Northern Continental Reports Winter Exploration Results at Russell Lake Project
Wed Jun 4, 10:00 AMVANCOUVER, BRITISH COLUMBIA--(Marketwire - June 4, 2008) - Northern Continental Resources Inc. ("Northern Continental") (TSX VENTURE: NCR.V) today announced preliminary results from an exploration program of diamond drilling and geophysical surveying at the Russell Lake Uranium Project ("Russell Lake" or the "Project"), located in the Athabasca Basin of northern Saskatchewan, Canada.
Russell Lake is a joint venture between Northern Continental and Hathor Exploration Ltd. ("Hathor"), in which Northern Continental holds a 60% interest and Hathor holds a 40% interest. Northern Continental is currently the operator of the Project. Russell Lake lies within the Key Lake-MacArthur River corridor, one of the most prolific uranium mining districts in the world. Highlights of the 2008 Winter Exploration Program: - Sixteen drill holes totaling 7,610.7 metres were completed on the Fox Lake Trail, Taylor Bay, Blue Steel, Grayling Zone and Grayling East target areas; - Anomalous uranium mineralization was encountered in two of the target areas, which has greatly advanced the current exploration focus. A grade calculation from gamma probe data for Fox Lake Trail hole FLT-08-05 returned a U3O8 equivalent value of 0.157% U3O8 over 0.20 metres, and Taylor Bay hole TB-08-05 encountered a interval of anomalous mineralization grading 0.062% U3O8 over 0.22 metres. Several other holes intersected anomalous alteration, structures and basement geology considered favourable for uranium mineralization; - Extensive ground geophysical programs were carried out to locate and define future drilling targets. Geochemical analyses from drill core samples are still being received, compiled and interpreted. Table 1 below shows drill hole statistics. Fox Lake Trail Five drill holes in the Fox Lake Trail area were targeted on conductors outlined by previous airborne surveys and recent ground geophysical surveys. Holes FLT-08-01 and FLT-08-02 explained the targeted conductors but did not encounter any significant mineralization. FLT-08-03 intersected strongly altered and fractured basement rocks, which led to follow-up holes in its vicinity. Hole FLT-08-04 encountered strong alteration and intersected a graphitic pelite within a broad shear zone just below the unconformity. A second follow-up hole, FLT-08-05, was collared approximately 75 metres to the northwest and exhibited pervasive silicification in the sandstone, and hematitic alteration above and below the unconformity, which was reached at 458.28 metres. A similar shear zone to that in FLT-08-04 was intersected below the unconformity. Below this shear zone, a brittle fracture in a graphitic pelite showed anomalous radioactivity from hand-held scintillometer measurements. Geochemical analysis for the interval from 506.7 to 507.0 metres returned a value of 0.066% U3O8 (total digestion analysis) over 0.30 metres. A grade calculation from the downhole gamma probe data returned a U3O8 equivalent value of 0.157% U3O8 over 0.20 metres, including 0.296% U3O8 over 0.10 metres, which corresponded to the highest gamma probe peak of 3,373 counts per second within the radioactive interval. Further analysis of the sandstone columns in FLT-08-04 and FLT-08-05 by infra-red spectroscopy determined that strong dravite alteration is present within 50 metres of the unconformity in both holes, with dravite values in several systematic sandstone samples from hole FLT-08-05 reaching over 80% of the clay content. Dravite is an important pathfinder of uranium mineralization in the Key Lake-MacArthur River corridor. Northern Continental believes that the presence of uranium mineralization in basement rocks, highly prospective basement structure, and significant dravite alteration in the sandstone provide a compelling target for the next round of drilling at Fox Lake Trail. Taylor Bay and Blue Steel Drilling from the ice at Taylor Bay intersected the TB-1 conductor under the lake, which showed the presence of anomalous uranium within graphitic basement rocks in hole TB-08-05 (see Northern Continental's news release, April 1, 2008). Geochemical analysis of the radioactive interval returned a value of 0.065% U3O8 (total digestion analysis) over 0.22 metres, from 326.5 to 326.72 metres. The other five Taylor Bay holes did not encounter significant uranium mineralization, but provided valuable geological information from an area that had received only limited historical drilling. Dravitization was observed in the sandstone near the unconformity in holes TB-08-05 and TB-08-06. Follow-up resisitivity surveys and drilling are recommended for the winter of 2009. Two holes were drilled on the lake at Blue Steel this winter to test an airborne and ground conductor; the drill holes did not explain the targeted conductive response. The basement rocks are, however, strongly altered and hematitic. Further geophysical surveys are recommended in the Blue Steel area along the interpreted strike of the conductor to better define its extension and character. Grayling Zone and Grayling East One hole drilled at the Grayling Zone and two holes drilled at the Grayling East target areas encountered varying levels of prospective structure and sandstone alteration, but no significant radioactivity. Historical