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U3O8 Corp. (TSX VENTURE:UWE - News) a Canadian-based
company focused on exploration and resource expansion of uranium and
associated commodities in South America, reports grades of uranium,
phosphate, vanadium, yttrium, rhenium, silver and molybdenum intersected in
its first drilling of the Berlin Project in Caldas Province, Colombia. The
Berlin Project is a sediment-hosted, multi-commodity prospect with a historic
resource(1) of 12.9 million tonnes at an average grade of 0.13% U3O8 (38
million pounds U3O8) estimated on the southern 4.4 kilometres
("km") of a 10.5km long mineralized trend. No estimate of other
elements was reported from historic work. Trenching is underway to confirm
historic data that indicates similar uranium grades occur in the northern 6km
of the property.
"U3O8 Corp's drilling has
intersected similar uranium grades to historic data, but over greater widths
and with an additional suite of valuable potential co-products. Given these
results and the potential to define a high-value, multi-commodity resource in
the near-term, a 10,000m drill program commenced immediately following the
initial 1,500m drill program at Berlin," said Dr. Richard Spencer, U3O8
Corp's President and CEO. "Samples from recent drilling are undergoing
metallurgical test work to determine the extent to which various co-products
can be recovered from the mineralized rock. Preliminary metallurgical results
are expected in Q1 2011 as we progress towards positioning the Berlin Project
for potential National Instrument 43-101 ("NI 43-101") resource
estimation in 2011."
Dr. Spencer continued, "Demand for
most of the potential co-products is projected to increase: for uranium in
response to accelerating nuclear power programs, vanadium in the development
of smart electricity grids, phosphate for agricultural fertilizer and yttrium
as the shortage of heavy rare earths becomes widely recognized. Rhenium is used
in super-alloys designed for very high temperatures, principally used in jet
engines and catalytic converters. And the silver adds a precious metal
component to the commodity mix."
Table 1 - Assay Results for the Berlin
Project
Summary results for the first six bore
holes drilled from platforms P1 and P2 in the southern part of the Berlin
Project (Figures 1 and 2).
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Mineralized
Bore Interval Grade
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Hole # From To Width U3O8 V2O5 P2O5 Mo Y2O3 Re Ag
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(m) (m) (m) % lbs/st % % ppm % ppm ppm
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DDB1 109.69 111.22 1.53 0.079 1.58 0.69 14.55 294 0.064 1.84 5.93
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DDB2 74.67 82.28 7.61 0.068 1.36 0.71 3.21 447 0.035 3.01 3.54
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Includes 79.24 82.28 3.04 0.137 2.74 0.76 4.22 360 0.070 5.09 5.86
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DDB3 76.20 85.34 9.14 0.049 0.99 0.43 7.44 335 0.032 2.83 1.89
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Includes 80.77 83.82 3.05 0.123 2.47 0.71 17.56 626 0.078 7.02 3.82
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DDB4 Bore hole did not reach target depth
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DDB5 137.13 146.28 9.15 0.131 2.62 0.63 9.69 571 0.057 7.23 5.51
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DDB6 199.65 201.17 1.52 0.046 0.92 0.33 5.25 142 0.027 1.63 2.30
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(i) lbs/st is an abbreviation for pounds per short ton. 1 short ton =
2,000lbs or 0.907 metric tonnes.
Note: Due to the bore holes being
drilled near perpendicular to the mineralized zone, the core length of the
intersection is approximately the true width of the intersection. There was
extensive core loss immediately above and below the mineralized interval that
was sampled in bore hole DDB6. Data from the Mount Sopris gamma ray probe for
this hole yields an interval of 4.2m from 200.8m to 205.0m at an estimated
U3O8 grade of 0.136%.
Potential quantity and grade are
conceptual in nature. There has been insufficient exploration to define a
mineral resource at the Berlin Project to date and it is uncertain if further
exploration will result in the target being delineated as a mineral resource.
Mineralization
The mineralized unit encountered in the
drilling to date on the Berlin Project is a fine-grained sandstone layer that
lies at the contact between a sandstone sequence and the overlying
organic-rich, black shale (Figure 3). The mineralized sandstone unit is soft
and poorly consolidated, which has led to core loss in some bore holes such
as hole DDB6. Bitumen has impregnated parts of the mineralized sandstone and also
occurs in the overlying shale. The black shale contains graphite and has a
variable pyrite content from 0.5% up to 30%.
