Macusani Yellowcake Inc.

Macusani Yellowcake Inc.

February 03, 2010 19:19 ET

Macusani Yellowcake Announces High Test SX/IX Recoveries at Colibri II/III Property/Progress Report

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2010) - Macusani Yellowcake Inc. ("Macusani" or the "Company")(TSX VENTURE:YEL) is pleased to announce that solvent extraction ("SX") tests on samples from the Company's Colibri II/III property have returned very high uranium recoveries. Uranium recoveries in excess of 98% were achieved from pregnant solutions derived by leaching the crushed, mineralized core samples with sulphuric acid. This laboratory test work will be followed up by testing in a mini SX pilot plant in order to optimize the process at a larger scale.

Macusani's CEO, Peter Hooper, stated that "These recovery results continue to increase our level of confidence that economic uranium mining will be feasible on the Company's properties on the Macusani Plateau. We believe that this positive recovery data, combined with upcoming NI 43-101 resource studies on three of the Company's properties and the completion of a Preliminary Economic Study of the Colibri II/III Property will create a strong case for pursuing uranium mining development at Macusani."

Metallurgical Testing Yields High Recoveries

Macusani, through its Peruvian subsidiary, Global Gold SAC, continued metallurgical investigation of the Macusani mineralized material and acid solutions obtained as a result of the acid leaching of the same uranium-bearing material.

At present metallurgical testing of the acid solutions using solvent extraction ("SX") recoveries and ion exchange ("IX") techniques are taking place.

The main objective of the SX testing was to understand the behaviour of various organic solvents for uranium extraction from the existing leaching solutions. The Company has previously obtained positive results in bottle roll and column leaching tests.

These uranium-pregnant solutions used for the SX tests were grouped in solutions of high-grade (870ppm U); medium-grade (276ppm U); and low-grade (34ppm U).

Part of the objectives of the tests was to establish certain technical parameters such as: Organic/Aqueous ratio (O/A), pH, rotations per minute (rpm), agitation time, etc.

The solvents used for the SX extraction were Alamine 336, Cyanex and Phosphoric Acid.

The best extraction results were obtained using Alamine 336 that produced up to 98.92% extraction of the uranium from pregnant solutions (see graph below showing the "% U Recovery" on the vertical scale vs. the "Organic/Aqueous Ratio" on the horizontal scale.). As a result of these SX tests, the first "yellowcake" concentrate was produced at Macusani on a laboratory scale.

To view the graph associated with this press release, please visit the following link:

These SX results are very encouraging and more tests are taking place at present. An SX pilot plant has been contracted in Lima in order to optimise the testwork and process of the existing pregnant solutions on a larger pre-production scale.

This testwork was executed by TECMMINE, Ing. Jose Mallqui, under Global Gold, at the location of the laboratory of Colibri Refinery in Lima, using CIMM Peru as the certified laboratory for the uranium and other elements assays.

Update on Exploration and New Resource Development on the Macusani Plateau

During the current quarter, the Company is expected to report the following:

  1. an updated NI 43-101 resource estimate on the Colibri II/III property;

  2. a Preliminary Economic Study on the Colibri II/III property;

  3.  a NI 43-101 resource estimate on each of the Corachapi and Kihitian properties;

  4.  the mobilization and commencement of drilling on the high grade Kihitian property.

The Company has started field work and a new drilling program at its own concessions on the Macusani plateau, as follows:

  • Colibri II/III: The resource defined to date at Colibri II/III is being evaluated through an economic assessment study under the supervision of GBM of London, United Kingdom. A new NI 43-101 resource has been remodelled using the services of The Mineral Corporation of Johannesburg, South Africa. Drilling taking place at present is focused on obtaining reliable specific gravity data as well as rock mechanic studies for open pit design and optimization. A total of 20 technical and sterilization boreholes will be drilled at Colibri II/III during this campaign that would provide sufficient material for geo-mechanical studies, further metallurgical tests, pit design and setting the plant site.

  • Corachapi: This area was drilled by the previous owner, RAM Resources Limited ("RAM")(formerly Contact Uranium Limited) but RAM had not used all the existing boreholes in their resource modeling and only 35% of the boreholes were assayed for uranium. Most of the measurements used in their evaluation were radiometric eU ppm equivalent. After acquiring the concession, Macusani has re-sampled all the boreholes and resent the core for assaying.

    A new drilling program consisting of 20 boreholes will twin some of the existing boreholes and enlarge the drilled exploration area along the extension of the radiometric anomaly as defined by RAM. According to the size of the radiometric anomaly, less than half has been drilled to date. Once the uranium assaying and confirmation drilling is completed, a NI 43-101 compliant resource will be estimated by The Mineral Corporation.

  • Kihitian: Recently the Company sampled the accessible adits dug by IPEN during the 1980's in two areas, namely the Pinocho and Chilcuno Zones, results that have been published recently (see Press Releases dated December 14, 2009 and January 13, 2010, respectively). The channel sampling exhibited high uranium contents of up to 11.24% U3O8 (or 224 lbs of U3O8 per short ton). A NI 43-101 compliant resource estimate is being modeled at present of the Chilcuno and Pinocho Zones by The Mineral Corporation using the underground sample results and the structural model developed on site.

    A new access road to the Kihitian property is being built at present allowing the Company to transport the drilling rigs on top of these highly mineralized structures and drill the entire lithostratigraphic sequence. In addition to the two known zones, a ground radiometric survey, that started in December 2009, has produced three more anomalies of potential high grade in the Kihitian concession. A new drilling program consisting of 20 exploration boreholes is expected to start in February 2010.

Qualified Persons

Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed the non-metallurgical scientific or technical data contained in this release. Mr. Alex Mitchell, C, Eng., of GBM Mineral Engineering Consultants, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed the metallurgical scientific or technical data contained in this release.

About Macusani Yellowcake

Macusani Yellowcake owns over 24,000 hectares (240 km2) of mineral properties on the Macusani Plateau in Peru.

There are 59,881,284 common shares of Macusani Yellowcake Inc. outstanding.

This news release includes certain forward-looking statements concerning the future performance of Macusani's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in the Company's recent securities filings available at Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Macusani nor its management assume any obligation to revise or update these forward-looking statements.

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

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