Strong geophysical anomaly identified at Athabasca Basin uranium Property

TORONTO, May 11 /CNW/ - Nuinsco Resources Limited (NWI:TSE) announces
today that a TEM geophysical survey conducted on the Diabase Peninsula
Property in northern Saskatchewan has identified a strong, continuous,
conductivity anomaly, approximately 5000m in strike length, that is
interpreted to be of bedrock origin. The anomaly is a highly prospective
uranium target - the Company is planning to quickly follow up on these
encouraging results. Nuinsco holds an option to earn 50% of the project from
Trend Mining Company of Denver, Colorado.
The Transient EM geophysical survey was conducted during March over
approximately 68km of grid line established on the central part of the claim
group. Electromagnetic surveys are employed in the Athabasca Basin to identify
buried, unconformity related, uranium mineralization - the technique
identifies the presence of graphitic units, which provide a favourable
environment for uranium deposition. The current survey was designed to trace
and define geophysically responsive, graphite bearing, structures known to
underlie the Diabase Peninsula Property at depths greater than 150m beneath
the sediments of the Athabasca Basin. Results show a continuous anomaly
striking northeast between grid lines 1600N and 6600N - the response extends
off of the grid to both north and south but remains on the Diabase Peninsula
Property. A second, parallel, anomaly occurs at the south end of the surveyed
area, for a distance of approximately 800m.
Nuinsco expects to have the entire property surveyed with an airborne EM
system by early summer to determine the extent to which the anomaly identified
by the ground survey underlies the remainder of the claim group. The survey
will extend geophysical coverage over favourable structures, such as the Cable
Bay Shear Zone, known to underlie the claim group in a northeast direction.
Little work has been conducted along this structure away from the historic
surveys that date from the 1970s and early 1980s.
The Diabase Peninsula Property currently consists of eight claims
encompassing coincident, highly prospective, alteration and geophysical
signatures indicative of possible uranium mineralization. Located on the
western shore of Cree Lake approximately five kilometres north of the southern
boundary of the Athabasca Basin, the Diabase Peninsula Property overlies the
graphite-bearing Cable Bay Shear Zone - this structure is considered to be an
important potential host for uranium mineralization in this part of the
Athabasca Basin. The claim group is known to encompass hydrothermally altered
sandstone boulders and is underlain by electromagnetic geophysical anomalies
indicating the possible presence of graphitic conductors in the basement
rocks. The hydrothermal alteration and the geophysical anomalies are
considered to be diagnostic indicators of potential uranium mineralization.

FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all
statements in this news release - including, without limitation, statements
regarding future plans and objectives of are forward-looking statements that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate; actual results and future events could
differ materially from those anticipated in such statements.

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