Macusani Yellowcake Inc.
TSX VENTURE : YEL
FRANKFURT : QG1

Macusani Yellowcake Inc.

January 24, 2011 09:25 ET

Macusani Yellowcake Inc. Announces the Significant Possible Extension of the Lower Level "B" at Chilcuno on the Kihitian Property, Peru: 4.0 Metres at 0.5327% U3O8 (10.654 Pounds Per Ton)

TORONTO, ONTARIO--(Marketwire - Jan. 24, 2011) - Macusani Yellowcake Inc. (the "Company") (TSX VENTURE:YEL)(FRANKFURT:QG1) is pleased to announce that drilling from the ongoing exploration program on Chilcuno zone on the Kihitian uranium property on the Macusani Plateau, Peru, has again intersected the deeper mineralised sequence labelled Level "B". Drill hole number PT-CH2-TV with an intersection of 4.0 metres (0.00 to 4.00m) with weighted average grades of 0.5327% U3O8 (10.654 lbs/ton). Also intersected from 39.00 to 50.00m was 11.0m grading a weighted average of 0.057% U3O8 (1.142 lbs/ton). These intersections are part of a wider mineralised interval of 57.0m grading a weighted average of 0.052% U3O8 (1.04 lbs/ton).

This hole was drilled where Level "B" outcrops on the hillside near the Chilcuno access road and is located approximately 325 metres SSE of the discovery hole announced last November. The latest result and may indicate a significant possible extension to this deeper zone. Details are shown in the table below. (Note that it is not known at this time if these intersections represent true widths.)

These intercepts are interpreted as the lateral, along strike extension of a deeper mineralised Level "B" zone, which lies stratigraphically below Level "A". The first intersection on Level "B" was published in a News Release dated November 26, 2010, which stated: "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)." 

Platform 2, where this latest vertical borehole was drilled, is outside the area of the adits and roughly 325 metres NNW from Platform 4 where the Level "B" was intersected for the first time. After discovering Level "B", the exploration team used various exploration techniques to identify the outcropping area of Level "B", which was successfully located when a strong radiometric anomaly was discovered under one metre of overburden. The location of Level "B" on the surface may allow for access of this deeper zone via adits for future development. At the outcrop area, it is possible that several metres of potential high-grade uranium mineralisation have already been eroded from level "B".

KIHITIAN – CHICUNO ZONE – Level "B"
                     
    From   To   Intersection
(m)
  Grade
(ppm U3O8)
  Grade
(lbs/t)
PT-CH2-TV - 90.00m   0.00   10.00   10.00   2,157   4.314
including   0.00   4.00   4.00   5,327   10.654
    13.00   16.00   3.00   37   0.074
    19.00   27.00   8.00   123   0.246
    32.00   36.00   4.00   62   0.124
    39.00   50.00   11.00   571   1.142
    55.00   57.00   2.00   22   0.044
    For a total of 57m running at 0.052% U3O8 or 1.04 lbs per ton

This deeper mineralised sequence, Level "B", was not originally known in the Kihitian area. Level "A" uranium mineralisation had been discovered and initially explored through adits by IPEN (The Peruvian Institute of Nuclear Energy) in early 1980s and the zone usually dips between horizontal to 10-12 degrees. Level "A" represented the main exploration target until Level "B" was discovered by the Company during the November 2010 drilling campaign.

The Company's CEO, Peter Hooper, stated, "Macusani is delighted to have discovered this very thick Level "B" horizon some 100 metres below our high grade Level "A". Macusani has two drills on site and will aggressively continue the drill programme. One drill will continue to drill short holes to expand Level "A" and the second drill will continue stepping out to develop Level "B". We will shortly start up a third drill to accelerate this programme."

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 southeastern 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'. The Company owns a 99.5% interest in the Kihitian project.

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

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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 www.sedar.com. 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 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

  • Macusani Yellowcake Inc.
    Peter Hooper
    President
    +1-416-360-3402
    peter@macyel.com