Aurora Energy Resources Inc.
TSX : AXU

Aurora Energy Resources Inc.

October 17, 2007 09:27 ET

Aurora Continues to Expand Zones at Michelin Uranium Deposit, Labrador

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2007) - Aurora Energy Resources Inc. ("Aurora") (TSX:AXU) is pleased to announce the results of further drilling on its 100% owned Michelin Uranium Deposit in Labrador. The results are part of the larger 2007 drilling program on Aurora's assets in the Central Mineral Belt.

Aurora recently received assays for four holes testing the deep extension of the Michelin Main Zone. Two holes in particular, M07-069 and M07-045A, located 100 metres and 150 metres down-plunge from the known resource respectively, returned encouraging results, including:

- Drill hole M07-069 which intersected 0.25% U3O8 over 9.5 metres including 0.31% U3O8 over 7.5 metres

- Drill hole M07-045A which intersected 0.13% U3O8 over 5.6 metres

Two diamond drill rigs are continuing to test the down-plunge extension of the Main Zone on 100 metre centres to a vertical depth of 1,000 metres and will do so until the end of the season.

New assays were also returned for an additional eight holes on the Eastern Shoot, located 250 metres east of the Main Zone within the same mineralized horizon. The zone continues to demonstrate consistent grade and width with depth and appears to be displaying a similar geometry to the Main Zone. Highlights include:

- Drill hole M07-072 which intersected 0.24% U3O8 over 10.1 metres

- Drill hole M07-060A which intersected 0.16% U3O8 over 6.8 metres

- Drill hole M07-065 which intersected 0.16% U3O8 over 6.5 metres

- Drill hole M07-066 which intersected 0.15% U3O8 over 8.9 metres

One diamond drill rig is currently focusing on delineating the Eastern Shoot over a strike length of 200 metres and to a vertical depth of 600 metres. The zone remains open at depth.

"We are very encouraged by the continuity of the Eastern Shoot and also the persistently high grade nature of the Main Zone at depth," said Ian Cunningham-Dunlop, Vice President - Exploration, Aurora Energy. "Our efforts for the remainder of the year will focus on continuing to expand both these zones".

More detailed results can be found in the table on the following page.

An updated vertical longitudinal section of the Michelin Deposit will be posted on the Aurora website shortly.

The orientation of the mineralized zones at Michelin is interpreted to be steeply south dipping and stated widths are approximately 80-90% of true widths.



Summary of Recent Michelin Drill Hole Results

------------------------------------------------------------
Hole ID From (m) To (m) Length (m) % U3O8
------------------------------------------------------------
Main Zone
------------------------------------------------------------
M07-045A 761.09 766.70 5.61 0.13
------------------------------------------------------------
M07-061 NSV
------------------------------------------------------------
M07-069 757.90 767.40 9.50 0.25
------------------------------------------------------------
Incl 758.90 766.40 7.50 0.31
------------------------------------------------------------
Incl. 758.90 759.40 0.50 1.80
------------------------------------------------------------
M07-070 NSV
------------------------------------------------------------
Eastern Shoot
------------------------------------------------------------
M07-060A 501.00 507.80 6.80 0.16
------------------------------------------------------------
Incl 504.00 506.00 2.00 0.24
------------------------------------------------------------
M07-065 374.18 376.72 2.54 0.11
------------------------------------------------------------
Incl 374.18 375.12 0.94 0.20
------------------------------------------------------------
And 452.90 459.43 6.53 0.16
------------------------------------------------------------
Incl 453.77 455.47 1.70 0.30
------------------------------------------------------------
M07-066 476.31 485.22 8.91 0.15
------------------------------------------------------------
Incl 479.31 485.22 5.91 0.20
------------------------------------------------------------
M07-067 Pending
------------------------------------------------------------
M07-068A NSV
------------------------------------------------------------
M07-071 Abandoned
------------------------------------------------------------
M07-072 423.80 428.80 5.00 0.07
------------------------------------------------------------
And 547.40 557.50 10.10 0.24
------------------------------------------------------------
Incl 554.50 557.50 3.00 0.39
------------------------------------------------------------
M07-073 283.00 284.00 1.00 0.13
------------------------------------------------------------
And 326.00 329.00 3.00 0.07
------------------------------------------------------------
And 455.00 457.00 2.00 0.09
------------------------------------------------------------
M07-074 495.07 499.30 4.23 0.08
------------------------------------------------------------
Incl 498.71 499.30 0.59 0.16
------------------------------------------------------------
And 511.80 512.80 13.00 0.09
------------------------------------------------------------
Shallow Confirmation Drilling
------------------------------------------------------------
M07-062 31.01 36.70 5.69 0.08
------------------------------------------------------------
And 43.84 50.20 6.36 0.20
------------------------------------------------------------
Incl 46.28 49.18 2.90 0.32
------------------------------------------------------------
And 88.83 92.34 3.51 0.20
------------------------------------------------------------
M07-063 25.76 40.90 15.14 0.10
------------------------------------------------------------
Incl 31.29 34.89 1.44 0.25
------------------------------------------------------------
And 50.69 52.76 2.07 0.11
------------------------------------------------------------
And 61.01 63.57 2.56 0.10
------------------------------------------------------------
M07-064 20.98 28.96 7.98 0.11
------------------------------------------------------------
Incl 24.04 28.96 4.92 0.14
------------------------------------------------------------
And 45.26 54.40 9.14 0.10
------------------------------------------------------------
Incl 48.68 51.18 2.50 0.20
------------------------------------------------------------


