| August 5, 2008 |
| Northern Continental Reports Summer Exploration Update at Russell Lake Project |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2008) - Northern Continental Resources Inc. ("Northern Continental") (TSX VENTURE:NCR) today announced preliminary results from an exploration program of Diamond drilling and geophysical surveying at the Russell Lake Uranium Project ("Russell Lake" or the "Project"), located in the Athabasca Basin of northern Saskatchewan, Canada.
Russell Lake is a joint venture between Northern Continental and Hathor Exploration Ltd. ("Hathor"), in which Northern Continental holds a 60% interest and Hathor holds a 40% interest. Northern Continental is currently the operator of the Project. Russell Lake lies within the Key Lake-MacArthur River corridor, one of the most prolific uranium mining districts in the world.
Highlights of the 2008 Summer Exploration Program:
- Eleven drill holes totaling 5,337.24 metres were completed on the Grayling Zone, Grayling East, Fox Lake Trail, and Christie Lake target areas;
- Anomalous uranium mineralization was encountered at the Grayling Zone, and at Fox Lake Trail. A uranium grade calculation from downhole gamma probe data for Grayling Zone hole RL-08-16 returned a U3O8 equivalent value in the sandstone of 0.14% U3O8 over 0.50 metres from 330.5 to 330.99 metres, near the unconformity. Fox Lake Trail hole FLT-08-06 returned a U3O8 equivalent value in the basement rocks of 0.20% U3O8 over 0.20 metres from 522.92 to 523.12 metres;
- Ground geophysical surveys and a geochemical survey program were carried out to locate and better define future drilling targets.
Northern Continental's exploration efforts in 2008 were focussed in two ways - to test areas of the Project that have received little-to-no historical drilling, and to test the extent and strike of known mineralization in the Grayling Zone. Mineralization has been encountered in two of the relatively untested areas, and new information is emerging from the 2008 Grayling Zone exploration that could help discover the source of the known mineralization. Northern Continental plans to continue the evaluation process of the 2008 exploration data to assist its joint venture in preparation for a future drilling program.
Geochemical analyses from over 800 drill core samples are being processed, and will be compiled and interpreted upon receipt. Table 1 below shows drill hole statistics. See exploration maps and photos on Northern Continental's website at www.northerncontinental.ca.
Diamond Drilling Program
Grayling Zone and Grayling East
Hole RL-08-16 targeted the Grayling Zone conductor, near historical hole RL-85-8, which in 1985 had intersected 0.32% U3O8 over 1.0 metre within a reverse fault, or "wedge". Northern Continental's hole RL-08-16 pierced the unconformity approximately 50 metres to the north of hole RL-85-8 and returned a U3O8 equivalent value in the footwall sandstone of 0.14% eU3O8 over 0.50 metres, from 330.5 to 330.99 metres (uranium grade equivalent is calculated from downhole gamma probe readings). This mineralized intersection is the first occurrence of significant uranium mineralization found in the sandstone peripheral to a wedge at the Grayling Zone. Another hole drilled approximately 20 metres to the east of RL-08-16 did not encounter a significant grade of mineralization, but intersected the unconformity some 30 metres higher than RL-08-16 and showed a marked difference in the sandstone and basement lithologies. Such offsets are considered to be an important feature commonly associated with a classic setting for unconformity-type uranium mineralization. Northern Continental plans to perform a geological evaluation of the Grayling Zone drilling information obtained to date, including re-logging of historical drill core, to determine the best possible follow-up to hole RL-08-16.
Three holes were drilled in the vicinity of historical hole RL-87-16, which had encountered a reverse fault that hosted uranium mineralization grading 0.40% U3O8 over 3.75 metres. The collar of hole RL-87-16 could not be located in the field because the construction of the McArthur River-Key Lake mine road, built after 1987, appears to have completely obscured the area of the drill collar. However, by chaining from a nearby historical drill collar, the location of the historical hole was determined and 2008 holes RL-08-13, RL-08-14 and RL-08-15 targeted the unconformity near the presumed unconformity pierce point of historical hole RL-87-16. Although some sandstone alteration and weakly anomalous radiation was observed, no significant mineralization was intersected in the three holes.
Northern Continental's current focus of exploration in the Grayling Zone is to explore for possible cross-cutting fault systems and structural features adjacent to the main conductor trend that may present controls on the mineralization found to date. Recent evaluation of historical data has revealed the existence of a strong UTEM conductor that has been overlooked since it was first detected and interpreted in 1987, approximately 700 metres southwest of the northern part of the Grayling Zone conductor. The historical conductor, named Conductor C, was described in an assessment report as "the strongest of the three conductors on Grid 87-1... presumably, it extends to the north and may be related in some way to the Grayling Grid conductors." Subsequent ground EM surveys did not cover the area of the interpreted conductor, which appears to be aligned with the later-constructed McArthur River-Key Lake mine road. A review of the 1987 UTEM data and the 2005 GEOTEM airborne survey data is underway to assess the potential of Conductor C and its possible relationship with the Grayling Zone.
At Grayling East, one hole was drilled to test an interpreted low resistivity anomaly near the presumed strike of the Grayling East conductor. No significant alteration or mineralization was encountered.
