SOUTHERN ARC PROVIDES UPDATE ON CANADA NICKEL INVESTMENT
Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce the following update on the Canada Nickel investment (previously referred to in news releases dated July 8, 2008 and September 9,2008). Southern Arc holds 15,300,000 common shares (43.6 %) of the currently issued 35,129,542 shares. Canada Nickel has the option to earn a 51% interest in the James Bay Lowlands Nickel Project (the "Project”). Diamondex Resources Ltd. is the operator of the Project. The following is the Diamondex news release of today's date:
" Vancouver, B.C. – Diamondex Resources Ltd. (DSP-TSX.V) ("Diamondex") and Canada Nickel Corp. ("CNC”) are pleased to announce that, after evaluating approximately 30% of the data from the recently completed 7,786 line kilometre, high resolution VTEM (Versatile Time-Domain Electromagnetic) survey, the companies have identified 27 new strong Precambrian basement conductors on their James Bay Lowlands Property (the "Property”).
A total of 12,891 line kilometres of high resolution, B-field VTEM has been flown by Geotech Ltd. over the 407,000 acre Property at a maximum line spacing of 200 metres.
All 27 additional late time basement conductors have modeled values greater than 100 siemens (siemens is a unit measurement of electrical conductance). Of particular interest, 8 of these conductors have values greater than 500 siemens, with 1 high priority conductor with a modeled conductance value of 3,000 siemens. These 27 conductors are in addition to 35 conductors previously identified in other areas of the Property (see News Release May 6, 2008) bringing the total number of strong conductors identified on the property, to date, to 62. VTEM data from 161,000 acres has yet to be evaluated.
All the conductors identified from the VTEM surveys completed in 2008 are interpreted to be hosted within volcano-sedimentary stratigraphy similar to that containing Noront's Eagle One nickel deposit and Spider-KWG's McFauld's Lake VMS deposits. The priority conductors occur as discrete bodies of short strike length (less than 1 kilometre), most of them with directly coincident magnetic conductors, which increases the likelihood that these conductors are related to volcanogenic massive sulphides or Ni-rich magmatic sulphides, rather than formational conductors or graphitic horizons. Many of the conductors have a high likelihood of being accurately collared for drill testing directly from the VTEM survey data. At least 30 of the conductors will be followed-up with detailed ground geophysical surveys before drill testing, in order to better define the target's characteristics and location.
In preparation for the upcoming 7,500 metre drill testing program scheduled for this winter, Diamondex will focus on completing the evaluation of the remaining VTEM data, modeling the highest priority conductors, and evaluating those targets which will require detailed follow-up ground geophysical surveying. It is expected that at least 16 of the highest priority conductors will be drill tested by the end of the first quarter of 2009.
Virtually no previous exploration has been carried out over the interpreted 200-plus kilometre long Greenstone Belt that the Property covers. The significant number of highly conductive responses in this proven fertile environment (Eagle One nickel deposit, McFauld's VMS deposit) indicates an encouraging scenario for the discovery of new economic deposits.
Diamondex Resources Ltd. is the project Operator. The current field program is being managed by Raymond Ashley, P.Geo., Vice President, Exploration of Diamondex. Mr. Ashley is a Qualified Person in accordance with National Instrument 43-101, and has reviewed and approved the content of this press release.”
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