HISTORIC WASTE CLEAN UP

Aurora has also recently completed a comprehensive clean-up of three historic exploration areas in Labrador's Central Mineral Belt.

Aurora took the initiative to remove waste material that has remained at the Melody Lake, White Bear and Inda properties since previous operators left the area in the 1980s. This operation was conducted with the support of both the Nunatsiavut Government and the Government of Newfoundland and Labrador and addresses a long-standing desire by local communities to have the debris removed.

The historic waste included garbage, wood, 45-gallon oil drums and various items, including old tins and tools. The clean-up project took several weeks to complete. The waste material was disposed in a safe and environmentally responsible manner by a specialized contractor.

"This underlines our commitment to stewardship and environmental best practices and our commitment to being a good neighbour," said John Roberts, Vice President - Environment, Aurora Energy Resources Inc.

ONGOING URANIUM POLICY DEVELOPMENT AND CONSULTATION PROCESS

On October 11, 2007, the Nunatsiavut Government's (NG) Minister of Lands and Resources tabled a motion in the Assembly as part of its ongoing process to develop a policy on uranium mining on Labrador Inuit Lands. The Assembly referred the motion to a special committee for further study. The committee will be made up of all available Assembly Members along with individuals from the Department of Lands and Resources that have been working on this policy. Experts on uranium mining, as well as community and industry representatives will be asked to provide information to committee members before the final policy is determined. This committee has been asked to report back to the Assembly at its first sitting in the new year

"We have been anticipating the NG would formulate a uranium policy for some time now," said Dr. Mark O'Dea, President and CEO, Aurora Energy Resources Inc. "We're looking forward to participating in the process and have confidence that it will lead to a better foundation to move uranium development forward in Labrador."

COMPANY ACTIVITIES

The Company plans to submit its Project Description to federal and provincial authorities before the end of the year to initiate the environmental assessment process for the Michelin Project, and is proceeding with engineering design and gathering base line environmental data.

Aurora will continue to operate year-round exploration programs with two fully winterized camps. The current exploration program will continue until early December, and will then be followed by a winter campaign of extensive in-fill and delineation drilling.

LIQUIDITY

Aurora is not invested in any short term commercial paper or asset-backed securities. The Company has approximately C$32 million in cash that is fully liquid and held with a large commercial bank.

ABOUT AURORA

Aurora (TSX:AXU) is a uranium exploration and development company focused on the Central Mineral Belt in coastal Labrador -- one of the world's most promising uranium districts. Aurora's uranium district has a defined resource of 58 million pounds of uranium (5 million measured and 53 million indicated) and 38 million pounds (inferred). Aurora is undertaking pre-feasibility studies to move the project towards development.

Aurora is committed to responsible development with lasting local benefits. Uranium provides clean, safe and reliable energy. The energy to change the world.

Assay results have been prepared under the guidance of Mr. Ian Cunningham-Dunlop P. Eng, Exploration Vice- President for Aurora Energy Resources Inc., who is designated as a Qualified Person with the ability and authority to verify the authenticity of and validity of this data. Drill core was prepared and analyzed in accordance with industry standards by Activation Laboratories Ltd, Ancaster, Ontario. The Independent Qualified Person responsible for the current resource estimates for the Michelin and Jacques Lake Uranium Deposits is Gary Giroux, P. Eng. Of Giroux Consultants Ltd. and a Technical Report prepared to NI43-101 requirements is available for viewing on SEDAR at www.sedar.com.

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements". Such forward-looking statements, including but not limited to, those with respect to the timing and amount of estimated future resources and resource conversion rates, potential for expansion of resources and potential size of future exploration programs and potential timing and outcome of government policies on uranium mining and receipt of permits and classification of future mineral resources, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Aurora to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of uranium, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation and legislation as well as those factors discussed in the section entitled "Risk Factors" in Aurora's Annual Information Form available on SEDAR at www.sedar.com. Although Aurora has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Aurora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • Aurora Energy Resources Inc.
    Andrea Marshall
    Manager, Government and Media Relations
    (709) 726-2223
    or
    Aurora Energy Resources Inc.
    Don Falconer
    VP, Corporate Development
    (416) 362-5556
    or
    Aurora Energy Resources Inc.
    Corporate Contact Information
    (604) 632-0110 or Toll Free: 1-877-632-4677
    Website: www.aurora-energy.ca