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Nuinsco Resources Limited: Nuinsco Evaluating Processing of Mineralization From Cameron Lake Gold Mine

^{Published on 2009-02-25 10:07:26, Last Modified on 2009-02-25 10:09:19 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2009) - Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI) ([ www.nuinsco.ca ]) today announced that it is reviewing options with regard to processing gold mineralized rock that is currently stockpiled at its 100%-owned Cameron Lake gold mine near Kenora in northwestern Ontario.

Approximately 14,000 tonnes of material was collected from numerous levels of the Cameron Lake Mine and crushed as part of a sampling program conducted in 1988 to produce representative samples for assay. Analysis by Lakefield Research at that time (now SGS Lakefield Research Limited) returned an average gold grade of 4.46 g/t (as this information pre-dates National Instrument 43-101, it cannot be determined at this time whether it would comply with National Instrument 43-101). This crushed material, and an additional amount of uncrushed development muck from mineralized zones within the deposit is currently stockpiled on surface and available for processing.

Using a gold price (US$991.70/oz) and exchange rate (1.25) as of February 23, 2009 and the 4.46 g/t average grade gives an in-situ value to the 14,000 tonnes of crushed rock of Cdn$2,500,000 (no value is ascribed here to the uncrushed material). Previous metallurgical testing indicates good gold recovery using conventional processing.

"We are actively evaluating our alternatives with respect to transporting and custom milling this material offsite," said Paul Jones, President. "In addition to providing significant revenue to Nuinsco from gold sales, this program will provide valuable information on metallurgy and recoveries that will be helpful with future development of the Cameron Lake Gold Mine."

Cameron Lake Gold Mine

The Cameron Lake Gold Mine was developed in the mid-1980s to the 800-foot level by Echo Bay Mines at a cost of $24 million. Combined with an updated 43-101-compliant gold resource (see news release dated June 12, 2008), near-term production potential, a 700 tpd mill that could be moved on site quickly, exploration upside at depth and a continued strong gold market, the Cameron Lake Gold Mine is a significant asset. The Company continues to evaluate the potential for Cameron Lake to become the cornerstone of a strategy to create a pure-play gold company that could act as the consolidator of gold deposits in the Kenora region.

No timetable has been established to complete a spin-off transaction of the Cameron Lake Gold Mine. However, activities to advance the process are ongoing, including the above-noted processing program; completing hydro-geological, environmental and socio-economic studies; consultation with the First Nations; and securing the required permits to dewater the underground mine workings. As well, Nuinsco has engaged a contractor to clean up the mill, which is currently located in Quebec, in order to recover any gold remaining in the circuit and has also identified a group to dismantle the mill and move it from its current location to the Cameron Lake Mine site if considered appropriate.

Exploration and Corporate Update

Given current financial and metals market conditions, Nuinsco's 2009 exploration programs will be based, in part, on the availability of financing. In order to align Nuinsco's cost structure with market conditions, the Company has implemented cost reduction measures that will remain in place until financial markets recover, including management salary reductions and the deferral of Directors' fees.

Nuinsco made significant progress with its exploration programs during 2008. Results pending from those programs include assays from uranium exploration on the Prairie Lake property near Marathon, Ontario and the Marijane Lake/Huston Lake joint venture with Temex Resources Corp. (TSX VENTURE:TME).

Paul Jones, President acts as QP under NI 43-101 and has reviewed and approved the contents of this news release.

PDAC 2009

Nuinsco Resources Limited and Victory Nickel Inc. invite you to meet Michael Lambert, member of Canada's National Snowboard Team and one of the stars of the upcoming CTV/MTV Canada reality drama snowboard series Over the Bolts. Michael will be signing autographs on March 2nd and 3rd at the Victory Nickel (#3235) and Nuinsco (#2531) booths in the Investors Exchange at the PDAC Convention, March 1-4, Metro Toronto Convention Centre, South Building. Drop off your business card and enter for a chance to win a snowboard autographed by Michael and other members of Canada's National Snowboard Team.

About Nuinsco Resources

Nuinsco is a growth-oriented, multi-commodity mineral exploration and development company that is focused on uranium, copper, zinc and gold exploration and development in world-class mineralized belts in Canada and Turkey. In addition to its property holdings, Nuinsco owns approximately 15% of the outstanding common shares of Victory Nickel Inc. (TSX:NI), approximately 13% of the outstanding common shares of precious and base metals producer Gold Hawk Resources Inc. (TSX VENTURE:CGK) and an interest in the Corner Bay copper project owned by Campbell Resources Ltd. (TSX:CCH). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.

Please visit the Company's website at [ www.nuinsco.ca ]. Should you wish to receive Company news via email, please email [ catarina@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 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.