Cue Resources Ltd.
TSX VENTURE : CUE

Cue Resources Ltd.

March 03, 2011 09:00 ET

Cue Resources Ltd. Starts Drilling at New Uranium Zone, San Miguel, Yuty Uranium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2011) - Cue Resources Ltd. (TSX VENTURE:CUE) -

Highlights;

  • 3500 metres,
  • Shallow formation <40 m
  • Current Strike length of 1.1 km
  • Historical mineralized intercepts of up to 0.5m% eU3O8

Cue Resources Ltd. (the "Company") has started drilling on the San Miguel zone located on the Company's 100% owned Yuty uranium project in south-eastern Paraguay. One rotary drill and one diamond drill are currently operating at San Miguel and a second rotary drill will be mobilized from the San Antonio zone after a short term project has been completed. This first 3500 metres of drilling is expected to be finished by the middle of April.

Initial drilling will consist of approximately 1500m over a strike length of 1.1km, testing a WSW-ENE trending anomaly partially defined by Anschutz drilling. Additional drilling will continue further to the east and west in previously untested areas. (approximately 2000m). Sixty-four historic holes have been drilled previously with three holes of significant interest in the 0.10-0.50m% eU3O8 range.

"The regional reduction-oxidation (Redox) front extends from the San Antonio zone, where Cue has partially defined an initial resource, to the north for about 30 kms. through all four zones of the Yuty Project," stated Robert Tyson, President and CEO. "Beginning the systematic exploration of San Miguel is the next step to determining the resource potential of the Yuty Project as a whole and confirming our beliefs that Yuty should be recognized as a uranium district."

Mineralization occurs within a sandstone unit (San Miguel Formation) up to 16m thick and is associated with a Redox front similar to the resource delineated at San Antonio. It is believed to be the same regional front with the two prospects 15km apart. The geological sequence is very similar between the two although mineralization at San Miguel, at <40m, is much shallower compared with an average of 100m at San Antonio.

The current exploration program is being directed by the Company's Senior Geologist, Martin Hills. Mr. Hills' recent uranium exploration experience includes the past 4 years working in several African countries as a group geologist for Brinkly Mining PLC and Country Manager for Indo Energy Limited. 

San Miguel

San Miguel is located NE of San Antonio along the Redox front which hosts the uranium mineralization at San Antonio, San Miguel, Yarati-y, and Typychaty. All four of these zones show high-priority target areas and all have historical drilling which has intersected anomalous or better uranium mineralization. Each zone is similar in area to San Antonio. The Redox front appears to define a nearly continuous zone of potentially significant mineralization.

To view Figure 1 – Four uranium zones at the Yuty Uranium Project, Paraguay, please click here: http://media3.marketwire.com/docs/cue32.pdf.

San Antonio Deposit

The San Antonio Deposit consists of a current NI 43-101 compliant resource, Indicated, 9.0M tonnes @ 0.042% eU3O8 containing 8.3M lbs eU3O8 and an Inferred Resource of 1.1M tonnes @ 0.050% eU3O8 containing 1.2M lbs eU3O8. Column leach tests have demonstrated recovery of up to 86% of the contained uranium from cores taken from San Antonio. In addition, laboratory testing on drill cores has shown permeability and porosity values within the range of existing commercial ISR operations. 

About Cue Resources

Cue Resources Ltd. is focused on developing the Yuty Uranium District in south-eastern Paraguay. For detailed information, please see the Cue web site at http://www.cue-resources.com.

Chris M. Healey, P.Geo, a director of Cue, is the Qualified Person responsible for the technical content of this release.

On behalf of the Board of Directors

Robert S. Tyson, President and Chief Executive Officer

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

  • Nicola Street Capital Inc.
    Mark Prosser
    Investor Relations
    604-569-0056
    mark@ns-cap.com