Strateco Resources Inc.
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Strateco Resources Inc.

November 09, 2010 08:30 ET

Strateco Confirms a New Uranium Lens at Matoush

BOUCHERVILLE, QUEBEC--(Marketwire - Nov. 9, 2010) - Strateco Resources Inc. ("Strateco") (TSX:RSC)(FRANKFURT:RF9)(OTCBB:SRSIF) is pleased to announce the discovery of a new high-grade lens 1.5 km south of the three known high-grade lenses at the Matoush project.

Hole MT-10-011, completed on November 2, 2010, has confirmed the presence of the new MT-36 lens, named for discovery hole MT-09-036, which intersected 0.48% U3O8 over 4.2 metres including 1.29% U3O8 over 1.2 metres. The pierce point of the most recent hole, MT-10-011, which intersected 0.33% eU3O8 over 5.1 metres including 2.21% eU3O8 over 0.7 metres, lies 60 metres from the pierce point of MT-09-036.

The new lens was also intersected by three other holes, namely MT-09-035 (0.17 % U3O8 over 2.0 metres), MT-10-009 (0.10 % eU3O8 over 1.0 metre) and MT-10-001 (0.03 % U3O8 over 6.0 metres). These values are typical of the values intersected within and near the AM-15, MT-22 and MT-34 lenses.

Hole   Collar Az.   Angle   From   To   Vert. depth   Length   U3O8
    East   North (degrees)   (degrees)   (m)   (m)   (m)   (m)*   (%)
MT-09-035   12+25E   48+55S 275   -50   568.5   570.5   410   2.0   0.17%
MT-09-036   12+35E   50+60S 277   -50   578.6   582.8   430   4.2   0.48%
including                 579.0   580.2       1.2   1.29%
MT-10-001   12+60E   49+50S 275   -53   670.0   676.2   500   6.2   0.03%
MT-10-009   12+50E   49+50S 274   -48   593.5   594.5   425   1.0   0.10% e
MT-10-011   11+80E   50+00S 275   -52   505.3   510.4   395   5.1   0.33% e
including                 507.6   508.3       0.7   2.21% e
* Downhole

Notes:

  1. The use of the letter "e" as in "e U3O8" designates an estimated or equivalent U3O8 value determined using a calibrated gamma or spectral probe.
  2. The true width of the mineralized intersections has not yet been determined.

The location of these holes can be seen on the longitudinal section of the MT-36 lens on Strateco's website at www.stratecoinc.com.

In the coming weeks, Strateco will focus its drilling efforts on the determination of the mineral resource in the new MT-36 lens.

From October 2009 to early November 2010, 37,930 metres were drilled on the wholly-owned Matoush and Eclat properties in the framework of a major, 120,000-metre drilling program. The exploration holes were essentially drilled along the Matoush fault, about half of them on a 200-metre grid over a distance of about 8.0 km. Among other things, this initial phase has confirmed the strong uranium potential of five separate high-priority areas to the south of the MT-34 mineralized lens: L45+00S (1.0 km away), L50+00S (1.5 km away), the MT-36 lens, L60+00S (2.5 km away), L70+00S (3.5 km away) and L111+00S to L118+00S (8.0 km away).

An additional 4-km section to the south will be drilled during the winter.

These strongly-anomalous areas all have the same characteristics, namely the high uranium grades and intense fuschite-tourmaline alteration typical of the AM-15, MT-22 and MT-34 lenses of the Matoush deposit, which hosts an estimated indicated mineral resource of 436,000 tonnes grading 0.78% U3O8 containing 7.46 million pounds of U3O8, and an estimated inferred mineral resource of 1.16 million de tonnes grading 0.50% U3O8 containing 12.78 million pounds of U3O8 (Scott Wilson Roscoe Postle Associates Inc., Sept. 2009).

The above-mentioned high-priority areas, which range from 250 to 600 metres in length, confirm the strong uranium potential along the Matoush fault.

On another front, three holes drilled in early October to test a similar north-south striking structure located 4.0 km west of the Matoush fault on the Pacific Bay-Matoush property (where Strateco has an option on a 60% interest) proved conclusive. A Matoush-type fault named the Alfred fault, with identical alterations to the Matoush fault, was intersected over 365 metres. The geophysical anomaly indicates that the Alfred fault extends northward and southward. This is one of the most important discoveries on the Matoush project outside the Matoush fault corridor. These holes, which intersected low uranium grades, show that other Matoush-type structures (faults) exist elsewhere on the Matoush project.

Guy Hébert, President, stated that: "The discovery of a new high-grade uranium lens (MT-36) outside the known uranium-bearing area is extremely important, because it shows that, just as we had always thought, the Matoush project has the potential to become a world-class uranium mining camp." 

This news release has been approved by Jean-Pierre Lachance, Geo, Executive & Exploration Vice President of which is the qualified person as defined in National Instrument 43-101.

This news release contains forward-looking statements subject to certain risks and uncertainties. There can be no assurance that these statements will prove to be correct, and actual results and future events could differ materially from those implied by such statements. These risks and uncertainties are discussed in the annual report filed with the securities commissions of Alberta, British Columbia, Ontario and Quebec and in the 10-K annual report filed with the US Securities and Exchange Commission.

CAUTIONARY NOTE TO U.S. INVESTORS -The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this press release, such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.

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