U3O8 Corp. announces initial uranium resource estimate for the Aricheng North and Aricheng South structures in the Kurupung Batholith, Guyana
Indicated Resource: 5.8 million pounds of U3O8 (uranium); and
Inferred Resource: 1.3 million pounds of U3O8
Toronto, Ontario - January 22, 2009 - U3O8 Corp. (TSX Venture: UWE), a Canadian uranium exploration company, is pleased to report that an independent consulting firm has completed a resource estimate for the Aricheng North and Aricheng South structures, located in the basement near the Roraima Basin in Guyana, South America. While mineralization is still open along strike and down dip (Figure 1), the resource estimate on the Aricheng North and Aricheng South structures, at a cut-off grade of 0.05% U3O8, yielded:
? An Indicated Resource of 5.8 million pounds at an average grade of 0.10% (2.0 lbs/st) U3O8; and
? An additional Inferred Resource of 1.3 million pounds at an average grade of 0.09% (1.9 lbs/st) U3O8.
"U3O8 Corp's initial resource estimate is an important milestone, and marks the first of our basement-hosted uranium targets to advance to resource definition," said Richard Spencer, President and CEO of U3O8 Corp. "Mineralization at Aricheng South and Aricheng North remains open for expansion and further drilling has the potential to considerably increase this initial resource figure. Our focus is now to determine whether other mineralized structures in the Kurupung Batholith can contribute to a significantly larger uranium resource."
U3O8 Corp's exploration drilling has defined a number of uranium-bearing structures in the basement that could increase this initial resource. Accori North C is the next structure with the potential to add a maximum number of pounds to the company's uranium resource for the lowest drill metreage.
Aricheng South and Aricheng North Uranium Mineralization
Uranium mineralization at Aricheng South and Aricheng North lies within fracture zones and breccias within the Kurupung Batholith in the basement approximately five kilometres from the Roraima Basin. The uranium-bearing structures are enclosed by albite, chlorite and hematite alteration in homogeneous and extremely competent host rock. Mineralized zones typically have a negligible sulphide content.
The Aricheng South structure strikes east and dips about 60? to the north. Drilling to date has delineated uranium mineralization over a strike length of 320 metres. The deposit is still open along strike to the west, continues to a maximum depth of 230 metres below surface and remains open at depth. Limited drilling in the shallowest parts of the mineralized zone suggests that mineralization starts in the lower part of the saprolite weathering zone at a depth of approximately 10 metres below surface.
The Aricheng North structure strikes northeast and dips about 75? to the northwest. Drilling to date has delineated uranium mineralization over a strike distance of 750 metres, where it remains open along strike to the southwest. The deposit was tested to a maximum depth of approximately 190 metres below surface and remains open at depth. Limited drilling in the upper 10 to 20 metres below surface suggests that mineralization starts in the lower part of the saprolite weathering zone at an average depth of about 10 metres below surface.
Table 1 - Resource Estimate Summary for Aricheng South and Aricheng North
A summary of the resource estimate for both structures based on sensitivity to cut-off grade is detailed below.
Note: lbs/st is an abbreviation for pounds per short ton. 1 short ton = 2,000 lbs or 0.907 metric tonnes.
Resource Estimate Methodology
1. The resource estimate, effective January 14, 2009, was based on drill programs undertaken in 2007 and 2008. At Aricheng South, drilling comprised a total of 93 bore holes for 17,355 metres. At Aricheng North, drilling totalled 92 bore holes for 15,451 metres.
2. A numerical model (block model) was generated to estimate the mineral resource. A hanging wall and footwall surface was created for both structures, between which all resources were constrained.
3. Using Inverse Distance Squared (ID2), all 0.5 metre assay intervals were interpolated into a block model, with individual blocks measuring five metres vertical, five metres parallel to strike and 2.5 metres perpendicular to strike. A minimum of five samples were required for interpolation.
4. Two interpolation passes were used to establish grade and resource categories. The largest search ellipse (70 metres parallel to strike, 50 metres down dip, and two metres in height) was used to categorize Inferred Resources, and a smaller search ellipse (35 metres parallel to strike, 25 metres down dip, and two metres in height) was used for Indicated Resources. In both cases, samples used for the grade interpolation must have been derived from a minimum of two drill holes to establish geological continuity. The number of samples used from a single drill hole was also limited to four.
5. To mitigate the influence of drill hole assays from distant adjacent sections, blocks whose closest sample was greater than 22 metres were ignored.
6. A further filter was applied to ignore single blocks with no other neighbouring blocks within a single block radius.
7. A high grade cap of 1.3% U3O8 was applied to Aricheng North assays to mitigate the effects of high grade anomalies. There were no anomalous high grade assays above this cap in Aricheng South.
A NI 43-101 Technical Report will be filed on SEDAR shortly, and not later than 45 days from the issuance of this news release.
The resource estimate reported here was undertaken by Mr. Kurt Breede, P. Eng., Director, Marketing and Technical Services for Watts, Griffis and McOuat, a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators. Mr. Breede has verified the technical information in this release.
Figure 1 - Long Sections of Aricheng North, Aricheng South and Accori North C
The provisional long sections of the principal structures at Aricheng North, Aricheng South and Accori North C show the distribution of grade-thickness values (the product of the width of the mineralized interval and its U3O8 grade in %) on a vertical projection of the structure. The coloured circles demarcate the pierce points on the structure. A pierce point is the approximate location at which each bore hole intersects the structure. The long section of each structure above has been presented at the same scale.
Mineralization at Aricheng North, Aricheng South and Accori North C remain open along strike and at depth. Further drilling has the potential to increase the initial resource estimate reported in this press release. Accori North C is the next structure with the potential to add a maximum number of pounds to the company's uranium resource for the lowest drill metreage.
About U3O8 Corp.
U3O8 Corp. is a Canadian uranium exploration company based in Toronto, Canada. Currently focused on uranium exploration in the Roraima Basin in Guyana, South America, U3O8 Corp's primary business objective is to explore, develop and acquire uranium projects in the Americas. The company is well funded with approximately $10 million held solely in cash and Canadian chartered bank-backed Guaranteed Investment Certificates.
U308 Corp. has exclusive uranium exploration rights in an area covering approximately 1.3 million hectares that straddles the edge of the Roraima Basin in Guyana. The company is advancing a two-pronged exploration strategy that focuses on:
? Exploration for multiple uranium-bearing structures within structural systems in the basement adjacent to the Roraima Basin with the concept that the individual veins could potentially aggregate to a significant total resource; and
? Exploration for unconformity-style uranium deposits at the base of the Roraima Basin, which are similar to those of the prolific Athabasca Basin in Saskatchewan.
For further information on the company's properties, please refer to the technical report prepared for the company by Dahrouge Geological Consulting Ltd. and dated September 15, 2006 as amended and restated December 12, 2006, available on SEDAR at www.sedar.com and on the company's website www.u3o8corp.com.
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and resource estimates, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
For information, please contact:
U3O8 Corp.
(416) 868-1491
Nancy Chan-Palmateer
Vice President, Investor Relations
nancy@u3o8corp.com
Richard Spencer
President & CEO
richard@u3o8corp.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
U3O8 Corp. (TSX-V: UWE)
Basic shares outstanding: 23,057,700
Fully diluted shares outstanding: 24,902,700