U3O8 Corp.

U3O8 Corp.

September 01, 2011 06:45 ET

U3O8 Corp. Reports Results of Infill Drilling at Aricheng C in the Kurupung Project, Guyana

Estimation Underway Towards Goal of Increasing Current Uranium Resource

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2011) - U3O8 Corp. (TSX VENTURE:UWE), a Canadian-based company focused on uranium exploration and resource expansion in South America, reports results from the infill drilling program completed on the Aricheng C area in the Kurupung Batholith in Guyana (Figure 1). Resource estimation has started on data from Aricheng C, while infill drilling is progressing well on the next mineralized zone – Aricheng West – towards the goal of increasing the current National Instrument 43-101 ("NI 43-101") uranium resource1 on the Kurupung Project.

"Infill drilling has successfully defined the shape and grade of the uranium-bearing shoots at Aricheng C – the third area to undergo resource estimation out of the 10 mineralized zones identified in the Kurupung Project to date," said Dr. Richard Spencer, U3O8 Corp's President and CEO. "The resource estimate on Aricheng C is expected to be reported in early Q4 2011, to be followed by the estimate for Aricheng West by year-end. Thereafter, infill drilling will move to the Accori area with the aim of contributing to sustained resource growth."

Table 1 – Assay Results for Aricheng C

Summary of significantly mineralized intercepts cut in the 24 bore holes (5,591 metres ("m")) completed in the infill drilling program at Aricheng C (Figure 2).

Assay Results for Aricheng C
Intercept Grade
Bore Hole Number From (m) To (m) Interval (m) Estimated True Thickness (m) U3O8(%) U3O8(lbs/st)
ARC-011 108 113 5 4.7 0.079 1.6
121 134 13 12.2 0.109 2.2
Including 127 134 7 6.6 0.137 2.7
ARC-012 26 31 5 4.7 0.036 0.7
47 49 2 1.7 0.064 1.3
ARC-013 189 194 5 4.3 0.087 1.7
218 221 3 2.6 0.057 1.1
ARC-014 83 85 2 1.5 0.070 1.4
ARC-015 18 32 14 13.9 0.073 1.5
40 45 5 5.0 0.108 2.2
ARC-016 146 155 9 7.8 0.040 0.8
ARC-017 111 120 9 8.9 0.074 1.5
ARC-018 202 208 6 5.2 0.075 1.5
ARC-019 164 199 35 30.3 0.072 1.4
ARC-020 No significant intercepts
ARC-023 76 80 4 2.8 0.051 1.0
146 148 2 1.4 0.113 2.3
165 171 6 4.2 0.057 1.1
177 180 3 2.1 0.067 1.3
ARC-024 243 259 16 10.3 0.121 2.4
Including 248 253 5 3.2 0.193 3.9
ARC-025 88 92 4 2.0 0.060 1.2
170 175 5 2.4 0.089 1.8
ARC-026 47 53 6 4.2 0.080 1.6
ARC-027 No significant intercepts
ARC-028 289 293 4 2.3 0.081 1.6
ARC-029 No significant intercepts
ARC-030 239 253 14 10.7 0.115 2.3
ARC-031 No significant intercepts
ARC-033 78 84 6 3.9 0.068 1.4
111 116 5 3.2 0.060 1.2
ARC-034 170 179 9 5.2 0.168 3.4
188 194 6 3.4 0.065 1.3

Note: lbs/st is an abbreviation for pounds per short ton. 1 short ton = 2,000lbs or 0.907 metric tonnes.

Potential quantity and grade are based on drill results that define the approximate length, thickness, depth and grade of the target area, but are considered conceptual in nature. The exploration drilling reported in this release constitutes infill drilling on the Aricheng C structure with the aim of defining a mineral resource. No mineral resource has been completed on the Aricheng C structure to date, and it is uncertain if further exploration will result in such target being delineated as a mineral resource.

Aricheng C Structure

Aricheng C consists of a system of vein-breccias that trend east-northeast and are inclined to the north-northwest. The mineralized system corresponds with a zone of unusually weak magnetism that extends beyond the area that has been drilled (Figure 2). Most uranium found by U3O8 Corp. to date in the Kurupung Project lies within such demagnetized areas. Exploration will be undertaken to determine whether mineralization continues along trend in this extensive corridor of weak magnetism that lies to the east of Aricheng C.

Mineralization at Aricheng C extends from the near-surface saprolite to at least 235m below surface. Saprolite is the layer of clay that lies between the soil and hard-rock, and is formed by the weathering of rock in tropical environments. Uranium minerals found in hard-rock at depth have weathered to a uranium-bearing mineral called torbernite in the clay layer. This may represent a low-cost mining component to the Kurupung Project since open-pit mining of the clay layer would be relatively inexpensive and uranium is typically easily leached from torbernite. Metallurgical test work is scheduled for samples of mineralized saprolite in order to determine the extent to which uranium can be extracted from the saprolite. The saprolite varies in thickness from 10m to 80m over the Kurupung Project area, and averages 20m thick at Aricheng C.

Quality Assurance & Quality Control

QA/QC procedures for Aricheng C are the same as those used in U3O8 Corp's exploration elsewhere in the Kurupung Project as described in the press release dated April 20, 2011, available on the company's web site at www.u3o8corp.com and on SEDAR at www.sedar.com.

Dr. Richard Spencer, President and CEO of U3O8 Corp., a Qualified Person within the definition of that term in NI 43-101 of the Canadian Securities Administrators, had overall responsibility for target and drill-site selection at the Aricheng C target. Dr. Spencer has supervised the preparation of, and verified, the technical information in this release.

About U3O8 Corp.

U3O8 Corp. is a Toronto-based exploration company, focused on exploration and resource expansion of uranium and associated commodities in South America – a promising new frontier for uranium 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 and Argentina to significant historic resources in Colombia.

(1) Scout drilling results suggest that the ten Kurupung structures identified to date may contain a conceptual target of 13-18 million tonnes at a grade of 0.08% to 0.10% U3O8 (estimated 30 to 35mlb U3O8) including the initial NI 43-101 resource estimate. The initial NI 43-101 resource estimate of 5.8mlb Indicated at an average grade of 0.10% (2.0 lbs/st) U3O8 and 1.3mlb Inferred at an average grade of 0.09% (1.9 lbs/st) U3O8 has been reported on the Aricheng North and Aricheng South structures in the Kurupung Batholith. Refer to the technical report dated January 14, 2009 titled "A Technical Review of the Aricheng North and Aricheng South Uranium Deposits in Western Guyana for U3O8 Corp. and Prometheus Resources (Guyana) Inc.", available on U3O8 Corp's web site at www.u3o8corp.com and on SEDAR at www.sedar.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 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 mineralization encountered at Aricheng C or Aricheng West will add to U3O8 Corp's resource base. 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 – Multiple Uranium-Bearing Structures in the Kurupung Batholith, please visit the following link: http://media3.marketwire.com/docs/831u3084.pdf

To view Figure 2 – Drill Hole Locations at Aricheng C, please visit the following link: http://media3.marketwire.com/docs/831u3085.pdf

To view the photo associated with this release, please visit the following link: http://media3.marketwire.com/docs/u3o8K8.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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