International Uranium Corporation
TSX : IUC

International Uranium Corporation

September 06, 2005 10:15 ET

IUC-Erdene Uranium Exploration Joint Venture Defines Eight High Priority Targets in Southern Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 6, 2005) - International Uranium Corporation ("IUC" or "the Company") (TSX:IUC) is pleased to announce results from its uranium exploration reconnaissance program which has been underway in Mongolia since April of this year. The program has identified eight high priority targets on three properties in southern Mongolia. A drilling program, designed to test these targets, is scheduled to begin in mid-September. The 2005 exploration program is operated by Erdene as part of the IUC-Erdene Mongolia joint venture, exploring for sedimentary hosted uranium deposits.

The three properties chosen for more detailed surface exploration are Durvuljin Uul, Galshar Uul and Yant. These properties are characterized by well-defined zones of high radiometrics hosted within clastic sediments or carbonaceous siltstone. Eight separate anomalous radiometric zones have been identified within the three properties. Target structures are believed to represent efficient conduits for oxygen-rich surface waters that can leach and mobilize metals to form roll-front type uranium deposits suitable for in-situ leach (ISL) mining.

High Priority Target Areas

The following is a brief description of the high priority target areas identified to date:

Durvuljin Uul: This property is located approximately 50 kilometres northeast of the town on Sainshand and is situated within the defined uraniferous Sainshand Basin which is host to the Nars uranium deposit, located about 12 kilometres to the southwest. Three target areas have been identified on this property the largest of which extends over an area of 800m x 500m. The targets are characterized by highly anomalous radiometrics measuring from 500 to 9800 tcps (total counts per second), spectrometer values of 50 to 350 ppm uranium and rock geochemical assays ranging from 100 to 1300 ppm uranium. Anomalous areas are typically underlain by mottled sandstone and siltstone. The property was previously explored during Russian-Mongolia reconnaissance exploration programs which included wide spaced drilling (greater than 8km spacing) which is reported to have returned anomalous uranium mineralization in all holes within which six mineralized sandstone beds were identified.

Galshar Uul: This property is located in the northeast part of the large Galshar Property Block located 200km north of the Chinese border. Three target areas have been identified along a 2 kilometre long by 300 metre wide, northwest-trending zone of high radiometrics ranging from 500 to 2700 tcps with spectrometer readings of 200 to 300 ppm uranium. This orientation conforms to regional structural trends and accordingly infers a structural and/or stratigraphic control for possible mineralization.

Yant: This property is located approximately 60 kilometres west of Sainshand, where two anomalous target areas have been defined. Maximum scintillometer reading of 4500 tcps within unconsolidated carbonaceous siltstone have been identified. Two grab samples returned assays of 106ppm and 101ppm uranium while soil samples have returned assays of up to 984ppm uranium.

Planned Drilling

A reverse-circulation drilling program, including a minimum of 2,000 metres, will begin in mid-September to test the defined target areas. The program will test for uranium mineralization and establish local and regional stratigraphy to depths of 100 to 150m. A minimum of two drill holes will be completed in each of the eight defined zones.

In Situ Leach Mining

The IUC-Erdene joint venture is exploring for uranium deposits suitable for the in-situ leach method of uranium extraction (ISL), also known as solution mining. These types of deposits occur in permeable sand or sandstones, confined above and below by impermeable strata. Most uranium mining in the USA is now done by in situ leach (ISL) method which involves leaving the ore where it is in the ground, and using liquids which are pumped through it to remove the uranium from the ore by leaching. Consequently there is little surface disturbance and no tailings or waste rock generated. However, the ore body needs to be permeable to the liquids used, and located so that they do not contaminate ground water away from the ore body. Approximately 13% of world uranium production is by ISL.

IUC-Erdene Joint Venture Agreement

IUC has the right to earn a majority interest in any uranium resource identified on Erdene's million plus hectare uranium licenses located in south-central Mongolia by spending a minimum of $6 million over a period of 4 years. Erdene is the operator of the IUC funded program for 2005.

Qualified Person

The technical contents of this press release has been prepared under the supervision of Michael Corey, P.Geo., who serves as the qualified person under National Instrument 43-101. All samples are assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to SGS Laboratory internal checks, Erdene Gold incorporates a QA/QC sample protocol utilizing prepared standards, sample splits and duplicates. IUC's President, Ron Hochstein, P.Eng., a Qualified Person pursuant to NI 43-101, has reviewed the contents and technical information contained in this news release.

IUC is engaged in uranium exploration and production. It holds significant uranium deposits in Mongolia and uranium and vanadium deposits in the U.S. and a fully permitted 2,000 ton per day uranium/vanadium mill near Blanding, Utah (one of only two operating uranium mills in the U.S.), as well as uranium exploration properties in the Athabasca Region in Canada. The Company also processes and recycles uranium-bearing waste materials as an environmentally superior alternative to direct disposal. In addition, the Company is a significant shareholder in Fortress Minerals Corp., a public company engaged in precious and base metal exploration in Mongolia and Russia.

Statements contained in this news release which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium and vanadium; the impact of the sales volume of uranium and vanadium; competition; reliance on income from processing uranium-bearing waste materials; the impact of change in foreign currency exchange rates and interest rates; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; changes to reclamation requirements; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demand for nuclear power; replacement of production and failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; ability to maintain and further improve positive labour relations; operating performance of the facilities; success of planned development projects; and other development and operating risks. Although IUC believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this release. IUC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. United States investors are advised that while the term "inferred" resources is recognized and required by Canadian regulations, SEC does not recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this category will ever be converted into reserves.

ON BEHALF OF THE BOARD

Ron F. Hochstein, President

Contact Information

  • International Uranium Corporation
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    www.intluranium.com