Nachingwea results give Continental huge boost

Vancouver – Assay results from the companys first seven holes into the Nachingwea nickel sulphide project in Tanzanian moved three month-old Continental Nickel (CNI-V) up 164% in Nov 20^th trading.

The nascent company, an August spin-out from Goldstream Mining (GDM-A) of Australia to hold Nachingwea, drilled 53 holes for 10,514 metres and intersected six new zones of magmatic sulphide mineralization.

The strongest result came from hole 28 collared in new zone H. Hole 28 returned 7.5% nickel, 1.15% copper, and 0.1% cobalt over 9.5 metre starting 66.5 metres downhole, including 4 metres of 15.31% nickel, 2.52% copper, and 0.19% cobalt. In total seven drill holes tested zone H, targeted because a recent ground electromagnetic (EM) survey identified the area as one of 12 moderate to high conductance targets.

Twenty metres updip of hole 28, hole 26 cut a 3.52% nickel, 0.38% copper, and 0.06% cobalt over 2 metres from 62 metres downhole. Of the five remaining holes into the target, four returned short massive sulphide intersections for which assays are pending.

In 2006 a Goldstream drill hole cut 3 metres grading 11.23% nickel and 1.74% copper, defining zone NAD013. Continental punched 11 holes into the promising zone, where the ground EM geophysical survey confirmed the presence of a short strike, shallow dipping, and strongly conductive anomaly. Five assay results have been received.

Hole 19, collared along strike 30 metres south of Goldstreams discovery hole, returned 1.9 metres of massive sulphide grading 17.11% nickel, 2.71% copper, and 0.19% cobalt from 49 metres depth. Holes 18 and 20, collared 30 metres down dip of the discovery hole and hole 19 respectively, cut narrow massive sulphide intersections. Hole 21 and 22, drilled 50 metres south along strike of holes 19 and 20, did not intersect significant mineralization.

Other targets for which drill assays are pending include target I, southeast of NAD013, and L, northwest of H, which together form a 1.3-km strike along the western part of the Ntaka intrusion. Drilling at I and L has intersected multiple zones of semi-massive to massive sulphide mineralization. In addition, targets G, J, and M, located in the eastern and northern portions of the intrusion, returned intersections of disseminated, net-textured, semi-massive, and massive sulphides over core lengths from 3 metres to 18 metres.

The results boosted Continentals share price by $1.99 or 164.5% on only 276,000 shares traded to close at $2.74, a new all-time high for the young company. The companys previous best share price was $1.53.

Nachingwea is located in southeastern Tanzania, some 180 km west of the port city of Mtwara and 400 km south of Dar es Salaam. It is situated within the Proterozoic-age Mozambique Belt, which Continental believes has the potential to become a significant nickel camp like other Proterozoic-rifted continental margin settings such as Thompson and Raglan in Canada, Pechenga in Russia, and Jinchuan in China.

Continental is in the midst of a $9.5-million exploration program at Nachingwea planned until summer 2009. Down-hole pulse EM surveying is currently underway on select drill holes, as is a 5,900-km airborne magnetic-EM survey.

Continental enjoyed an oversubscribed initial public offering in early August, offering shares for $1.50 apiece and raising nearly $18.98 million. The company has 26.9 million shares outstanding. Goldstream remains Continentals controlling shareholder with a 53% interest in the company and a 30% interest in Nachingwea.