Microscopic study of core samples shows
that the phosphate occurs as fine, crystalline fluorapatite (Ca5(PO4)F)
masses in the sandstone. Uranium is associated with the fluorapatite, while
yttrium and some of the vanadium and molybdenum occur as phosphate minerals.
Exploration Program
U3O8 Corp's initial 1,500m drill program
on the Berlin Project commenced near the southern tip of the 10.5km long,
canoe-shaped fold (Figure 1), and was primarily aimed at obtaining fresh
samples for metallurgical testing. The drill results reported here confirm
that the mineralization encountered at surface in the trenches extends to
depth where it follows the "U"-like cross-sectional shape of the
fold.
U3O8 Corp's trenching has demonstrated
consistent mineralization in the southern 3km of the fold (Figure 2) and a
10,000m drill program is already underway with the aim of confirming the
continuity of mineralization at depth in the rest of that area. A second,
man-portable rig is scheduled to arrive on site in January so that the
exploration drilling can be completed in that area by mid 2011. U3O8 Corp.
plans to commence infill drilling in the latter half of 2011 towards the
definition of a potential NI 43-101 resource estimate. In addition, trenching
continues in the northern part of the property to confirm historic records
which show that the uranium-bearing layer extends along the full length of
the fold.
Metallurgical Test Work
Mineralized core samples have been
submitted for metallurgical test work at SGS Lakefield's laboratory in
Toronto under the guidance of external metallurgical consultant, Mr. John
Goode. Results are expected in the first quarter of 2011.
Commodities Associated with Uranium at
Berlin
In the Berlin Project, significant
grades of uranium associated with phosphate, vanadium, yttrium, rhenium,
molybdenum and silver contribute to a potential high in situ value for this
multi-commodity prospect. A conversion table for the various units is
provided for convenience (Table 2).
Uranium
-- The current uranium spot price is $61.00 per pound (www.kitco.com)
Phosphate
-- Fluorapatite is the principal phosphate mineral found at Berlin.
Phosphate, with nitrogen and potash, constitute the three principal
components of agricultural fertilizers. The Berlin Project lies adjacent
to the agricultural heartland of central Colombia - a favourable
location for the potential production of fertilizer.
-- Current price of phosphate (DAP) is approximately US$530 per tonne or
$0.53 per kilogram ("kg") (Bloomberg).
Vanadium
-- Used as an alloy to strengthen steel.
-- Significant potential for large-scale energy storage units in emerging
technology such as the vanadium redox-flow battery ("VRB"). VRB's can
absorb and discharge large amounts of electricity simultaneously and
instantaneously, recharge thousands of times and they contain no toxic
materials. VRB's are proving to be a crucial component of green and
conventional power grids since they can be charged with excess
electricity during low-demand periods and feed power back into the grid
as demand increases.
-- Combined with lithium to create a safer, longer lasting rechargeable
battery for electric vehicles.
-- Vanadium prices are approximately $6.50 per pound ("lb") or
approximately $14 per kg (www.metal-pages.com).
Yttrium
-- A heavy rare earth element ("HREE") used to make red phosphors for
television screens and LEDs.
-- Used in the production of electrodes, electrolytes, electronic filters,
lasers and superconductors.
-- Yttrium prices are currently between $70 and $75 per kg
(www.asianmetal.com).
Rhenium
-- A rare metal used in temperature resistant alloys such as for jet
engines and catalytic converters.
-- Rhenium prices are approximately $3,500 to $4,000 per kg (www.metal-
pages.com).
Molybdenum
-- Used principally as an alloy to strengthen steel. Molybdenum prices are
currently approximately $15 per lb (www.metal-pages.com).
Silver
-- Silver prices are approximately $29 per troy ounce (www.kitco.com).
