U3O8 Corp.
TSX VENTURE : UWE

U3O8 Corp.

October 15, 2009 09:01 ET

U3O8 Corp. Cuts 6.3 Metres at 0.075% (1.5 Pounds per Short Ton) U3O8 at Aricheng Alpha

Scout drilling on newly identified target confirms a sixth uranium-bearing structure - adds to the potential size of the Kurupung uranium district

TORONTO, ONTARIO--(Marketwire - Oct. 15, 2009) -

U3O8 Corp. (TSX VENTURE:UWE), a Canadian uranium exploration company, reports significant uranium mineralization from Phase I scout drilling on the Aricheng Alpha target in the Kurupung Batholith, in the basement near the Roraima Basin in Guyana, South America (Figure 1). Aricheng Alpha is the first in a group of targets to be drilled in the recently announced scout drilling campaign, which aims to establish the potential size of the Kurupung uranium district. Geologically similar albitite-hosted deposits elsewhere in the world typically contain resources in the 50 to 130 million pound range. The successful intersection of a uranium-bearing structure at Aricheng Alpha, a new target identified purely through geophysical data, marks a fundamental advancement in U3O8 Corp's ability to predict the location of potentially new mineralized zones, thereby leading to greater efficiencies in its exploration of the Kurupung.

"Although uranium mineralization at Aricheng Alpha is masked by up to fifty metres of soil, we were able to recognize the potential of that area through its geophysical characteristics," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "To hit good uranium mineralization in the first holes drilled in a new target bodes well for our ability to use geophysics to identify additional mineralized areas. Aricheng Alpha is the sixth structure to contain consistent uranium mineralization in the Kurupung district and adds to our pipeline of targets awaiting infill drilling with the potential to increase our resource base." 

Table 1 – Assay Results for Aricheng Alpha

Summary of significantly mineralized intercepts cut in the seven bore holes (1,613 metres) drilled in the Phase I program at Aricheng Alpha. 

 InterceptGrade
Bore hole numberFromToIntervalEstimated True ThicknessU3O8U3O8
 (m)(m)(m)(m)(%)(lb/st)
ALPHA-001BH abandoned due to technical difficulties at 39.1 metres depth
ALPHA-001A157.0160.03.02.70.0410.82
ALPHA-00283.088.05.04.50.0581.16
ALPHA-003144.0146.02.01.80.0591.18
 150.0153.03.02.70.0661.32
 207.0209.02.01.80.1142.28
ALPHA-004No significant results
ALPHA-005114.0117.03.02.70.0911.82
 126.0143.07.06.30.0691.38
ALPHA-006115.0122.07.06.30.0751.50
 126.0130.04.03.60.0571.14
 172.0174.02.01.80.1242.48
ALPHA-007241.0245.04.03.80.0611.22
 256.0261.05.04.70.0501.00

Note: lb/st is an abbreviation for pounds per short ton. 1 short ton = 2,000lbs or 0.907 metric tonnes.

Aricheng Alpha

U3O8 Corp. identified Aricheng Alpha as a target exclusively based on its geophysical characteristics. Substantially all the uranium-bearing structures drilled to date in the Kurupung Batholith are located in weakly magnetic areas. By analogy with these mineralized structures, the Aricheng Alpha target lies at a point along a weakly magnetic fault where it intersects a second, poorly magnetic zone (Figure 2A). This cross point coincides with the intersection of northwest- and northeast striking VLF-EM (Very Low Frequency Electromagnetic) anomalies that define relatively high electrical conductivity (Figure 2B). 

Uranium mineralization at Aricheng Alpha is associated with a northeast-trending structure along the prominent weakly magnetic feature described above. The mineralization is associated with veinlets and breccias within a zone of albite-chlorite-hematite-calcite alteration that is essentially non-magnetic. Outside of the albite-dominated alteration zone, the country rock is a moderately magnetic, coarse-grained monzonitic granite that has a mineral assemblage of albite, K-feldspar, quartz, actinolite and magnetite. The mineralized sheet-like breccia zone at Aricheng Alpha strikes northeast and dips to the northwest at approximately 75°. Further drilling will be required to establish the width and plunge direction of the higher-grade mineralized shoot at Aricheng Alpha. 

Phase I scout drilling at Aricheng Alpha (seven bore holes for 1,613 metres – drill hole locations shown in Figure 3) has delineated uranium mineralization (Figure 4):

  • traced over a strike length of approximately 200 metres and remains open along strike;

  • with increasing grades along strike to the northeast; and

  • confirmed to approximately 200 metres below surface and is open at depth.

Potential quantity and grade are based on drill results that define the approximate length, thickness, depth and grade of the target, but are considered conceptual in nature. To date, there has been insufficient exploration drilling to define a mineral resource in the Aricheng Alpha structure, and it is uncertain if further exploration drilling will result in a mineral resource being defined in this structure. 

Pipeline of Uranium-Bearing Structures

Aricheng Alpha is the sixth structure in the Kurupung Batholith in which U3O8 Corp's drilling has shown consistent uranium mineralization and adds to the pipeline of targets ready for infill drilling and subsequent potential resource estimation (Figure 5). Aricheng South and Aricheng North were the first two structures to have National Instrument 43-101 resources defined, and mineralization remains open on both structures with opportunity for resource growth upon further drilling. The mineralized structures at Aricheng West and Accori North C are ready for additional infill drilling to achieve the drill density required before advancing to potential resource estimation. Accori South and Aricheng Alpha are positioned for Phase II drilling to determine the extent of uranium mineralization, which if results are positive, would warrant further drilling to move towards possible resource estimation.

