MONTREAL, Oct. 17 /CNW Telbec/ - Canadian Royalties Inc. (TSX: CZZ) ("Canadian Royalties" or the "Corporation") is pleased to announce the discovery of a new high-grade Nickel-Copper-PGE (platinum group element) showing on its 100% owned Giraffe property, located in the eastern portion the extensive Nunavik Nickel land package. High-grade sulphides were intersected in two (2) near-surface holes including GRN-08-05, which returned 1.80 metres of mineralization that ran 5.22% Nickel, 0.32% Copper, 2.30 g/t Platinum and 5.58 g/t Palladium within a 6.25 metre zone grading 2.44% Nickel, 1.01% Copper, 1.02 g/t Platinum and 3.09 g/t Palladium.
The Giraffe property harbours at least three (3) large outcropping ultramafic intrusions: The F1 intrusion with 3.4 kilometres of strike length; the 2.7 kilometre long F2 intrusion; the G1 (Giraffe) intrusion with 2.6 kilometres of exposed strike length, with a further possible 1.4 kilometre-long buried northeast extension. The "Gurn" showing, located along the F2 intrusion, was discovered during drill follow-up of a geophysical target on the Giraffe North grid.
Over a sixty kilometre strike length, eight (8) deposits and numerous showings have been discovered or expanded since exploration by Canadian Royalties began in 2001. The results obtained at "Gurn" demonstrate clearly that the multiple and voluminous Giraffe ultramafic intrusions are indeed fertile and that magmatic sulphide accumulations could be present elsewhere on this little-worked property, located twenty kilometres east of previous discoveries.
Table 1 - Gurn Showing Composite Assays Hole From To Width Ni Cu Pt Pd Number (m) (m) (m) (%) (%) (g/t) (g/t) ------------------------------------------------------------------------- GRN-08-04 42.20 46.00 1.80 0.14 1.74 0.41 3.04 and 67.15 68.80 1.65 2.64 0.87 0.55 3.37 ------------------------------------------------------------------------- GRN-08-05 86.30 92.55 6.25 2.44 1.01 1.02 3.09 including 89.50 91.30 1.80 5.22 0.32 2.30 5.58 ------------------------------------------------------------------------- GRN-08-06 to 09, 12 No significant results ------------------------------------------------------------------------- Table 2 - Gurn Showing Drillhole Locations Hole Easting Northing Azimuth Dip Final Depth Number (UTM NAD83,Zone 18) (o) (o) (m) ------------------------------------------------------------------------- GRN-08-04 618101E 6823222N 360.0 -50 111.00 GRN-08-05 618101E 6823222N 360.0 -64 130.00 GRN-08-06 618101E 6823222N 360.0 -73 150.00 GRN-08-07 618053E 6823235N 360.0 -50 111.00 GRN-08-08 618152E 6823234N 360.0 -50 132.00 GRN-08-09 618152E 6823234N 360.0 -67 150.00 GRN-08-12 618046E 6823342N 180.0 -45 132.00 ------------------------------------------------------------------------- Holes GRN-08-10 (617578E; 6823805N) and GRN-09-11 (617497E; 6823225N) were drilled on conductors located elsewhere on the property and did not return significant results. The Corporation will continue reporting additional exploration results during Q4-2008 and Q1-2009, as results become available, on a project area basis. 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 Corporation 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. Other Developments The Corporation also announces that Robert Menard, VP Construction and Engineering, and Marc Chaput, VP Investor Relations and Communications, have left the Corporation following an Asset Conservation Plan (ACP) restructuring. Mr. Menard will however remain a consultant with the Corporation to assist in carrying out the shutdown of construction activities on its Nunavik Nickel Project (the "Project") and to help ensure an efficient future start-up of the Project. "We wish to thank Mr. Menard and Mr. Chaput for their efforts and wish them well in their future endeavours" said Glenn J. Mullan, President and CEO. Qualified Persons W. Grant Arnold (P.Geo.), Vice-president Exploration for Canadian Royalties, 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 now received its Environmental Certificate of Authorization and Mine Lease for the Expo site. 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.