Nuinsco to process 14,000 tonnes of 4.46 g/t Au rock

2009-02-25 13:06 EST - News Release

Ms. Rene Galipeau reports

NUINSCO EVALUATING PROCESSING OF MINERALIZATION FROM CAMERON LAKE GOLD MINE

Nuinsco Resources Ltd. is reviewing options with regard to processing gold mineralized rock that is currently stockpiled at its 100-per-cent-owned Cameron Lake gold mine near Kenora in northwestern Ontario.

Approximately 14,000 tonnes of material was collected from numerous levels of the Cameron Lake mine and crushed as part of a sampling program conducted in 1988, to produce representative samples for assay.

Analysis by Lakefield Research at that time (now SGS Lakefield Research Limited) returned an average gold grade of 4.46 grams per tonne (as this information pre-dates National Instrument 43-101, it cannot be determined at this time whether it would comply with National Instrument 43-101). This crushed material, and an additional amount of uncrushed development muck from mineralized zones within the deposit is currently stockpiled on surface and available for processing.

Using a gold price ($991.70 (U.S.) per ounce) and exchange rate (1.25) as of Feb. 23, 2009, and the 4.46 grams per tonne average grade gives an in-situ value to the 14,000 tonnes of crushed rock of $2.5-million (no value is ascribed here to the uncrushed material). Previous metallurgical testing indicates good gold recovery using conventional processing.

"We are actively evaluating our alternatives with respect to transporting and custom milling this material offsite," said Paul Jones, president. "In addition to providing significant revenue to Nuinsco from gold sales, this program will provide valuable information on metallurgy and recoveries that will be helpful with future development of the Cameron Lake gold mine."

Cameron Lake gold mine

The Cameron Lake gold mine was developed in the mid-1980s to the 800-foot level by Echo Bay Mines at a cost of $24-million. Combined with an updated 43-101-compliant gold resource, near-term production potential, a 700-tonnes-per-day mill that could be moved on site quickly, exploration upside at depth and a continued strong gold market, the Cameron Lake gold mine is a significant asset. The company continues to evaluate the potential for Cameron Lake to become the cornerstone of a strategy to create a pure-play gold company that could act as the consolidator of gold deposits in the Kenora region.

No timetable has been established to complete a spin-off transaction of the Cameron Lake gold mine. However, activities to advance the process are continuing, including the above-noted processing program; completing hydro-geological, environmental and socio-economic studies; consultation with the First Nations; and securing the required permits to dewater the underground mine workings. As well, Nuinsco has engaged a contractor to clean up the mill, which is currently located in Quebec, in order to recover any gold remaining in the circuit and has also identified a group to dismantle the mill and move it from its current location to the Cameron Lake mine site if considered appropriate.

Exploration and corporate update

Given current financial and metals market conditions, Nuinsco's 2009 exploration programs will be based, in part, on the availability of financing. In order to align Nuinsco's cost structure with market conditions, the company has implemented cost reduction measures that will remain in place until financial markets recover, including management salary reductions and the deferral of directors' fees.

Nuinsco made significant progress with its exploration programs during 2008. Results pending from those programs include assays from uranium exploration on the Prairie Lake property near Marathon, Ont., and the Marijane Lake and Huston Lake joint venture with Temex Resources Corp.

Paul Jones, president acts as the qualified person under the NI 43-101 and has reviewed and approved the contents of this news release.

PDAC 2009

Nuinsco Resources Limited and Victory Nickel Inc. invite you to meet Michael Lambert, member of Canada's National Snowboard Team and one of the stars of the upcoming CTV and MTV Canada reality drama snowboard series Over the Bolts.

Michael will be signing autographs on March 2, 2009, and March 3, 2009, at the Victory Nickel (No. 3235) and Nuinsco (No. 2531) booths in the investors exchange at the PDAC Convention, March 1 to 4, Metro Toronto Convention Centre, South building. Drop off your business card and enter for a chance to win a snowboard autographed by Mr. Lambert and other members of Canada's National Snowboard Team.

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