May 12, 2009 09:00 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2009) - ESO Uranium Corp. (TSX VENTURE:ESO)(FRANKFURT:E2G) (the "Company" or "ESO") has completed a focussed airborne geophysical survey that covered targets selected from earlier airborne and ground surveys on its 100% owned East Athabasca claims. The ZTEM Tipper electrical field measurement system of Geotech Ltd. was applied to cover approximately 1000 line kilometers over 5 target areas. The system is expected to define deeper resistivity anomalies that can reflect the large alteration plumes that are associated with high grade unconformity uranium deposits such as the newly expanded high grade deposit in the Roughrider Zone discovery of Hathor Exploration Ltd.
The spot price of uranium (U3O8) has risen for three consecutive sessions, recently reaching $46/lb. The uranium markets appear to be firming again and Cameco has reported making purchases on the spot market to take advantage of the current anomaly of the higher pricing for long term contracts which have been reported to be in the range of $70-$75/lb.
In order to take advantage of this developing market situation, the Company is planning a summer field programme for the Carswell Dome properties of ESO in the West Athabasca basin adjacent to the Cluff Lake Mine (former producer of approximately 65 million pounds of uranium from several shallow deposits exploited mainly by open pit mines). The average grade of the Cluff Lake deposits was about 0.73% (14.6 lbs per s.ton) U3O8, with significant gold byproduct.
Earlier work by ESO in this area included diamond drilling that resulted in several intersections of uranium mineralization at relatively shallow depths. Drilling was carried out by ESO in 2006 on the Gorilla Lake zone where work in 1981 Amok had returned drill core values in their CAR 425 drill hole of 0.85% U3O8 (17 lbs/s.ton) over 2.5 meters of core length. The ESO holes encountered extensions to the known mineralization with two holes reporting as:
CLU #01 with 0.46% U3O8 (9.2 lbs/s.ton) over 1.5 meters from 174.0 to 175.5 meters drill interval.
CLU # 07 had two mineralized intervals. The upper interval from 153 meters to 160 meters (7 meters of drill interval) returned 0.17% U3O8 (3.4 lbs/s.ton), including 0.82% U3O8 (16.4 lbs/s.ton) over 1 meter. The lower interval assayed at 0.2% U3O8 (4 lbs/s.ton) over 2.0 meters from 175.0 meters to 177.0 meters.
It should be noted that the measured intervals quoted above are not necessarily equivalent to true widths as the attitudes of the mineralization are not yet known.
Current uranium market support includes the many recently announced construction contracts for new nuclear reactor capacity that include supply of uranium fuel in the agreements without confirming that there are assured sources of fuel supply. Also US Government projections (E.I.A., 19th May 2008) for operating nuclear reactors in the USA indicate that they have not yet extended their fuel supply contracts. This has the potential to cause an additional future shortfall that will have to be filled at current rates of consumption at the same time as the initial fuel charge needed for the new reactor capacity under construction. The initial charge of uranium fuel in a new reactor is reportedly approximately three times that of the annual consumption (World Nuclear Association, January 2009). Recent tables of uranium consumption in operating reactors indicate a range of between 275 - 420 lbs of uranium per annual MWe (World Nuclear Association, 1st May, 2009). The 2009 annual World requirement for reactor fuel is reported in the same table as about 144 million pounds of uranium.
For reference, the current spot price quoted by Uxc.com for uranium oxide is US$46 per pound of U3O8, up from the February, 2009 low of $40/lb; an assay reported as 1.0% of U3O8 is equal to 20 pounds of uranium oxide per short ton - the conversion of percent metal or metal oxide from percent to pounds per short ton is done by multiplying the % value by 20.
The qualified person responsible to the technical information contained in this news release is Ben Ainsworth.
On behalf of the Board of Directors of ESO Uranium Corp.
Ben Ainsworth, Vice President, Exploration
Please refer to the ESO Uranium website for further and updated information.
Forward Looking Statements: The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
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.
ESO Uranium Corp.Robert (Bob) Meister(604) 629-0293 or Toll Free: 1-866-629-0293(604) 684-9365 (FAX)firstname.lastname@example.org
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