Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

December 01, 2010 06:30 ET

Pancon/Crossland Announce Initial Uranium Drill Results From the Charley Creek Project, NT Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2010) - Pancontinental Uranium Corporation (TSX VENTURE:PUC) ("Pancon") and joint venture partner Crossland Uranium Mines Ltd. (ASX:CUX) ("Crossland") are pleased to advise that assays have been received for the first seven holes of a 15-hole core drilling program to investigate the uranium potential of the Cockroach Dam Prospect at the Charley Creek Project, southern Northern Territory. 

The joint venture's Charley Creek Project is located in the Teapot Granite complex, an unusual geological unit well known for its high radioactivity, and which is prospective for the discovery of commercial uranium deposits.

Crossland's Exploration Director, Geoff Eupene, said "the initial investigations, focussing on the Cockroach East and Cockroach Central zones of the prospect, have provided encouraging results and the crucial information required to target the large tonnage uranium deposits the joint venture is looking for in and around the Teapot Granite."

"The remainder of the drill program for 2010 will be directed at these areas and how best to evaluate them with further drilling in 2011," Mr. Eupene said.

Highlights

  • A best intersection from the initial seven (7) holes of core drilling at the Cockroach Dam prospect of 2m of 876ppm U3O8 from 148m, including 0.3m of 4,079 ppm U3O8 from 148.8m.
  • Thick intersections of granite with uranium contents up to 10 times the global average content for granite (up to 40ppmU) indicate that these zones within the Teapot Granite are fertile source rocks for a variety of uranium deposit styles, including in particular Rossing (Namibia)-style granite-hosted bulk low-grade mineralization.
  • The results suggest that the best chances for significant grades and widths of economic mineralization are in areas where the granites are strongly fractured, and probably not outcropping. The remainder of the 2010 drill program will be directed at these areas with further drilling in 2011.
  • The drill program for uranium will run in parallel with the Charley Creek REE evaluation program, also targeting the Teapot Granite as well as its surrounding host rocks and alluvium for REE.

Background

The Charley Creek Project is one of three projects in the NT and one in South Australia which are subject to a 50:50 joint venture between Pancon and Crossland, initiated in 2007, to explore for uranium in Australia and elsewhere.

The Cockroach Dam Prospect covers approximately 120 square kilometres of the highly radioactive Teapot Granite. The total area of Teapot Granite within the joint venture's tenements exceeds 230 square kilometres, which represents the majority of this unusual granite that is available for exploration. Previous surface rock chip sampling by Crossland at Cockroach Dam returned an average uranium content for all 186 samples of 439ppm U3O8

While these widespread surface values provide encouragement, it is necessary to drill to determine if these are the result of surface enrichment, and to assess continuity of grade with depth. Crossland gained clearance to commence a more intensive exploration program, including drilling, at Cockroach Dam in late July, 2010, and immediately embarked upon a core drilling program of at least 1,500m in ten (10) holes. This program has been expanded as it progressed, and the Stage 1 drill program at Cockroach Dam is now expected to total 15 holes to around 150m average length. This program is expected to be completed before the Christmas break. There have been delays to both drilling and core processing as a result of unusually high rainfall throughout 2010. 

Results

Laboratory results have just been received for the first seven (7) holes of this program, a total of 728 samples, including five (5) holes from Cockroach East, and the first two (2) of ten (10) holes planned at Cockroach Central. This release is intended to provide an initial synthesis of the results. All uranium results quoted have been reported on samples that are sections of sawn half core (size HQ or NQ2), normally of 1m length, unless high-grade mineralization was encountered. Half core samples have been submitted for preparation and analysis by ALS Laboratory Group, using its method ME-XRF05. Intervals for assay have been selected based on down hole total count radiometric probe results.

Uranium values ranged from less than the detection limit of 4ppmU, (6 samples associated with basic dykes and associated mylonitic schists) to a highest value of 3,470ppmU (4,079 ppmU3O8), from 148.8- 149.1m (interval 0.3m) in hole CED2010_006. The best uranium intersection, using a cutoff of 250ppmU, was from 148m to 150m (2m) at a grade of 743ppmU (876ppmU3O8), in hole CED2010_006, incorporating the higher-grade intersection mentioned above.

Table : Intersections of >1m of >250ppmU in holes CED2010_001 to CED2010_007

Hole   From (m)   To (m)   Int (m)   ppmU3O8
CED2010_006   148   150   2   876
including   148.8   149.1   0.3m   4,079

Some 567 samples (78%) exceed 20ppmU, while 293 (40%) exceed 32ppmU, 89 exceed 40ppmU, and 13 exceed 50ppmU over 1m intervals. Values exceeding 50ppmU are associated with peaks in the radiometric logs that indicate uranium mineralization processes (oxidation or hydrothermal alteration) have mobilized uranium; values less than 50ppmU but above 20ppm seem to be frequent in some broad zones within the granite, suggesting these are background values for those phases. Of the 13 values exceeding 50ppmU, all but one are from holes CED2010_006 and CED2010_007 at Cockroach Central.

