Cue Resources Ltd.

Cue Resources Ltd.

October 01, 2007 09:30 ET

Cue Capital Corp. Completes Phase 1 Drilling the Yuty Uranium Project, Paraguay; Initiates Phase 2

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2007) - Cue Capital Corp. (TSX VENTURE:CUE) "Cue" is pleased to announce that it has successfully completed the planned Phase 1 drill program on the San Antonio zone of the Yuty uranium project, and is immediately initiating Phase 2. Thirty holes have been drilled in the first phase (3672 m). Phase 1 has successfully met all of its objects in the validation of drill results from the late 1970s and early 1980s, as well as providing core samples for laboratory analyses. Delivery of cores to laboratories has been initiated.

The Phase 2 program, which is now underway, will consist of a minimum of 100 holes (minimum 12,000 meters) to further delineate the zone of interest.

The following drill holes from Phase 1 have not been previously reported.

Ave Grade Thickness Grade x thickness
Hole TD %eU3O8 meters feet m% ft%

SA1008 115.5 0.104 8.58 28.1 0.89 2.92

SA1009 117.0 0.037 3.70 12.1 0.14 0.45

SA1016 133.4 0.042 3.50 11.5 0.15 0.48

SA1017 135.7 0.047 2.70 8.9 0.13 0.42

SA1018 137.0 0.042 4.00 13.1 0.17 0.55

SA1019 134.2 0.054 9.50 31.2 0.51 1.68

SA1020 141.7 0.047 3.90 12.8 0.18 0.60

SA1021 132.2 0.052 3.30 10.8 0.17 0.56

SA1023 120.0 0.109 7.69 25.2 0.84 2.75

SA1024 122.7 0.037 3.89 12.8 0.14 0.47

SA1026 120.8 0.035 3.59 11.8 0.13 0.41

SA1032 118.6 0.048 9.48 31.1 0.46 1.49

SA1033 119.4 0.058 8.80 28.9 0.51 1.68

SA1034 118.4 0.070 9.00 29.5 0.63 2.07

SA1036 118.4 0.050 8.60 28.2 0.43 1.41

SA1037 117.4 0.045 8.50 27.9 0.38 1.26

SA1040 114.1 0.022 12.6 41.3 0.28 0.91

SA1042 111.2 0.022 1.60 5.2 0.04 0.12

Holes numbers missing from the sequence have been pre-collared, but have not yet been drilled to the target depth, with the exception of SA1010 which was abandoned due to stuck drill rods.

The grades are reported as equivalent uranium (eU3O8) as determined by downhole radiometric logging equipment. The logging was performed using rental equipment provided by Mount Sopris Instruments, of Golden, Colorado. Quality control and quality assurance is being provided by Dr Bernhard Schmeling, a contract geophysicist.

Chris M. Healey. P.Geo, COO Cue, is the qualified person responsible for the technical content of this release.

Cue currently owns a 30% interest in Transandes Paraguay, S.A. and is in the process of completing an earn-in for the remaining 70%. Transandes has an exploration permit granting the exclusive rights to explore for uranium on the Yuty project in south-east Paraguay.

Cue has recently (September 6, 2007) announced a financing and strategic alliance agreement with Cameco Global Exploration Ltd. ("Cameco"). That Letter Agreement established a strategic alliance between the two companies, including three tranches of financing, as well as a provision to create joint ventures within the Yuty project area. Cameco is a wholly owned subsidiary of Cameco Corporation a reporting company having its shares posted and called for trading on the Toronto and New York Stock Exchanges. Cameco Corporation is the world's largest uranium producer.

The first tranche of US$4.5 Million, which has subsequently closed, has been used to complete the acquisition of a 30% interest in Transandes Paraguay S.A. the second consisting of CDN$2.5 Million will be used for on-going working capital. The third tranche, CDN$12.5 Million will close on January 31, 2008, subject to Cue meeting certain milestones.

Chris Healey, P.Geo, COO Cue Capital commented; "This first phase of drilling has met, or even exceeded, all of our expectations based on previous drill results. The drilling has clearly demonstrated the validity of the old data, and we are now able to extend the length of the defined mineralized zone."


Chris Healey, Chief Operating Officer

WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

Contact Information

  • Cue Capital Corp.
    Chris Healey
    Chief Operating Officer
    (604) 921-1810
    (604) 921-1898 (FAX)