Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

July 13, 2011 14:07 ET

Pancontinental Uranium Corporation: Encouraging Results From Alluvial Rare Earth Exploration Program at Charley Creek Project, Near Alice Springs Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2011) - Pancontinental Uranium Corporation (TSX VENTURE:PUC) ("Pancon") and joint venture partner Crossland Uranium Mines Ltd. (ASX:CUX) ("Crossland") are pleased to update the market on the latest progress towards development of a rare earth element (REE) project based around the Crossland/Pancon joint venture's emerging alluvial resource in the Charley Creek Project in Central Australia.

Work is advanced on several fronts towards an initial resource estimate which is now expected during the third quarter, based upon the Cockroach Dam alluvial deposits within the Charley Creek Project.

Meanwhile, activity has heightened on other resource targets in large alluvial fan deposits within the project area.

Test work to develop a flow sheet and costing for an alluvial mining project to produce REE-bearing heavy mineral concentrates and other heavy mineral products will also commence this quarter.

Crossland, the operator, has received assay results for 678 of 781 stream sediment samples from a program that has covered much of the Joint Venture's holdings of more than 5,500 square km in the Charley Creek Project. These 25kg (average) samples have been processed using the Company's in-field sample processing facility to recover heavy mineral concentrates. The concentrate samples have now been comprehensively assayed and selected samples have been subjected to detailed mineralogical studies. This voluminous data permits several important conclusions to be drawn about the heavy minerals in the Charley Creek alluvials:

  1. Eight key areas have been identified that show widespread and strongly anomalous REE in shallow alluvium. Work has already commenced on four of these, one of which covers the Cockroach alluvial deposits. The areas are shown in Figure 1.
  2. Although so far there is insufficient sampling to calculate a resource in these areas, the frequency and distribution of sample sites with high REE indicates the likely existence of very large volumes of REE-bearing alluvium.
  3. The dominant REE-bearing mineral is Monazite.
  4. The bulk of the critical and valuable Heavy REE is present as a separate mineral phase, Xenotime. The distribution of Xenotime determines the distribution of Heavy REE.
  5. There is a significant Zircon component in some drainages that could form a significant by-product of REE heavy mineral production.
  6. All three valuable minerals in the heavy mineral concentrates are generally well liberated.

Note: To view Figure 1, please click the following link: http://media3.marketwire.com/docs/puc0713a.pdf.

As an example, Figures 2 and 3 show results from a key prospect area, Cattle Creek. Subject to the results of further sampling, drilling, and processing currently in progress to define resources, the outlook for a significant alluvial mining and processing operation at Charley Creek to produce high-grade REE concentrates is favourable, for the following reasons:

1. The alluvial material is shallow, and extraction would use low cost techniques of mining, processing and rehabilitation that are routine in the minerals sands industry. The Charley Creek alluvial sands appear to be well suited to these processes.

Note: To view the graph associated with this release, please click the following link: http://media3.marketwire.com/docs/puc0713b.pdf.

2. Crossland anticipates being able to produce concentrates of Monazite (which contains Light and medium REE); Xenotime (which contains the critical and valuable Heavy REE and Yttrium); Zircon, and possibly other heavy minerals, at relatively low cost using familiar technology developed over many decades particularly in the Australian beach sand mining industry.

3. The value added processing of products from concentrates will be the subject of studies that will commence soon after an initial resource has been defined. The advantage of working with high-grade, near-monomineralic concentrates of the REE-bearing minerals with relatively well understood REE extractive processes rather than lower grade concentrates with unusual mineralogy may be important in substantially lowering process development time and capital costs.

Note: To view Figure 2, please click the following link: http://media3.marketwire.com/docs/puc0713c.pdf.

Note: To view Figure 3, please click the following link: http://media3.marketwire.com/docs/puc0713d.pdf.

During the current quarter, Crossland is undertaking the following:

  1. An initial alluvial resource estimate based around the Cockroach area alluvial deposits will be produced. The area has already been sampled at 1303 points at 400m by 100m centres by auger drilling or shallow pitting to bedrock. This pattern has been infilled in areas where the alluvium extended beyond the maximum depth capability of the auger drill with 564 aircore holes drilled on a more closely spaced grid. Samples from both these programs are being processed and assayed to produce an initial alluvial resource for the project.
  1. Test work to develop a flowsheet and costing for an alluvial mining project to produce REE-bearing heavy mineral concentrates and other heavy mineral products will commence. Follow-up studies based on value adding to these concentrates will also begin.
  1. A preliminary aircore drill program of three alluvial fan deposits that have carried REE-bearing heavy minerals from their bedrock sources in the MacDonnell Ranges has been completed (221 holes). Processing of these samples will commence when the Cockroach alluvial Resource samples are completed.
  1. More detailed sampling in other Key Areas.

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 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 and REE. 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 and REE project portfolio 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 1-866-816-0118

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