Energy Metals Corporation

Energy Metals Corporation

October 12, 2005 15:14 ET

Energy Metals Corporation: Aurora Property 43-101 Report Indicating 18.3 Million Pounds of U3O8

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2005) - Energy Metals Corporation (TSX VENTURE:EMC) (the "Company") is pleased to report, that it has received a National Instrument 43-101 compliant technical report on the Company's Aurora project located just inside Oregon some three miles from the Nevada border prepared by Dr. Greg Myers. The technical report was initially commissioned by Quincy Energy Corp., the optionee of the property, under an option joint venture agreement entered into in May, 2005. Quincy can earn an undivided 51% interest in the Aurora property by spending a total US$2.0 million in exploration expenditures and issuing a total of 2,000,000 shares over a 4 year period. Quincy can earn an additional 24% interest by agreeing to fund a bankable feasibility within 30 months of the initial earn in.

Dr. Myers calculated an indicated resource of 17.69 million tons at an average grade of 0.0518% eU3O8, or 18.3 million pounds of U3O8, using a 0.03% eU3O8 cut-off.

Dr. Myers calculated the grade of the mineralized zone section by section, and did not use any weighting factors in the calculations. The pounds of eU3O8 for each section were tabulated along with the area and calculated volume for each section. The total number of tons contained in the mineralized zones and the total number of pounds of eU3O8 were summed and the average grade of the entire mineralized zone was calculated from these results. The calculated grade of 0.0518-per-cent agreed well with the statistical average of the sample population above the 0.03-per-cent cut-off which is 0.0528 per cent eU3O8.

2005 Aurora Resource Statement using 0.03% U3O8 Cut-off Grade

Contained eU3O8
Million Tons Grade, eU3O8% (Million Pounds)
Indicated Resource 17.69 0.0518 18.3

The mineral resource recalculation assumed the reliability of the gamma log readings and the conversion to eU3O8 values. Every effort was made to confirm the location of the mineralized zone in each drill hole and the conversion to U3O8 was also confirmed. The primary deposition and subsequent chemical and mechanical remobilization of uranium in the volcanic-hosted Aurora uranium system was interpreted to form horizontal, bedding-controlled units in the volcanic rocks and in places in lake sediments. These bedding-controlled units display continuity between drill holes over hundreds to thousands of feet.

Data Verification

Placer Amex conducted studies to confirm the eU3O8 percentage values calculated from the gamma logs by completing check assays of selected samples from the diamond core holes. This comparison showed that the check analyses do not exactly replicate gamma eU3O8 per cent uranium values. Generally the gamma calculated eU3O8 percentage values are underestimated at grades of U3O8 over 0.1 per cent. Values of U3O8 over 0.1 per cent are underestimated and overestimated about equally, but the gamma conversions tend to underestimate the true U3O8 values more than the assayed values. Overall, the values of eU3O8 per cent are probably representative of the population of samples but individual samples may show significant variations. The evaluation of the actual content of uranium based on different radiometeric analyses and chemical assay results conducted by Placer Amex does not clearly identify any correction factors or best analytical technique. Assay estimation of uranium content is probably more reliable than the calculated equivalent uranium content obtained from the gamma logs. Future drilling programs and grade confirmation studies should use uranium assays rather than equivalent uranium values calculated from radiometric surveys. The indicated resource grade is based on the equivalent uranium values, from the gamma conversions and is probably a conservative grade estimate.

The percentage of eU3O8 contained in drill holes was calculated from the downhole gamma logs by Century Geophysical at the time of the drilling and surveys. Original data were collected on 0.1-foot intervals and converted to eU3O8 per cent. The converted values were then compiled on two-, five-, 10-, 15- and 20-foot intervals. The data available for this analysis were the original gamma logs and the five-foot eU3O8 percentage composites. The original logs and five-foot composites were compared to verify the values and there is a reasonable correlation in values. The five-foot composites were double entered into an Access database along with collar location data. The double entry data had less than 1-per-cent entry error and the current database is estimated to be error-free. Further verification and correction of the data were completed during sectional interpretations. Several original gamma logs were rerun at the time of drilling as checks and the results were very similar to the original logs. Core and chip samples from the original drilling are not available for check assays.

The original downhole gamma logs have been reviewed in detail. Rotary chip samples apparently were not collected, or were discarded, and the diamond core samples were not preserved after Placer Amex terminated the project and therefore it has not been possible to confirm assay values in comparison to gamma log estimations. Drill holes from the 1977 to 1979 program were not cased or capped and it is not possible to re-enter any drill holes in order to resurvey drill holes.

The position of the mineralized horizons was checked on the original logs to confirm the agreement of the original century geophysical logs and the five-foot composite database generated by Placer. Data which did not agree between the two data sets were corrected where possible, or were omitted from the resource evaluation when the data could not be confirmed.

The only alternative to definitively verify gamma log values or U3O8 assays is to drill twin holes in selected areas. Confirmation drilling was beyond the scope of this stage of project evaluation and will be recommended in the next stage of work.

Cut-off Grade Determination

The mineralized zone was defined as mineralization above the selected cut-off grade of 0.03 per cent eU3O8. The selection of a 0.03 per cent eU3O8 cut-off was made by Dr. Doug Underhill, Quincy chief geologist and co-author of the technical report, based on the Placer Amex data evaluations and preliminary estimates for mining and processing costs of approximately $20 per ton. Mining costs of $2 to $4 per ton are typical of the smaller open-pit mines in Nevada. The lake sediments, which overlie the mineralized horizon, are poorly consolidated and stripping costs are estimated to be low. The mineralized horizon is highly fractured and mining costs are estimated to be low in this unit as well. The 0.03-per-cent cut-off maximizes the tonnage of mineralization while maintaining strong positive value at current uranium price. A more extensive evaluation of the cut-off grade would be completed in a prefeasibility study.

