Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

April 05, 2012 12:54 ET

Pancontinental Uranium Corporation: Charley Creek Project; Xenotime Identified in Exploration Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 5, 2012) - Pancontinental Uranium Corporation (the "Company") (TSX VENTURE:PUC) is pleased to announce that its Joint Venture partner, Crossland Uranium Mines Limited, issued the following press release today in Australia.:

  • New regional stream sediment results at Charley Creek confirm widespread indications of Xenotime, a mineral enriched in valuable Heavy Rare Earth Elements (HREE).
  • The results highlight new target areas for HREE mineralization

Crossland and its Joint Venture partners hold titles covering rare earth bearing alluvial deposits in the West MacDonnell Ranges in Central Australia.

Within these titles, rare earth enriched alluvial deposits are present over a lateral distance of 130km. Crossland has conducted regional stream sediment programs to identify areas with the potential to host commercial deposits of REE, and this release updates progress with this work.

Analyses of 931 regional stream sediment samples have identified the presence of high concentrations of HREE in alluvial deposits at Charley Creek. The results include 0.6% TREO in alluvium* (5,778ppm total rare earth oxides or TREO). Within these samples the HREO/TREO ratio is as high as 69.5% (see Table 1).

Of the total 931 samples, 199 samples (or 21%) had a HREO/TREO ratio greater than 20%. This ratio of HREO is high when compared to most rare earth deposits.

The results provide focus and guidance to identify areas where further exploration and drilling could delineate high HREE material. Previous mineralogical studies have shown that Xenotime is the HREE host mineral in the Charley Creek Project area. Xenotime is highly enriched in high-value heavy rare earths and Yttrium. Refer to figure 1.

The HREO/TREO ratio at Charley Creek is important because it is the heavy rare earth elements, particularly Terbium, Dysprosium and Yttrium that are in critical short supply. Charley Creek could be a valuable resource of these strategically vital high-value minerals.

The technique of stream sediment sampling with heavy mineral concentrate is an effective exploration technique to identify the source of REE within the tenements. This provides a focus for further exploration programs and resource identification.

Surface alluvial mineral deposits have an advantage because they are easy and cheap to explore by shallow drilling. They are also cost effective in mining.

Crossland's extensive drilling programs have defined alluvium from 3m up to 32m thick from surface, in the Dad's Dam, Western Dam and Cattle Creek areas. These returned average HREO/TREO ratios of about 17% by weight. The new stream sediment results suggest that higher ratios of HREO could be expected in the large alluvial deposits to the east of Cattle Creek.

Highly anomalous HREO results from stream samples in the south of the alluvial areas (see Fig.1) indicate the potential for hard rock mineralisation and warrant follow up for hard rock Xenotime occurrences.

To view Figure 1, visit the following link: http://media3.marketwire.com/docs/0405PanconFig1.jpg

The results reported here cover areas held by the Crossland (CUX)/Pancontinental (PUC) Joint Venture and the Clough's Dam Joint Venture with Western Desert Resources Limited, (WRDL) where the CUX/PUC Joint Venture is earning an initial 60% interest.

The review of exploration activities and results contained in this report are based on information compiled by Geoffrey S Eupene CP, a Fellow of the Australasian Institute of Mining and Metallurgy. He is a director of Crossland Uranium Mines Limited and a full time employee of Eupene Exploration Enterprises Pty Ltd. He has sufficient experience which is relevant to the styles of mineralization 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.

* Stream sediment samples averaging around 20kg are processed in the field to produce heavy mineral concentrates, and it is these concentrates that are assayed. The grades quoted in this report are therefore the back-calculated grades of alluvium based on the contained grades recovered to concentrate. This gives some measure of recoverable grades of REE in the alluvium sampled. The grades of the heavy mineral concentrates produced are much higher than the back- calculated recovered grades of alluvium quoted herein (see Table 1 for more information).

To view accompanying Table 1, visit the following link: http://media3.marketwire.com/docs/0405PanconTable1.jpg

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. 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 expects its interest will be reduced by approximately 5%. According to the Joint Venture agreement, Pancon has the right to resume funding at any time to maintain its interest. 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

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