Preliminary Interpretation

There are several important generalizations that can be concluded from the assay data, the down hole radiometric results, and our evolving geological observations:

  • Every hole demonstrates an overall depletion in uranium content between the surface and the depth of oxidation (the oxide zone). This means that a considerable proportion of uranium is readily dissolved from the granites where they are exposed to surface oxidation. The many patches of secondary uranium mineralization observed on granite surfaces is the result of the ready mobilization of the primary uranium minerals dissolved from the oxide zone.
  • There are widespread granite zones with high primary uranium content at the Cockroach Dam Prospect. For example, the first 50m of Hole CED2010_001 below the 4m thick oxidized zone averages 40ppmU, which is 10 times the average uranium content for all granites globally. The Teapot Granite is a very fertile source for uranium deposits, which can readily be dissolved in surface waters as observed above. This dissolved uranium is available to deposit in sites of secondary precipitation from surface waters, such as:
  • Local re-precipitation of oxidized uranium minerals such as uranophane Ca(UO2)2(SiO3OH)2·5H2O, as is already observed at Cockroach Dam. A variety of uranophane is an important source of uranium at the famous Rossing Mine in Namibia. Cockroach Dam appears to have other geological similarities with deposits in the Rossing district.
  • Deposition in calcrete deposits in surface-related drainages, as carnotite
  • Deposition in deeper sediment basins such as those present beneath the Charley Creek flats, and the Ngalia (Bigyrli) and Amadeus Basins (Angela/ Pamela deposits) elsewhere in the region, at oxidation/reduction interfaces, as pitchblende and coffinite.
  • Preliminary geological logging of the core indicates that uranium contents increase around zones of fracturing, where secondary minerals are sometimes observed associated with rock oxidation; within and close to zones of basic dyke intrusion and shearing, which are frequently observed in mylonite zones; around other veins and alteration zones in the granite; and in contact zones where the granite bodies interfinger with sediments. In some of these styles of concentration, uranium occurs as primary unoxidized mineralization as in the higher-grade zone reported above.

It is important to emphasize that while uranium may be more obvious at surface on the prominent granite hills through the area, it follows from the observations above that the best chances for significant grades and widths of economic mineralisation are in areas where the granites are less well preserved at surface, in zones of shearing and deeper weathering that often occur along the margins of the granite bodies. The remainder of the drill program for 2010 will be directed at these areas and how best to evaluate them with further drilling in 2011.

This uranium exploration activity will be conducted in parallel with the joint venture's evaluation of Rare Earth alluvial heavy mineral deposits as advised to the market on November 22, 2010.

All technical information in this release has been reviewed by Geoff Eupene, Qualified Person for Crossland and Pancon.

About Pancontinental Uranium Corporation

Pancontinental Uranium Corporation ("Pancon") is a Canadian-based company focused on uranium discovery and development. Through a 50:50 joint venture with Crossland Uranium Mines Limited ("Crossland") of Australia. Pancon has established one of the strongest management teams in the uranium industry. This management and operating team has unparalleled experience from exploration, through development to operations, and includes people who were instrumental in the discovery of two of the largest uranium deposits in the world. Pancon and Crossland hold an impressive uranium exploration portfolio with projects in prolific, mining friendly districts.

Active exploration is ongoing at three Australian projects which include Chilling, Charley Creek, and Kalabity. The Chilling project has the potential to host a mirror image of a portion of the renowned Alligator Rivers Uranium Field containing the large Jabiluka, Ranger and Koongarra deposits. Charley Creek has the potential for large, lower-grade, Rossing-type, granite-hosted uranium deposits and REE. The Kalabity project lies in a district of historic uranium/radium mining that contains a variety of known uranium deposit styles.

Pancon has earned a 50% interest in this significant uranium and REE project portfolio through the joint venture with Crossland through the expenditure of A$8 million. Pancon and Crossland are also pursuing exploration beyond Australia through an international subsidiary company, Crosscontinental Uranium Limited, and immediate plans include formulating an exploration program in Burkina Faso.

ON BEHALF OF THE BOARD OF DIRECTORS

Rick Mark, President & CEO

For additional information, please visit our website at www.PanconU.com.

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

  • Pancontinental Uranium Corporation
    Richard Mark
    President and CEO
    604-986-2020 or 1-866-816-0118
    or
    Pancontinental Uranium Corporation
    Keith Patey
    Director of Communications
    604-986-2020 or 1-866-816-0118
    604-986-2021 (FAX)
    www.PanconU.com