Cue Resources Ltd.

Cue Resources Ltd.

August 13, 2007 09:30 ET

Cue Capital Corp. Reports Initial Drill Results From Yuty Project, Paraguay

WEST VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2007) - Cue Capital Corp. (TSX VENTURE:CUE) "Cue" is pleased to announce initial drill results from its Yuty uranium project in the Republic of Paraguay. To date 12 holes have been completed (1438 meters) to the target zone with results that are very similar to those achieved from drilling in the 1980's. Two rigs are being employed; a rotary rig to drill down to approximately 25 meters and then set surface casing, and a diamond drill rig to drill to the target depth. The initial program will consist of 20 - 30 holes to validate the previous drilling results from the late 1970's and early 1980's, as well as to provide core samples for disequilibrium and physical property testing. This will be followed by a program of 150 to 200 delineation holes to better define the San Antonio trend.

Hole SA1014 is one of the best holes drilled on the San Antonio zone, with over 280 holes now drilled in the area since the late 1970's. The twelve holes drilled in the current campaign confirm the presence of very thick (3 to 10 meters) uranium mineralization, interpreted to be a stacked roll front system, with grades up to 0.30% eU3O8.

The first phase of drilling has concentrated on drilling a 15 by 15 meter grid around areas of well-established mineralization from earlier drilling. Since the results are generated from down-hole radiometric logging, two old holes have been cleaned and relogged for calibration of the probe. In this reprobing we were able to achieve results comparable to the 1980's logging.

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 Bernd Schmeling, a contract geophysicist.

The results of the first 12 holes are as follows:

Ave grade
Hole # From (m) To (m) TD (m) Intersection (%eU3O8)
------ ------- ------- ------- --------------- ---------
SA1001 90.92 96.70 121 5.78m (19.0 ft) 0.070

SA1002 90.52 91.27 120 0.75m (2.5 ft) 0.060
96.75 97.00 0.25m (0.8 ft) 0.090
97.80 98.60 0.80m (2.6 ft) 0.150
99.10 99.35 0.25m (0.8 ft) 0.070

SA1003 88.82 91.87 120 3.05m (10.0 ft) 0.040
97.60 99.10 1.50m (4.9 ft) 0.080

SA1004 88.52 91.62 120 3.10m (10.2 ft) 0.062
96.25 99.10 2.85m (9.4 ft) 0.079

SA1005 91.32 96.75 116 5.43m (17.8 ft) 0.088

SA1006 89.07 96.90 115 7.83m (25.7 ft) 0.020

SA1007 89.42 96.95 115 7.53m (24.7 ft) 0.030

SA1011 90.87 96.30 122 5.43m (17.8 ft) 0.060

SA1012 90.22 92.76 123 2.54m (8.3 ft) 0.043
94.81 98.95 4.41m (14.5 ft) 0.035

SA1013 90.22 93.76 123 3.54m (11.6 ft) 0.035

SA1014 89.67 99.65 123 9.98m (32.7 ft) 0.122
Including 94.91 98.05 3.14m (10.3 ft) 0.304

SA1015 90.42 99.20 120 8.78m (28.8 ft) 0.086

Holes SA1008 to 1010 have been cased, but have not yet been drilled to the target depth.

Core samples from all of these mineralized zones will be tested by standard chemical analysis, as well as by closed-can radiometric analysis. This will allow the determination of the equilibrium status of the uranium in the samples, and thus refine the down-hole probe calibration.

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

Under two previously announced agreements, Cue can earn up to a 100% interest in Transandes Paraguay S.A (Transandes), the holder of the exploration permit for the property. The terms of acquisition of the additional 30% are subject to Cue completing further financing and TSX Venture Exchange approval.

Chris Healey, P.Geo, COO of Cue Capital reported from a recent visit to the site; "I am very pleased with the progress to date and with the results we are announcing today. These results are very similar to those obtained in earlier drilling by the previous operator. This significantly increases our confidence in the validity of that data."


Chris Healey, COO & Director

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
    COO & Director
    (604) 921-1810
    (604) 921-1898 (FAX)