred and nineteen (119) drill holes totalling 15,573 metres were completed during the program. Assay results have been received for an additional twenty four diamond drill holes (see attached Table and Figures) for a total of fifty drill holes reported year to date. Updated results from additional sampling are also reported for two holes from J Zone for which initial results were previously reported. The remaining assay results will be reported as they are received and verified.

Building upon the excellent results previously reported from the J and NAD013 zones, assays have now confirmed additional zones of high grade mineralization from the L, H and M Zones on the west and northwest side of the Ntaka Intrusion. Highlights include 9.0 metres grading 4.38% nickel and 0.72% copper, including 7.80% nickel and 1.16% copper over 4.6 metres from drill hole NAD08-103 at the L sulphide zone, and 13.0 metres grading 2.72% nickel and 0.59% copper, including 3.48% nickel and 0.71% copper over 8.0 metres from drill hole NAD08-134 at the M sulphide zone.

L Zone:

The L Zone discovered in 2007 is located 400 metres along strike of the NAD013 Zone on the west side of the Ntaka intrusion. Two of three drill holes completed in 2007 intersected disseminated to massive sulphide mineralization with the best result reported from NAD07-039 which intersected 2.40% nickel and 0.50% copper over 15.25m, including 4.66% nickel and 0.91% copper over 4.35 metres (previously reported). In 2008, sixteen drill holes totalling 1,858 metres were completed on sections spaced 25 metres apart. This drilling has traced the zone 175 metres along strike and it remains open at depth along a shallow southerly plunge. The zone displays a moderate to steep dip to the west with a dip extent of 50 to 75 metres.

Results reported herein include 9.0 metres grading 4.38% nickel and 0.72% copper from drill hole NAD08-103, including 7.80% nickel and 1.16% copper over 4.6 metres and 2.81% nickel and 0.73% copper over 3.2 metres from hole NAD08-104.

Drill hole NAD08-174 was drilled to test the down plunge continuation of the zone but intersected only narrow (0.1 metre) massive sulphide mineralization (assays pending). The hole will be surveyed with bore hole EM to help target a down plunge extension.

H Zone:

Sixteen drill holes totalling 2,195 metres were completed on 25 metre spaced sections at the H Zone in 2008. The zone was discovered in 2007 with drill hole NAD07-028 intersecting 7.50% nickel and 1.15% copper over 9.55 metres (previously reported). The zone has been traced for 150 metres along strike and remains open to the north and south, but thins to less than 1 metre. Mineralization consists of remobilized massive sulphide veins with individual veins pinching and swelling from less than 1 metre to several metres thick. The zone varies from single to multiple closely spaced veins, the latter occurring over widths of up to 9.5 metres. The zone has a moderate to shallow dip to the southwest.

Assay results reported herein continue to confirm previous high grades of nickel including 5.02% nickel and 0.33% copper over 4.45 metres (including 17.35% nickel over 0.55 metres and 16.51% nickel over 0.75 metres) from drill hole NAD08-114.

A prospecting program located the up dip extent of the zone where it outcrops at surface in a small creek bed. Selected grab samples contain up to 10.45% nickel and 29.9% copper. The discovery of mineralization at surface along with the shallow dip of mineralization indicates there may be potential to evaluate the zone for low cost open pit mining methods once resource studies are completed.

M Zone:

The M Zone was the last discovery made in 2007, and was tested with only a single drill hole (NAD07-044) which intersected 1.98% nickel and 0.47% copper over 11.3 metres, including 5.3 metres grading 3.19% nickel and 0.76% copper (previously reported). In 2008 a total of twenty-six drill holes, totalling 3,607 metres were completed to delineate the zone. The zone has been traced for 200 metres along strike. It has a moderate plunge to the south and has a dip extent of 75 to 100 metres to the east.

Mineralization consists of ultramafic-hosted disseminated, net textured and locally semi-massive sulphides similar in appearance to the J Zone. Assay results reported herein include: 2.82% nickel and 0.51% copper over 6.9 metres, including 3.0 metres grading 5.08% nickel and 0.71% copper from NAD08-133 and 2.72% nickel and 0.59% copper over 13.0 metres, including 8.0 metres grading 3.48% nickel and 0.71% copper from drill hole NAD08-134.

Drill hole NAD08-173 targeted the down plunge extension of the zone 50 metres along strike, but only intersected minor sulphide mineralization that may be off the plunge trend. The hole will be surveyed with borehole EM to help locate additional mineralization.

J Zone:

A total of thirty diamond drill holes (2,459 metres) have been completed in the current drill program at the J Zone. Assay results have been received for an additional four new holes as well as from additional sampling of two holes previously reported where sampling did not adequately constrain the mineralized intervals. The additional sampling has identified a “transition” zone of partially weathered and oxidized sulphide mineralization between the oxide and sulphide mineralization.

Highlights include NAD08-74 which has an upper oxide zone grading 2.12% nickel and 0.61% copper over 16.0 metres overlying transitional sulphide mineralization grading 2.3% nickel and 0.15% copper over 19.0 metres including 13.0 metres grading 3.00% nickel and 0.20% copper.

Additional sampling of hole NAD08-071 increased the width of the intersected oxide mineralization to 26.0 metres grading 1.17% nickel and 1.20% copper. Additional sampling of NAD08-081 increased the width of the intersected transitional sulphide mineralization to 18.0 metres grading 1.54% nickel and 0.43% copper starting at a depth of 15.0 metres down hole.

It is believed that the J Zone is now largely delineated. When the outstanding assay results have been received, a 3D geological model will be constructed to facilitate resource studies.

Craig MacDougall, President & CEO of Continental Nickel Limited, reported “following the success of our drilling efforts at J and NAD013 Zones, three additional zones (L, H and M) have all returned solid sulphide intersections in multiple drill holes. The continuity and grade of the mineralization that has been intersected is very encouraging. It is anticipated that the Company will initiate resource studies on several zones from the Ntaka intrusion once all of the assay results have been received.”

This entry was posted by Gold Mining on Thursday, November 20th, 2008 at 10:04 pm and is filed under Copper, Nickel. Tags: Australia, Continental Nickel Limited, Craig MacDougall, IMX Resources NL, Joint Venture, low cost open pit mining methods, project site, Tanzania. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.