drilling has intersected uranium mineralization along the Grayling Zone conductor (hole RL-85-7 graded 3.45% U3O8 over 0.30 metres, and hole RL-87-16 graded 0.40% U3O8 over 3.75 metres) but more recent drilling along the conductor has failed to significantly extend the mineralized zone. However, technological advances and recent discoveries in the Athabasca Basin have demonstrated that in certain cases the prime location for deposition of uranium is not directly along the conductor, but adjacent to it. Northern Continental is exploring this possibility at the Grayling Zone and Grayling East with planned resistivity surveys to search for sandstone breaches and alteration zones cross-cutting, or parallel to, the strike of the known conductor. Radon in soil gas surveys are also being utilized in an attempt to detect surface expression of any buried uranium mineralization. 2008 Winter Ground Geophysical Survey Extensive ground geophysical programs were carried out on several target areas to better define future drilling targets. Approximately 57.6 line kilometres of moving-loop and fixed-loop electromagnetic surveying were completed on the Boomerang, Powerline, Morrison Lake and Big Bend target areas to verify and detail conductors outlined by historical ground and airborne surveys. Pole-pole resistivity surveys totaling 27.6 line kilometres were carried out on the Christie Lake and Powerline target areas to detect areas of potential sandstone alteration, with particular focus along seismic lines previously surveyed by Hathor that had demonstrated evidence of prospective structure. Results from the surveys are currently being compiled and interpreted to assist in target selection for the 2008 summer drilling program. 2008 Summer/Fall Exploration Program The summer/fall phase of the 2008 drilling program is scheduled to begin in June 2008 using two diamond drills. Up to 12 holes totaling approximately 6,000 metres are planned on the Fox Lake Trail, Boomerang, Powerline, Christie Lake, Grayling Zone and Grayling East target areas. A resistivity survey is currently underway at Fox Lake Trail, and other resistivity surveys are planned later in June for the Big Bend, Grayling Zone and Grayling East target areas. Aurora Geosciences of Yellowknife, NWT is managing exploration activities at the Project. Diamond drilling services are 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 are 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 drilling program. A portable Niton X-ray fluorescence analyzer is 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. About Northern Continental Northern Continental acquired Russell Lake in 1999, and staked additional claims contiguous to the original property in 2000. In 2004, Northern Continental optioned a 40% interest in the Project to Roughrider Uranium Corporation, which was acquired in 2006 by Hathor. After Hathor incurred a further $2.0 million of exploration expenditures on the Project, a joint venture was formed with Hathor holding a 40% participating interest and Northern Continental holding a 60% participating interest. For further information on Northern Continental and Russell Lake, visit our website at www.northerncontinental.ca. NORTHERN CONTINENTAL RESOURCES INC. Warren Stanyer, President & CEO
Table 1.
2008 Russell Lake Diamond Drilling Statistics
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Total Unconformity
Length Depth
Target Area Hole No. (metres) metres)
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Fox Lake Trail FLT-08-01 614.78 499.90
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Fox Lake Trail FLT-08-02 578.21 479.33
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Fox Lake Trail FLT-08-03 590.49 461.50
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Fox Lake Trail FLT-08-04 599.85 454.80
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Fox Lake Trail FLT-08-05 575.16 458.28
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Taylor Bay TB-08-02 367.89 314.57
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Taylor Bay TB-08-03 386.18 313.45
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Taylor Bay TB-08-04 401.42 322.85
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Taylor Bay TB-08-05 422.76 318.52
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Taylor Bay TB-08-06 389.23 310.74
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Taylor Bay TB-08-07 441.04 320.77
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Blue Steel BS-08-01 386.18 319.18
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Blue Steel BS-08-02 407.00 324.85
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Grayling Zone GZ-08-01 514.20 359.55
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Grayling East GE-08-01 450.90 369.25
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Grayling East GE-08-03 485.37 368.00
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NOTE: All holes listed above were drilled vertical.
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. The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the contents of this news release.ContactsWarren Stanyer Northern Continental Resources Inc.
President & CEO
(604) 685-9255 or Toll Free: 1-800-449-4435
Website: www.northerncontinental.ca
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