A summary of the resource estimates for the Aricheng C and Aricheng West structures at various cut-off grades is detailed below. The base case cut-off grade for the Aricheng resources, as highlighted below, is 0.05% U3O8. For a direct comparison of the Aricheng resources to peer deposits (Table 3), use a 0.03% U3O8 cut-off.
Details of the Aricheng C and Aricheng West Resource Estimation
- The Mineral Resource estimate, effective May 22, 2012, was based on drill programs undertaken in 2009, 2010 and 2011. At Aricheng C, drilling comprised a total of 34 bore holes for 8,708m. At Aricheng West, drilling totalled 108 bore holes for 24,941m.
- Mineral Resources were estimated using an inverse distance squared (ID2) block model, constrained to a geological model with a minimum horizontal width of 2m. No grade capping factor was used. A lower base case cut-off grade of 0..05 % U3O8 was used for reporting of the resources. For Aricheng C, a global specific gravity of 2.60 kg/m3 is assumed (2.09 in the saprolite). For Aricheng West, a specific gravity of 2.51 was used for resource blocks within the mineralized zones, and 2.02 within the saprolite.. No deductions for mining recovery or otherwise were included in this estimate;
- Mineral Resources were estimated using an assumed price of US$55/lb U3O8, and an exchange rate of US$0.95=C$1.00;
- 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, socio-political, marketing, or other relevant issues;
- The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category; and
- The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
Table 2 - U3O8 Corp's Mineral Resources in Guyana, Colombia & Argentina2
Since the beginning of 2011, U3O8 Corp. has grown its NI 43-101 uranium resources by nearly seven times from 5.8mlb Indicated and 1.3mlb Inferred on the one property, the Kurupung Project in Guyana, to an expanding multi-commodity resource portfolio across three lead projects in Guyana, Colombia and Argentina as detailed in the below table.
Laguna Salada - uranium and vanadium grades can be increased between 3 and 11 times by screening. For uranium, this would lead to a head grade of about 620-670ppm U3O8 from free-digging mineralization that lies at surface (see September 21, 2011 press release).
Table 3 - Reported Resources from Peer Abitite-Hosted Uranium Deposits3
*U/G = underground mining scenario; O/P = open pit mining scenario
An updated NI 43-101 Technical Report on the Kurupung Project 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., Senior Resource Engineer and Vice President, Marketing for Watts, Griffis and McOuat Limited, a Qualified Person ("QP") within the definition of that term in NI 43-101 of the Canadian Securities Administrators. Mr. Breede has verified and approved the technical information relating to the Aricheng resources in this release.
All other scientific and technical information contained in this press release has been prepared under the supervision of, and verified by Dr. Richard Spencer, P. Geo, President & CEO of U3O8 Corp., a QP within the meaning of NI 43-101.
About U3O8 Corp.
U3O8 Corp.is a Toronto-based exploration company, focused on exploration and resource expansion of uranium and associated commodities in South America - a promising new frontier for uranium exploration and development. U3O8Corp. has one of the most advanced portfolios of uranium projects in the region comprising NI 43-101 resources in Guyana, Argentina and Colombia.
(1) Scout drilling results suggest that the ten Kurupung structures identified to date may contain a conceptual target of 13-18 million tonnes at a grade of 0.08% to 0.10% U3O8 (estimated 30 to 35Mlb U3O8) including the NI 43-101 resource estimates reported on Aricheng North, Aricheng South, Aricheng C and Aricheng West. Potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral resource on six of the above structures, and it is uncertain if further exploration will delineate such targets as mineral resources.
(2) Mineral resources - Kurupung Project - see the January 14, 2009 technical report: "A Technical Review of the Aricheng North and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and Prometheus Resources (Guyana) Inc." Berlin Project - see the March 2, 2012 technical report: "Berlin Project, Colombia - National Instrument NI 43-101 Report." Laguna Salada Project - see the May 20, 2011 technical report: "Laguna Salada Project, Chubut Province, Argentina: NI 43-101 Technical Report: Initial Resource Estimate." The above technical reports are available on U3O8 Corp's web site at www.u3o8corp.com and on SEDAR at www.sedar.com.
(3) Peer deposits have not been independently verified by U3O8 Corp. and information regarding these deposits are drawn from publicly available information.
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 estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the Kurupung resource will grow to a similar size as peer deposits and that other targets in the Kurupung will add to U3O8 Corp's resource base. 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 Richard Spencer
Vice President, Investor Relations President & CEO
nancy@u3o8corp.com richard@u3o8corp.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Figure 1 - Multiple Uranium-Bearing Structures in the Kurupung Batholith
Map of airborne magnetic data from the Kurupung area. The Kurupung Batholith lies between northwest trending bounding shear zones (black dashed lines). Cool colours (blue and green) represent rocks with poor magnetism while warm colours (pink, red, orange and yellow) represent magnetic rocks. Most uranium found by U3O8 Corp. to date lies within demagnetized faults (cool coloured areas). The resources in Aricheng West and Aricheng C (labelled in red) reported today are located on one of these weakly magnetic features in the Kurupung.
White irregular areas show the footprints of uranium mineralization drilled by U3O8 Corp. Resource estimates have now been completed on four zones (Aricheng North, Aricheng South, Aricheng West and Aricheng C). Another six structures (white irregular footprints) in the Aricheng and Accori areas are ready for infill drilling in due course.
Figure 2 - Location of Mineralized Zones in the Aricheng Area
Close-up of the plan view of the Aricheng area with the footprint of mineralized zones (black areas) located on a map of ground magnetic data. Uranium tends to lie in areas of weak magnetism (blue tones) as evidenced by the Aricheng South, Aricheng West and Aricheng C resources. Scout drilling has intersected mineralization at Aricheng Alpha, Aricheng A and Sigma while soil geochemistry (coloured circles) shows conspicuous zirconium anomalies in new target areas (circled in white). Zirconium has been found to be a useful pathfinder element in the Kurupung Project. Current exploration is focused on extending the soil grid to cover the whole of the area shown in this map.