UC Resources Ltd.
TSX VENTURE : UC

UC Resources Ltd.

October 16, 2009 10:34 ET

UC Resources Reports Drill Results, Resumes Drilling in McFaulds Lake Area

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2009) - UC Resources (TSX VENTURE:UC) would like to announce drill results from its three hole drill (623 metre) program completed in August 2009, that was conducted on the option venture property where UC has the right to earn up to 55% interest in the McFaulds East and West properties currently held by Spider Resources Inc. (TSX VENTURE:SPQ) and KWG Resources Inc. (TSX VENTURE:KWG) encompassing some 31,000 hectares. As previously announced on August 27, 2007, UC advised Spider and KWG that it had completed the third year spending commitment on the McFaulds Lake option agreement and delivered unaudited proof thereof to them. Spider and KWG are currently in the review period to confirm UC's earn in level to 40%.

DRILL PROGRAM

Hole UC-09-01 in the August program was designed to test a geophysical anomaly on the west block that is interpreted to have a strike length of approximately four kilometres (VTEM / ZTEM airborne surveys previously completed). The anomaly was not explained by this drill hole, however gold values were detected at a shallow depth. This hole tested a coincident positive magnetic anomaly and a strong EM conductor. The hole intersected a gradational lapilli tuff to feldspar porphyry contact, cutting very weakly disseminated pyrite mineralization (between 55.9m - 62.5m). It is not felt that this intersection adequately explains the strong conductance. The hole also intersected anomalous gold mineralization of 2,620 ppb Au (2.62 g/t Au) between 31.35 to 31.85 metres downhole, followed by 1,470 ppb Au (1.47 g/t Au) between 31.85 and 32.9 metres downhole. This intersection contained quartz injection and weak fine grained pyrite mineralization in a felsic tuff. Further geophysical assessment, including Induced Polarization surveying is warranted in an attempt to find the source of this intriguing gold mineralization.

Hole UC-09-02 tested a positive, "U" shaped, magnetic anomaly and coincident EM conductor located on claim 1192082, in the vicinity of McFaulds #6 Volcanogenic Massive Sulphide ("VMS") occurrence. The hole cut 0.8 metres (148.3 to 149.1 m) of mainly massive magnetite, sandwiched amongst 20 cm. wide massive pyrrhotite with chalcopyrite and minor pyrite intervals. The 0.8 metre interval graded 2.4% copper, 0.13% Zn and 3.4g/t Ag. The sulphide mineralization was found to be at the contact between a volcanic lapilli tuff and the volcanoclatic sediments (chert and cherty sediments). Due to the size and strength of the EM anomaly in this area, a larger sulphide section was anticipated. The area warrants another drill hole if a strong EM anomaly can be located along the contact between the volcanic and volcanoclastic sediments.

No significant assay values were reported for hole UC-09-03, this hole remained in felsic tuff for its entire length. There was no mineralization encountered that would explain the geophysical conductors, very little disseminated pyrite was observed. It is also believed that the hole went through the volcanic rock-volcanoclastic sediment (chert and cherty sediments) contact where the massive magnetite and sulphides occur but never reached this distinct geological unit. It may be that the hole did not go deep enough or there is no obvious contact zone in this area. The strong EM anomaly remains unexplained.

Hole UC-09-03, as well as hole UC-09-02, were drilled in an attempt to test a series of geophysical anomaly situated in the East Property in the vicinity of McFaulds #5 and #6 VMS occurrences, which had been previously drill tested and confirmed to contain copper and zinc mineralization, reported in a VMS setting. Hole UC-09-02 encountered both copper and zinc mineralization, over a narrow zone as did the previous holes drilled by Spider and KWG in 2004, namely holes McF-04-39 and McF-04-50. It is felt that the #6 VMS occurrence was partially encountered by UC's hole UC-09-2. Further ground geophysical surveying is planned for this area after freeze-up to better define the target for future drill testing.



TABLE OF RESULTS

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len-
Azim- gth from to int Ag Au
Hole ID uth Dip (m) (m) (m) (m) Cu% Zn% (g/t) (g/t)
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UC-09-01 180 -45 191 31.35 32.9 1.55 0.005 0.018 0.001 1.84
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UC-09-02 130 -45 232 147.2 152 4.8 0.689 0.191 0.001 0.009
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including 147.2 149.1 1.9 1.68 0.096 0.002 0.06
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UC-09-03 130 -60 200 no significant mineralization
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The qualified person responsible for the technical information contained in this press release is Dr. Howard Lahti, PGeo, of Billiken Management Services Ltd.

JVX Geophysics Ltd. of Richmond Hill, Ontario, has recently completed Max-Min and HLEM ground geophysical surveys on the western claim block, focused on an area located 400 metres north of the hole UC-09-01 that was drilled earlier this year in August 2009, results of which are reported above. The geophysical survey interpretation suggests three near surface conductive anomalies as well as a deeper conductive anomaly, interpreted to be situated directly below the shallower anomalies. These anomalies have now been prioritized as drill targets. The deeper conductive anomaly is interpreted to be approximately two kilometers in width and to be in excess of ten kilometers in length (ZTEM airborne survey as conducted by Geotech Ltd. of Aurora, Ontario). These drill targets are all situated proximal to or within a highly magnetic responsive "Bull's-Eye" feature, situated along an east-west trending linear magnetic feature that was outlined by previous Aerotem and VTEM (Geotech) airborne surveys, as well as our recent ZTEM (Geotech) survey.

Billiken Management Services Ltd. of Toronto, Ontario, reports that they are mobilizing a drill from Les Forage Orbit of Val D'Or Quebec, to commence drilling of the first shallow anomaly over the weekend of October 17th. The intent of this drill program is to drill test the three near surface anomalies and then, based on the results, consider the merits of following the near surface conductor(s) down dip, or commence drilling the deeper anomaly by a vertical hole.

UC Resources continues to evaluate solutions and options for the re-commissioning process of the La Yesca mill located west of Guadalajara, Mexico. The company is committed to this project and considers it a key strategic growth opportunity in what it believes is a long term secular bull market for precious metals.

UC Resources is an active explorer of base metals and chromite in the McFaulds Lake area ("Ring of Fire") of the James Bay Lowlands, Ontario, as well as an explorer and a near term producer of precious metals in Mexico.

On behalf of the Board of Directors,

Jim Voisin, President & CEO

UC Resources Ltd.

We seek safe harbour.

Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

Contact Information

  • UC Resources Ltd.
    Damien Lowry
    Vancouver Head Office
    Toll Free: 1-800-366-8566 (Canada & USA) or 604-681-7265
    604-608-6163 (FAX)
    www.ucresources.net