U3O8 Corp.

U3O8 Corp.

September 08, 2011 06:45 ET

U3O8 Corp's Infill Drilling on Track Towards Maiden NI 43-101 Resource Estimate on the Berlin Project, Colombia

Uranium, Vanadium, Phosphate & Rare Earth Mineralization Continue Along Strike & Across the Syncline

TORONTO, ONTARIO--(Marketwire - Sept. 8, 2011) - U3O8 Corp. (TSX VENTURE:UWE) a Canadian -based company focused on exploration and resource expansion of uranium and associated commodities in South America, reports assays from further trenching and another 21 bore holes in the 19,000 metre ("m") infill drilling program underway on the Berlin Project in Caldas Province, Colombia. The Berlin Project contains a sediment - hosted, multi-commodity prospect with a historic resource1of 12.9 million tonnes at an average grade of 0.13% U3O8 (38 million pounds ("mlb") U3O8 ) estimated on the southernmost 4.4 kilometres ("km") of a 10.5km long mineralized trend. This historic work did not include estimates for other commodities, such as vanadium, phosphate, rare earth elements, molybdenum and rhenium, which occur with the uranium.

"U3O8 Corp. is on schedule to complete infill drilling in the southern 3km of the 10.5km prospective trend in the Berlin Project early in Q4. The resource estimator has now been to site and the process has begun towards our aim of generating a maiden, interim National Instrument 43-101 ("NI 43-101") resource on the Berlin Project, as well as providing indicative initial metallurgical test results by the end of 2011," said Dr. Richard Spencer, President and CEO of U3O8 Corp. "These latest infill drilling results continue to demonstrate excellent continuity of multi-commodity mineralization in the southern portion of the prospective trend in the Berlin Project. Trenching continues to confirm mineralization in the northern part of the property, which could substantially expand the size of the project beyond the historic resource."

(1) The Berlin resource estimate is historical and is reported in Castano, R. (1981), Calcul provisoire des reserves geologiques de Berlin, sur la base des resultants des sondages, unpublished Minatome report, 15p. There has been insufficient exploration work completed to verify the historic estimate and it should not be relied upon as a NI 43-101 compliant resource. As the 38mlb U3O8 historic estimate is based on only 11 widely-spaced drill holes, 20 trenches and three adits, it is regarded by U3O8 Corp. as merely an indication of the uranium resource potential of the southernmost 4.4km of the 10.5km long syncline (Figure 1) containing the Berlin mineralization. U3O8 Corp. is currently undertaking an infill drilling program with the aim of defining a mineral resource at Berlin.

Table 1 – Assay Results from Drilling in the Southern Part of the Berlin Project

Summary results for the bore holes drilled in Cross Sections 7, 8 and 9 in the southern part of the Berlin Project2 (Figures 1 and 2). For completeness, results are tabulated for all bore holes drilled on each section and those holes from which results were previously reported (see press release dated February 24, 2011) are highlighted in grey in the table.

To view Table 1 – Assay Results from Drilling in the Southern Part of the Berlin Project, please visit the following link: http://media3.marketwire.com/docs/908table1.pdf.

Table 2 – Assay Results from Trench TB34 in the Northern Part of the Berlin Project

Summary results for trench TB34 excavated in the northern part of the Berlin Project2 (Figure 1).

Trench Intercept Uranium Vanadium Phosphate Molybdenum Rhenium Silver Yttrium
U3O8 V2O5 P2O5 Mo Re Ag Y2O3
Trench Number True Width (m) % lbs/st % % ppm ppm ppm ppm
TB34 1.2 0.135 2.70 0.67 2.1 92.0 0.1 3.7 904
2 Assay results – 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 conceptual in nature. There has been insufficient exploration to define a mineral resource at the Berlin Project to date and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Infill Drilling Program

U3O8 Corp. has now drilled 72 bore holes (16,050m) as part of a 19,000m infill drill program being undertaken for resource estimation purposes on the southern part of the Berlin Project. Assays from the 41 drill holes reported so far confirm the continuity of mineralization along strike and across the Berlin syncline, and also confirm consistent grades of uranium, vanadium, phosphate, rare earth elements, molybdenum, rhenium and silver. Two drill rigs continue to focus on resource drilling, while trenching is planned to advance along the whole 10.5km trend, to be followed by drilling in due course. A consultant from Coffey Mining of Australia, an independent consulting company, visited the Berlin Project in June 2011, and the estimation process has begun towards the goal of converting part of the historic resource into an initial 20-25mlb NI 43 -101 uranium resource1 by the end of 2011.


The mineralized layer in the Berlin Project occurs as a canoe-shaped fold that, in cross-section, has an asymmetric "U"-shape (Figures 3, 4 and 5). In order to visualize the distribution of mineralization, the layer is shown as an "unfolded", flat sheet in Figure 6. This diagram shows the distribution of each pierce point, the point at which each bore hole intersected the mineralized layer, as well as the distribution of trenches that were excavated where the layer comes to surface. Each pierce point and trench location is coloured according to its uranium grade-thickness value (the grade of the mineralized interval multiplied by its thickness) in order to illustrate the continuity of grade throughout the mineralized layer.

Quality Assurance and Quality Control ("QAQC")

QAQC are incorporated by reference to the press release dated February 24, 2011, available on U3O8 Corp's web site at www.u3o8corp.com and on SEDAR at www.sedar.com.

Dr. Richard Spencer, President & CEO of U3O8 Corp., a Qualified Person within the definition of that term in NI 43-101 of the Canadian Securities Administrators, 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.

For further information on U3O8 Corp's Berlin Project, refer to the technical report entitled "Review of Historic Exploration Data from the Unaniferous 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, 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 – Map Shows the Location of the Trenches and Drill Platforms in the Berlin Project, please visit the following link: http://media3.marketwire.com/docs/uwe908figure1.pdf.

To view: Figure 2 – Drill Hole Location in the Southern Part of the Mineralized Trend on the Berlin Project, please visit the following link: http://media3.marketwire.com/docs/uwe908figure2.pdf.

To view: Figure 3 – Cross Section 7, please visit the following link: http://media3.marketwire.com/docs/uwe908figure3.pdf.

To view: Figure 4 – Cross Section 8, please visit the following link: http://media3.marketwire.com/docs/uwe908figure4.pdf.

To view: Figure 5 – Cross Section 9, please visit the following link: http://media3.marketwire.com/docs/uwe908figure5.pdf.

To view: Figure 6 – Map of the "Unfolded" Mineralized Layer in the Southern Part of the Berlin Project, please visit the following link: http://media3.marketwire.com/docs/uwe908figure6.pdf.

To view the photo associated with this release, please visit the following link: http://www.marketwire.com/library/20110907-BerlinProject800.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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