High Plains Uranium, Inc.
TSX : HPU

High Plains Uranium, Inc.

January 17, 2006 14:54 ET

High Plains Announces Allemand Ross Drill Results

CHEYENNE, WYOMING--(CCNMatthews - Jan. 17, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

High Plains Uranium, Inc. ("High Plains") (TSX:HPU) recently completed an eleven vertical-hole core drilling and metallurgical test program at the Allemand Ross Project. Total drilled footage of the program was 14,173 feet. The best intercepts from the program amongst others of lower value are 9.6 ft averaging 0.187% U3O8 in hole 70C, and 9.1 ft averaging 0.037% U3O8 in hole 64C. The purpose of the program was to substantiate the uranium analyses obtained by former operators as well as to provide samples for laboratory leach tests.

Two agitation leach (jar roll) studies by Energy Laboratories on the recently drilled core indicated that the portion of the mineral trend tested can be leached satisfactorily with recovery typical of other Powder River Basin ISL projects. Chemical analysis of three samples (from 9.6' of core in drill hole #397513-70C) confirmed that the portion of the mineral trend tested exhibits characteristics typical of an uranium deposit in equilibrium.

This initial stage of investigation is considered to be successful in providing additional information regarding the uranium content of the deposits and to have established confidence in the amenability of the deposits to mining by in-situ leaching. Future programs will test these characteristics on other parts of the project. A delineation program is being designed to bring the confidence level in the resources to an indicated category.

The results of the HPU's recent coring program are summarized in the table below:

Please note a link to TABLE "Allemand Ross Project Core Program - 2005" is available on CCNMatthews' website at the following link:

http://www.ccnmatthews.com/docs/HPU0117.pdf

High Plains has acquired interests in the Allemand-Ross Uranium Project located in the Powder River Basin in the State of Wyoming and the Swinney Switch Project in Live Oak County and Bee Counties in the State of Texas. Additional projects are being secured through leasing fee ground and by staking lode-mining claims.

ALLEMAND ROSS PROJECT - WYOMING

The Allemand Ross Project is located in the south central Powder River Basin of Wyoming. A number of roll front deposits were found within the project by former operators Kerr McGee, Conoco, and Power Reactor & Nuclear Fuel Development Corp. in the 1970's and 1980's. These roll fronts were identified by drilling programs totalling 692 drill holes of which 116 drill holes encountered significant mineralization.

Two specific areas within the Allemand Ross Project were explored in the past. The Sand Draw property included 512 drill holes and the Bear Creek property included 180 drill holes. These areas are approximately four miles apart. Known uranium mineralization in the Powder River Basin is sandstone-hosted, and generally, consists of several C-shaped sub-roll fronts in a frontal system formed at a geochemical interface.

Mineral rights to the Sand Draw property are held under 172 federal lode claims occupying 2,222 acres (899 hectares) and 1,168 acres (473 hectares) of fee mineral leases covered by 2,537 acres (1,027 hectares) of surface rights. The Bear Creek property comprises approximately 1920 (777 hectares) acres of surface rights along with 77 lode claims comprising approximately 1113 acres (450 hectares).

As outlined in High Plains' recent prospectus (available on www.sedar.com) the Sand Draw property carries an historic resource (comparable to the CIM "indicated resource" category) of approximately 970,000 pounds of in-situ uranium in 214,000 short tons averaging 0.32% U3O8 grade. An additional 3,790,000 pounds of in-situ uranium (comparable to the CIM "inferred resource" category) is contained within 1,400,000 short tons averaging 0.19% U3O8. The Bear Creek deposit contains 827,700 pounds of in-situ uranium in an historic mineral resource (comparable with the CIM "inferred resource" category) of 361,300 short tons averaging 0.17% U3O8.

A proposed budget totalling approximately USD$6M will be undertaken in two phases over a 30-36 month period. The first phase of the recommended work program will involve a delineation drilling and resource verification program at the Allemand Ross Project. The data obtained from this initial drilling program will be used to develop a Pre-feasibility Report. This report is scheduled for completion at the end of 2006.

Preliminary permitting work has also started on the Allemand Ross Project. This permitting effort will include obtaining permits from the Wyoming Department of Environmental Quality and the Nuclear Regulatory Commission. Both of these permit applications will include extensive environmental baseline data. Initially, data will be collected for vegetation, soils, wildlife, and hydrology. This data collection program is scheduled for 2006 and will include:



- pump tests for aquifer characterization,
- installation of baseline wells,
- collection of groundwater baseline,
- initiation of wildlife field surveys,
- vegetation sampling and characterization, and
- identification of climatological conditions


This data collection effort is being done as part of a strategy to minimize regulatory agency review time by providing comprehensive and complete permit applications to the appropriate regulatory agencies.

High Plains is a newly-listed TSX public company (formerly a private US Uranium exploration company) currently engaged in the acquisition and exploration of previously explored uranium properties, focusing on the States of Wyoming and Texas. Its goal is to become a uranium producer at the earliest possible opportunity, utilizing in-situ leach mining technology.

Qualified Person

James G. Baughman, President & CEO, a 'qualified person' for the purpose of the NI 43-101, has reviewed the contents and technical information contained in this news release. Samples from the drill program were assayed and metallurgical testing was performed at Energy Laboratories facilities located in Casper, WY.

The estimates provided are historical. No mineral reserve or mineral resource estimates have been prepared by High Plains. The classification categories in these historical estimates used internal nomenclature that was not based upon the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves Definitions and Guidelines ("CIM Guidelines") adopted by the CIM Council on August 20, 2000, as the estimates were prepared prior to the implementation of the CIM Guidelines. As outlined in the High Plains prospectus, Micon International Limited ("Micon") has reviewed the methodology and data that was used in the preparation of these estimates and considers that the internal classification categories employed generally comply with the CIM Guidelines in effect today. Micon considers that these estimates are of sufficient reliability to provide an order-of-magnitude estimate of the amount of uranium recoverable from these mineralized deposits and is of sufficient quality to form the basis for further work. As at the date hereof, the Company is not in possession of any more recent estimates or data on the Bear Creek Property or the Sand Draw Property.

Energy Laboratories, Inc.'s Casper, Wyoming facility has obtained laboratory certification under the National Environmental Laboratory Accreditation Council (NELAC). The certification covers a wide range of matrices including drinking water, solid waste, clean water, air quality, soils, etc., in the analytical areas of radiochemistry, trace metals, inorganic chemistry, organic chemistry, etc.

The Company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration is conducted with the best possible practices. The drill core was split in half with samples transported to the assay lab in Casper, WY. The other half of the core is retained for future assay verification in sealed plastic bags in a freezer. A QC statement from Energy Laboratories is on file at the Companies head office in Cheyenne, WY.

This news release contains forward-looking statements; these statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of High Plains. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and High Plains does not assume any obligation to update or revise them to reflect new events or circumstances.

Contact Information

  • High Plains Uranium, Inc.
    Jim Baughman
    President and Chief Executive Officer
    (307) 433-8708