Cue Resources Ltd.
TSX VENTURE : CUE

Cue Resources Ltd.

February 17, 2011 09:00 ET

Cue Resources Ltd. to Conduct Drilling at San Miguel, Yuty Uranium Project

Highlights;

- 3500 metres of drilling planned, 45-50 Holes

- Targeting a new zone, San Miguel

- 5 km NE and on strike with the current resource at San Antonio

- Near surface mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 17, 2011) - Cue Resources Ltd. (TSX VENTURE:CUE) (the "Company") is pleased to announce that preparations are underway for a new drill program on the San Miguel (See Figure 1 below) zone located on the Company's 100% owned Yuty uranium project in south-eastern Paraguay. Sixty-four historic holes have been drilled previously with three holes of heightened interest in the 0.10-0.50m% eU3O8 range.

"We are excited to accelerate our 2011 exploration program as we begin to explore the resource potential at San Miguel," stated Robert Tyson, President and CEO. "Our drill programs to date have been limited to the San Antonio zone. We have 3 other zones to drill in the immediate vicinity of San Antonio, within the Yuty uranium project including San Miguel. It is time to capitalize on the historic exploration undertaken by Anschutz in the early 1980s and begin to define the potential at San Miguel."

The program will consist of approximately 45-50 holes totaling approximately 3500 metres. The goal of the drilling is to quantify additional resources and refine the geological model at San Miguel and Yuty as a whole. Current data shows a significant number of historical holes at San Miguel have encountered anomalous or better uranium mineralization.

San Miguel

San Miguel is located 5 km NE of San Antonio along the reduction-oxidation (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, click on the following link: http://media3.marketwire.com/docs/Yuty_Figure1.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