BOUCHERVILLE, QUÉBEC--(Marketwire - Dec. 7, 2012) - Strateco Resources Inc. ("Strateco") (News - Market indicators)(FRANKFURT:RF9) is pleased to report that the indicated mineral resource at its Matoush project, located in the Otish Mountains in northern Quebec, has increased by 58% since the last mineral resource estimate was published in January 2012.
The indicated resource is now estimated to be 586,000 tonnes with an average grade of 0.95 % U3O8 containing 12.33 million pounds of U3O8, compared to 453,000 tonnes grading 0.78% U3O8 containing 7.78 million pounds of U3O8 in January 2012. The inferred mineral resource now stands at 1.69 million tonnes at an average grade of 0.44% U3O8 containing 16.44 million pounds of U3O8, compared to 2.04 million tonnes grading 0.43% U3O8 containing 19.22 million pounds of U3O8 in January 2012.
This increase in the indicated resource is primarily attributable to the 12,000 metres of definition drilling done by Strateco on the MT-34 and MT-22 lenses from March to August 2012.
Table 1: Matoush Project Mineral Resource
|| January 2012
|| December 2012|
||(X 1 000)
||(X 1 000)
||(X 1 000)
||(X 1 000)|
||CIM definitions were followed for Mineral Resources. |
||Mineral Resources are estimated at a cut-off grade of 0.1% U3O8. |
||High grade U3O8 cut to 9% except the core of the MT-34. |
||Mineral Resources are estimated using an average long-term uranium price of US$75 per pound. |
||A minimum mining width of 1.5 m was used. |
||Numbers may not add due to rounding. |
Roscoe Postle Associates Inc. ("RPA") updated the resource estimate for the Matoush uranium project in accordance with National Instrument 43-101 using the drill results available on November 22, 2012. The indicated resource is contained in the three main zones: AM-15, MT-34 and MT-22. The inferred resource is contained primarily in the MT-22, MT-34, AM-15 Extension, MT-02, MT-06 and MT-36 zones. These zones are present over a strike length of 3 km. See in the "The Matoush Project - Longitudinal" section at www.strateco.ca.
The Matoush structure that controls the mineralization has been identified over a strike length extending 11 km southward and 2.5 km northward. The increase in the indicated category is primarily explained by the continuity of the very high grades returned by drilling done in 2012. Strateco also drilled several holes in the southern portion of the MT-34 Zone and in the central portion of the MT-22 Zone to tighten the drill hole spacing in areas where resources were previously categorized as inferred.
No mineral reserves have yet been identified at the Matoush project. One of the goals of the underground advanced exploration program is to convert the mineral resources to mineral reserves.
Guy Hébert, President and Chief Executive Officer of Strateco, said that: "The objective of increasing the indicated resource was achieved thanks to the exceptional quality of the mineralization at the Matoush project. The results highlight the immense uranium potential of the Otish Mountain region. Coupled with the license obtained from the Canadian Nuclear Safety Commission ("CNSC") in October, this drives the value of the Matoush project to new heights. Strateco is still waiting for the provincial administrator of the James Bay and Northern Quebec Agreement to issue the certificate of authorization, after which work on the exploration ramp can begin."
This press release has been reviewed and approved by Jean-Pierre Lachance, Geo. Executive and Exploration Vice President of Strateco and a qualified person as defined in National Instrument 43-101.
Qualified Person - Resource: The Mineral Resources for the Matoush Project disclosed in this press release have been estimated by Mr. David Ross, P.Geo., an employee of RPA and independent of Strateco. By virtue of his education and relevant experience Mr. Ross is a "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010). Mr. Ross, P.Geo. has read and approved the contents of this press release as it pertains to the disclosed Mineral Resource estimate.
This news release contains forward-looking statements subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct. Actual results and future events could differ significantly from those implied by such statements. These risks and uncertainties are discussed in the annual report filed with the securities commissions of British Colombia, Alberta, Ontario and Quebec.