Titan Uranium Inc.

Titan Uranium Inc.

March 04, 2010 11:37 ET

Titan Uranium Upgrades Indicated Resources to 16.0 Million Pounds eU3O8 at Sheep Mountain Project, Wyoming

SASKATOON, SASKATCHEWAN--(Marketwire - March 4, 2010) - Titan Uranium Inc. (TSX VENTURE:TUE)(FRANKFURT:T4X) is pleased to announce that it has completed a revision to the mineral resource estimate for its 100% owned Sheep Mountain uranium project in Fremont County, Wyoming. The new estimate totals 16.0 million pounds eU3O8 (6.1M tons at an average grade of 0.131% eU3O8) in the Indicated Resource category. This estimate complies with the standards for disclosure of mineral resources required by National Instrument 43-101. The company has previously reported a NI 43-101 compliant estimate of 15.6 million pounds U3O8 (4,560,000 tons at an average grade of 0.17% eU3O8) in the Inferred Resource category.

Brian A. Reilly, President Titan Uranium Inc., commented; "The revised estimate upgrades the mineral resource from an Inferred Resource category to an Indicated Resource category with an increase in the total resource. We feel that the 16.0 million pound total resource is a conservative number given the cut-off grades used in the calculation. This is an important element of the preliminary feasibility study which is soon to be completed."

The resource estimate is summarized as follows:

  • Sheep 1 and 2 UG, indicated resource of 9.0M lbs (2.8M tons at 0.162% eU3O8)
  • Congo Pit, indicated resource of 7.0M lbs (3.3M tons at 0.104% eU3O8)

The Sheep Mountain Project comprises several uranium ore zones which are amenable to conventional underground and open pit mining methods. Details of the mineral resource estimates for the underground, open pit and total resource at each cut-off interval are presented in the tables below.

Sheep 1 and 2 Underground
Indicated Resource      
GT Cut-off (ft x %) >0.30 >0.60 >0.90
Pounds eU3O8 13,245,000 9,040,000 6,065,000
Tons 5,640,000 2,790,000 1,515,000
Average eU3O8 0.117 0.162 0.200
Average thickness (ft) 6.7 7.5 8.7
Congo Pit
Indicated Resource      
GT Cut-off (ft x %) >0.10 >0.25 >0.50
Pounds eU3O8 7,480,000 6,966,000 5,677,000
Tons 4,032,000 3,341,000 2,337,000
Average eU3O8 0.093 0.104 0.121
Average thickness (ft) 6.5 7.5 8.9
Total all zones
Indicated Resource      
Pounds eU3O8 20,725,000 16,006,000 11,742,000
Tons 9,672,000 6,131,000 3,852,000
Average eU3O8 0.107 0.131 0.152

Mineral resources were estimated at three GT cut-offs for the Sheep 1 and 2 underground portion of the deposit: 0.30, 0.60 and 0.90 ft% eU3O8. For the Congo Pit, the three cut-offs were 0.10, 0.25 and 0.50 ft% eU3O8. The mid-range cut-offs of 0.60 ft% and 0.25 ft% eU3O8 were applied to the underground and open pit portions respectively to establish a reasonable mineral resource estimate. These cut-offs best represent anticipated grades for mining operations.

In the underground portion of the deposit, mineralized intercepts were diluted to a minimum 6 feet thickness (vertical) for compatibility with planned mining methods. For the open pit, the diluted thickness was 2 feet. Current mine design and methodologies incorporate conventional approaches that were employed successfully at this site in the past and are compatible with the current State of Wyoming mine permit.

The new estimate was completed using the GT (grade x thickness) contour method on individual mineralized zones as defined in a full 3D geological model of the deposit. A total of 16 separate mineralized zones have been identified and evaluated in the Sheep 1 and 2 underground areas, as well as 17 zones in the Congo Pit area. The database for the estimate included 2000 rotary drill holes (1515 in the area of the proposed pit, 485 in the area of the underground mine) drilled from surface. Underground mine development and production records from previous mine workings, as well as records of underground mapping and sampling were also applied to the estimate.

The uranium quantities and grades are reported as equivalent U3O8 (eU3O8), as measured by downhole gamma logging. This industry standard protocol for reporting uranium in sandstone hosted deposits in the USA has been validated for the Sheep Mountain project by test drilling at the deposit, as well as by correlation with previous mining activities. In the fall of 2009, five rotary percussion holes were drilled on the property to study disequilibrium. Downhole logging of the drill holes was completed using standard gamma technology as well as a uranium spectral analysis tool (USAT), both supplied by Century Wireline of Tulsa OK. The USAT tool gives a direct measurement of uranium content and therefore allows determination of the equilibrium state of the uranium mineralization intersected in the hole. A total of 34 intervals were measured, which show an overall moderate positive disequilibrium (thus the true chemical grade of the mineralization is slightly higher than the equivalent grade determined by the gamma tool). The results of the resource estimates were not adjusted to account for this positive disequilibrium, and can therefore be considered conservative.

The revised mineral resource estimate will be used as the prime input for a preliminary feasibility study which is expected to be completed in April 2010. BRS Inc. of Riverton, Wyoming completed the mineral resource estimate as part of its contract to conduct the preliminary feasibility study. BRS Inc. is a Professional Engineering Corporation, which has provided consulting services for more than twenty years in geology, civil engineering, water resources, mining, and mined land reclamation, including all aspects of environmental permitting, design and construction management. The president and principal engineer/geologist of BRS, Douglas Beahm, is a Qualified Person (QP) under TSX regulations and both a Professional Engineer and a Professional Geologist with 35 years of professional and managerial experience in the uranium industry.

The project has an active Mine Permit issued by the Wyoming Department of Environmental Quality, which is currently being revised to update the mining and reclamation plans.

Chris M. Healey, P. Geo, COO for Titan, is the qualified person responsible for the technical information contained in this release.

About Titan Uranium Inc.

Titan Uranium's vision is to be a leading mid-tier North-American uranium exploration, development and mining company. Our mission is to create shareholder value by advancing quality projects to production.

Our growth strategy is driven by three elements:

• Development: A pre-feasibility study has been launched at the Sheep Mountain Uranium Project, Wyoming. The deposit contains a NI 43-101 compliant indicated resource of 16.0M lbs of eU3O8 (6,100,000 tons at 0.131% eU3O8).

• Exploration: The goal is to discover world class uranium deposits by exploring over 1.5M acres of land in the proven Athabasca and prospective Thelon Basins. Exploration programs are also active in Utah and Wyoming.

• Consolidation: The Company is actively pursuing M & A opportunities and focused on uranium-friendly jurisdictions such as Saskatchewan and Wyoming.

Titan has gained market recognition for its ability to attract strategic partners to participate in the exploration of its properties. Japan Oil, Gas and Metals National Corporation and Mega Uranium Ltd. are partners in current exploration programs managed by Titan.

Titan is well-financed and ideally positioned to emerge as a pre-eminent player in the uranium industry.


Brian A. Reilly, President

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Titan Uranium, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Titan Uranium's expectations are exploration risks detailed herein and from time to time in the filings made by Titan Uranium with securities regulators.

Neither 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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