Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

November 16, 2011 14:01 ET

Pancontinental Uranium Corporation: Charley Creek Project Update-Potential for Large Alluvial Ree Deposits

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2011) - Pancontinental Uranium Corporation (TSX VENTURE:PUC) ("Pancon") and its Joint Venture partner, Crossland Uranium Mines Limited (ASX:CUX) ("Crossland"), the operator, are pleased to update shareholders on progress on the Charley Creek REE project.

HIGHLIGHTS

  • In the alluvial plains east of the Cockroach Prospect, recent assays of aircore samples show strong indications for very large volumes of alluvium containing Heavy Minerals (HM) with high concentrations of Rare Earth Elements (REE). Testing and advancing the potential of these extensive alluvial plains is now the most important priority for REE exploration at Charley Creek.

  • In the alluvial plains, the average depth of alluvium encountered in 220 scout aircore holes over an area of approximately 150 sq. km. is 17 metres, indicating a volume of alluvium in this area of several billion cubic metres.

  • The recent assays of these aircore samples indicate that levels of Total Rare Earth Oxides (TREO) are relatively high (698 four metre composite samples average 304g/t TREO, with values up to 1,000g/t) and are uniform over large areas and are up to over 20 metres thick, commencing from surface. Testwork already completed indicates that the REE are largely present in HM that are readily concentrated to very high grades of TREO using familiar sand mining technology.

To view Figure 1, please click on the following link: http://media3.marketwire.com/docs/panconfigure11116.jpg

  • At the Cockroach Prospect, a pilot Resource estimate, based on Australia's Joint Ore Reserves Committee ("JORC") standards which are non-compliant with NI 43-101, of alluvial deposits containing REE is essentially complete. However, recent check assay results of REE concentrates from a second laboratory are indicating substantially different (higher) REE contents than those obtained from Crossland's regular laboratory for equivalent samples. Crossland is working to resolve this issue as quickly as possible so that the JORC (non NI 43-101 compliant) resource estimate of the Cockroach resource can be released.

  • Due to prevailing poor financial market conditions, in conjunction with the delayed JORC resource estimate, Pancon has elected to conserve its cash and avoid having to raise additional funds at depressed share prices. As a result, Pancon will cease funding its 50% share of the Joint Venture expenditures until the end of 2011. Pancon expects its interest will be reduced by 2 – 4%. According to the Joint Venture agreement, Pancon has the right to resume funding at any time to maintain its interest.

To view Figure 2, please click on the following link: http://media3.marketwire.com/docs/panconfigure21116.jpg

POTENTIAL FOR LARGE SCALE ALLUVIAL REE DEPOSITS

Recent assay results of aircore drill samples highlight the potential for very large volumes of alluvium containing significant Rare Earth Elements (REE) in the Charley Creek tenements.

The Landsat satellite image in Figure 3 shows outwash fans extending north from the outcropping REE bearing Proterozoic granites and metamorphic rocks onto extensive plains of Quaternary alluvium that hosts the REE bearing heavy minerals. These Proterozoic rocks are the source of the REE in the alluvium. The recent assays of 4m composite samples indicate that levels of Total Rare Earth Oxides (TREO) are relatively high (200-1,000g/t) and uniform over large areas, up to 10 kms from apparent source outcrop, and up to over 20 metres thick, commencing from surface.

To view Figure 3, please click on the following link: http://media3.marketwire.com/docs/panconfigure31116.jpg

The widespread nature of the anomalous alluvial REE mineralization in scout aircore holes provides encouragement for the existence of very large quantities of alluvium with an REE content that may support a high throughput/low unit cost alluvial mining project that recovers the REE minerals, monazite and xenotime. Figure 2 shows the extent of Quaternary alluvium that warrants further investigation. Figures 4 and 5 cover the inset area which is the main area of current investigation. Figure 4 shows the locations of scout aircore holes for which samples have been received and colour coded to indicate average TREO levels for the entire intervals of alluvium intersected. Figure 5 shows the locations of scout aircore holes and indicates the thickness of alluvium intersected.

By hard-rock REE deposit standards the assay values are not high, however the alluvial material is easily treatable using familiar and low-cost methods to produce high grade HM concentrates of monazite and xenotime that have previously been shown by Crossland to be extractible using physical processing. The potential scale of the deposits is very large. The average depth of alluvium encountered in 220 scout aircore holes over an area of approximately 150 sq. km. is 17 metres, indicating a volume of alluvium in this area of several billion cubic metres.

To view Figure 4, please click on the following link: http://media3.marketwire.com/docs/panconfigure41116.jpg

To view Figure 5, please click on the following link: http://media3.marketwire.com/docs/panconfigure51116.jpg

So far, exploration work on these larger alluvial plains has been of a scoping nature only, consisting of widespread stream sediment sampling (previously reported on) and several lines of scout aircore drillholes in 2011, for a total of 220 holes. An economic assessment of the area will require a great deal more detailed drilling, sampling, assaying and metallurgical test work.

Samples from the alluvium intersected in aircore holes in three alluvial fan areas are being processed to produce gravity concentrates of heavy minerals which are assayed to determine recoverable heavy mineral grades. A total of 596 samples from the Cattle Creek Area have been submitted to the laboratory; 191 samples from Western Dam have been processed and are ready to submit, while a further 360 samples from Dad's Dam are currently being processed for submission to assay laboratories. Metallurgical test work is also in progress to determine the recoverability of pure mineral concentrates and a process route for production of valuable HM products. Results of this work will be released as they are received and interpreted.

COCKROACH PROSPECT RESOURCE ESTIMATE

The pilot resource study on alluvials at the Cockroach Prospect is essentially complete. These alluvials are relatively shallow (average depth 1.2m), and about 17 million bank cubic metres of alluvium will fall within Resource outlines in two separate drainage basins. The drainages were close to an obvious source of REE minerals in the Teapot Granite, so in the early stages of the REE study, they represented a low risk opportunity to develop the methodology for defining and estimating an alluvial REE resource and to produce concentrates of monazite, xenotime and other heavy minerals. The study has provided valuable materials for testing, and knowledge that future REE alluvial resource evaluations will draw on. It will also provide a supplemental resource to the larger deposits in the alluvial fans discussed above.

Determination of the recoverable grade of the resource relies on back-calculating the assays of HM concentrates produced by Crossland's gravity and magnetic separation sample processing procedure. These concentrate grades are high, frequently in the range 5 - 50% TREO, depending on the HM mix. As a final stage in the preparation of a JORC-compliant (non NI 43-101 compliant) Resource, a due diligence program of check drilling, sampling and assaying was undertaken on 88 repeat samples from 56 twinned holes, with assaying conducted at two reputable laboratories. The results of this study appear to indicate significantly different (higher) recovered TREO grades when compared with the regular method used to estimate the resource, and it appears that analysis of such high value REE concentrates may be challenging current routine analytical technology. This issue must be explained before Crossland is able to release a JORC-compliant (non NI 43-101 compliant) estimate of recoverable HM resource. Crossland and Pancon apologize for this delay, and Crossland is working with the laboratories to ensure the assay results are reliable before a JORC-Compliant (non NI 43-101 compliant) resource will be released.

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 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.

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 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. 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

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