Nuinsco Aggressively Advancing Canadian Nickel Assetsadmin
Nuinsco Resources Limited (TSX:NWI.TO – News) (“Nuinsco” or the “Company”) today provided an update of recent developments and ongoing activities at its three advanced nickel projects in northern Manitoba and northwestern Quebec. Highlights include:
* Minago: Scoping study on track for completion in September. * Lac Rocher: Drill program in progress, resource estimate expected in early Q4.
* Mel: Internal economic evaluation underway in preparation for fall scoping study.
“Nuinsco has three quality sulphide nickel projects in Canada, two of which host almost 33 million tonnes of measured and indicated resources representing close to half a billion pounds of in-situ nickel,” said Nuinsco’s Chief Executive Officer Rene Galipeau. “Our goal remains to realize the value of these assets by creating Canada’s next pure nickel company and aggressively advancing Minago, Mel and Lac Rocher toward production.”
The Minago project is a large, potentially open pittable sulphide nickel deposit located in the prolific Thompson Nickel Belt near Thompson, Manitoba. At a 0.4% cutoff grade, Minago has a measured and indicated resource of 29.8 million tonnes grading 0.64% nickel, and an additional inferred resource of 27.2 million tonnes at 0.67% nickel. The project is superbly located: paved Provincial Highway 6 traverses the eastern part of the property as does a high capacity powerline, while the rail line to the Port of Churchill is located nearby.
Recent drilling confirmed the strength and continuity of nickel mineralization, returning 551 metres grading 0.55% nickel, including 80.95 metres of 1.12% nickel and 197.6 metres averaging 0.82% nickel (see press release dated May 25, 2006).
Metallurgical testing is ongoing to confirm historic studies showing that a very high-grade, high-value, nickel concentrate can be produced at Minago. This work is part of a scoping study that is currently underway and scheduled for completion in September. With a positive scoping study in hand, Nuinsco intends to move directly to production of a feasibility study which will incorporate the results of a $3 million reserve definition drilling program that will begin toward the end of the year.
The Lac Rocher property is located on the Frotet-Evans Greenstone Belt in northwestern Quebec. In January 1999 Nuinsco drilled three holes, including one that intersected disseminated sulphide mineralization and 3.2 metres of massive sulphide grading 10.8% nickel. Subsequent drilling further tested the discovery intrusion as well as other targets, identifying a larger halo zone in excess of 1% nickel surrounding the massive sulphide discovery.
Given the robust nickel market, the Company is completing a 2,000 metre drill program to delineate a National Instrument 43-101-compliant resource at Lac Rocher. Drill results are expected in early September and Nuinsco is targeting completion of a feasibility study this fall with the objective of mining and direct shipping the high-grade mineralization at Lac Rocher to a suitable smelter for processing.
Nuinsco is earning from Inco a 100% interest in the Mel project, located 25 kilometres north of Thompson, Manitoba. The Mel deposit hosts 2.74 million tonnes of measured and indicated resource grading 0.77% nickel.
In conjunction with Inco, Nuinsco is currently developing the exploration program for the 2006/2007 season. Concurrently, the Company is completing an internal economic study, and upon its completion in September plans to commence a third-party scoping study.
About Nuinsco Resources
Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is prepared for production and focused on growth through uranium, nickel, copper, zinc and gold exploration and development in world-class mineralized belts in Canada and Turkey. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.
FORWARD-LOOKING STATEMENTS: This news release contains certain “forward-looking statements.” All statements, other than statements of historical 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 necessary permits and approvals from government authorities, 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.
Distributed by Filing Services Canada and retransmitted by Market Wire
For further information, please contact:
Rene Galipeau or Sean Stokes Nuinsco Resources Ltd. (416) 626-0470
Kelly Boatright The Windward Agency (866) 583-6300
Source: Nuinsco Resources Limited