TORONTO, ONTARIO--(Marketwire - March 4, 2011) - Continental Precious Minerals Inc. (News - Market indicators) (the "Company" or "Continental") announced today that an NI 43-101 compliant mineral resource has been estimated on the 100% owned Lill-Juthatten Licence, located in northern Sweden.
The Lill-Juthatten uranium deposit is located approximately 600 kilometres northwest of Stockholm at an elevation of about 700 metres above sea level, in an area close to the Norwegian border.
The Lill-Juthatten Licence is an advanced stage exploration prospect with gridded, resource definition drilling having been carried out in the late 1970s and early 1980s by the Sveriges Geologiska Undersökning or the Geological Survey of Sweden (the "SGU") and associated state companies. Uranium mineralization occurs in the form of pitchblende disseminated in granite, and occasionally up to 5 millimetre joint filling in a breccias/fault zone. P&E Mining Consultants Inc., G.A. Harron & Associates Inc. and MPH Consulting Limited prepared the updated mineral resource estimate in compliance with National Instrument 43-101. The updated mineral resource estimate is summarized in the table below, and it is significant that 93% of the total resource is classified as Indicated.
"It is important to note that in addition to our flagship property, MMS Viken, we have several other high potential properties like Lill-Juthatten," said Ed Godin, President and CEO. "It is one of several hard-rock uranium targets we have. All have been drilled previously by the SGU and have resource estimates that can be confirmed and further defined."
The key assumptions, parameters and methods used to estimate the mineral resource are as follows:
The resource estimate is effective as of March 1, 2011 and takes into account the results from a total of 91 holes drilled by the SGU in the late 1970s and early 1980s (13,245 metres) and two holes drilled by Continental (approximately 400 metres) on the Lill-Juthatten deposit. The spacing of the drill holes is nominally 25 metres. The deposit has a strike length of 300 metres and a down dip extension of 135 metres. Average width is approximately 15 metres but some sections of mineralization exceed 50 metres.
P&E Mining Consultants Inc. calculated the updated open pit mineral resource estimate using an average internal cut-off grade of 0.035%U based on processing costs of US$30 per tonne, process recovery of 90%, G&A costs of US$10 per tonne and mining costs of US$5 per mineralized rock tonne and US$4 per waste rock tonne. The uranium price used in the estimate was US$55.00 per pound U3O8, which is equivalent to US$65 per pound U. Block model grades were interpolated with the inverse distance squared (1/d2) method from one metre composites derived from U assays capped at 3%U. Potentially economic resources were contained within a conceptual optimized pit shell with 50-degree slopes.
Due diligence sampling of historical core was undertaken in January 24-29, 2011 in order to validate the analytical data supplied by the SGU. Neutron activation analysis was conducted by Studsvik Energiteknik AB, between 1977-1983 and original laboratory certificates were available for assay data capture. Fourteen verification samples were taken and analyzed by ALS Chemex in Vancouver. The ALS Chemex results are in good agreement with the original neutron activation analyses and confirm the presence and grade of uranium mineralization at Lill-Juthatten. The quality of historical analytical data is therefore assumed to be good, based on the results of verification sampling and the reputation of the SGU.
The Lill-Juthatten licence was initially granted on March 3, 2005 and was renewed on March 3, 2008 for an additional three-year term, which ended on March 3, 2011. Continental filed a renewal application in February 2011. Given the large backlog of applications being handled by the Swedish Inspectorate of Mines, Continental believes that the renewal will not be received by Continental for at least four months. Continental has no reason to believe that the renewal will not be granted.
Gerald A. Harron, P.Eng. of G.A. Harron & Associates Inc., together with Eugene Puritch, P.Eng. of P&E Mining Consultants Inc. and Michele Cote, P. Geo. of MPH Consulting Limited, each an independent Qualified Person under National Instrument 43-101, are responsible for the technical disclosure contained in this news release. Mr. Harron and Mr. Puritch have also verified the data disclosed in this news release. A National Instrument 43-101 compliant technical report containing the updated resource estimate authored by Messrs Harron and Puritch and Ms. Cote will be filed on SEDAR (www.sedar.com) before the end of March 2011.
About Continental Precious Minerals Inc.
Continental Precious Minerals Inc. is a multi-mineral exploration company with multiple interests and exploration licences in Sweden. Since March 2005, Continental's primary goal has been to advance its Swedish assets. The Company is also evaluating other opportunities as they emerge in current market conditions.
Cautionary Statement Regarding Forward-Looking Statements
The indicated and inferred resource estimates contained in this news release are estimates only and are not equivalent to reserves and do not mean that the mineral resource can be economically mined. This news release also contains forward-looking statements regarding the Company's expectation that the technical report supporting the disclosure contained in this news release will be completed and filed before the end of March 2011 and the Company's expectation that the Lill-Juthatten licence will be renewed. Actual developments may differ materially from those contemplated by these statements because the Company must rely on the independent qualified persons referred to in this news release to prepare the technical report and must rely on the Swedish Inspectorate of Mines to grant the renewal. Reference is also made to those factors discussed in the Company's disclosure documents filed on SEDAR (www.sedar.com). The forward-looking statements contained in this news release represent the Company's views and expectations as of the date of this release and should not be relied upon as representing its views and expectations at any subsequent date.
