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Tuesday, February 05, 2008
Uranerz Provides Final 2007 Drilling Results and Plans for 2008 Program
Casper, Wyoming, February 05, 2008 - Uranerz Energy Corporation ("Uranerz" or the "Company") (AMEX: URZ; TSX: URZ; Frankfurt: U9E) is pleased to provide a final update on its 2007 drilling program and a preview of the 2008 drilling program.
Since the last exploration update provided in the Company's news release dated October 30, 2007, Uranerz drilled an additional 158 uranium trend delineation holes to finalize its 2007 drilling program. From February 19 to December 20, 2007, the Company drilled a total of 486 uranium trend delineation holes and eight hydrologic sampling wells on its 100%-owned properties located in the central Powder River Basin in Wyoming, U.S.A., utilizing as many as three drill rigs and one electric log probing unit. This represents a total of approximately 300,000 feet of drilling with an average depth of 617 feet per hole.
In the final months of the 2007 drilling program, the Company focused its exploration efforts on its West North-Butte, Collins Draw, Hank and Nichols Ranch properties to facilitate sub-surface geologic mapping with cross sections and to refine previous geologic models delineating known trends of uranium mineralization.
Summary of Significant Drilling Results from October 30 to December 20, 2007
The following is a summary of the most significant drilling results (GT* = 1.50 or more) obtained by the Company in connection with its 2007 drilling program since the exploration update provided in the Company's news release dated October 30, 2007.
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Thickness Grade Grade-Thickness Depth
Hole ID (ft) (% U3O8) (GT*) (ft to top)
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Nichols Ranch
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U07N-179 9.5 0.233 2.21 629.0
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U07N-180 14.5 0.365 5.29 645.5
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U07N-196 9.0 0.172 1.55 634.0
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U07N-202 9.0 0.351 3.16 614.5
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West North-Butte
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U07NB-2 4.0 0.440 1.76 617.5
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* GT represents grade times thickness and is calculated by
multiplying eU3O8 grade (in percent) by gamma anomaly
thickness (in feet) as determined from downhole
radiometric probing.
Highlights of 2007 Drilling Program
Nichols Ranch
A total of 214 delineation holes were drilled on Nichols Ranch in 2007, one of the more advanced properties in the Uranerz portfolio. The most significant drilling results were announced in the June 06, 2007 drilling update where the Company noted that it had identified the high grade "nose" of the uranium mineralized roll front on the property. Subsequent drilling at and around the site of the "nose" of the mineralized roll front confirmed excellent grades and a mineralized zone extending 1,200 to 1,700 feet south on both sides of the "nose". In addition, previously unknown mineralization was found as a result of continued fence drilling on the property.
Significant drilling results in 2007 from Nichols Ranch include:
- Hole U07N-50 intersected 0.283% U3O8 over 14ft equaling a GT of 3.962
- Hole U07N-70 intersected 0.639% U3O8 over 11ft equaling a GT of 7.029
- Hole U07N-94 intersected 0.338% U3O8 over 16ft equaling a GT of 5.41
- Hole U07N-180 intersected 0.365% U3O8 over 14.5ft equaling a GT of 5.29
- Hole U07N-202 intersected 0.351% U3O8 over 9ft equaling a GT of 3.16
In addition, Uranerz finalized and submitted applications to the federal and state regulatory agencies in December of 2007 for licenses and permits to construct and operate commercial in-situ recovery ("ISR") uranium facilities on the Company's Nichols Ranch and Hank projects.
Doughstick
The 2007 drilling program at Doughstick was targeted at further delineating one known mineralized roll front continuing from Nichols Ranch and determining the extent of its southward direction on the Doughstick property. The delineation drilling identified and extended additional mineralization stretching south approximately 1,325 feet where the mineralized roll front continues onto the Company's recently acquired NAMMCO properties.
Significant drilling results in 2007 from Doughstick include:
- Hole U07D-3 intersected 0.123% U3O8 over 9.5ft equaling a GT of 1.17
- Hole U07D-7 intersected 0.880% U3O8 over 1.5ft equaling a GT of 1.32
- Hole U07D-9 intersected 0.135% U3O8 over 13.0ft equaling a GT of 1.75
Collins Draw
The 2007 drilling program at Collins Draw identified good mineralization extending south of the property for over 1,000 feet, at which point the roll front trend was found to contain a mineralized zone over 500 feet wide. Typically, the width of a mineralized roll front trend in this area will vary from between 50 to 150 feet. The trend of mineralized roll front then extends from Collins Draw onto the Company's recently acquired NAMMCO properties.