Geophysical Targeting Techniques

U3O8 Corp. has significantly advanced its targeting techniques in the Kurupung district beyond the methods originally used by Cogema in the early 1980's. New and untested targets, such as Aricheng Alpha, are being identified for scout drilling using the integration of three geophysical methods from data sets that cover the entire district. The principal geophysical targeting tools are magnetics and VLF-EM, while radiometric data, which are easily masked by soil, humus, vegetation and water, are used as a secondary tool. 

Magnetic Data Delineate Demagnetized Faults (Figure 2A) – The Kurupung Batholith consists of homogeneous granitic rock that should have a relatively uniform magnetic signature. Instead, airborne magnetic data show the batholith consists of uniformly magnetic areas that are separated by corridors of low magnetism. Substantially all of the consistently uranium-bearing structures drilled by U3O8 Corp. to date lie within these weakly magnetic corridors. Measurements on drill core from these areas show that the magnetism of the granite decreases sharply in faults that contain uranium. Therefore, U3O8 Corp. is using the magnetic data to trace out where demagnetized faults are located in the batholith as corridors of potential uranium mineralization. Although the selection of targets takes into account that only parts of the demagnetized faults may contain uranium, exploration drilling of some of these new targets may fail to identify uranium mineralization.

Conductive Zones in VLF-EM (Figure 2B) – VLF-EM surveys carried out in the field over areas that have been drilled by U3O8 Corp. show that uranium-bearing shoots are located where slightly conductive zones intersect, or coincide with, demagnetized fault zones evident in the magnetic data. Therefore, U3O8 Corp. is using the VLF-EM data to identify points where conductive zones cut the magnetite-deficient faults as new targets for scout drilling.

Quality Assurance & Quality Control

Diamond drilling at Aricheng Alpha was undertaken with one of U3O8 Corp's own drill rigs that produced NQ (47.6 millimetre diameter) core. A down-hole spectral gamma probe was used on six of the seven holes to determine the extent of the mineralized interval by providing an estimate of the grade based on the radioactivity measured. Core from the mineralized interval was halved with a diamond saw on site and half core samples were delivered to ACME Laboratory's preparation facility in Georgetown, Guyana. Sample blanks and certified standards were inserted at an average frequency of 1 per 25 samples. Sample pulps were then shipped by ACME to their analytical facility in Vancouver, BC, Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion. 

Mr. Richard Cleath (M.Sc.), Vice President of U3O8 Corp., a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, had overall responsibility for all aspects of target selection and drilling of the Aricheng Alpha target. Mr. Cleath has supervised the preparation of, and verified, the technical information in this release. 

To view Figure 1 – Map of Airborne Magnetic Data and Interpreted Structures in the Kurupung Batholith and summary, please visit the following link:

http://media3.marketwire.com/docs/ArichengFigure1.pdf

To view Figure 2 – Geophysical Surveys Indicate Common Cross-Cutting Features for New Targets and summary

http://media3.marketwire.com/docs/ArichengFigure2.pdf

To view Figure 3 –Drill Hole Locations at Aricheng Alpha and summary:

http://media3.marketwire.com/docs/ArichengFigure3.pdf

To view Figure 4 – Long Section of the Aricheng Alpha Structure and summary:

http://media3.marketwire.com/docs/ArichengFigure4.pdf

To view Figure 5 – Pipeline of Uranium-Bearing Structures in the Kurupung Uranium District and summary:

http://media3.marketwire.com/docs/ArichengFigure5.pdf

About U3O8 Corp.

U3O8 Corp. is a Canadian uranium exploration company based in Toronto, Canada. Currently focused on uranium exploration in the Roraima Basin in Guyana, South America, U3O8 Corp's primary business objective is to explore, develop and acquire uranium projects in the Americas. The company is funded with approximately $6 million held solely in cash and Canadian chartered bank-backed Guaranteed Investment Certificates. 

U308 Corp. has exclusive uranium exploration rights in an area covering approximately 1.3 million hectares that straddles the edge of the Roraima Basin in Guyana. The company is advancing a two-pronged exploration strategy that focuses on:

  • Exploration for multiple uranium-bearing structures within structural systems in the basement adjacent to the Roraima Basin with the concept that the individual breccia zones could potentially aggregate to a significant total resource; and

  • Exploration for unconformity-related uranium deposits near the base of the Roraima Basin, which are similar to those of the prolific Athabasca Basin in Saskatchewan. 

For further information on the company's properties, please refer to the technical reports prepared for the company by Dahrouge Geological Consulting Ltd. and dated September 15, 2006 as amended and restated December 12, 2006; and the NI 43-101 report entitled "A Technical Review of the Aricheng North and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and Prometheus Resources (Guyana) Inc." by Watts, Griffis and McOuat dated January 14, 2009, available on SEDAR at www.sedar.com and on the company's website www.u3o8corp.com

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. 

To view the photo associated with this press release, please visit the following link:
http://www.marketwire.com/library/20091014-Fig5Archipeng800.jpg

Neither the 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.

Contact Information

Webosphere

Keyword Cloud

View Website