Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

August 28, 2012 12:31 ET

Pancontinental Uranium Corporation: 400kg of REE Heavy Mineral Concentrate Produced at Charley Creek for Further Metallurgical Testwork

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2012) - Pancontinental Uranium Corporation ("Pancon" or the "Company") (TSX VENTURE:PUC) is pleased to announce that its Joint Venture partner, Crossland Uranium Mines Limited ("Crossland"), issued the following press release today in Australia, regarding the Charley Creek REE project in NT, Australia:

Approximately seven tonnes of alluvium from the Cattle Creek area at the Charley Creek Project has been extracted and processed by the Crossland field team to produce over 400kgs of first stage heavy mineral concentrate (HMC1).

This HMC1 sample has been forwarded to AML laboratories in Perth to use for ongoing metallurgical testwork. The current focus of this testwork is as follows:

  1. Refinement of the second stage of concentration using electrostatic and magnetic separation techniques to produce high grade mixtures of dominantly xenotime and monazite, with target TREO grades of over 50%.
  2. The xenotime / monazite concentrate will be utilised as follows:
    • Samples will be sent to REE producers that have requested samples for evaluation
    • Ongoing metallurgical test work designed by Crossland's consultants including leach tests to confirm our consultants' expectations that these concentrates are amenable to simple dissolution approaches, involving the two most common REE process routes, utilising sulphate and chloride leaches.

The overall objective of the metallurgical testwork program is to confirm at a laboratory scale that the Charley Creek ore can be processed from mining through to the production of saleable REE products, using well understood and low cost technology.

Shareholders will be advised as results of this important testwork come to hand.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Geoffrey S Eupene CP, a Fellow of the Australasian Institute of Mining and Metallurgy. He is a director of the Company and a full time employee of Eupene Exploration Enterprises Pty Ltd. He has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Geoffrey S Eupene has consented to the inclusion in this report of the matters based on this information in the form and context in which it appears.

About Pancontinental Uranium Corporation

Pancontinental Uranium Corporation ("Pancon") is a Canadian-based company focused on uranium and REE discovery and development. Through a 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 and REE exploration portfolio with projects in prolific, mining friendly districts.

Exploration is ongoing or has occurred 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 alluvial REE deposits, and 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 earned an initial 50% interest in this significant uranium and REE project portfolio with Crossland through the expenditure of AUD$8 million. In September 2011, due to prevailing poor financial market conditions, Pancon elected to conserve its cash and avoid having to raise additional funds at depressed share prices. As a result, Pancon ceased funding its 50% share of the Joint Venture expenditures until the end of 2011. Pancon's interest was reduced by 5%. According to the Joint Venture agreement, Pancon has the right to resume funding at any time to maintain its interest and chose to do so effective Jan 1, 2012. Pancon and Crossland are also pursuing exploration beyond Australia through an international subsidiary company, Crosscontinental Uranium Limited, and plans include formulating an exploration program in Burkina Faso.

ON BEHALF OF THE BOARD OF DIRECTORS

Rick Mark, President & CEO

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 1-866-816-0118
    604-986-2021 (FAX)
    www.PanconU.com