Fox Lake Trail
Three drill holes in the Fox Lake Trail area were targeted on conductors outlined by previous airborne surveys and recent ground geophysical surveys. Hole FLT-08-06 encountered moderate clay alteration and bleaching as well as zones of silicification in the sandstone column. Anomalous uranium mineralization was intersected approximately 50 metres below the unconformity, grading 0.20% eU3O8 over 0.20 metres, from 522.92 to 523.12 metres within a fault zone (uranium grade equivalent is calculated from downhole gamma probe readings). The presence of uranium in the mineralized interval was confirmed by a portable XRF analyzer and corresponded with a peak gamma probe reading of 2,688 counts per second within the interval.
Holes FLT-08-07 and FLT-08-08 did not explain the targeted conductors or encounter significant mineralization. However, spectral analysis of the sandstone column determined that dravite alteration is present within 50 metres of the unconformity in FLT-08-08, with dravite values reaching over 70% of the clay content. Dravite is known to be an important pathfinder of uranium mineralization in the Key Lake-MacArthur River corridor.
Northern Continental believes that the presence of uranium mineralization in basement rocks, highly prospective basement structure, and significant dravite alteration in the sandstone provide a compelling target for the next round of drilling at Fox Lake Trail.
Christie Lake
Holes CL-08-01 and CL-08-02 targeted zones of low resistivity coincident with interpreted seismic anomalies in an untested area of the Project. The unconformity was intersected at 382.18 and 364.85 metres, respectively. No significant alteration or mineralization was encountered in the two holes.
Ground Geophysical and Geochemical Surveys
Pole-pole resistivity surveys totaling 34.3 line kilometres were carried out at the Grayling Zone, Powerline and Boomerang/Fox Lake Trail target areas to detect areas of potential sandstone alteration, with particular focus along seismic lines previously surveyed by Hathor that had demonstrated evidence of prospective structure. Some preliminary results from the resistivity surveys and an accompanying gravity survey were applied to the Fox Lake Trail summer drilling. Results and interpretation of the majority of the survey data are pending.
A radon survey carried out across the Grayling Zone detected anomalous radon levels that are interpreted as leakage from three fault zones striking in a northeast-southwest direction across the Grayling conductor. The intersections of the interpreted middle and southern faults with the trace of the Grayling Zone conductor are recommended as future drill targets. Integration of the radon survey results with geophysical survey results is ongoing.
About Northern Continental
Northern Continental acquired Russell Lake in 1999, and staked additional claims contiguous to the original property in 2000. In 2004, Northern Continental optioned a 40% interest in the Project to Roughrider Uranium Corporation, which was acquired in 2006 by Hathor. After Hathor incurred a further $2.0 million of exploration expenditures on the Project, a joint venture was formed with Hathor holding a 40% participating interest and Northern Continental holding a 60% participating interest.
For further information on Northern Continental and Russell Lake, visit our website at www.northerncontinental.ca.
NORTHERN CONTINENTAL RESOURCES INC.
Warren Stanyer, President & CEO
Table 1.
2008 Russell Lake Summer Diamond Drilling Statistics
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Unconformity
Total Length Depth
Target Area Hole No. (metres) Dip (metres)
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Fox Lake Trail FLT-08-06 570.58 -70 degrees 468.47
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Fox Lake Trail FLT-08-07 602.59 -75 degrees 497.24
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Fox Lake Trail FLT-08-08 479.55 -90 degrees 402.84
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Grayling East RL-08-12 453.24 -90 degrees 332.15
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Grayling Zone RL-08-13 459.33 -76 degrees 322.17
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Grayling Zone RL-08-14 425.53 -76 degrees 322.95
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Grayling Zone RL-08-15 458.13 -75 degrees 350.00
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Grayling Zone RL-08-16 459.33 -74 degrees 352.65
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Grayling Zone RL-08-17 441.96 -74 degrees 322.41
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Christie Lake CL-08-01 514.20 -90 degrees 382.18
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Christie Lake CL-08-02 472.80 -90 degrees 364.85
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Aurora Geosciences of Yellowknife, NWT is managing exploration activities at the Project. Diamond drilling services were provided by Cyr Drilling International Ltd. of Winnipeg, MB. Analytical services are provided by the Saskatchewan Research Council ("SRC"), of Saskatoon, SK. Russell Lake drill holes are probed with a Mount Sopris 2GHF-1000 triple-gamma probe, which was calibrated at the SRC test pit in Saskatoon prior to commencement of the 2008 drilling program. A portable Niton X-ray fluorescence analyzer is used at Russell Lake to provide preliminary geochemical information from the drill core, prior to the formal receipt of geochemical analyses.
The technical information in this news release regarding Russell Lake has been reviewed by Don Simmons, P.Geol. Vice-President, Exploration, a qualified person as defined by National Instrument 43-101.
Forward Looking Statements
This news release contains "forward-looking statements" that are based on Northern Continental's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding Northern Continental's outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of Northern Continental. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by Northern Continental will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Northern Continental disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the contents of this news release. | |