Aurora Energy Resources Inc.
TSX : AXU

Aurora Energy Resources Inc.

May 24, 2006 10:38 ET

Aurora Discovers Potential Source for High-Grade Uranium Boulders at Melody Lake in Labrador

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 24, 2006) - Aurora Energy Resources Inc. "Aurora" (TSX:AXU) announces that a new geophysical survey has identified a cluster of seven "gravity highs" beneath Melody Lake, which may be the bedrock source for the hundreds of uranium-rich boulders ("Melody Hill boulders") found near the lake.

The Melody Hill boulders were discovered by Brinex in 1956. Historical results produced an average grade of 8.4% U3O8 from 27 boulders and a high of 28.2% U3O8 from a grab sample collected by Aurora in 2004. Despite Brinex having drilled 58 holes beneath the boulder field, their bedrock source has remained unsolved for 50 years.

"We have made an important step toward solving this long-standing exploration mystery. Uranium is one of the heaviest elements on earth, approximately twice as heavy as copper or lead," says Dr Mark O'Dea, President and CEO of Aurora. "Because of their high density, near-surface uranium deposits create gravity highs, which can be detectable by conducting gravity surveys. A near-surface uranium deposit with even a fraction of the grades found in the Melody Hill boulders would be of enormous value to the district and to the company."

The new targets identified from Aurora's recent survey are bulls-eye gravity highs that correlate directly with uranium-rich anomalies in the lake-bottom sediments, in excess of 100 parts per million (greater than 0.01%) U3O8.

What is particularly encouraging is that these gravity highs and associated lake bottom anomalies are situated directly in line with, and immediately up-ice from the Melody Hill boulders, suggesting that the boulders were derived from a bedrock source beneath the lake.

An additional isolated gravity anomaly was identified under Jamson Lake to the northwest of Melody Lake. Jamson Lake has the second highest uranium lake bottom sediment anomaly in Labrador, with a value of 372 parts per million (0.03%) U3O8.

The gravity survey was conducted by GeoScott Exploration Consultants, with a line spacing of 200 metres and a reading spacing of 25 metres. The on-land portion of the gravity survey will be completed during the summer 2006 exploration program.

Lake bottom targets will be drilled in early 2007 when cold weather allows drilling on the ice.

ABOUT AURORA

Aurora is a uranium explorer and developer focused on the Central Mineral Belt in coastal Labrador. The Belt is one of the most prospective uranium districts in Canada outside of the Athabasca Basin in Saskatchewan.

Ian Cunningham-Dunlop, P.Eng, Vice President, Exploration for Aurora, is the designated Qualified Person for Aurora on the Central Labrador Uranium Project.

The current mineral resources at Michelin include 342,000 tonnes at 0.113% U3O8 for a Measured resource of 851,000 pounds, 8,615,000 tonnes at 0.113% U3O8 for an Indicated resource of 21,374,000 pounds, and 4,116,000 tonnes at a grade of 0.148% U3O8 for an Inferred resource of 13,460,000 pounds. CIM definitions were followed for Mineral Resource estimates. Mineral Resources are estimated at a cut off grade of 0.05% U3O8 and a minimum vein width of 2.0 metres. Density of mineralized rock is 2.83tt/m3. Tonnage and contained lbs. uranium numbers are rounded. Drill core was prepared and analyzed in accordance with industry standards by Activation Laboratories Ltd, Ancaster, Ontario. The Mineral resource estimate was prepared by independent consultants Roscoe Postle & Associates Inc., under the supervision of Mr. Hrayr Agnerian, M.Sc. (Applied), P.Geo. Please see the prospectus of Aurora dated March 8, 2006 (the "Prospectus") for further details.

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 and the potential for further equity dilution 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, economic and political stability in Canada, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, and government regulation as well as those factors discussed in the section entitled "Risk Factors" in Aurora's Prospectus 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.
    Dr Mark O'Dea
    President & CEO
    (604) 632-4677 or Toll Free: 1-877-632-4677
    or
    Aurora Energy Resources Inc.
    Dr Rick Valenta
    Chief Geoscientist
    (604) 632-4677 or Toll Free: 1-877-632-4677
    or
    Aurora Energy Resources Inc.
    Robert Simpson
    Manager Corporate Communications
    (604) 632-4677 or Toll Free: 1-877-632-4677
    www.aurora-energy.ca