UC Resources Ltd.

UC Resources Ltd.

March 14, 2007 11:09 ET

UC Resources' Update on McFauld's VMS Project in Northern Ontario

TORREON, COAHUILA, MEXICO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 14, 2007) - UC Resources Ltd. (the Company) (TSX VENTURE:UC) is pleased to provide an update on its new project in Ontario, Canada

UC Resources Ltd. previously announced in a release on March 7th, the signing of a Letter of Intent (LOI), regarding a four year exploration program on the McFauld's Lake Volcanogenic Massive Sulphide ("VMS") project, located in the western portion of the James Bay Lowlands in Ontario, Canada. The project area is located just west of De Beers Victor diamond development project (scheduled for production in 2008) and is accessible by air. In total, this land package covers much of the Sachigo Archean greenstone belt that is known to be fertile with respect to volcanic hosted massive sulphide deposits containing significant copper, zinc, gold and silver mineralization.

In summary, this occurrence was initially discovered in 2002 by Spider Resources Inc. ("Spider"), KWG Resources Inc. ("KWG") and De Beers Canada Exploration Inc. ("De Beers"), working in joint venture, while searching the area for kimberlite bodies, the host for diamonds. Several kimberlite targets were selected by De Beers as drill targets; based upon regional indicator mineral studies, airborne geophysics, ground magnetic and electromagnetic surveying. The initial massive sulphide discovery was in a reverse circulation drill hole. Sample from this hole contained 1.6% copper over 8 meters, and ended in sulfides. This discovery became the site of McFauld's #1 VMS occurrence.

In five field seasons 10 individual VMS occurrences have been discovered and drill-tested, some with only a single hole. Seven of these contain VMS-style sulfide zones. In addition to the original discovery (McFauld's #1) a second significant mineralized occurrence was discovered in late 2003, McFauld's #3. This occurrence is 1.5km SW of McFauld's #1 and has been intersected by 31 holes, all of which contained massive sulphides. The widest intersection, and the last hole drilled in the 2004 field season, intersected 18.8 meters containing 8.02% copper at a vertical depth of 250 meters.

The exploration program to date supports Dr. Jim Franklin's initial review and comments on the area, that were originally made during the summer of 2003 (full text available on Spider's website www.spiderresources.com). "In summary the area intersected by the drill holes contains evidence of a large hydrothermal system, and the potential for discovery of an economic Cu-Zn (Noranda-style) volcanogenic massive sulphide deposit is good." He goes on to state, " This part of the Sachigo Belt, although exceptionally poorly known, may contain a typical distribution of VMS deposits; this includes one giant (25 million tonnes) deposit and 3 to 8 smaller (1 - 5 mt) deposits, based on a comparison with other better known productive belts. Much more knowledge about the nature of the physical volcanism is needed to refine this estimate." It is UC's belief that this area has the signatures of a Matagami or Noranda-type VMS setting, as widespread VMS style sulphide zones have been discovered as the result of the work completed by Spider and KWG over the past 5 years.

To date, in excess of $9 million has been expended on the project of which 47 drill holes, totalling nearly 15,000 meters have been drilled on the McFauld's #1 and #3 occurrences. Down hole IP, coupled with surface geophysics (Max-Min) delineated the surface expression of both occurrences, confirmatory drilling has traced both occurrences below the detection limits of the surface and downhole geophysics. Gravimetric surveying was completed late in the program (winter 2006), focusing on the McFauld's #3 occurrence. Excess mass, not explained by the size of the sulphide body that has been drill tested to date, is evident in the gravity survey results, identifying a high specific gravity anomaly that tops out at 600 meters below surface, although more gravity work needs to be completed to close the gravity anomaly. Diamond drilling has only effectively tested this zone to 400 meters depth. Deep drilling has been recommended and is contingent on completion of deep imaging geophysical surveying as required to position drill holes to intercept any conductive targets below or nearby the two main occurrences. Successfully intersecting massive sulphide mineralization below McFauld's #3 would infer a large VMS target and could also explain the excess mass evident in the gravity survey. UC plans on aggressively pursuing this mineralized zone to depth.

Following are some of the highlights (as reported in Spider Resources Inc. press releases on the identified dates) of these two occurrences over the course of the exploration program:

McFauld's #1 (16 holes drilled to date, 4,720 meters)

- Oct 23, 2003: SP3-03-007 intersected 8 meters averaging 1.6% Cu

- May 21, 2003: McF-03-08 intersected 5.68 meters averaging 3.39% Cu, followed by 4.1 meters averaging 7.64% Zn.

- April 9, 2003: McF-03-01 undercut SP3-03-007 intersected 1.43% Cu over 8.9 m, followed by 1.79% Zn over 4.7 m.

McFauld's #3 (31 holes drilled to date, 10,169 meters)

- Nov 8 2004: McF-04-57 18.8 meters of 8.02% Copper

- Oct 27, 2003: Mc-03-18 discovery hole intersected multiple zones, enriched in Zinc, averaged 4.83% Zn over 25.75 meters (also 0.51% Cu)

- May 11, 2004: McF-04-41 8.0 meters of 6.5% Copper and 3.3% Zinc

- March 18, 2004: McF-04-21 13.8 meters of 5.50% Copper

UC is in the process of developing a $1 million exploration program with the intent of tracing the McFauld's #3 occurrence to depth, beyond the known depths of mineralization (this occurrence has been drilled to around 400 meters depth). The initial UC program will focus on geophysical surveys, including, but not limited to gravimetric and deep imaging electromagnetic surveying. Timing of the geophysical surveys is contingent on equipment availability. The gravimetric survey is best done under winter conditions, while deep imaging electromagnetic sounding can be done year round. It is expected that the gravimetric program will commence in late March to early April and the electromagnetic survey will commence in June. Community consultation meetings are currently scheduled for mid-May where UC will be introduced as a new joint venture partner of Spider and KWG on the McFauld's Project. Diamond drilling will follow after the two aforementioned geophysical surveys are completed.

The McFauld's VMS occurrences consist primarily of stringer copper-style mineralization associated with intense talc-chlorite alteration. The alteration at McFauld's is very similar to that observed in stringer zones in the Matagami Lake and Noranda districts, Quebec. Its intensity and the high copper contents in the McFauld's occurrences attests to these having formed from a series of well-focussed, high-temperature systems. Such stringer systems typically have associated, but structurally separated zinc zones. Searching for these, as well as additional copper mineralization will be a priority of the next round of geophysical surveying and drilling.

This press release has been prepared by management of UC Resources Ltd. and has been approved for dissemination by James M. Franklin P.Geo. of Ottawa, Ontario, a Qualified Person under Canadian Securities guidelines, in his capacity as consultant for UC Resources Ltd. Dr. Franklin, a director of Spider Resources, wishes to express on behalf of the Spider Board its best wishes for continued successful discovery in this new VMS district.

Richard J. Hamelin, President/Director

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
    (604) 681-7265 or Toll Free: 1-800-366-8566 (Canada & USA)
    (604) 608-6163 (FAX)
    Website: www.ucresources.net