Suite 650
– 789 West Pender Street Vancouver
BC V6C 1H2
Telephone:
604-685-9255
Website: www.northerncontinental.ca
Toll
Free
1-800-449-4435
TSX-V:
NCR
April 1, 2008 NEWS
RELEASE NR
-08-09
Northern Continental
Russell Lake
Project Exploration Update
Northern
Continental Resources Inc. (“Northern Continental”) announced today
that initial results have been received from a diamond drilling program on the
Russell Lake Uranium Project ("Russell Lake", or the
“Project”) located in northern Saskatchewan, Canada. Six holes
totaling 2,408.5 metres have been completed at the Taylor Bay
target area. Two diamond drills are still deployed on other target areas
throughout the Project and completion of up to 15 more holes is anticipated for
the duration of the 2008 exploration program. Ground geophysical programs are
ongoing on several other target areas to better define future drilling targets (see
Northern Continental’s news release dated January 22, 2008 for details of
the 2008 exploration program).
Preliminary
observations of Taylor
Bay target area drill
core include:
·
Favourable structure, alteration and
basement rocks
·
Confirmation of graphitic conductor
·
Elevated radioactivity and anomalous
uranium values near the unconformity
Russell Lake is a joint venture
between Northern Continental and Hathor Exploration Ltd. (“Hathor”)
with Northern Continental holding a 60% participating interest, and Hathor
holding a 40% participating interest. The 2008 exploration program, operated by
Northern Continental, is budgeted at CDN$3.5 million and is planned to include
approximately 10,500 metres of diamond drilling in 21 holes, and geophysical
programs consisting of ground resistivity and electromagnetic surveys.
Preliminary 2008
Diamond Drilling Results – Taylor
Bay
The drilling targets chosen at Taylor Bay
for the 2008 program are located on the lake and can only be drilled during times
of optimal ice thickness. Northern Continental had initially planned at least
three holes on the ice in Taylor Bay to test three historical
electromagnetic (“EM”) conductors, namely TB-1, TB-2 and TB-3, that
had received recent follow-up ground geophysical surveys (see Taylor Bay 2008
exploration map on Northern Continental’s website at www.northerncontinental.ca)
The most favourable results were
found in holes TB-08-04, TB-08-05 and TB-08-07, each vertical holes drilled
along the TB-1 conductor. Hole TB-08-04 confirmed the presence of an EM
conductor by intersecting graphitic metasediment basement rocks within a
reactivated slip fault. Alteration was noted within the Athabasca Group
sandstones and conglomerates. The basement package consisted of a series of
graphitic and non-graphitic metasediments and granitic intrusives. Numerous
zones of shearing and alteration were observed throughout the basement
sequence. Although no significant mineralization was encountered in
TB-08-04, just below the unconformity a narrow interval of elevated
radioactivity was detected from downhole gamma probe readings, with a maximum
peak of 315.7 counts per second (“cps”) at 325.2 metres compared to
a background value in the basement rocks of approximately 60 cps.
A portable NITON© x-ray
fluorescence (“XRF”) analyzer is utilized at Russell Lake to
provide preliminary geochemical information from the drill core, prior to the
formal receipt of geochemical analyses (NOTE: The results obtained from a
portable XRF analyzer may not be entirely conclusive, but simply provide
important preliminary information in the field). The XRF analyzer confirmed the
presence of anomalous uranium within the interval of elevated radioactivity in
hole TB-08-04, and a follow-up hole was recommended to the southwest along the
conductor axis.
Hole TB-08-05, collared
approximately 300 metres from hole TB-08-04, intersected a narrow interval of
elevated radioactivity just below the unconformity. Within the anomalous
interval the downhole gamma probe measured a maximum peak of 616.6 cps at
321.69 metres, which the XRF analyzer attributed to the presence of uranium,
compared to a background value in the basement rocks of approximately 50 cps.
The hole encountered graphitic basement rocks within an overall package of
metasediments and granites, and further follow-up holes were planned.
Hole TB-08-07 was
spotted approximately 100 metres southwest of TB-08-04. The sandstone and
conglomerate succession overlying the unconformity showed prospective fault
structures and alteration. The basement sequence of metasediments and granitic
intrusive in hole TB-08-07 encountered the most significant structures, visible
alteration, and the strongest development of graphite observed in all of the
2008 Taylor Bay holes. No significant radioactivity
was encountered in the drill hole, but the preliminary results suggest
follow-up work is warranted.
