U3O8 Corp.
TSX VENTURE : UWE

U3O8 Corp.

January 18, 2012 06:45 ET

U3O8 Corp. Confirms Significant NI 43-101 Compliant Uranium, Phosphate & Vanadium Resources on the Berlin Project, Colombia

Indicated Resource: 1.5 Million Pounds at a Grade of 0.11% U3O8; and

Inferred Resource: 19.9 Million Pounds at a Grade of 0.11% U3O8

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2012) - U3O8 Corp. (TSX VENTURE:UWE), a Canadian-based company focused on exploration and resource expansion of uranium and associated commodities in South America, reports a maiden National Instrument 43-101 ("NI 43-101") resource estimate on its Berlin Project in Colombia. The resource was prepared by Coffey Mining Pty Ltd based on 82 bore holes for 18,685 metres ("m") drilled on the southern three kilometres ("km") of the 10.5km mineralized trend at Berlin.

At a cut-off grade of 0.04% U3O8, the uranium resource is:

  • Indicated Resource: 1.5 million pounds ("mlb") U3O8 (0.6 million tonnes at a grade of 0.11% U3O8); and
  • Inferred Resource: 19.9mlb U3O8 (8.1 million tonnes at a grade of 0.11% U3O8).

Contained in the same mineralized layer as the uranium resource, are resources of:

  • Phosphate - Inferred Resource: 0.8 million tonnes (8.7 million tonnes at a grade of 9.3% P2O5); and
  • Vanadium - Inferred Resource: 97mlb V2O5 (8.7 million tonnes at a grade of 0.50% V2O5).

"U3O8 Corp. is pleased to report an initial NI 43-101 resource of such significant size for a suite of commodities that our recently announced metallurgical tests prove can be efficiently extracted from the mineralized rock," said Dr. Richard Spencer, President and CEO of U3O8 Corp. "Our resource drilling has shown that the mineralized unit at Berlin is remarkably continuous over the southernmost 3km of the project. Our path forward is simple: we intend to continue drilling with two rigs - one aimed at exploration drilling to test the additional 7.5km of strike to the north of the resource area that has never been drilled, but where our trenching has encountered similar mineralization. The second rig will focus on expanding the Berlin resource. In addition, we plan to commence a scoping study in 2012."

Table 1 - Uranium Resource Estimate Summary

A summary of the uranium resource estimated on the southern 3km of the 10.5km mineralized trend in the Berlin Project at various U3O8 cut-off grades is detailed below, which estimate is effective as of January 17, 2012. The recommended cut-off grade of 0.04% U3O8 has been used for the reported uranium resource. Figure 1 shows the area from which the resource was estimated relative to the extent of the whole mineralized trend at Berlin.

Cut-Off
U3O8 %
Mineralized
Material
(million tonnes)
Grade
U
3O8%
Contained
Uranium
(U
3O8mlb)
Indicated Resource
0.04 0.6 0.11 1.5
0.05 0.6 0.11 1.5
0.06 0.6 0.11 1.5
0.07 0.6 0.11 1.5
0.08 0.6 0.11 1.5
0.09 0.6 0.11 1.5
0.10 0.5 0.11 1.2
Inferred Resource
0.04 8.1 0.11 19.9
0.05 8.0 0.11 19.7
0.06 8.0 0.11 19.7
0.07 7.9 0.11 19.5
0.08 7.7 0.11 19.2
0.09 6.8 0.12 17.5
0.10 5.6 0.12 15.0
Figures may not add up due to rounding.

Table 2 - Resource Estimate Summary for Phosphate, Vanadium and Other Metals

A summary of the initial Inferred Resource estimate for other commodities in the southern 3km of the 10.5km mineralized trend in the Berlin Project at a cut-off grade of 0.04% (400ppm) U3O8 is shown below.

Mineralized
Material
Commodity Grade of
Resource
Quantity of Commodity
Contained in Resource
Phosphate 9.30 % 0.8 million tonnes
Vanadium 0.50 % 97 million pounds
Yttrium 500ppm 4,300 tonnes
8.7 million tonnes Neodymium 100ppm 880 tonnes
Nickel 0.23 % 45 million pounds
Molybdenum 600ppm 12 million pounds
Rhenium 7ppm 59 tonnes

Mineralization and Nature of Resource

The mineralized layer in the Berlin Project occurs in a canoe-shaped fold that, in cross-section, has an asymmetric "U"-shape. The mineralized interval lies near the interface between carbonate or sandstone host-rocks and an overlying, black shale unit. Uranium mineralization constitutes a clearly defined, continuous, tabular unit. The tight constraint of uranium to this unit results in minimal change in the size of the resource at various uranium cut-off grades. For example, doubling the cut-off grade from 0.04% to 0.08% U3O8 results in a decrease in the resource of only 3% (Table 1).

Resource Growth Potential of Other Commodities

Mineralization in other commodities such as vanadium, phosphate and yttrium occur in the uranium-bearing layer as well as in the overlying rock - so these other commodities generally occur in a thicker layer that contains the more confined uranium-bearing layer. The average thickness of the uranium-bearing layer is 3m. This feature of the mineralization means that there is a strong possibility of increasing the resource of the other commodities at Berlin once mining and processing cost parameters have been more definitively established. These costs will initially be estimated in a scoping study, and thereafter, the cut-off value used for resource estimation is likely to be based on a dollar rock-value instead of a specific uranium grade as was used in the current resource estimate.

