Pancontinental Uranium Corporation
TSX VENTURE : PUC

Pancontinental Uranium Corporation

July 30, 2009 14:10 ET

Pancontinental Uranium Corporation: Exploration Update at Chilling and Charley Creek Projects; Additional Property Applications for Both Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 30, 2009) - Pancontinental Uranium Corporation (TSX VENTURE:PUC) ("Pancon" or "the Company") is pleased to update shareholders on its J.V. partner Crossland Uranium Mines Ltd's current exploration activities.

CHILLING PROJECT, NT, AUSTRALIA

The dry season has begun, and exploration work has commenced on the recently-granted Buchanan area at the Southern end of Chilling. This program is designed to explore the radiometric anomalies detected in airborne surveys conducted by the Crossland/Pancontinental Joint Venture during the 2007 field season and to follow up the results of previous exploration by others.

Crossland is sufficiently encouraged by its recent analysis to have applied for new exploration licences to the south of the existing Chilling land package (see image 1).

To view Image 1: Chilling Project Area, Showing Exploration Licence Holdings, July, 2009: http://www.marketwire.com/library/20090730-fig1800.jpg

PNC Exploration (Australia) Pty Ltd, the Australian subsidiary of the Japanese Crown Corporation Power Nuclear Corporation of Japan, discovered 49 uranium-bearing haematite-quartz veins, with values up to 3350 ppm U within the Soldiers Creek Granite between 1994 and 1997 (see image 2). A diatreme breccia 1600m long by 1200m wide was also recorded in the Soldiers Creek Granite. This has accompanying uranium radioactivity with past rock chip samples of up to 280 ppm U. Tin and barium mineralization, and abundant haematite and chlorite alteration, are also noted in association with the veins and breccia structures. This indicates that the Soldiers Creek Granite is extensively affected by hydrothermal alteration of a type that is similar to both Alligator Rivers style unconformity-related mineralization and to some iron oxide copper gold deposits.

In addition, there are known radiometric anomalies also associated with the Fish River Fault (see image 2 below), which brings the Soldiers Creek Granite into contact with sediments. An ironstone developed along the fault zone has been traced for 600m and has uranium values of up to 80 ppm U, there are also indications of base metal anomalism with values to 160 ppm Cu, 700 ppm Zn, and 65 ppm Co. The Fish River fault is also the site of three of the 43 high priority uranium targets radiometric anomalies identified in the 2007 Chilling airborne geophysical survey.

To view image 2: EL22738 Buchanan and surrounding ELs, Showing uranium anomalies from 2007 survey and local geological features: http://www.marketwire.com/library/20090730-fig2800.jpg

Follow-up of these various promising results is the primary focus of the current exploration program at Chilling, and this work is designed to lead to targets for a drill program later in this dry season.

The Australian government sponsored airborne EM survey of the Pine Creek Basin was completed in late May, 2009. The Joint Venture has subscribed to the survey to infill critical areas at Chilling with closer spaced surveys. This should help to develop unconformity-style targets within or beneath the younger cover rocks. The preliminary data from this survey is scheduled to become available to Crossland from Geoscience Australia in late August.

CHARLEY CREEK PROJECT, NT, AUSTRALIA

Crossland's 2009 field work on this large project is designed to narrow down the areas that might be required for drill testing. An area of 42 square kilometres of the Teapot Granite terrain has shown strong uranium radiometric responses from airborne surveys, and it has already been demonstrated that there is widespread outcropping secondary uranium mineralization that is related to these anomalies. The 42 km2 area is being surveyed using back pack spectrometers on 25m intervals. This work program for 2009 is currently about 40% complete. Some of the results from the first area completed, Cockroach East, are shown below (see images 3 and 4 below).

To view image 3: Cockroach Dam Area of EL25230, showing areas of detailed ground spectrometer surveys in the Teapot Granite: http://www.marketwire.com/library/20090730-fig3800.jpg

To view image 4: Cockroach East Prospect, showing results of detailed spectrometer survey and preliminary interpretation: http://www.marketwire.com/library/20090730-fig4800.jpg

The illustration (image 4 above) shows a ternary image of the spectrometer results overlain by a contour plan of the equivalent uranium greater than 15 ppm U, as measured by the backpack spectrometers. The next stage of the 2009 program is mapping and sampling of the higher value uranium zones, thereby establishing specific drill targets within each zone.

The first phases of this mapping and sampling have commenced. The Joint Venture is working through the necessary approval processes for drilling as soon as possible.

Due to the results from the early work at Charley Creek, Crossland has recently applied for an additional five exploration licences in the Charley Creek district, with a total additional area of 3,337 square kilometres (see image 5 below). The applications cover mainly flat country where desert sands conceal basement. In places the sands may mask sediment basins with potential to host channel deposits of uranium, while in other areas, the Company believes there will be thin cover over prospective basement. It will be possible to delineate these zones within the applications with airborne EM surveys, and these will be undertaken as soon as possible to enable planning of additional work.

To view image 5: Charley Creek Project Exploration Licence holdings, July 2009. Granted: 707.4 km2 Applications: 3,336.7 km2: http://www.marketwire.com/library/20090730-fig5800.jpg

Application has also been made, under Crossland's access agreement with Central Land Council, for an air core drilling program on the flat country within the original exploration licences at Charley Creek to follow up on indications from earlier drilling, and concepts developed from more recent exploration. These applications are being processed.

The review of exploration activities and results contained in this report are based on information compiled by Geoffrey S. Eupene, 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 style 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 his 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 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 holds an impressive exploration portfolio with projects in prolific, mining friendly districts. Active exploration is ongoing at four Australian projects which include Chilling, Charley Creek, Kalabity and Crossland Creek. 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. Pancon is earning a 50% interest in this significant uranium project portfolio through the joint venture with Crossland through the expenditure of A$8 million. Pancon and Crossland are also pursuing exploration beyond Australia through 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

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
    or
    Pancontinental Uranium Corporation
    Keith Patey
    Director of Communications
    604-986-2020 or 1-866-816-0118
    604-986-2021 (FAX)
    www.PanconU.com