Delta Uranium Inc.
TSX : DUR
August 07, 2009 10:25 ET
Delta Uranium Extends Incinerator Road Uranium Mineralization at Deer Lake, Newfoundland
TORONTO, ONTARIO--(Marketwire - Aug. 7, 2009) - Delta Uranium Inc. (TSX:DUR) ("Delta") is pleased to announce the results of trenching at Incinerator Road, on the 85,000-hectare Deer Lake uranium property in western Newfoundland. Seventeen new trenches have exposed uranium mineralization at the Dan Showing over a strike length of 600 metres. Assays of grab samples range from 23 to 1392 ppm U3O8, with an average of 346 ppm U3O8.
The Incinerator Road trend is an 8 kilometre long section of the unconformity at the western edge of the Carboniferous age Deer Lake basin, where sedimentary rocks rest on older basement rocks. Just above the unconformity, uranium mineralization is found in carbonate conglomerates, carbonate breccias and carbonate sandstones. All three rock types contain uranium at numerous showings along the trend, which is generally very poorly exposed. The best exposed area is referred to as the Dan Showing, where Spruce Ridge Resources Ltd. carried out sampling and some shallow diamond drilling in 2007.
Seventeen new trenches were excavated at the Dan Showing, extending the strike length to 600 metres. Twenty-one grab samples were sent for assay. Results ranged from 23 to 1392 ppm (0.05 to 3.06 pounds per tonne) U3O8, with an average of 346 ppm U3O8.
Elsewhere on the Incinerator Road trend, twelve new trenches were excavated, of which ten exposed significant radioactivity. Ten samples from these trenches gave assays from 6 ppm to 746 ppm U3O8, with an average of 223 ppm U3O8.
Limited shallow diamond drilling by Spruce Ridge Resources Ltd. in 2007 intersected significant radioactivity in seven vertical holes at the Dan Showing. The widest intersection was 7.94 metres averaging 99 ppm U3O8, followed by a second zone of 1.98 metres of 71 ppm U3O8, in hole IR07-06. The highest grade was in hole IR07-10, which averaged 175 ppm U3O8 over 3.30 metres.
A comparison of scintillometer reading from samples taken at Incinerator Road with samples of similar size from other uranium occurrences has led to the provisional conclusions that some of the uranium may have been leached out of the rocks. Mineralization is hosted by permeable rocks that are exposed high on a ridge, well above the water table. Rocks exposed in trenches are extremely weathered and crumble into loose rubble.
Delta is currently under an option agreement with Spruce Ridge Resources to earn a undivided 60% interest in the Deer Lake Project. By making an initial payment to Spruce Ridge of $100,000 and issuing a total of 200,000 common shares of Delta, upon both parties receiving all required approvals. Incurring total exploration expenditures on the property of $3 million over a three year period (of which $500,000 must be expended in the first year, $1,000,000 before December 16, 2010 and $1,500,000 before December 16, 2011). Issuing to Spruce Ridge a total of 600,000 shares of Delta (of which 200,000 shares must be issued on the first anniversary, issue 200,000 shares before December 16, 2009, issue 200,000 shares before December 16, 2010, and issue 200,000 shares before December 16, 2011). Making total cash payments to Spruce Ridge of $500,000 within three years of receiving the above-noted approvals of the option agreement (of which $100,000 must be paid by the first anniversary).
Technical information in this news release has been prepared and/or reviewed by Colin Bowdidge, Ph.D., P.Geo., V.P. Exploration, Director and Qualified Person as defined in NI 43-101 for Delta.
Delta would also like to announce that Mr Kirk Boyd will be assuming the duties of CFO in addition to his current position as COO of the Company. Mr. Boyd previously served as the CFO of the company from June 2007 to March 2008. Miles Nagamatsu has tendered his resignation and we thank him for his excellent service to the company and best wishes for the future.
About Delta Uranium Inc.
Delta Uranium is TSX listed Canadian exploration company actively engaged in the acquisition, evaluation and exploration of uranium mineral properties in northeastern and northwestern Ontario, Athabasca Basin and Western Newfoundland, Canada.
The TSX has not reviewed and does not accept responsibility for the adequacy of this news release.