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Thursday, November 06, 2008
Northern Continental Receives 2008 Russell Lake Exploration Reports
Northern Continental Resources Inc. ("Northern Continental") today announced that preliminary reports from the 2008 exploration program of diamond drilling and geophysical surveying at the Russell Lake Uranium Project ("Russell Lake" or the "Project"), have been received from its contractor, Aurora Geosciences Ltd., and delivered to its joint venture partner, Hathor Exploration Ltd. ("Hathor").
Russell Lake is located in the Athabasca Basin of northern Saskatchewan, Canada and lies within the Key Lake-McArthur River corridor, one of the most prolific uranium mining districts in the world. The Project is a joint venture between Northern Continental and Hathor, in which Northern Continental holds a 60% interest and Hathor holds a 40% interest. As operator during 2008, Northern Continental carried out exploration activities totaling approximately $6.5 million at Russell Lake. Under the terms of the joint venture agreement, which allows operatorship to alternate from year-to-year, Hathor is currently the operator of the Project for 2009.
Highlights of the Russell Lake 2008 Exploration Program
On behalf of Northern Continental, Aurora Geosciences Ltd. successfully completed 12,950 metres of diamond drilling in 27 drill holes, and approximately 156.5 line kilometres of ground?based gravity, resistivity, and electromagnetic ("EM") surveys over six areas. Most of the target areas first proposed in early 2008 were tested by initial drilling, and in several cases, follow-up drilling, to pursue encouraging results, including:
- confirmation of anomalous uranium in the Grayling Zone, hosted in sandstone;
- discovery of anomalous structurally?hosted uranium mineralization coincident with favourable geology and alteration at the Taylor Bay and Fox Lake Trail target areas;
- intersection of strong alteration and structure near the unconformity at the Blue Steel target area;
- interpretation of highly-prospective geological structure and a newly-identified basement conductor from the results of geochemical and geophysical surveys carried out just west of the Grayling Zone, which greatly enhances the exploration potential of the Grayling area.
2009 Exploration Targets
Based on the 2008 exploration results, Aurora Geosciences made preliminary recommendations for additional work in several key areas, which include:
Grayling Zone and Grayling West
Up to 10 diamond drill holes are recommended in the Grayling Zone area. Drill fences are recommended when testing the Grayling Zone conductor as the conductor is more complex than previously thought. A high-resolution ground magnetic survey is recommended to further define subtle features detected by airborne surveys, or to identify new features, and provide insight into basement structures in the Grayling Zone area.
At Grayling West, a three-hole drill fence is recommended on the newly-identified GW1 conductor, which may line up with prospective structure interpreted from a 2007 ground gravity survey, and with a historical, off-property conductor found along strike to the northeast. It is recommended that the survey grid over the Grayling West area be extended to the northern claim boundary to confirm the potential northern extension of the GW1 conductor.
Fox Lake Trail
Three drill holes are recommended to follow-up the 2008 results. Drill holes FLT-08?03, ?04, ?05, and ?06 intersected significant sheared structural corridors coincident with broad chloritized and graphitic pelites, with occurrences of uranium mineralization found in two holes. This conductor should be tested along its strike length to the northeast. A significant basement topographic high interpreted from historical holes drilled in the area may be indicative of major fault structures that have not yet been tested. Further geophysical work, including ground gravity and resistivity surveys are recommended to infill the 2008 coverage on historical and new conductors.
Taylor Bay
Drilling on the TB1 conductor encountered anomalous uranium mineralization associated with significantly sheared and altered pelitic units. This conductive trend would be the priority target for additional work on the Taylor Bay grid. One drill hole is recommended as follow-up to hole TB-08-05, with further drilling dependent upon ground gravity, resistivity, and EM surveys to better define new targets.
Blue Steel
Drill targets should be prioritized by the results of recommended gravity, resistivity, and EM surveys. A follow-up to 2008 hole BS-08-02 would test the up-dip potential of structural and alteration features logged in both BS-08?01 and ?02. A proposed drill target located at a bend in the EM conductor was not tested in 2008 because of deteriorating ice conditions, and should be drilled.
Powerline
The Powerline target area covers a broad northeast?trending magnetic low feature interpreted to be a structural corridor that may host the northern continuation of the Grayling Zone. Certain drill targets are interpreted from geophysics to be reactivated basement faults with associated hydrothermal alteration and should be drill tested.
Exploration meetings are planned with Hathor to choose primary target areas for the 2009 operating year. Integration of all available geophysical and geological data by Northern Continental is ongoing in order to recommend new drill targets to the Russell Lake joint venture.
For further information on Northern Continental and Russell Lake, visit our website at www.northerncontinental.ca.
NORTHERN CONTINENTAL RESOURCES INC.
"Warren Stanyer"
Warren Stanyer, President & CEO
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the contents of this news release.
During 2008, Aurora Geosciences of Yellowknife, NWT managed 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 were 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 was 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.
Grayling Zone - 2009 Proposed Drill Holes
Fox Lake Zone - 2009 Proposed Drill Holes
You can also view this News Release on our website at:
http://www.northerncontinental.ca/s/NewsReleases.asp?ReportID=326897 |