Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

November 27, 2012 06:30 ET

Pancontinental Uranium Corporation: Encouraging Results from Downstream Leach Testwork at Charley Creek Ree Project in NT, Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2012) - Pancontinental Uranium Corporation (TSX VENTURE:PUC) ("Pancon" or the "Company") is pleased to announce that on Friday November 23, 2012, its Joint Venture partner, Crossland Uranium Mines Limited ("Crossland"), announced positive initial test results from downstream hydrometallurgical test work and other initiatives to achieve early production.

The results confirm that the high grade TREO heavy mineral concentrate is amenable to conventional sulphuric acid digestion with over 95% recovery into solution. This is another important milestone in the technical program and enhances and expands the Charley Creek project's development options vis a vis the ability to produce and sell a heavy mineral concentrate to existing REO refineries.

Other efforts to fast track development of the Charley Creek project include the appointment of the following consultants to the project evaluation and development team:

  • MSP Engineering of Perth has been engaged to complete a Scoping Study that contemplates the production of Monazite/Xenotime mineral concentrates as the initial saleable product from the Charley Creek project.
  • GHD, a leading international environmental consultancy, has been engaged to commence base line surveys as part of an Environmental Impact Study (EIS).

By initiating important EIS base line studies now, the Joint Venture expects to start permitting an initial heavy mineral concentration plant starting in early 2014.

Following the release of the JORC compliant resource at Charley Creek in May 2012 (not NI 43-101 compliant), the Joint Venture has continued to review and interpret drilling and regional geochemistry data and is now investigating the potential for higher grade areas within the resource that could, potentially, represent high grade starter pits. Processing higher grade material in the early years of production should materially enhance the project economics and result in a relatively short payback period. More details on this will become available in coming weeks as work progresses on the Scoping Study.

The full Crossland Uranium press release is as follows:

Crossland has commenced downstream hydrometallurgical testwork on a recent high grade Monazite/ Xenotime concentrate generated from over 400kg of Heavy Mineral Concentrate prepared on site from 10 separate sample pits across the Cattle Creek and Cockroach Alluvial Deposits at Charley Creek. The objective of this testwork is to demonstrate that the Charley Creek TREO Concentrate is amenable to conventional sulphuric acid digest and caustic 'crack' processes, and is a suitable feedstock for existing REO refineries. The testwork results will also provide design input for a future engineering study for a rare earth refinery to produce a light and heavy rare earth carbonate or hydroxide products from Charley Creek concentrate.

Key Highlights

  • Bulk TREO Concentrate containing 44% TREO has been generated for downstream test work and to provide samples for potential off-take partners.
  • Preliminary results using sulphuric acid digest and water leach on this TREO Concentrate has resulted in 95.5% TREO extraction.
  • Water leach solution contained 35 g/L rare earth sulphates.

The downstream hydrometallurgical testwork is being undertaken at ALS Metallurgy in Perth under the direction of Crossland. Caustic 'crack' test work using sodium hydroxide and hydrochloric acid is now being progressed and these results will be released during the current quarter.

Crossland also advises that MSP Engineering of Perth is engaged on a Scoping Study of production of Monazite/ Xenotime mineral concentrates as the initial saleable product of the project. This study is slated for completion during January 2013. Additionally, GHD have commenced base line surveys as part of an Environmental Impact Study of an initial 20 year mine, and potential Dry Plant site areas. The EIS is targeted for completion by the end of 2013 to allow permitting to proceed in 2014.

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, 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 REE and uranium exploration portfolio with projects in prolific, mining friendly districts.

Exploration is ongoing or has occurred at three Australian projects which include Charley Creek, Chilling, and Kalabity. Charley Creek has the potential for large alluvial REE deposits, and large, lower-grade, Rossing-type, granite-hosted uranium deposits. 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 The Kalabity project is in a district of historic uranium/radium mining that contains a variety of known uranium deposit styles.

Pancon has a 45% participating interest in this significant REE and uranium project portfolio. 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
    Rick Mark
    President and CEO
    604-986-2020 or Toll Free: 1-866-816-0118
    604-986-2021 (FAX)
    www.panconu.com