Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

September 23, 2010 06:30 ET

Pancon Updates Progress on Australian Uranium Properties; Phase 2 Drilling Has Begun at Charley Creek and Is About to Begin at Chilling

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 23, 2010) - Pancontinental Uranium Corporation (TSX VENTURE:PUC) ("Pancon") is pleased to report that it has now earned its 50% interest in the uranium properties of Crossland Uranium Mines Limited ("Crossland") (ASX: CUX) in Australia. Pancon is also pleased to update shareholders on current activities at Charley Creek, Chilling, and Kalabity.

Charley Creek:

Throughout 2010, JV partner, Crossland, worked diligently to obtain access approvals from Aboriginal organizations responsible for land access in Australia. Crossland was successful and received the access approvals in mid-July. This access related to the Crossland titles in the Cockroach Dam area, where Crossland has obtained very strong uranium radiometric results from the Teapot Granite. Cockroach Dam is part of the Charley Creek Project in NT, Australia.

Crossland's titles contain over 50 square kilometres of Teapot Granite. All 186 rock outcrop samples collected by Crossland Geologists from the Teapot Granite averaged almost 1 pound per tonne U3O8, with individual values exceeding 10 pounds per tonne U3O8. Detailed ground spectrometer surveys and geological mapping, designed to assist in locating sites for drill holes, continued until agreement from Aboriginal custodians was obtained to drill.

Intensive interaction with local traditional groups occurred during the first six months of the year, including some large gatherings of local people accompanied by officers of the Central Land Council, the statutory body representing traditional Aboriginal owners in Central Australia. During these meetings, the family group that has traditional links to the Cockroach Dam area was identified and this group indicated their strong positive desire to proceed with our exploration efforts on their traditional lands. Following ratification of these wishes, Crossland began preparation for the drill program at Cockroach Dam in mid-July.

This involved clearing and the construction of approximately 40 km of new and/or upgraded ranch tracks, and the engagement of a drill contractor. Unfortunately, soon after the necessary approvals were obtained, weather conditions in central Australia deteriorated, with wet weather delaying the construction of access roads and the commencement of drilling. By late July, a drill was on site and drilling had commenced.

The first 5 holes of the program, phase 1, were drilled at Cockroach East. These 5 holes are now completed, and core processing is under way. Samples from the first 2 holes will be delivered to the laboratory on September 22. Results from the initial submission should be available in about three weeks. 

Access to the very prospective Cockroach Central is now possible and phase 2 drilling at Cockroach Central began on September 21. Procedures have now been implemented to enable continued drill production and core processing even if high rainfall continues.

Reconnaissance of the Bloodwood area, recently acquired from Global Geoscience Ltd., will proceed when weather conditions are conducive to off-road desert travel. 

A limited airborne survey of a newly secured exploration license covering a western extension of the Teapot Granite has been completed. A more extensive survey of areas to the east of the original Charley Creek titles is planned for October, if weather patterns stabilize. 

Chilling:

At the Chilling project, the late wet season forced postponement of field work until mid-July. Work then commenced with track rehabilitation and the re-establishment of the Buchanan Window camp. Follow-up to the promising indications at the Buchanan Window, from the 2009 work program, included more ground spectrometer surveys, geological mapping, and soil sampling. Compilation of the results of this work is complete and a drill program targeting the Buchanan Window is about to begin. At least ten separate target areas have been defined at the Buchanan Window. Ore grade rock samples have been found in outcrop from follow-up of the radiometric survey. 

The Buchanan Window contains similar basal stratigraphic units of the Pine Creek Orogen as those around the Rum Jungle Dome to the north of the Chilling Project Area. At Chilling, it appears that these sediments are in "unconformable" contact with partially remobilized granite in places while, in other outcrops, the intrusive nature of the granite can be documented.

Work will soon commence at the Allia Creek Window, where outcropping secondary uranium minerals are prolific at the MEMA prospect. In 2009, extensive areas of the Allia Window were covered with spectrometer surveys and soil geochemical sampling. This work has been compiled and the 2010 program is about to begin.

In addition to Crossland's field work, a large airborne EM survey has been completed by Geoscience Australia, and Crossland participated in this program with more detailed survey lines over parts of the Chilling Project Area. This will assist with targeting of "unconformity-related" targets beneath sandstone cover. Drill testing of this prospect will proceed when follow up is completed, subject to drill rig availability.

Reinterpretation of the results from the Marchfly prospect, on the basis of its apparent similarity with the recently discovered Thunderball Prospect of Thundelarra Minerals, has advanced, and a re-mapping of the prospect is in progress.

A data compilation and analysis of extensive records from the Eccles Prospect in the Litchfield Park is under way and this will direct field work during the remainder of the season. 

Kalabity:

An aircore drilling and trenching program was completed at Kalabity in early 2010. The work resulted in establishing an extension of near-surface carnotite mineralization in zones where the mineralization is associated with gypsum. Metallurgical testing of the mineralized material is under way to determine the possibility of removing gypsum. If this is successful, further delineation of the carnotite mineralization will proceed. 

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

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