Details of the Resource Estimate

  • The drill hole database in the vicinity of the estimation consists of 82 diamond drill holes totalling 18,551m and 30 surface trenches totalling 100m. Drill hole spacing ranges from 60m x 100m to 100m x 200m.

  • Both the diamond drill holes and the trenches were used to model the mineralization geometry, however only the assay data from the diamond drill holes were used in the grade estimate.

  • The drill holes were typically drilled along east- to northeast-trending lines, with dip ranging from 60° to 90º. The drilling angle and orientation was designed to intersect the mineralization so as to produce a true-thickness intercept. However, a small number of drill holes intersected the mineralization at acute angles where the shape of the folded mineralized layer is different in detail from the simple fold shape targeted.

  • The drill core was halved using a diamond saw, then character-sampled based upon estimated grade from measured radioactivity and lithology to a minimum nominal length of 20 centimetres ("cm"), and a maximum length of 1.6m. The average sample length was 80cm.

  • Gamma ray measurements, recorded with a down-hole Mount Sopris probe, calibrated in Grand Junction, Colorado, were used to estimate the uranium grade ("eU3O8") where chemical assays were not available due to poor core recovery. eU3O8 values were used for approximately 31% of the assay intervals. Gamma ray data were measured for most of the bore holes drilled, providing a comparison between chemical assays and eU3O8 data. Assay and estimated U3O8 values showed a very good correlation.

  • Density for the resource was based upon 27 measurements taken from within the mineralization using the water immersion method.

  • The mineralization outline was based upon a nominal 0.04% U3O8 halo, with consideration given to the mineralized limestone lithology. Based upon the lithology modelling, a nominal weathering surface was defined as being 10m below the topographic surface.

  • The topographic surface was based upon a digital elevation model ("DEM") supplied surface obtained from ground-controlled precision satellite photographs using high-definition satellite elevation.

  • A total of 317 mineralized intervals were used in the resource model. 69% of these were chemically assayed utilizing values using Inductively Coupled Plasma Mass Spectrometry ("ICP-MS"), supported by X-ray Fluorescence ("XRF") analysis for samples with elevated phosphate. Samples were prepared by ALS Chemex in its facility in Bogota, Colombia, and the samples were shipped to ALS Chemex's assay laboratory in Vancouver, Canada, for analysis. Radiometric data were used for 99 intervals. The assay data was composited to 0.8m intervals for the resource estimation. Variography and search neighbourhood analysis were also conducted as an input into the U3O8 grade estimation.

  • Ordinary Kriging was utilized for the U3O8 grade estimate and inverse distance to the power of two was used to estimate the multi-element data. Top-cutting of the assay data was not considered necessary for the estimates.

  • The estimate was classified as Indicated and Inferred based upon the demonstrated geological and grade continuity, and the drill hole spacing.

  • The following comments and recommendations are made:
    • Further density data is required to characterize the density of the deposit, particularly in the weathered portion of the deposit.
    • Further work is required to refine the base of weathering.
    • Although the overall geometry and trend of the mineralization is well defined, infill drilling is required to adequately define the areas of complex folding and structure. Further investigations are also required to determine if faulting is affecting the mineralization, particularly for portions considered to be suitable for underground mining.

A technical report prepared in accordance with NI 43-101 of the Canadian Administrators, containing the Mineral Resource set forth above, will be filed on SEDAR shortly, and not later than 45 days from the issuance of this news release.

The information that relates to the Mineral Resource is based on information compiled by Neil Inwood. Mr. Inwood is a Member of The Australasian Institute of Mining and Metallurgy, is employed by Coffey Mining Pty Ltd, and visited the Berlin site in May 2011. Mr. Inwood has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Reserves" and as a "Qualified Person" for purposes of NI 43-101. The disclosure contained in this news release relating to the Mineral Resource set forth above has been prepared under the supervision of, and verified by, Mr. Inwood and is included herein with his consent.

All other scientific and technical information contained in this news release has been prepared under the supervision of, and verified by Dr. Richard Spencer, P. Geo, President & CEO of U3O8 Corp., a "Qualified Person" within the meaning of NI 43-101.

About U3O8 Corp.

U3O8 Corp.is a Toronto-based exploration company focused on explorationand resource expansion of uranium and associated commodities in South America - a promising new frontier for exploration and development. U3O8 Corp. has one of the most advanced portfolios of uranium projects in the region comprising NI 43-101 compliant resources in Guyana, Argentina and Colombia.

For further information on U3O8 Corp's Berlin Project, refer to the technical report entitled "Review of Historic Exploration Data from the Uraniferous Black Shales of the Berlin Project and Chaparral Concession, Colombia: A guide to future exploration" prepared by Richard Spencer and Richard Cleath dated March 23, 2010 and available at www.sedar.com. Additional information on U3O8 Corp. is available on the company's web site at www.u3o8corp.com.

Forward-Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, the timing of laboratory results and preparation of technical reports, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the Berlin Project will add to U3O8 Corp's resource base in the short-term, or at all. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/uwe0118fig1.pdf.

Neither the 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.

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