U3O8 Corp. cuts 9.4 metres at 0.132% (2.64 pounds per short ton) U3O8
at Aricheng South
Assay results from additional six holes confirm uranium mineralization extends at depth ? results to be included in upcoming resource estimate
Toronto, Ontario ? January 13, 2009 ? U3O8 Corp. (TSX Venture: UWE), a Canadian uranium exploration company, reports significant intercepts of uranium mineralization from an additional six holes drilled in the Aricheng South breccia zone in the Kurupung Batholith, located in the basement near the Roraima Basin in Guyana (Figure 1). These assay results confirm that the mineralization in the principal shoot continues at depth. The extension of the mineralization defined by this drilling should expand the resource estimate that is currently underway on Aricheng South. A total of 93 bore holes for 17,326 metres have now been completed at Aricheng South.
?The latest drilling at Aricheng South extends uranium mineralization for a further 50 metres down plunge on the principal shoot, which remains open at depth and along strike to the west,? said Dr. Richard Spencer, U3O8 Corp?s President and CEO. ?Recent drill results from both Aricheng South and Aricheng North will contribute to the combined initial resource estimate currently being prepared on these first basement-hosted structures, which is due for release this month.?
Dr. Spencer continued, ?U3O8 Corp. begins 2009 by continuing to judiciously advance exploration on two fronts: to grow its resource inventory and to focus on the most prospective unconformity-related targets in the Roraima Basin. Drilling now moves to the next group of basement-hosted uranium-bearing structures in the Accori area of the Kurupung Batholith with the aim of adding to the upcoming interim resource estimate for the Aricheng North and Aricheng South structures. Exploration for unconformity-related uranium continues to concentrate on defining alteration zoning in previously drilled core in the Roraima Basin as well as following up uranium radiometric anomalies identified in the recent airborne geophysics program.?
Table 1 ? Assay Results for Aricheng South
Summary of significantly mineralized intercepts cut in the additional six bore holes (1,526 metres) drilled in the Phase III program on the Aricheng South target.
Note: lb/st is an abbreviation for pounds per short ton. 1 short ton = 2,000lbs or 0.907 metric tonnes.
Aricheng South
Drilling to date at Aricheng South (93 bore holes for 17,326 metres) has delineated uranium mineralization (Figure 2):
? traced over a strike length of 320 metres and shown that mineralization is open along strike to the west;
? confirmed to a maximum depth of 230 metres below surface and is open at depth; and
? concentrated in shoots that have a backward ?r?-shape with shallow mineralization being sub-horizontal rotating to a near-vertical orientation at depth.
To U3O8 Corp., Aricheng South appears to be analogous with Aurora Energy Resources? Michelin Deposit in Labrador (that has a measured and indicated resource of about 48 million pounds at a grade of 0.12% U3O8)*. Similar to Michelin, mineralization at Aricheng South is basement-hosted and is concentrated in mineralized shoots that are enclosed by albite alteration ? a class of deposits termed ?albitite-hosted? uranium.
Summary assay results for previous drilling at Aricheng South were released on August 1, 2007; February 26, 2008; April 10, 2008; May 7, 2008; June 25, 2008; August 12, 2008; and October 30, 2008. All reported assay results are available at www.sedar.com and www.u3o8corp.com.
Drill hole locations relative to the ground scintillometer survey results and previous drilling are shown in Figure 3.
Potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral resource on U3O8 Corp?s properties and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Exploration Update:
Under the current uncertain market conditions, U3O8 Corp. continues to conserve cash and focus on drilling basement-hosted targets with the potential to add to its resource base in the short term while exploring easily accessible unconformity-related targets that can be advanced in a cost-efficient and timely manner. The company will continue to monitor the global financial situation and may adjust its exploration programs according to market conditions as they unfold. U3O8 Corp?s near term program focuses on its two-pronged exploration objectives as follows:
Basement-Hosted Uranium Targets in the Kurupung Batholith:
? Exploration drilling advances to the next series of uranium-bearing structures in the Accori target area with the goal of building on the combined resource estimate that is nearing completion for the Aricheng South and Aricheng North structures. In 2008, five holes drilled on the Accori North C structure encountered significant mineralization (press releases of June 17, 2008 and August 21, 2008). A Phase II drill program is planned for Accori North C, which will consist of 20 holes for approximately 4,500 metres in order to test the continuity of mineralization and determine whether additional drilling is warranted to advance the target to resource definition. With the use of its own drill rig, U3O8 Corp?s all-inclusive drill costs of approximately $67 per metre is roughly half that of typical contract drilling.
Unconformity-Related Uranium Exploration in the Roraima Basin:
? U3O8 Corp. is currently analyzing clay alteration spectra measured on approximately 10,000 metres of core previously drilled by a third party through the Roraima Basin (U3O8 Corp?s press release of December 11, 2008). Access to this extensive archive of core provides U3O8 Corp. with a cost-effective and expeditious way to potentially identify large clay alteration systems commonly associated with unconformity-related uranium. The definition of alteration systems ? specific clay minerals that are arranged in roughly concentric zones that are many times bigger than the deposits themselves ? provides one of the most reliable means of identifying mineralized systems in world-class uranium regions such as Canada?s Athabasca Basin and Australia?s McArthur River Basin.
? Field work, involving ground radiometric surveys, rock-chip sampling and clay alteration studies, is also underway on priority target areas, where the 2008 airborne geophysics program defined radiometric anomalies in the Roraima Basin above, and adjacent to, major regional faults.
? Alteration identified in the archived core and results of the field work will be used to identify the most prospective parts of larger target areas for further exploration and drilling.
Quality Assurance & Quality Control
Diamond drilling at Aricheng South produced NQ (47.6 millimetre diameter) core. The core was halved with a Diamond saw on site and half core samples were delivered to ACME Laboratory?s preparation facility in Georgetown, Guyana. Sample blanks and certified standards were inserted at an average frequency of 1 per 25 samples. Sample pulps were then shipped by ACME to their analytical facility in Vancouver, BC, Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion.
Mr. Richard Cleath (M.Sc.), Vice President of U3O8 Corp., a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, had overall responsibility for all aspects of target selection and drilling of the Aricheng South target. Mr. Cleath has supervised the preparation of, and verified, the technical information in this release.
Figure 1 ? Map of Magnetic Data and Interpreted Structures in Kurupung Batholith
a. Map of magnetic data from the Kurupung Batholith shows interpreted structures (black lines). The margins of the Kurupung Batholith are marked by southeast orientated magnetic anomalies that coincide with the location of shear zones. The open ?S?-shaped curves that extend between the bounding shear zones of the Kurupung Batholith are termed sigmoidal structures.
b. Simplified structural interpretation of the Kurupung Batholith show the sigmoidal structures extending between the bounding shear zones with known mineralized zones shown. The mineralized shoot in the Aricheng South structure is located where a splay-fault intersects the principal sigmoidal structure. The mineralized zone at Aricheng South is labeled in red.
Figure 2 ? Long Section and VLF-EM Image of the Aricheng South Structure
A provisional long section of the principal structure at Aricheng South shows 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 pierce points of the six bore holes whose grades are reported in this release are labelled in red.
Figure 3 ?Drill Hole Locations at Aricheng South
Map shows the ground scintillometer radiometric anomaly at Aricheng South with the location of Phase I, II and previously reported Phase III drill holes labelled in black. The additional six drill holes, whose results are reported here, are labelled in red.
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.
*Aurora Energy?s Michelin resource estimate has not been independently verified by U3O8 Corp. and is based on Aurora?s Form 43-101F1 Technical Report dated April 7, 2008 and amended on August 28, 2008. Comparisons of U3O8 Corp?s target with Aurora?s Michelin deposit are conceptual in nature. There is no certainty that further exploration will result in the delineation of a similar mineral resource.
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, 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