The sample population of eU3O8 values forms a log normal distribution with a range from nil to a high of 0.7294 per cent. The mean of the population is 0.0126 per cent and the standard deviation is 0.0184 per cent. The cut-off used of 0.03 per cent is the mean plus one standard deviation. The sample population above the cut-off grade shows a mean of 0.0528 per cent and a standard deviation of 0.0293 per cent. The calculated average grade of the indicated resource agrees well with the statistical average of the sample population above the 0.03-per-cent cut-off.

Volume Determination of Mineralized Zone

Orthogonal cross-sections were completed in the mineralized zone using known features of the geologic controls on mineralization. The sections were created on a northwest and northeast orientation corresponding to the lines of drill holes. The cross-sections with drill hole eU3O8 percentage values and limited geologic information were generated in the Rockworks 2004 software program from the Access database. The cross-sections were then interpreted by hand on a section-by-section basis and digitized in order to accurately measure the area of the mineralized body outline. Northwest-trending sections were completed on 100-foot centres and northeast-trending sections were completed on 200-foot centres corresponding to the 100-by-200 foot spacing of drill holes. Bench maps were completed on 40-foot spacings through the main portion of the mineralized body to rectify and confirm the cross-section interpretations. The measured area and calculated volumes from each set of sections were compared for confirmation of the models' reliability. The northeast-trending sections have the tightest drill hole control and are considered to be the best estimate of mineralization volume. Volume variations between the sets of sections are minimal and provided increased confidence in the interpretation of the mineralized zones. The stated indicated resource calculated the average of the tons and grade from the northwest and northeast sets of sections.

A grade-times-thickness (gxt) map was generated to evaluate the shape of the mineralized body, possible feeder zones, structural controls and for comparison with bench plans of the mineralized body interpreted from cross-sections. The plan projects all mineralization to the surface and includes all assay values. The plan agreed well with the general shape and the location of the mineralized body on the 5100 bench plan.

Density Determinations

Placer Amex and Hazen Labs completed specific gravity determinations for several hundred samples from the Aurora project and from the nearby McDermitt mercury mine, which occurs in equivalent lithologic units. The detailed data does not exist in the database obtained by Quincy but the results were summarized in the 1980 Placer Amex prefeasibility report. Results for the mineralized volcanic rocks indicate the density values are somewhat low compared with typical fresh volcanic rocks. The low density is attributed to the strong clay and opalite alteration and high-porosity and open-space nature of the brecciated volcanic rocks.

Dry-Density Values for Various Rock Types(i)
Used in the Re-Calculated Resources

Gravels 16.1 Feet3/Ton
Lake Sediments 18.9 Feet3/Ton
Mineralized Volcanic Rocks 18.6 Feet3/Ton
Unmineralized Volcanic Rock 18.6 Feet3/Ton
(i) Placer Amex Pre-Feasibility Report 1980

Grade Continuity

Co-variograms were calculated for the 5100 level and the 5140 level using 120 and 98 data points, respectively. The continuity of grade between drill holes is good at values of eU3O8 below about 0.07 per cent. Bench 5100 has a sill limit of about 0.1 per cent and bench 5140 has a sill limit at about 0.0485 per cent. The linear correlation of grade is limited to about 150 feet for both benches, indicating that generating a krigged average of grades above about 0.07 per cent beyond 150 feet would bias the calculated average. The use of an inverse-distance-squared average will also have limitations when averaging groups of adjoining drill holes. Resource modeling for this report calculated a simple average grade for each section, equally weighting each drill hole to limit biasing.

No limitations or other negative impacts due to environmental permitting or other political issues, which will have an affect on the mineral resource, are known to exist. While a full evaluation of these factors was beyond the scope of the report, the property is located in a historic mining district within a very sparsely populated area. Local opposition to this project is not anticipated; however, intervention by outside groups, as in any new mine operation, cannot be ruled out. The price of uranium is currently on an upward trend and well above its 10- and 20-year averages. There is no guarantee that this trend will continue or that the uranium price will remain high. Price projections and economic thresholds were beyond the scope of the commissioned report and would be the subject of future feasibility studies.

Dr. Myers is a member and chartered professional geologist of the Australian Institute of Mining and Metallurgy, and an independent qualified person as defined by National Instrument 43-101. Dr. Myers has verified the data disclosed, including the sampling, analytical and test data underlying the information and opinions contained in the technical report. The effective date of the estimate of the indicated resource is September 1, 2005.

Energy Metals Corporation is a Canadian listed company involved in developing resources to power the 21st century. The Company has adopted a corporate strategy to focus on the acquisition and development of uranium assets in politically favorable and mining-friendly jurisdictions within the United States to take advantage of the continuing growth in the U.S. and worldwide of demand for electrical energy. This increasing consumption is occurring at a time when uranium mine supplies are dwindling and inventories are being depleted.

The Company is targeting advanced uranium prospective properties in Wyoming that are amenable to ISL (in-situ leaching). This form of uranium mining was pioneered in Wyoming. It utilizes water wells and oxygen-fortified groundwater to mine the uranium in place. Energy Metals Corporation is also actively advancing other conventional mining and ISL opportunities for uranium properties in the States of Utah, Nevada, Oregon and Arizona.


Paul Matysek, M.Sc., P.Geo., President, CEO and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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