The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Continental Precious Minerals Enters Into Land Lease at Its MMS Viken Licence in Sweden

50-Year Land Lease Agreement on Eight Hectares Will Enable Extensive Exploration

Friday, June 24, 2011

Continental Precious Minerals Enters Into Land Lease at Its MMS Viken Licence in Sweden13:30 EDT Friday, June 24, 2011TORONTO, ONTARIO--(Marketwire - June 24, 2011) - Continental Precious Minerals Inc. (TSX:CZQ) (the "Company" or "Continental") is pleased to announce that it has entered into a land lease agreement for an eight hectare property on its MMS Viken licence in Sweden. The agreement entitles Continental full rights to conduct exploration surveys, in accordance with the Swedish Minerals Act. The lease is valid for an initial 50 years and, subject to certain conditions, is renewable for a further 50 years. The total lease cost for the 50 year term is approximately $120,000."This agreement will be very beneficial to our exploration program," said Ed Godin, President and CEO. "It will allow us to undertake environmental surveys, metal extraction and hydrological tests and related testing. This larger scale research and field testing will help us verify the results from our bench-scale testing."The Company had previously entered into an agreement to purchase the land subject to the lease, pending approval of the purchase by the Swedish Ministry of Agriculture. As the approval of the Swedish Ministry of Agriculture was not obtained, the Company secured this long-term lease.Continental is pursuing two options for its MMS Viken property. One is to continue metallurgical research and complete a pre-feasibility study; another is to pursue a joint venture agreement with a major mining company. Metallurgical research is being carried out at the laboratories of Process Research ORTECH Inc. (PRO) in Mississauga, Ontario by PRO personnel along with Al Hayden of EHA Engineering Ltd. (EHA). The focus of the current research is to carry out leaching and roasting tests on MMS Viken ore samples with the goal of optimizing metal recovery rates while reducing production costs. As well, Continental has initiated discussions with several mining companies.About Continental Precious Minerals Inc.Continental Precious Minerals Inc. is a multi-mineral exploration company with multiple interests and exploration licences in Sweden. Since March 2005, Continental's primary goal has been to advance its Swedish assets. The Company is also evaluating other opportunities as they emerge in current market conditions.Cautionary Statement Regarding Forward-Looking Statements This news release contains forward-looking statements that are based on expectations, estimates and projections as of this date. There is no assurance that a pre-feasibility report will be completed, that a joint venture agreement with a major mining company will be entered into or that the Company will be able to optimize metal recovery rates while reducing production costs. Factors that could affect the outcome include, without limitation, uncertainties as to research outcomes, uncertainty of production and cost estimates, permitting to construct and operate a mine (which permits have not been obtained or applied for, and are not assured), environmental, social and political factors, as well as metal prices and unanticipated technical difficulties, and the other risk factors described in the Company's annual information form for the year ended May 31, 2010 available on SEDAR. The forward-looking statements contained in this news release represent the Company's views and expectations as of the date of this release and should not be relied upon as representing its views and expectations at any subsequent date.FOR FURTHER INFORMATION PLEASE CONTACT: Ed GodinContinental Precious Minerals Inc.President & CEO(416) 805-3036(905) 276-4862 (FAX)godine@rogers.comORCraig MacPhailTMX / Equicom(416) 815-0700, ext. 290cmacphail@equicomgroup.com