MONTREAL, Oct. 29 /CNW Telbec/ - Canadian Royalties Inc. (TSX: CZZ) is pleased to announce the discovery of a significant new zone of high-grade Nickel-Copper-PGE (platinum group element) mineralization at Kehoe, located approximately 10 kilometres west-southwest of the Expo complex. Thick intervals of high-grade mineralization were cut in drillhole KH-08-16, which intersected 38.15 metres grading 1.23% Nickel and 1.21% Copper, 0.56 g/t Platinum and 1.99 g/t Palladium, including an 11.90 metre portion that graded 2.96% Nickel, 1.61% Copper, 1.02 g/t Platinum and 3.54 g/t Palladium. Significant results are also reported for seven (7) additional holes.
The "Endah" showing was discovered in late July, 2008 by diamond drilling beneath a surface showing following a campaign of testing geophysical targets elsewhere on the Kehoe intrusion. These results place a new zone of mineralization roughly equidistant between the Expo and Mequillon deposits, and 5.5 kilometres northeast of Tootoo. The zone is favourably located close to the planned road that is proposed to link the Expo complex with the Mequillon and Ivakkak deposits. These exploration results further attest to the mineral potential of the Expo Intrusive Suite.
Table 1 - Endah Showing Composite Assays Hole Width Pt Pd Number From (m) To (m) (m) Ni (%) Cu (%) (g/t) (g/t) ------------------------------------------------------------------------- KH-08-06 to KH-08-10 No significant results ------------------------------------------------------------------------- KH-08-11 100.25 137.00 36.75 0.43 0.82 0.35 1.48 and KH-08-11 144.40 149.30 4.90 2.01 1.22 0.45 2.04 ------------------------------------------------------------------------- KH-08-12 and KH-08-13 No significant results ------------------------------------------------------------------------- KH-08-14 131.30 143.00 11.70 1.31 2.12 0.52 1.92 including KH-08-14 131.30 138.80 7.50 1.70 2.14 0.47 1.86 ------------------------------------------------------------------------- KH-08-15 73.80 93.20 19.40 0.47 0.86 0.32 1.88 including KH-08-15 76.00 82.00 6.00 0.73 0.88 0.36 1.97 and KH-08-15 110.00 116.80 2.80 1.16 0.28 0.44 1.40 ------------------------------------------------------------------------- KH-08-16 62.30 100.45 38.15 1.23 1.21 0.56 1.99 including KH-08-16 85.30 96.90 11.90 2.96 1.61 1.02 3.54 ------------------------------------------------------------------------- KH-08-17 103.62 110.50 6.88 0.40 0.53 0.35 1.41 ------------------------------------------------------------------------- KH-08-18 126.09 191.33 65.24 0.48 0.59 0.30 1.22 including KH-08-18 149.00 156.82 7.82 0.84 0.44 0.46 1.32 ------------------------------------------------------------------------- KH-08-19 156.00 170.35 14.35 1.74 1.51 0.45 2.00 including KH-08-19 163.60 169.45 5.85 3.23 1.58 0.34 1.32 ------------------------------------------------------------------------- KH-08-20 198.00 200.00 2.00 0.60 0.59 0.63 2.14 ------------------------------------------------------------------------- KH-08-21 Results pending ------------------------------------------------------------------------- KH-08-22 Results pending ------------------------------------------------------------------------- KH-08-23 Results pending; no significant results expected ------------------------------------------------------------------------- KH-08-24 Results pending; no significant results expected ------------------------------------------------------------------------- KH-08-25 Results pending; no significant results expected ------------------------------------------------------------------------- KH-08-20 Results pending; no significant results expected ------------------------------------------------------------------------- KH-08-27 Results pending ------------------------------------------------------------------------- KH-08-28 Results pending; no significant results expected ------------------------------------------------------------------------- KH-08-29 Results pending; no significant results expected ------------------------------------------------------------------------- KH-08-30 Results pending; no significant