Business & Finance
Business and Finance
Business and Finance 
Tue, June 1, 2010
Nuinsco Looks to Increase 330-360 Million Tonne ETMI at Prairie Lake
TORONTO, ONTARIO--(Marketwire - June 1, 2010) - Nuinsco Resources Limited ("Nuinsco") (TSX:NWI), ([ www.nuinsco.ca ]) reports that a large scale trenching program totalling over 2 kilometres has begun at its 100% owned Prairie Lake Project in northwestern Ontario. This program focuses on parts of the property that to date have seen little or no systematic exploration and are not included in the 330 to 360 million tonne Exploration Target Mineralization Inventory (ETMI) estimate1 which was announced earlier this year.
"The ETMI released in January demonstrates the huge scale and potential economic significance of this multi-commodity deposit, however with only 12% of the total surface area of the Prairie Lake complex included in the ETMI we have barely scratched the surface," said President Paul Jones. "The ambitious trenching program will provide exposure in areas of the intrusive complex where no diamond drilling whatsoever has been conducted (the north and east). Results of systematic trench sampling will be used to develop additional work plans aimed at further evaluating the subsurface potential of the project."
The work will build on the results of the National Instrument 43-101 compliant ETMI estimated 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) (see news release dated January 13, 2010). In addition to phosphorous and niobium, the suite of minerals of economic significance at Prairie Lake includes tantalum (Ta), uranium (U), rare earth elements (REE), wollastonite and carbonate.
Recent metallurgical testing by Nuinsco indicates that Dense Media Separation, Magnetic Separation and low-cost flotation methods are capable of producing concentrates from Prairie Lake containing mineralization of sufficiently elevated grade to be of potential economic interest (see Nuinsco news releases of October 19, 2009 and February 4, 2010). In particular, the results show that significant upgrading of P2O5, up to 23.4%, is possible producing a concentrate that also contains niobium and REEs.
Niobium and phosphorous values from drill core, beginning at surface, compare favourably with those identified by Commerce Resources Corp. ("Commerce") at its Upper Fir carbonatite in BC. By way of comparison, average grades for the 17 diamond drill holes completed by Commerce during 20062 at Upper Fir were 0.11% Nb2O5, and 3.69% P2O5 and 0.018% Ta2O5, whereas the weighted average of all core samples drilled at Prairie Lake from 1969 to 2008 is 0.13% Nb2O5, 3.93% P2O5 and 0.003% Ta2O5.
| Prairie Lake project highlights are: |
- It is located just 28km north of the Trans-Canada Highway and the CPR railway and is accessible year round by an all-weather road which actually crosses the property.
- The Prairie Lake Carbonatite Complex has a surface area of 2.8 km2 (approximately 2km north-south by 1.7km east-west) with a pronounced circular topographic expression and relief of 5-70m above the surrounding plain, further enhancing access to the project.
- The Jim's Showing Area at Prairie Lake hosts a near-surface historic resource of over 180,000 tonnes grading 0.09% U3O8 and 0.25% Nb2O53.
- Mineralization occurs at surface and carbonatite rock continues to depths of at least 500m with grades similar to those at and near surface. For example: 3.16% P2O5, 0.104% Nb2O5, and 32ppm Ta2O5 over 82.32m (DDH NP0809; 443 to 525.58m) and 3.96% P2O5, 0.082% Nb2O5 and 25ppm Ta2O5 over 372m (DDH NP0810; 125 to 497m).
- Higher grade intervals indicate potential for domains of elevated grade:
- 18.05% P2O5, 0.76% Nb2O5 and 0.018% Ta2O5 over 1 metre (DDH NP0709; 49-50m)
- 6.12% P2O5, 1.01% Nb2O5 and 0.007% Ta2O5 over 1 metre (DDH NP0711; 97.5-98.5m)
- 4.41% P2O5, 0.37% Nb2O5 and 0.059% Ta2O5 over 1 metre (DDH NP0711; 23.75-24.75m)
Annual and Special Meeting
As a reminder, the Company's Annual and Special Meeting for Shareholders ("ASM") will take place on Wednesday, June 2, 2010 at 4:00 p.m. Toronto Time at the Toronto Board of Trade, 1 First Canadian Place, Toronto, Ontario. The ASM will be webcast and can be accessed through Nuinsco's website at [ www.nuinsco.ca ]. For those attending via webcast who wish to ask questions, please e-mail [ sean.stokes@rogers.blackberry.net ].
About Nuinsco
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, Turkey and Egypt. In addition to its property holdings, Nuinsco owns approximately 9% of the outstanding common shares of Gold Hawk Resources Inc. (TSX VENTURE:GHK) and approximately 1.4% of the outstanding common shares of Victory Nickel Inc. (TSX:NI). 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 [ chelsea@chfir.com ] and specify "Nuinsco Resources" in the subject line.
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.
2 Technical Report on the Upper Fir Tantalum-Niobium-Bearing Carbonatite June 20, 2007.
3 A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. The issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
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 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.