Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

November 22, 2010 06:31 ET

Pancon/Crossland Drilling Program Underway to Evaluate Alluvial Rare Earth Potential at Charley Creek, NT

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 22, 2010) - Pancontinental Uranium Corporation (TSX VENTURE:PUC) ("Pancon") and joint venture partner Crossland Uranium Mines Ltd. (ASX:CUX) ("Crossland") have commenced an aggressive first phase auger drilling program to follow up the encouraging results for rare earth elements (REE) announced earlier this month from their Charley Creek Project in the Northern Territory, Australia, and are also establishing an on-site sample processing facility.

Rare Earth Oxide content of at least 39%

As announced on November 1, 2010, high values for REE were noted from assays of a heavy mineral concentrate collected from alluvial deposits at Charley Creek. The heavy mineral concentrate returned total rare earth oxide (REO) contents of at least 39%, though the upper detection limit of the assay method was exceeded for several REE. This has probably resulted in an under-estimation of all REO values in the sample.

These deposits were formed directly from the source of REE within the Teapot Granite, which also contains separate uranium anomalies that are currently being drilled by the Pancon/Crossland joint venture (the "Joint Venture").

Rapid assessment of Development Potential

The current drilling program is intended to rapidly assess the potential for development of an alluvial mining operation to produce a heavy mineral concentrate, with similar REO contents to those in the initial sample, and quickly capitalize on the global shortage of certain REE, particularly the heavy REE.

The Joint Venture believes that a REE-rich heavy mineral concentrate of the type that can readily be produced from the alluvial deposits draining from the Teapot Granite will find markets and that it is possible in this setting to quickly quantify the resource and get it to production. That market could reach several thousand tonnes of contained REO annually. The program will target the rapid assessment of the quantity of alluvium, the concentration of heavy mineral containing REE within the alluvium, and the REE content of that heavy mineral concentrate.

The Joint Venture plans to: 

  • Conduct an initial auger drilling program to define areas for quantification of heavy mineral resources.
  • Establish an on-site alluvial sample processing facility to produce heavy mineral concentrates for submission to accredited laboratories for REE analysis. 
  • Determine the variability in REO ratios from various source areas in the Teapot Granite. It is possible that the contents of various REOs will vary across the more than 50 square kilometre area of outcrop of the Teapot Granite, and there may be potential to tailor the production mix of REO to suit specific markets. 
  • Assure that accurate, routine analytical methods are available from commercial laboratories for determining the high REO contents that are likely from heavy mineral concentrates that will be produced at the Joint Venture's heavy mineral processing facility. The initial REE results indicate that present analytical methods, routinely available in Australia, are inadequate to provide accurate REE content at the high levels present in these samples.

The Joint Venture has already commenced the set-up of the on-site processing facility, and expects this to be in operation by early in December, 2010. 

The sampling program aimed at defining the variability of REO distribution will commence on November 21st. The results of this phase of the program should be available before the end of January 2011.

This first phase of activity will, if warranted, be followed by quantification of the more promising alluvial sources, with the aim of bulk sampling of the resource, so defined, before the end of 2011.

Successful market testing of the heavy mineral concentrate should lead to an early feasibility study, production decision and production permitting work.

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. 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 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.

Cautionary Language and Forward Looking Statements

This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian securities authorities.
 

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 Toll Free 1-866-816-0118
    or
    Pancontinental Uranium Corporation
    Keith Patey
    Director of Communications
    604-986-2020 or Toll Free 1-866-816-0118
    www.PanconU.com