results expected ------------------------------------------------------------------------- Table 2 - Endah Showing Drillhole Locations Hole Easting Northing Dip Number (UTM NAD83, Zone 18) Azimuth (o) (o) Final Depth (m) ------------------------------------------------------------------------- KH-08-06 573605E 6823472N 140.0 -88 228.00 KH-08-07 573340E 6823506N 69.0 -88 360.00 KH-08-08 573342E 6823506N 69.0 -45 51.00 KH-08-09 573113E 6822712N 140.0 -48 144.00 KH-08-10 573112E 6822712N 140.0 -70 147.00 KH-08-11 573183E 6822760N 180.0 -55 201.00 KH-08-12 573183E 6822760N 180.0 -64 156.00 KH-08-13 573188E 6822576N 360.0 -65 186.00 KH-08-14 573188E 6822577N 360.0 -49 177.00 KH-08-15 573185E 6822644N 360.0 -50 270.00 KH-08-16 573185E 6822644N 360.0 -68 129.00 KH-08-17 573231E 6822610N 360.0 -46 216.00 KH-08-18 573231E 6822610N 360.0 -58 222.00 KH-08-19 573231E 6822610N 360.0 -63 381.00 KH-08-20 573231E 6822610N 360.0 -69 312.00 KH-08-21 573231E 6822610N 360.0 -73 336.00 KH-08-22 573134E 6822635N 360.0 -45 372.00 KH-08-23 573134E 6822635N 360.0 -73 159.00 KH-08-24 573186E 6822553N 360.0 -50 230.00 KH-08-25 573285E 6822809N 180.0 -45 201.00 KH-08-26 573285E 6822809N 180.0 -56 267.00 KH-08-27 573285E 6822809N 180.0 -63 387.00 KH-08-28 573286E 6822532N 360.0 -62 390.00 KH-08-29 572917E 6823108N 320.0 -60 174.00 KH-08-30 572917E 6823108N 320.0 -78 267.00 -------------------------------------------------------------------------
Holes KH-08-06 to KH-08-10 and KH-08-29 to KH-08-30 were drilled on geophysical targets located elsewhere on the property; these holes did not yield significant results.
Preliminary interpretation of the data suggests that a different drill grid orientation may be better suited in order to properly define the geometry of this potential deposit. The economic significance of the Endah showing has yet to be determined and further exploration work is warranted.
Sampling and Assays
Core samples are either split or sawn on-site, individually sealed in bags and shipped off-site on a regular basis to the ALS Chemex laboratory in Val d'Or, Quebec for sample preparation. Analyses are performed at the ALS Chemex laboratory in Vancouver, British Columbia. Base metal analyses including Nickel and Copper are determined by sodium peroxide fusion with ICP-AES analysis. Platinum, Palladium and Gold analyses are determined by fire assay and ICP-AES finish. The company quality control (QA/QC) program includes regular insertions of blanks and standards. Reported values are uncut and composite intervals are reported as length along the core axis. Below detection limit assays are considered zero values when calculating composites for release purposes.
Qualified Persons
W. Grant Arnold (P.Geo.), Vice-president Exploration for Canadian Royalties Inc., is a Qualified Person in accordance with National Instrument (NI) 43-101, and is responsible for the geological information presented in this news release.
About Canadian Royalties and the Nunavik Nickel Project
Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located 20 kilometres south of Xstrata Nickel's Raglan Mine in Nunavik, Quebec. Canadian Royalties has received its Environmental Certificate of Authorization and Mine Leases for the Expo, Mesamax, Ivakkak and Mequillon sites.
Forward-looking Statement
This news release contains certain forward-looking statements or forward-looking information. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Corporation's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2007 and dated March 31, 2008. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the Nunavik Nickel Project is a technical viable and economic operation, that it can be successfully completed by the Corporation, that the Corporation will receive the required permits and access to surface rights, and that the Corporation can access financing, appropriate equipment, and sufficient labour. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward-looking statements speak only as of the date of this news release and the Corporation does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on forward-looking statements.