U3O8 Corp. outlines 2011 exploration program aimed at
rapidly expanding its NI 43-101
resource portfolio in South America
Toronto, Ontario January 24, 2011 U3O8 Corp. (TSX Venture: UWE), a
Canadian-based company, focused on exploration and resource expansion of
uranium and associated commodities in South America, today announced its
planned exploration program, which aims to substantially increase its National
Instrument 43-101 ( NI 43-101 ) resource portfolio in Colombia, Guyana and Argentina
in 2011.
The primary
objectives are:
?
Berlin Project, Colombia: to define a potential NI 43-101 resource of an initial 20 to 25
million pounds ( mlb ) uranium in part of the area on
which a historic resource was estimated1;
?
Kurupung Project, Guyana: to expand the
current NI 43-101 resource to 20 to 25mlb2 of uranium while
continuing to show further size potential of the Kurupung
uranium system; and
?
Laguna Salada Project,
Argentina: to report a NI 43-101
resource estimate on Laguna Salada while exploring
the next target with the aim of increasing the overall resource to 20 to 24mlb3
uranium on these two projects in southern Argentina.
Berlin Project1
A 10,000 metre ( m ) exploration drilling program is underway in the
southern part of the mineralized trend at Berlin in the area on which a historic resource
was estimated. A second drill rig is scheduled to arrive on-site in
February. U3O8 Corp s trenching has demonstrated consistent mineralization over
3km along trend and drilling has intersected similar uranium grades to historic
data, but over greater widths than those recorded in historic reports. In
addition, potential co-products including phosphate, vanadium, yttrium, rhenium,
molybdenum and silver have been identified (December 8, 2010 press release).
Preliminary
metallurgical test results are expected in Q1 2011. Infill drilling is
planned to start in Q2 as the Berlin Project is advanced towards a potential NI
43-101 uranium resource estimate with an initial objective of 20 to 25mlb by
year-end. In addition, trenching continues in the northern part of the
property to confirm historic records that show that the entire 10.5km
mineralized trend is prospective, which could substantially expand the size
potential of the project.
Kurupung Project2
An infill drill
program of approximately 11,000m is planned to begin in March, on the first of
three mineralized areas: the Aricheng West corridor, Aricheng C, and on the Accori
North C structure towards expanding the current NI 43-101
resource on the Kurupung Project (January 20, 2011
press release).
Concurrent with
infill drilling, scout drilling will continue with the aim of showing that the Kurupung could be of comparable size to peer deposits that
typically contain 60 to 130mlb of uranium4.
Laguna Salada Project3
Initial
metallurgical test results and a NI 43-101 resource on Laguna Salada are expected in Q1 2011. U3O8 Corp. has
commenced exploration of another surficial uranium target with similar size
potential and grade to Laguna Salada. As with Laguna Salada, exploration of the second target is planned through
mechanized trenching due to the soft and unconsolidated nature of the
uranium-vanadium - bearing gravels. The goal is to have a cumulative
resource estimate of 20 to 24mlb completed on the two projects in southern
Argentina by the end of 2011.
U3O8 Corp. has established a clear path
to efficiently and rapidly increase its uranium resources through organic
growth in the next 12 months, said Dr. Richard Spencer, U3O8
Corp s President and CEO. In
addition, we are finding potentially valuable co-products such as phosphate,
vanadium, rhenium and the heavy rare earth, yttrium.
Dr. Richard Spencer
(P.Geo.), CEO and President of U3O8 Corp., a
Qualified Person within the definition of that term in NI 43-101 of the
Canadian Securities Administrators, has overall responsibility for all aspects
of the exploration program. Dr. Spencer has supervised the preparation
of, and verified, the technical information in this release.
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 exploration
and development in the uranium industry. U3O8 Corp. has one of the most
advanced portfolios of uranium projects in the region comprising NI 43-101
compliant resources in Guyana to significant historic resources in Colombia and
near-resource and discovery potential in Argentina.
(1) The Berlin Project has a
historic resource of 12.9 million tonnes at an average grade of 0.13% U3O8
(38mlb U3O8) and is reported in Castano, R. (1981), Calcul provisoire des reserves geologiques
de Berlin, sur la base des resultants des sondages, unpublished Minatome
report, 15p. There has been insufficient exploration to verify the
historic estimate and it should not be relied upon as a NI 43-101 compliant
resource.
(2) Scout drilling to date suggests
that the Kurupung 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 initial NI
43-101 resource. The initial NI 43-101 resource estimate of 5.8mlb
Indicated at an average grade of 0.10% (2.0 lbs/st) U3O8
and 1.3mlb Inferred at an average grade of 0.09% (1.9 lbs/st) U3O8
was reported on the Aricheng North and Aricheng South structures. Refer
to the technical report dated January 14, 2009 titled A Technical Review of the Aricheng North
and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and
Prometheus Resources (Guyana) Inc., available on U3O8 Corp s web site at
www..u3o8corp.com and on SEDAR at www.sedar.com.
(3) Based on trench results reported
to date on the Laguna Salada Project (press release dated October 27, 2010),
two projects of similar size and grade have the potential to contain a
cumulative target of 9 to 11 million tonnes at a grade of 100ppm to 150ppm U3O8
(estimated 20 to 24mlb U3O8).
(4) Geologically similar
albitite-hosted uranium deposits worldwide (e.g. Coles Hill (USA), the Valhalla
(Australia) and Michelin (Canada)) typically host resources in the 60 to 130mlb
range with typical grades of 0.06% to 0.10% U3O8.
These deposits have not been independently verified by U3O8 Corp. and
information regarding these deposits is drawn from publicly available
information. Comparisons of U3O8 Corp s uranium resource and exploration
targets with other uranium deposits are conceptual in nature. There is no
certainty that further exploration of U3O8 Corp s resource or targets will
result in 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 and that the resource potential will be
achieved on the Kurupung Project, Berlin Project and
Laguna Salada, currency fluctuations, dependence upon
regulatory approvals, and 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
Richard Spencer
Vice President,
Investor
Relations
President & CEO
nancy@u3o8corp.com
richard@u3o8corp.com
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in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.