Macusani Yellowcake Inc.

Macusani Yellowcake Inc.

November 26, 2010 09:31 ET

Macusani Yellowcake Announces New Deep High-Grade Discovery at Kihitian Uranium Property, Peru

Deep Discovery Hole Intersects 7.0 m Grading 1.80% U3O8 (23.0 ft Grading 36.0 lbs/ton U3O8) Within a 65m (213.2 ft) Mineralized Interval

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2010) - Macusani Yellowcake Inc. (the "Company") (TSX VENTURE:YEL)(FRANKFURT:QG1) is pleased to announce the discovery of a second, deeper high-grade zone on the Chilcuno area on the Kihitian uranium property on the Macusani Plateau. Drill hole number PT-CH4-V intersected a 65m wide mineralized zone from 143m to 208m. Within this thick mineralized interval occurs a higher grade zone of 7m, from 150m to 157m that graded a weighted average of 1.80% U3O8 (23.0 feet grading 36.0 lbs/ton U3O8).

The mineralized zone included a hanging-wall mineralized sequence, above the high-grade zone, running over 7m at a weighted average of 137 ppm U3O8 (23.0 feet grading 0.275 lbs/ton U3O8) and a foot-wall mineralised sequence extended over 48m below the high-grade interval, grading a weighted average of 126 ppm U3O8  (157.44 feet grading 0.252lbs/ton U3O8) for a total extent of 65m (213.2 feet) vertical intersection. (Note that the intersections may not represent true widths.)

The Company had previously announced a high-grade, near surface discovery in drill hole number PT-CH1-TV that intersected 12.0 m grading a weighted average of 0.92% U3O8 (39.4 ft grading 18.3 lbs/ton U3O8) (see press release dated September 30, 2010).

Drill hole number PT-CH4-V is located approximately 175m to the south-southwest of drill hole number PT-CH1-TV.

This deeper intersection of 65m thick, starting at 143m below surface, represents a completely new mineralized target. Above it, at roughly 20m below surface lies a high-grade zone (a "manto" structure as described in the Peruvian literature) of 13m thick that has been opened with underground adits by IPEN (Instituto Peruano de Energía Nuclear) in early 1980's.

The Company's CEO, Peter Hooper, stated, "The latest results confirmed our theory that there may be multiple uranium rich zones at depth at Kihitian. We are optimistic that these high uranium grades could develop into an economic underground deposit that is accessible by adits and ramps driven at lower altitudes down the hillside. This is the first result received from this underground flat lying mineralized zone."

Quality Control and Analytical Procedures

Core samples have been crushed and representative samples analysed for Uranium (U) abundance and a suite of 40 elements. The necessary analytical quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material. After crushing, the core is placed in sealed bags and shipped to the CIMM's preparation laboratories in Juliaca. Following the preparation stage, the sample pulps are sent to CIMM analytical laboratory in Lima where U and a suite of forty other elements are analysed using ICP-MS methodology.

CIMM Peru is an ISO certified assay laboratory. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.

Qualified Person

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 scientific and technical data contained in this release.

About Macusani Yellowcake

Macusani Yellowcake Inc. is a Canadian uranium exploration company with over 24,000 hectares (240 km2) of mineral properties in south-eastern Peru, on the Macusani Plateau. The shares are traded on the TSX Venture Exchange under the symbol 'YEL' and on the Frankfurt Exchange under the symbol 'QG1'.

There are 77,891,284 common shares of Macusani Yellowcake Inc. outstanding.

Email Alerts:

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.

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.

Contact Information