TORONTO, ONTARIO--(Marketwire - June 11, 2012) - Nuinsco Resources Limited ("Nuinsco") (TSX:NWI) (www.nuinsco.ca) today reported continued positive results from a second round of metallurgical testing from its 100%-owned Prairie Lake phosphorus - rare metals project in northwestern Ontario. Results continue to indicate the potential to produce a saleable phosphorus concentrate from Prairie Lake rock.
Recently-received partial results refer specifically to the size range and purity of the apatite grains contained within the phosphorus concentrate produced. The primary use of apatite is in the manufacture of fertilizer, and the fact that this mineral can be liberated by conventional methods is a further indication that a viable saleable phosphorus concentrate can be produced. As previously reported, preliminary results of metallurgical testing confirmed that a concentrate can be produced to meet the principal requirements of the fertilizer industry, namely phosphorus (P2O5) content of >30%, and magnesium oxide (MgO) content <1%, with calcium oxide (CaO)/P2O5 ≤1.6.
"With these positive results, and more expected, we can now consider discussions with potential buyers of the product," said Paul Jones, President of Nuinsco. "All indications so far are that Prairie Lake is an extremely valuable asset within Nuinsco's portfolio and these new metallurgical results serve to reinforce that belief."
A study of apatite grains contained within the concentrate revealed that a high proportion (>75%) of these grains are between 20 and 300 micrometres in size and are very clear with few, if any, inclusions (which are typically other apatite grains, carbonate and very rarely other silicates - photos 1a-1d below). Typically they are free grains having been well liberated by the grinding process, when not completely liberated they are for the most part associated with carbonates and would be amenable to liberation due to a contrast in hardness between the minerals. On average the apatite grains contain 43.1% P2O5, 53.8% CO2 and 4.61% fluorine (average of 30 grains analyzed by electron microprobe). All of these factors point to ease of liberation and production of a clean apatite concentrate and the amenability of the Prairie Lake rock to produce viable phosphorus concentrate.
An apatite concentrate was produced during initial metallurgical testing at COREM in Quebec City on a 1,000kg sample submitted in September 2011. In this second round of testing, the material was subjected to a more comprehensive study than in previous testing (see press release dated April 2012).
Prairie Lake is one of the largest deposits of its type in the world. Not only does it have tremendous scale, but its location near existing infrastructure and transportation networks, the relative ease with which it could be exploited from surface using quarry methods the continuing potential for expansion of the known mineralization and now favourable phosphorus metallurgy all point to Prairie Lake being a very valuable asset within Nuinsco's property portfolio.
The NI-43-101-compliant Exploration Target Mineralization is 515 - 630 million tonnes grading between 0.09-0.11% niobium (Nb2O5) (0.9 to 1.1 kg/tonne) and 3.0-4.0% P2O5 - If this were confirmed as a resource, it would make Prairie Lake one of the world's ten largest carbonatite hosted niobium deposits (and in North America second only to the Iron Hill Project in Colorado, USA, in contained tonnes). The current metallurgical work establishes the project as a substantial, recoverable, phosphorus inventory. The suite of minerals of potentially economic significance also includes tantalum (Ta), uranium (U) and rare earth elements (REE) (including lanthanum (La), cerium (Ce), samarium (Sm), neodymium (Nd) and yttrium (Y). A current economic analysis has not been completed and economic viability has not been established.
About Prairie Lake
Located about 45 kilometres northwest of Marathon, Ontario, Nuinsco's Prairie Lake property covers the entire 2.8 km2 (at surface) Prairie Lake Carbonatite Complex and is easily accessible from the TransCanada Highway. In January, 2012, Nuinsco bought back a 2% production royalty making the property royalty free.
The Prairie Lake project hosts an ETMI of 515 - 630 million tonnes grading between 0.09-0.11% Nb2O5 (0.9 to 1.1 kg/tonne) and 3.0-4.0% P2O5 (see news release dated October 26, 2011). The ETMI was undertaken by Eugene Puritch, P.Eng. and Antoine Yassa, P.Geo of P&E Mining Consultants Inc. of Brampton, Ontario.
All exploration work is supervised by Paul Jones, P.Geo, President and Laura Giroux, P.Geo, Senior Geologist, who act as Nuinsco's Qualified Persons under National Instrument 43-101. Mr. Jones and Ms. Giroux have reviewed and approved the technical contents of this news release. The potential quantity and grade of the ETMI is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the discovery of a mineral resource.
About Nuinsco Resources Limited
Nuinsco is a growth-oriented, multi-commodity mineral exploration company that is focused on world-class mineralized belts in Canada and internationally when attractive opportunities arise. In addition to its property holdings, Nuinsco owns common shares in Coventry Resources Limited (ASX:CVY) and Victory Nickel Inc. (TSX:NI). Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.
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Forward-Looking Information: This news release contains forward-looking information. All statements, other than statements of historic fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information including the expected use of proceeds. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from estimates and assumptions; uncertainties relating to the availability and costs of financing needed in the future; failure to establish estimated mineral resources; fluctuations in commodity prices and currency exchange rates; inflation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain key management and personnel; changes to regulations or policies affecting the Company's activities; the uncertainties involved in interpreting geological data; and the other risks disclosed under the heading "Risks and Uncertainties" and elsewhere in the Company's annual information form dated June 30, 2012 filed on SEDAR at www.sedar.com. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.