Langmuir Project Yields Two Open-Pit Nickel Resources And Potential For 20-40 Million Tonnes In Additional Exploration Targets

January, 06 2010 TSX - ISM Frankfurt- OI8

 

Toronto, Ontario - Inspiration Mining Corporation (the "Corporation") is pleased to announce that Micon International Limited ("Micon") has completed the National Instrument 43-101 compliant resource estimate report (the "Micon Report") for the Langmuir North Deposit and the Langmuir No 1 Deposit. A copy of the Micon Report can be viewed under the Corporation's profile on the SEDAR website (www.sedar.com).

Pursuant to the Micon Report, resources in the Indicated Resources category for the Langmuir North deposit are 8,324,000 tonnes grading 0.40% nickel, as detailed in Table 1. Resources in the Indicated Resources category for the Langmuir No. 1 deposit are 1,733,000 tonnes grading 0.51% nickel, as detailed in Table 2.

Both deposits are amenable to open pit exploitation. Langmuir No.1 is also partly accessible from an existing development ramp from earlier historical production.

These deposits, lying within the Langmuir Nickel Belt, are also accompanied by at least four (4) exploration target areas of mineralization that are believed to hold the potential to host an additional 20 to 40 million tonnes of nickel mineralization of similar grades. In addition, the target areas also have the potential for open-pittable configuration.

As well, it is believed that potential remains to locate additional concentrations of nickel mineralization similar to that which has been exploited at the Langmuir No 2 mine at depth on the property. The potential quantity and grade of such deposits is conceptual in nature and there has been insufficient exploration to define a mineral resource of said tonnage and grade and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Additional exploration is warranted and it is anticipated that a budget of between $3.5 and $5 million in additional exploration expenditures will be necessary in order to explore the four (4) exploration targets and to continue exploration work on the current resource targets along with the outside exploration of multiple targets on the property.

A preliminary metallurgical evaluation was conducted by SGS Mineral Services ("SGS") for the Langmuir North deposit and the results are summarized in a report entitled "An Investigation into the Recovery of Nickel and Copper from the Langmuir #2 North Zone" dated June 25, 2009 (the "SGS Report"). A copy of the SGS Report can be viewed under the Corporation's profile on the SEDAR website (www.sedar.com).

According to the SGS Report, most of the nickel value is contained within the mineral millerite, a mineral with a high nickel content which is somewhat different from other deposits known to date for the region. Excellent recoveries of nickel sulphides are obtained at a relatively coarse grind. Based on the SGS Report and on previous historical work and metallurgical recoveries from previous production from the area, the Corporation believes that a platinum-palladium and a cobalt credit from the concentrates is possible.

Mr. Randy Miller, the President and Chief Executive Officer of the Corporation, stated "We are pleased with the results contained in the Micon report and the findings in the SGS report. These reports are an important step in the continued development and advancement of the Langmuir property. The potential for two open pit resources is evident by the conclusions in the Micon report and we are excited about the additional exploration targets that can significantly increase the size of the mineralization on the property. The Corporation is committed to the further exploration of the property in order to fully explore and develop the full potential of the property to become a viable source for nickel in the future." The Micon Report was prepared by Reno Presacco, P.Geo., Richard Gowans, P.Eng. and Jonathan Steedman, MAusIMM, and is dated January 6, 2010. The SGS Report was prepared by Oliver Peters, P.Eng, MBA and Dominique Lascelles, M.Eng.

Table 1

Estimated Mineral Resources for the Langmuir North Deposit

Cut Off Grade (% Ni) Classification Volume (m3) Tonnes Ni (%)
Mill Incremental:
0.19 -> 0.21 Indicated 160,000 433,000 0.20
Sub Total   160,000 433,000 0.20
Mineralized:
>0.21 Indicated 2,912,000 7,891,000 0.41
Sub Total   2,912,000 7,891,000 0.41
Total Mill Incremental + Mineralized    8,324,000 0.40

 

Table 2

Estimated Mineral Resources for the Langmuir No. 1 Deposit

Cut Off Grade (% Ni) Classification Volume (m3) Tonnes Ni (5)
Mill Incremental:
0.19 -> 0.21 Indicated 23,000 67,000 0.20
Sub Total   23,000 67,000 0.20
Mineralized:
>0.21 Indicated 583,000 1,666,000 0.52
Sub Total   583,000 1,666,000 0.52
Total Mill Incremental + Mineralized   1,733,000 0.51

 

1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.

2. The quantity and grade of reported Inferred Resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource. It is uncertain if further exploration will result in the upgrading of the Inferred Resources into an Indicated or Measured Mineral Resource category.

3. Tonnages have been rounded to the nearest thousand tonnes

4. Sums may not add due to rounding

5. Mineral resources are inclusive of mill incremental material

6. Grade interpolation is estimated by Ordinary Kriging method.

The Qualified Person who prepared the technical data in this release is Dr. Stewart Jackson, P.Geol.

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