Two holes drilled on conductors TB-2
and TB-3 encountered some alteration and fracturing but did not intersect
graphitic basement rocks to explain the historical EM response, and no
significant radioactivity attributed to uranium mineralization was detected.
Hole TB-08-06 was drilled to test the southwestern extent of conductor TB-1 but
did not intersect the same favourable geological setting found in holes
TB-08-04, TB-08-05 and TB-08-07. Two holes were attempted and abandoned in the
area of hole TB-08-05 due to overburden conditions and technical difficulties.
The 2008 exploration work completed
so far has significantly upgraded the Taylor Bay
target area, which had received only limited drilling from the shoreline in the
1980’s. Northern Continental believes follow-up drilling is warranted due
to the presence of a geological setting considered highly-prospective for the
formation of an Athabasca
Basin unconformity-type
uranium deposit.
Geophysical Surveys
Approximately 70.0 line kilometers
of moving loop and fixed loop EM surveying have been completed on the
Powerline, Morrison Lake and Big Bend target areas to verify and better detail
conductors outlined by historical ground and airborne surveys. Resistivity
surveys are planned later in the winter season on prospective conductors,
including the TB-1 conductor, to detect areas of potential sandstone alteration
associated with conductors outlined during the program.
The 2008 exploration program is
expected to continue until April 30, 2008, and to resume after break-up. Permit
applications have been recently been filed with the Government of Saskatchewan
for summer/fall exploration, with a proposed start date of June 1, 2008. Aurora
Geosciences of Yellowknife, NT, is managing exploration activities at the
Project. Diamond drilling services are provided by Cyr Drilling International
Ltd. of Winnipeg, MB.
Russell Lake drill holes are probed with a Mount Sopris
2GHF-1000 Triple-Gamma probe, which was calibrated at the Saskatchewan Research
Council test pit in Saskatoon,
SK, prior to commencement of the
drilling program. Drill core sampling and geochemical analysis is in progress,
and analytical results will be reported when available. Analytical services are
provided by the Saskatchewan Research Council of Saskatoon, SK.
The technical
information in this news release regarding Russell Lake
has been reviewed by Don Simmons, P.Geol., a qualified person as defined by
National Instrument 43-101.
For further information on Northern
Continental and Russell Lake Project, visit our website at www.northerncontinental.ca
About Northern Continental
Northern
Continental acquired Russell
Lake in 1999, and staked
additional claims contiguous to the Project in 2000. In 2004, Northern
Continental optioned up to a 40% interest in the Project to Roughrider Uranium
Corporation, a private company that was subsequently acquired in August 2006 by
Hathor Exploration Ltd. (“Hathor”). Hathor vested its 40% interest
in Russell Lake in December 2006 by incurring a
total of $2.0 million of exploration expenditures on the Project, and a joint
venture was formed with Northern Continental holding a 60% participating
interest, and Hathor holding a 40% participating interest.
About Russell
Lake
Russell Lake
consists of 15 claims totaling 45,742 hectares (113,031 acres) and is located
in the southeastern Athabasca Basin area of northern Saskatchewan
between Key Lake
and McArthur River, two of the richest high-grade
uranium mines in world. The Project has strong potential to host an
unconformity-style uranium deposit and lies within a classic setting of
favourable basement geology within interpreted magnetic lows. Historical
diamond drilling by previous operators has discovered significant occurrences
of uranium mineralization. For example, drilling in the 1980s at the Grayling
Zone encountered mineralization grading 3.45% U3O8 over 0.3 metres in hole
RL-85-7, and 0.40% U3O8 over 3.75 metres in hole RL-87-16. Subsequent drilling
did not extend these two particular showings - however, sandstone alteration
and some basement mineralization was observed in several other historical drill
holes. Diamond drilling is planned within the Grayling Zone in 2008,
and on other highly-prospective target areas within the Project that have never
been drilled, or have received only limited drilling. Depth to the Athabasca unconformity throughout the Project averages
approximately 350 metres.
NORTHERN CONTINENTAL
RESOURCES INC.
“Alan Crawford”
Alan
Crawford
President
The TSX Venture Exchange has not reviewed,
and does not accept responsibility for the adequacy or accuracy of the contents
of this news release.
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.
