U3O8 Corp.

U3O8 Corp.

November 26, 2009 09:01 ET

U3O8 Corp. Cuts 2.3 Metres at 0.551% (11 Pounds per Short Ton) U3O8 at Aricheng West

Scout drilling defines 150 metre extension to the Aricheng West uranium zone

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2009) – U3O8 Corp. (TSX VENTURE:UWE), a Canadian uranium exploration company, reports significant uranium mineralization from drilling in the Aricheng West target area in the Kurupung Batholith, in basement rocks near the Roraima Basin in Guyana (Figure 1). Scout drilling has defined uranium mineralization in a further 150 metre long section of the Aricheng West structure. The success of the current scout drilling program in identifying a number of new mineralized zones in recent months is providing U3O8 Corp. with the means to outline the potential size of the Kurupung system, a promising uranium district in South America. Geologically similar albitite-hosted deposits elsewhere in the world typically contain resources in the 50 to 130 million pound range.

"Aricheng West is shaping up to be one of the most extensive and consistently mineralized areas that we have drilled in the Kurupung Batholith to date," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "Mineralization in the Aricheng West area now extends over a distance of 700 metres and is still open along strike and at depth. Our geophysics-based targeting technique has led to the drilling of potentially economic uranium grades in three out of five targets in the latter half of 2009 – an excellent success rate in mineral exploration. The scout drilling program continues until mid-December with the aim of adding more mineralized areas to our line-up of targets that will demonstrate the size potential of the Kurupung uranium system."

Table 1 – Assay Results for Aricheng West Extension

Summary of significantly mineralized intercepts cut in the four bore holes (660 metres) completed in scout-drilling the eastern extension of the Aricheng West structure.

Bore Hole  IntervalEstimated TrueU3O8U3O8
NumberFrom (m)To (m)(m)Thickness (m)(%)(lb/st)
 Note:lb/st is an abbreviation for pounds per short ton. 1 short ton = 2,000lbs or 0.907 metric tonnes.

Aricheng West

Uranium mineralization at Aricheng West is contained within two sheet-like breccias forming a "Y"-shaped cross section. The "Y"- shape is asymmetric with the southern structure being near-vertical and the other arm of the "Y" inclined to the south at an angle of approximately 45 degrees. U3O8 Corp. suspects that the near-vertical structure continues at depth. Consistent uranium has now been intersected over a strike distance of 500 metres and to a depth of 150 metres at Aricheng West. The uranium-bearing zone at Aricheng Epsilon (assay results reported on November 18, 2009) is believed to constitute part of the Aricheng West mineralized system and, if this is correct, would increase the total strike length of mineralization to some 700 metres (Figure 2). Mineralization at Aricheng West is still open along strike to the east and at depth (Figure 3).

Uranium mineralization at Aricheng West is located within an envelope of albite-chlorite-hematite-calcite alteration. Aricheng West, along with all other consistently mineralized areas in the Kurupung uranium system, is contained within a non-magnetic alteration zone that can be traced with geophysics in the magnetic Kurupung Batholith.

Potential quantity and grade are based on drill results that define the approximate length, thickness, depth and grade of the target, but are considered conceptual in nature. To date, there has been insufficient exploration drilling to define a mineral resource in the Aricheng West structure, and it is uncertain if further exploration drilling will result in a mineral resource being defined in this area.

Aricheng Tau Target

Aricheng Tau is a fifth target that was tested in the current scout drilling program, and lies in the central part of a weakly magnetic zone identified in magnetic data. Two holes for 307 metres (ARW-025 and ARW-026 shown in Figure 2) were drilled beneath a radiometric anomaly that is located within the magnetic low. Both holes intersected albite-dominated alteration similar to that which encloses uranium-bearing parts of the Kurupung system, but contained no significant uranium grades. No further drilling is planned for the Aricheng Tau target at this time.

Pipeline of Uranium-Bearing Structures

To date, U3O8 Corp. has defined an initial resource on two uranium-bearing structures in the Kurupung, and has expanded its pipeline to currently five additional consistently mineralized areas with the potential to significantly increase its resource base. Uranium in the Kurupung area has many of the geological characteristics of the typically sizeable albitite-hosted deposits worldwide. Uranium mineralization in most of these systems is contained in multiple structures within a coherent structural system, as is the case in the Kurupung area.

Quality Assurance & Quality Control

Diamond drilling on the extension of Aricheng West and at Aricheng Tau was undertaken with U3O8 Corp's own drill rig that produced NQ (47.6 millimetre diameter) core. A down-hole spectral gamma probe was used on the six bore holes to determine the extent of the mineralized intervals by providing an estimate of the uranium grade based on the radioactivity measured. Core from each mineralized interval was halved with a diamond saw on-site and half core samples were delivered to ACME Laboratory's preparation facility in Georgetown, Guyana. Sample blanks and certified standards were inserted at an average frequency of 1 per 25 samples. Sample pulps were then shipped by ACME to their analytical facility in Vancouver, BC, Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion. The other half of the core was logged and stored on-site, providing a complete record of the geology and mineralized zones drilled.

Mr. Richard Cleath (M.Sc.), Vice President of U3O8 Corp., a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, had overall responsibility for all aspects of target selection and drilling of the Aricheng West and Aricheng Tau targets. Mr. Cleath has supervised the preparation of, and verified, the technical information in this release.

To view the Figure 1 – Multiple Uranium-Bearing Structures in the Kurupung Batholith map, please visit the following link: http://media3.marketwire.com/docs/Kurupung.pdf

To view the Figure 2 – Drill Hole Locations at Aricheng West extension and Aricheng Tau map, please visit the following link: http://media3.marketwire.com/docs/Aricheng.pdf

To view the Figure 3 – Long Section of the Aricheng West Structure map, please visit the following link: http://media3.marketwire.com/docs/ArichengWest.pdf

About U3O8 Corp.

U3O8 Corp. is a Canadian uranium exploration company based in Toronto, Canada. Currently focused on uranium exploration in the Roraima Basin in Guyana, South America, U3O8 Corp's primary business objective is to explore, develop and acquire uranium projects in the Americas. The company is funded with over $5 million held solely in cash and Canadian chartered bank-backed Guaranteed Investment Certificates.

U308 Corp. has exclusive uranium exploration rights in an area covering approximately 1 million hectares that straddles the edge of the Roraima Basin in Guyana. The company is advancing a two-pronged exploration strategy that focuses on:

  • Exploration for multiple uranium-bearing structures within structural systems in the basement adjacent to the Roraima Basin with the concept that the individual breccia zones could potentially aggregate to a significant total resource; and

For further information on the company's properties, please refer to the technical reports prepared for the company by Dahrouge Geological Consulting Ltd. and dated September 15, 2006 as amended and restated December 12, 2006; and the NI 43-101 report entitled "A Technical Review of the Aricheng North and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and Prometheus Resources (Guyana) Inc." by Watts, Griffis and McOuat dated January 14, 2009, available on SEDAR at www.sedar.com and on the company's website 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, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates, currency fluctuations, dependence upon regulatory approvals, the uncertainty of obtaining additional financing and exploration risk. 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 the accompanying map, please visit the following link: http://www.marketwire.com/library/20091125-u3o8multiple800.jpg

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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