UC Resources Ltd.
TSX VENTURE : UC

UC Resources Ltd.

July 15, 2008 11:00 ET

UC Resources Ltd., Spider Resources Inc. and KWG Resources Inc. Receive Initial Resource Estimates for McFaulds Project

TORONTO, ONTARIO--(Marketwire - July 15, 2008) - UC Resources Ltd. (TSX VENTURE:UC) "UC", Spider Resources Inc. (TSX VENTURE:SPQ) "Spider" and KWG Resources Inc. (TSX VENTURE:KWG) "KWG" are pleased to announce an initial Mineral Resource estimate for their McFaulds Lake project. The resource estimate was recently completed and delivered to Spider Resources Inc. as an internal memorandum dated July 10, 2008.

Dr. Howard Lahti, P.Geo., has reviewed and approved this internal memo, as prepared by Scott Wilson Roscoe Postle Associates Inc (Scott Wilson RPA) regarding initial Mineral Resource estimates for the McFaulds 1 and McFaulds 3 volcanic hosted massive sulphide ("VMS") deposits in the McFaulds Lake area of Northern Ontario. The resource estimates were made using drill hole data available as of August, 2007. The two estimates were based on 39 diamond core holes for the McFaulds 3 deposit totaling 12,114 metres in length and on 15 diamond core holes for the McFaulds 1 deposit totaling 4,715 metres in length. Dr. Lahti has reviewed and accepted the Mineral Resource estimates and is preparing a National Instrument 43-101 report on the project. The effective date of the resource estimate is July 10, 2008.

McFaulds 3 deposit

Using a cut-off grade of 1.5% Cu, Indicated Mineral Resources at the McFaulds 3 deposit are estimated to total 802,000 tonnes grading 3.75% Cu and 1.1% Zn.

A set of cross sections and plan views were interpreted to construct three-dimensional wireframe models at a cut-off grade of 1.5% Cu and a minimum true thickness of two metres. These criteria reflect a potential underground mining scenario. High copper and zinc grades were capped at 12% Cu and 8% Zn at McFaulds 3 deposit. Variogram parameters were interpreted from the composited assay values. Block model copper and zinc grades within the wireframe models were estimated by Ordinary Kriging for the McFaulds 3 deposit. Classification into the Indicated category was guided by the drill hole density, interpreted variogram ranges, the apparent continuity of the mineralized zones, and by available density determinations. See Table 1, following, for details.



INDICATED MINERAL RESOURCES (Table 1)
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Tonnage Grade Grade
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Deposit (tonnes) (% Cu) (% Zn)
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McFaulds 3 802,000 3.75 1.1
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Notes:
1. CIM definitions were followed for mineral resources.
2. The cut-off grade of 1.5% Cu was estimated using a copper price of
US$2.50/lb and assumed operating costs.
3. Grade-shell wireframes at 1.5% Cu and a minimum true thickness of two
metres were used to constrain the grade interpolation.
4. High copper and zinc grades were cut to 12% Cu and 8.0% Zn prior to
compositing to 1.5 metre lengths for the McFaulds 3 deposit.
5. Several blocks less than the cut-off values were included for continuity.


McFaulds 1 deposit

Using a cut-off grade of 1.5% Cu Inferred Mineral Resources at the McFaulds 1 deposit are estimated at 279,000 tonnes grading 2.13% Cu and 0.58% Zn.

A set of cross sections and plan views were interpreted to construct three-dimensional wireframe models at a cut-off grade of 1.5% Cu and a minimum true thickness of two metres. These criteria reflect a potential underground mining scenario. High copper and zinc grades were capped at 5% Cu and 7% Zn at McFaulds 1 deposit prior to compositing to 1.5 metres. Block model copper and zinc grades within the wireframe models were estimated by inverse distance squared for the McFaulds 1 deposit. Classification into the Inferred categories was guided by the drill hole density, interpreted variogram ranges, the apparent continuity of the mineralized zones, and by estimating density determinations using similar types of deposits. See Table 2, following, for details.



INFERRED MINERAL RESOURCES (Table 2)
----------------------------------------------------------------
Tonnage Grade Grade
----------------------------------------------------------------
Deposit (tonnes) (% Cu) (% Zn)
----------------------------------------------------------------
McFaulds 1 279,000 2.13 0.58
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Notes:
1. CIM definitions were followed for mineral resources.
2. The cut-off grade of 1.5% Cu was estimated using a copper price of
US$2.50/lb and assumed operating costs.
3. Grade-shell wireframes at 1.5% Cu and a minimum true thickness of two
metres were used to constrain the grade interpolation.
4. High copper and zinc grades were cut to 5% Cu and 7% Zn prior to
compositing to 1.5 metre lengths for the McFaulds 1 deposit.
5. Several blocks less than the cut-off values were included for continuity.


Mr. Jim Voisin, President of UC Resources states: "This is the second resource estimate to be announced at McFaulds Lake in recent weeks. We are pleased with the initial estimates and are committed to the evolution taking place in the James Bay Lowlands."

Mr. Neil Novak P.Geo., President and CEO of Spider states: "We are pleased with the initial resource estimates for the first two deposits discovered in what was once a relatively underexplored area of Northern Ontario. The discoveries made by Spider working with joint venture partner KWG and De Beers Canada Exploration Inc. back in 2002 and 2003 have brought much attention to the Lowlands area of Ontario. UC entered the exploration scene here, in mid 2007 as part of an earn-in option agreement with Spider and KWG. Spider's tireless approach to exploration, coupled with persistence in working in what some consider extreme conditions has led to many additional discoveries by Noront Resources Ltd., Probe Mines Ltd., MacDonald Mines Exploration Inc. and now more recently WSR Gold Inc., Metalex Ventures Ltd. and Arctic Star Resources Inc.'s JV. With the release of an initial resource estimate by Noront, only a few weeks ago, the area is now looking more and more promising. As the collective explorers, continue on their respective paths to discovery in the Ring of Fire area, each additional discovery may add to a critical mass that could bring the realization of a development project to this area to fruition. Spider will continue to work with other companies to overcome the exploration challenges of the area, and has committed itself to working with the respective First Nation Communities in the area to reach a mutually agreeable relationship, where all can benefit from each other's success."

The initial Mineral Resource estimates of the two deposits as described herein are preliminary in nature. The resources, as stated, are categorized as Inferred and Indicated, however they are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. These estimated resources do not have demonstrable economic viability, as the results of an economic analysis of these mineral resources has not been done.

UC, Spider and KWG Resources are working toward the finalization of the tri party joint venture agreement, which forms a portion of the earn-in option agreement on the McFaulds East and West Properties.

This release has been approved by Howard Lahti Ph.D. P.Geo., an Independent Qualified Person (IQP) as defined in National Instrument 43-101. This press release has been prepared by management of Spider Resources Inc., and has been approved for dissemination by Neil Novak, P.Geo, President of Spider and also a Qualified Person as such term is defined under National Instrument 43-101. Mr. Novak in conjunction with Dr. Lahti have reviewed and verified the technical information contained in this press release.

On behalf of the Board of Directors,

Jim Voisin, President and CEO

Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings what are available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • UC Resources Ltd.
    Vancouver Head Office
    #1000, 355 Burrard Street
    Vancouver, B.C. V6C 2G8 Canada
    Toll Free: 1-800-366-8566 (Canada & USA)
    Website: www.ucresources.net