Strateco Resources Inc.
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FRANKFURT : RF9

Strateco Resources Inc.

January 04, 2012 08:32 ET

Strateco Resources Inc.: Resource at the Matoush Uranium Project Rises Significantly

BOUCHERVILLE, QUEBEC--(Marketwire - Jan. 4, 2012) - Strateco Resources Inc. ("Strateco")(TSX:RSC)(FRANKFURT:RF9) is pleased to report that the inferred resource at its Matoush project, located in the Otish Mountains in northern Quebec, has increased by 50% since the last resource estimate in September 2009. The inferred resource now stands at 2.04 million tonnes grading 0.43% U3O8 containing 19.22 million pounds of U3O8.

Indicated resources are estimated at 453,000 tonnes at a grade of 0.78% U3O8 for 7.78 million pounds of U3O8, which is similar to the 2009 estimate. Strateco did not carry out any definition drilling work which would have increased the indicated resource from November 2009 to October 2011. Strateco is planning a 15,000-metre drilling program for 2012, including some 11,000 metres of definition drilling aimed at outlining the indicated resource within the boundaries of the new inferred resource zones.

Roscoe Postle Associates Inc. ("RPA") updated the resource estimate for the Matoush uranium project in accordance with National Instrument 43-101 using the drill results available at December 31, 2011, and similar methods to those used for the previous resource estimate (RPA, September 2009). The indicated resource is contained in zones AM-15 and MT-34. The inferred resource is contained primarily in zones MT-22, MT-34 and AM-15 Extension, as well as in the new MT-02, MT-06 and MT-36 zones. The Matoush structure has been identified over a strike length extending 11 km southward and 2.5 km northward. See "Longitudinal - 2012 Resource" section at www.stratecoinc.com.

The increase in the inferred resource is explained first and foremost by exploration drilling carried out by Strateco on a 200-metre lateral spacing. This drilling led to the extension of the MT-34 zone, and the identification of the new MT-02, MT-06 and MT-36 zones. Strateco also drilled on a grid of approximately 75 metres to determine the inferred resource. It should be noted that the indicated resource in the AM-15 and MT-34 zones was estimated using holes drilled on a 10 to 25-metre grid.

No mineral reserves have yet been identified at the Matoush project. One of the goals of the underground advanced exploration program, which is expected to begin in 2012, is to convert the mineral resources to mineral reserves.

Table 1: Matoush Project Resource Estimate (RPA, January 2012)
Tonnes Grade Pounds U3O8
(x 1,000) (% U3O8) (x 1,000)
Indicated
AM-15 269 0.70 4,170
MT-34 184 0.89 3,610
Total Indicated 453 0.78 7,780
Inferred
AM-15 91 0.21 430
MT-02 64 0.36 500
MT-06 192 0.18 770
MT-22 885 0.52 10,160
MT-34 607 0.47 6,300
MT-36 201 0.24 1,070
Total Inferred 2,041 0.43 19,220
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cut-off grade of 0.1% U3O8.
3. High U3O8 grades were cut to 9%.
4. Mineral Resources are estimated using an average long-term uranium price of US$80 per pound, and a US$/C$exchange rate of 1.0.
5. A minimum mining width of 1.5 metres was used.
6. Numbers may not add due to rounding.

Guy Hébert, President and Chief Executive Officer of Strateco, said that: "The signature of an agreement on communication and information with the Cree Nation of Mistissini and the substantial increase in the Matoush project resource and its potential for growth will facilitate discussions between Strateco and its future strategic partners for the financing of the next stages of the project. The Otish Mountains area in Quebec has strong uranium potential, and is on its way to becoming a world class mining camp; the Matoush project, an exceptional uranium project, is proof of this."

This press release has been reviewed and approved by Jean-Pierre Lachance, Geo., Executive and Exploration Vice President of Strateco and a qualified person as defined in National Instrument 43-101.

Qualified Person - Resource: The Mineral Resources for the Matoush Project disclosed in this press release have been estimated by Mr. David Ross, P.Geo., an employee of RPA and independent of Strateco. By virtue of his education and relevant experience Mr. Ross is a "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2010). Mr. Ross, P.Geo. has read and approved the contents of this press release as it pertains to the disclosed Mineral Resource estimate.

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. Actual results and future events could differ significantly from those implied by such statements. These risks and uncertainties are discussed in the annual report filed with the securities commissions of British Colombia, Alberta, Ontario and Quebec.

Contact Information

  • Strateco Resources Inc.
    Guy Hebert
    President and Chief Executive Officer
    450-641-0775 or 1-866-774-7722
    450-641-1601 (FAX)
    ghebert@bbhgm.com

    Strateco Resources Inc.
    Jean-Pierre Lachance
    Executive & Exploration Vice President
    450-641-0775 or 1-866-774-7722
    450-641-1601 (FAX)
    jplachance@bbhgm.com

    Strateco Resources Inc.
    Jason Roy
    Investor Relations Consultant
    647-780-2837 or 514-240-7662
    jroy@stratecoinc.com
    www.stratecoinc.com