New Labrador nickel discovery



    Trading Symbol: CME:TSX-VEN
    Shares Outstanding: 59,952,626

    CALGARY, Aug. 16 /CNW/ - Celtic Minerals Ltd., (CME:TSX-VEN) is pleased
to announce that follow-up prospecting and mapping on its 100% owned
Kingurutik property, has resulted in the discovery of
nickel-copper-cobalt-palladium massive sulphides in outcrop, coincident with a
prominent gravity anomaly. The new massive sulphide prospect is located
approximately 85 km northwest of the Inco-CVRD Voisey's Bay mine in Labrador.
In light of this discovery, Celtic has increased its Kingurutik land position
from an initial 90 claims to 2,056 claims (514 sq km), constructed an
exploration camp, commenced further detailed geophysical surveys and is
mobilizing two drill rigs on to the site for a minimum 5,000 meter drill
program.
    Two initial grab samples from blocks of frost heaved massive sulphide
outcrop were sent for rush assaying and have returned the following results:

    
                       Pd g/t    Co %     Cu %     Ni %
                       ------    ----     ----     ----
                       0.343     0.15     0.20     1.09
                       0.433     0.17     0.59     0.91
    

    An additional 26 grab samples have subsequently been sent for rush
assaying from various heaved blocks and bedrock samples. Numerous large
gossanous massive sulphide blocks up to a meter across are found partially
obscured and embedded in the overburden. The overall size of the new prospect
cannot be accurately determined until further stripping is completed because
of overburden cover.
    The samples consist of very weakly magnetic, coarsely intergrown magmatic
sulphide crystals. A sample of massive sulphide has been submitted for
petrographic analysis with results pending.
    The massive sulphides are found adjacent to an olivine rich ultramafic
layer or dyke which is sub parallel to the underlying enderbitic gneiss. The
ultramafic layer/dyke is interpreted to be a massive to gneissic olivine
norite to troctolite. The enderbitic gneiss is in contact to the west with
Tasiuyak paragneiss, a relationship which is similar to the geological
situation at the Voisey's Bay mine site.
    Significantly, the massive sulphides and ultramafic layer/dyke are found
within a 2.5km by 3.5km, 3 milligal gravity (density) anomaly, the center of
which is located 1.75 km to the south of the new prospect. Modelling of the
gravity anomaly, infers a 300m thick troctolite body, synformal in shape, at
about 150m to 250m depth of burial.
    Celtic has an aggressive exploration program underway, including gridding
over the entire gravity anomaly. A detailed surface UTEM geophysical survey is
scheduled to begin on the grid next week. The property has recently been
covered by an airborne Full Tensor Gravity Gradiometry (FTG) survey along with
an FTG survey over Celtic's 100% owned Tasisuak Lake property. Two diamond
drills are being mobilized to the property on barge and will arrive within a
week to begin drill testing various identified targets.
    Celtic's land position on the Kingurutik River block has been increased
by staking from an initial 90 claims to 2,056 claims (514 sq km). The
cumulative land position including the Kingurutik River, Tasisuak Lake, West
Voisey's Bay and Garland Lake blocks now cover 3355 claims (838.75 sq km).
Celtic is the most active junior exploration company in the Voisey's Bay
nickel district and has one of the largest land positions.
    Barry Greene, Celtic's Vice President of Exploration, stated "We consider
these results to be very significant. Early work near the Reid Brook deposit
at Voisey's Bay returned similar assays and is a geologically similar
environment. The mineralized surface showing, coupled with the geophysical
anomaly has made this a high priority project for Celtic."
    All samples are being analyzed at Accurassay Laboratories in Thunder Bay,
Ontario. Accurassay is accredited by the standards council of Canada to
ISO/IEC 17025 guidelines for gold analysis, as well as accredited for
Platinum, Palladium and other Base Metal analysis. Precious metals are
analyzed using a 30 g lead collection fire assay procedure with AA finish. A
standard 30 element ICP package is used on all samples. Ore grade assays are
determined by Aqua Regia digest with AA finish. In addition to the
laboratory's quality control, Celtic also has a QA/QC program using standards
and blanks.
    Paul Delaney, P.Geo., project geologist for Celtic Minerals Ltd. is the
qualified person who has reviewed the content of this news release.
    Celtic encourages the public to visit its website at
www.celticminerals.com for additional information on the various projects or
to email us at info@celticminerals.com to be added to the Company's e-mail
list for press releases and updates.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.


    %SEDAR: 00005786E




For further information:

For further information: Paul Lipoth, Corporate Relations, Celtic
Minerals Ltd., Phone: (403) 261-2890 x.233, Fax: (403) 265-2223; Barry Greene,
Vice President, Exploration, Celtic Minerals Ltd., Phone: (709) 489-6480, Fax:
(709) 489-7092

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CELTIC MINERALS LTD.

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