Pure Nickel's Soil Sampling on
Rainbow Gold Property Reveals New Geochemical Anomalies
TORONTO: November 18, 2010. Pure Nickel Inc.
(TSX: NIC, OTCBB: PNCKF) announced today that it has received encouraging
results from a Mobile Metal Ion (MMI) geochemistry soil sampling program
carried out in September on its 100% owned Rainbow gold claims over a
greenstone belt similar to the Archean Rankin-Ennadai Greenstone Belt in Nunavut west of Hudson Bay.
The test program, best described as an Orientation
Survey, was to determine effectiveness of the MMI soil geochemical method for
detecting buried gold and nickel occurrences discovered by Falconbridge (now
Xstrata) drilling in 2004 for nickel deposits in an area of komatiitic
volcanics and iron formation.
HIGHLIGHTS:
- Two new MMI gold anomalies were
identified, in addition to anomalous values in soil identifying the
location of a 2004 drill hole # RB04-04 intersection of
13.15g/t gold over 2.14m at a vertical depth of 40m.
- 90m to the south of the 2004
drill hole # RB04-04, seven samples returned high
MMI responses and are interpreted as an increase of gold grade and/or
thickness of the intersected zone down dip.
- Three MMI nickel anomalies, one
20m directly above a 2004 drill hole # RB04-02 that returned 0.46% nickel
over 10.1m and the other two anomalies are interpreted to validate the
2004 ground electromagnetic survey anomalies as being potentially nickeliferous geological targets.
- The correlation of the MMI
anomalies with previously known mineralization validates the potential of
the MMI soil survey as an effective exploration tool for detecting buried
mineralization at Rainbow, and fulfills the purpose of the sampling
program. Results indicate additional MMI sampling should be used prior to
any additional drilling in the future.
To test the gold potential, two sets of 33 MMI soil
samples along a north-south line 625m in length were collected. The first set
was sampled at a depth of 0 to 15 centimetres (cm)
below the organic soil layer and a second set of 33 samples from a depth of 15
to 30 cm in each of the sampling holes. Distance between sample sites varied
from 2m to over 20m along the line and above the intersection in RB04-04.
Glacial overburden thickness in the six diamond holes drilled in the area in
2004 varied from 1.4 to 5.6m, averaged 3.8m and was 3.5m
at RB04-04 and 3.2m at RB04-02.
The MMI Response Ratio values for gold appear to have
identified the RB04-04 intersection of 13.15 g/t gold at a vertical
depth of 40m. In addition, more anomalous gold in samples collected for
90m to the south of the subsurface intersection from RB04-04 appear to indicate
the mineralized quartz carbonate alteration zone along the contact between iron
formation and a mafic volcanic may extend further.
In the case of nickel, the MMI Response Ratios from 8
sample sites along a 210m test line proved to be anomalous detecting the drill
hole intersection RB04-02 of 0.46% nickel over 10.1m at a approximate vertical
depth of 20m from surface. In order to determine the anomalous
pattern of elements occurring in association with gold and nickel, all samples
were subjected by SGS to their MMI-M package whereby 53 elements are
reported.
For more information, including section profiles visit:
http://www.purenickel.com/s/Other_Projects.asp
About Mobile Metal Ion (MMI) soil geochemistry
Rather than using conventional techniques to
completely dissolve soil samples and analyze the resulting solutions for
contained elements, MMI geochemistry relies on a method available in
Canada exclusively through laboratories of SGS Canada Inc. and elsewhere
through other members of the SGS Group (Soci�t� G�n�rale de Surveillance) for extracting only ions that are
bound loosely to soil particles. Based on MMI survey case histories it has been
concluded that ions are continually migrating vertically through rock and
overburden above mineral deposits and becoming preferentially bound to
particles at a soil depth characteristic of each given area, hence, why it is
important to carry out an orientation survey over known buried mineralization
when planning an MMI survey. Anomalies are typically
focused directly above buried mineralization. Analytical results are not
influenced by particles of gold or metal-bearing rock that have been transported
to the area of soil sampling by glaciation because
the solutions used to release the ions do not dissolve mineral grains
themselves. For these reasons, MMI results, if properly interpreted, for
most areas provide a reliable and focused reflection of buried mineralization,
whether it occurs below overburden, bedrock or the thick laterite
that masks mineral deposits where the method was developed in Australia.
About the Rainbow property
The Rainbow 20,000-hectare mineral claim group encompass a 40-km belt of Precambrian oxide and sulphide facies iron formation
with associated gold occurrences. The iron formation is intercalated with other
metasediments, basalts and komatiitic
ultramafic volcanic flows. Rock units within the
Rainbow claims generally dip to the south at approximately 30�. The geological
setting of the Rainbow property is similar to the Archean
Baker Lake Greenstone Belt that currently
contains the Meadowbank gold mine, where Agnico Eagle is producing 350,000 oz gold/annum, and
at their Meliadine gold project in the Archean Rankin - Ennadai
Greenstone Belt, west of the hamlet of Rankin Inlet, Nunavut.. The komatiitic volcanics on the
Rainbow property are similar to the stratiform and stratabound nickel-copper-cobalt mineralization as found at
Kambalda (Western Australia) and Raglan (Quebec).
During the course of exploration subsequent to
discovery of nickel by Inco in the early 1950's, a succession
of companies have reported gold occurrences in association with the iron
formation. The most recent example being Falconbridge's above cited drill
discovery. Also, in 2004, Falconbridge prospectors collected a grab sample from
an iron formation outcrop 30km to the northeast of the drill discovery.
It assayed 26.5g/t gold and a field duplicate returned 18.25 g/t. In
May 2010, Pure Nickel extended the claim group to the northeast to cover this
site.
The central portion of the 40-km northeast trending
Rainbow claim group is advantageously located 10km northwest of the Cullaton Lake airstrip which serviced a small gold
mine operated in the 1980's. The airstrip is gravel surfaced and has
a runway length of 1,372 metres (4,500 ft).
Dallas Davis, P.Eng is the
designated Qualified Person for this project and has reviewed this news
release.
About Pure Nickel
Inc.
Pure Nickel is a mineral exploration company with a
diverse collection of mineral exploration projects in North America.
Some of the statements contained herein may be
forward-looking statements which involve known and unknown risks and
uncertainties. Without limitation, statements regarding potential
mineralization and resources, exploration results, expectations, plans, and
objectives of Pure Nickel are forward-looking statements that involve various
risks. The following are important factors that could cause Pure Nickel's
actual results to differ materially from those expressed or implied by such
forward-looking statements: changes in the world wide price of mineral
commodities, general market conditions, risks inherent in mineral exploration,
risks associated with development, construction and mining operations, the
uncertainty of future exploration activities and cash flows, and the
uncertainty of access to additional capital. There can be no assurance that
forward-looking statements will prove to be accurate as actual results and
future events may differ materially from those anticipated in such
statements. Pure Nickel undertakes no obligation to update such
forward-looking statements if circumstances or management's estimates or opinions
should change. The reader is cautioned not to place undue reliance on such
forward-looking statements.
The TSX Exchange does not accept responsibility for
the adequacy or accuracy of this release.
For further information:
The Howard Group
Jeff Walker - Investor Relations
T. 1-888-221-0915
Email: info@howardgroupinc.com
Website: www.howardgroupinc.com
Pure Nickel Inc.
David McPherson - President and CEO
T. (416) 644-0066
Email: info@purenickel.com
Website: www.purenickel.com