Significant drilling results in 2007 from Collins Draw include:
- Hole U07C-19 intersected 0.134% U3O8 over 8.0ft equaling a GT of 1.07
- Hole U07C-78 intersected 0.112% U3O8 over 16.0ft equaling a GT of 1.79
Uranerz 2008 Drilling Program
The Company plans to conduct the majority of its 2008 exploration drilling on the newly acquired NAMMCO mineral properties. As previously reported on January 16, 2008, the Company acquired an undivided eighty-one percent (81%) interest in the NAMMCO properties, which cover approximately 82,141 acres (33,242 hectares) in the central Powder River Basin of Wyoming, U.S.A. In connection with this acquisition, the Company and United Nuclear, LLC, a limited liability company owned by the sellers of the NAMMCO properties, have formed and contributed their interests in the NAMMCO properties to the "Arkose Mining Venture". United Nuclear will hold (and contribute to) a nineteen percent (19%) working interest in the Arkose Mining Venture.
As manager/operator of the Arkose Mining Venture, the Company has developed an aggressive 2008 exploration drilling program to operate up to five drill rigs and two electric log probing units on the Arkose (NAMMCO) properties. It is anticipated that each drill rig could drill two 600-foot holes per day for a total of approximately 1,500 holes during the year, or 900,000 feet of total exploration drilling. The Arkose Mining Venture technical committee has recently approved this 2008 program.
The strategy for this 2008 exploration drilling program will be to concentrate on target areas with the intent of quickly proving up mineral resources for disclosure in National Instrument 43-101 ("NI 43-101") technical reports. The Company is currently working on a NI 43-101 technical report to address the potential quantity and grade, expressed as ranges, of the potential mineral deposits on the Arkose (NAMMCO) properties that are to be the target of the Company's future exploration efforts.
In addition to the exploration program on the Arkose (NAMMCO) properties, Uranerz plans to continue delineation drilling on its 100%-owned Nichols Ranch, Doughstick, Collins Draw, Hank, West North-Butte and North Rolling Pin properties in order to continue pre-mining characterization of currently known uranium mineralization trends and to identify new mineralization trends based on targeted drilling initiatives.
"The 2007 drilling program provided several significant results, and we anticipate further mineralization expansion as the drilling continues in 2008," said Kurtis Brown, the Company's Vice President, Exploration. "With recent property acquisitions in the Powder River Basin and as managers of the Arkose Joint Venture, the 2008 drilling program will be an important undertaking. Plans to define mineralization trends are already underway, and we look forward to the results from early stage drilling."
Mr. Kurtis Brown is a "qualified person" as defined by NI 43-101 and oversees the Company's drilling programs. He has reviewed the technical disclosure related to the Company's drilling results that are provided in this news release.
About Uranerz
Uranerz Energy Corporation is a pure-play uranium company listed on the American Stock Exchange ("AMEX") and the Toronto Stock Exchange ("TSX") under the symbol "URZ", and has options (derivatives on the common stock: puts and calls) traded on the Chicago Board Options Exchange and the AMEX. The Company is also listed on the Frankfurt Stock Exchange under the symbol "U9E".
Certain members of the Uranerz management team have considerable specialized expertise in the ISR uranium mining method, and the Company controls approximately 114,842 acres (44,122 hectares or approximately 179 square miles) in the Powder River Basin of Wyoming, U.S.A., an area well known for hosting uranium-mineralized roll fronts that are amenable to ISR mining techniques. Uranerz has submitted ISR mine permit applications for two of its Powder River Basin properties, the Hank and Nichols Ranch projects. Commercial ISR mining in the Powder River Basin has been ongoing since 1987, with production coming from the Smith Ranch-Highland mines currently owned and operated by Power Resources Inc. (a wholly owned U.S. subsidiary of Cameco Corporation) and from AREVA NC's Irigaray/Christensen Ranch ISR mine located in the Pumpkin Buttes uranium district (presently on stand-by, but scheduled to recommence operations in the near term).
Further Information
For further information relating to the Company, please refer to the Company's website at www.uranerz.com or contact the Company's Investor Relations department at 1-800-689-1659.
This press release may contain or refer to "forward-looking information" and "forward-looking statements" within the meaning of applicable United States and Canadian securities laws, which may include, but are not limited to, statements with respect to future exploration and drilling programs and results, potential resources and planned permitting activities, as well as resource estimates, projections, the Company's exploration, and other plans, projections, estimates and expectations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the "SEC") (available at www.sec.gov) and with Canadian Securities Administrators (available at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We do not undertake to update forward-looking statements.
All mineral resources in this press release and the technical reports referenced herein have been, or will be, estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as "NI 43-101". As a company listed on the TSX, we are required by Canadian law to provide disclosure in accordance with NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the SEC Industry Guide 7. NI 43-101 and Guide 7 standards are substantially different. The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI 43-101. These definitions differ from the definitions in Guide 7. Under Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.
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