Table 2 - Conversion Factors for Various Units used in this Press Release
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Equivalent kg Equivalent lbs Equivalent parts Equivalent
per tonne per tonne per million grams per
Percentage (metric ton) (metric ton) ("ppm") tonne ("g/t")
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1% 10kg 22 lbs 10,000 10,000
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0.1% 1kg 2.2 lbs 1,000 1,000
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0.01% 0.1kg 0.22 lbs 100 100
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0.001% 0.01kg 0.022 lbs 10 10
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Quality Assurance and Quality Control
("QAQC")
Drilling is being done by Kluane
Drilling Ltd. of Whitehorse, Canada, with man-portable rigs. Each bore hole
is started with NTW (nominal core diameter is 5.71cm) and the hole size is
reduced at depth to BTW (normal core diameter is 4.2cm). On completion of
each hole, the radioactivity of the walls of the bore hole is measured in
detail with a Mount Sopris gamma ray probe and these data provide an estimate
of uranium grade that is independent of the assay values obtained from
sampling of the core.
The core is transported to a central
facility where its radioactivity is measured with a hand-held spectrometer.
It is logged and sample intervals are determined and marked. The core is
split with a spatula or diamond saw and half-core is bagged, numbered and
submitted to ALS Chemex Laboratory's preparation facility in Bogota,
Colombia.
Quality control samples, that include
certified standards, field blanks, ten mesh duplicates and pulp duplicates,
constitute approximately 13% of the material assayed by the laboratory. The
prepared sample pulps are then shipped by ALS Chemex to its analytical
facility in Lima, Peru. Several types of analyses are performed on the
samples including:
-- Inductively Coupled Plasma Mass Spectroscopy ("ICP-MS") after the sample
has been dissolved by a mixture of four acids (ALS Chemex Method Code
ME-MS61). This type of analysis provides assay data on 48 elements.
-- ICP-MS after the sample has been dissolved by a mixture of four acids
provides analyses for rare earth elements (ALS Chemex Method Code ME-
MS81).
-- Samples that have a phosphorous content in excess of 10,000ppm were
analyzed by X-Ray Fluorescence Spectroscopy (XRF) using ALS Chemex
Method Code XRF12.
Dr. Richard Spencer, President & CEO
of U3O8 Corp., a Qualified Person within the definition of that term in NI
43-101 of the Canadian Securities Administrators, has supervised the
preparation of, and verified the technical information in this release.
Historic Resource(1)
The majority of the prior exploration on
the Berlin Project was conducted by the French company, Minatome, between
1978 and 1981 during which time 11 bore holes were drilled, 20 trenches were
dug and three adits were excavated. The historic estimate was generated on
the southern 4.4km of a 10.5km long syncline (Figure 1). Historic data from
trenching shows that anomalous grades of uranium continue along strike to the
north.
(1) The Berlin resource estimate is
historical 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
work completed to verify the historic estimate. U3O8 Corp. is not treating
the historical estimate as current mineral resources and it should not be
relied upon or considered a NI 43-101 compliant resource. As the 38 million
pound U3O8 historic estimate is based only on 11 widely-spaced drill holes,
it is regarded by U3O8 Corp. as merely an indication of the magnitude of the uranium
resource potential of the southernmost 4.4 kilometre long portion of the
syncline containing the Berlin uranium mineralization.
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. 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.
For further information on U3O8 Corp's
Berlin Project, refer to the technical report entitled "Review of
Historic Exploration Data from the Unaniferous Black Shales of the Berlin
Project and Chaparral Concession, Colombia: A guide to future
exploration" prepared by Richard Spencer and Richard Cleath dated March
23, 2010 and available at www.sedar.com.
Additional information on U3O8 Corp. is available on the company's web site
at 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 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 Berlin Project will add to U3O8 Corp's resource base in
the short-term, or at all. 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.
To view, "Figure 1 - Map Shows the
Location of Trenches and Drill Platforms in the Southern Part of the 10.5km
Long Fold in the Berlin Project and the Extent of the Alaskite
Batholiths," please visit the following link: http://media3.marketwire.com/docs/uwefig1dec.pdf.
To view, "Figure 2 - Drill
Locations in the Southern Part of the Fold in the Berlin Project,
Colombia," please visit the following link: http://media3.marketwire.com/docs/uwefig2dec.pdf.
To view, "Figure 3 - Cross Sections
of the Berlin Project at Drill Platforms P1 and P2," please visit the
following link: http://media3.marketwire.com/docs/uwefig3dec.pdf.
To view the photo associated with this
Press Release, please visit the following link: http://www.marketwire.com/library/20101207-u3o8imgcapLG.JPG.
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.
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