SOURCE: Ucore Uranium Inc.

January 22, 2007 09:00 ET

Ucore Channels 0.752% U3O8 at Lost Pond

HALIFAX, NS -- (MARKET WIRE) -- January 22, 2007 --Ucore Uranium Inc. (TSX-V: UCU) ("Ucore" or the "Corporation") is pleased to provide an update on recent work completed at the Lost Pond project in western Newfoundland. Highlights of sampling and channel samples taken across trenches include the following:

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Trench #        U3O8%         Width (metres)
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1B              0.189              3.0
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including       0.453              1.0
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1C              0.167              2.0
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1B              0.106              2.0
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and             0.046              3.0
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2               0.752              0.5
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3               0.058              3.0
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10              0.019              2.0
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11              0.091              1.0
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Sample Area                            U3O8%
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U2 Grid (north of trenches 3,10,11)    0.375
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U2 Grid (north of trenches 3,10,11)    0.158
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The Lost Pond property covers a number of uranium showings characterized by intense hematite and clay alteration associated with fractured and brecciated syenite. The zones discovered to date are hosted within the Proterozoic aged Grenville metamorphic terrain and are proximal to a major Paleozoic unconformity.

Sixteen trenches were completed or attempted on the various targets, thirteen on the U-2 grid (Dome One showing) and three on the U-3 target area, two kilometres east of the U-2 grid. A total of 80 representative samples were taken on the various radiometric anomalous zones. These samples consist mainly of 1.0 metre channel samples cut across the zones. Chip samples were taken in a few areas where the rock was too friable to get a consistent saw cut. This recently completed program is a follow-up to the initial trenching program reported in a press release dated November 14, 2006. All samples were assayed for Uranium by Delayed Neutron Counting method, at Actlabs of Ancaster, Ontario. A detailed description of the various showings and results are outlined below and a map showing trench locations on the U-2 grid area can be found at www.ucoreuranium.com in the press release section.

A drill program, designed to test these showings, is scheduled to start in early February. The drilling will initially target the Dome One showing which has been traced for 60 meters and is completely open on strike to the north and south. This drilling will help confirm the geometry and continuity of the zone as well as following the mineralization to the south under the Paleozoic unconformity. The other four U-2 Grid showings will also be tested with a series of holes to help define the size and grade of the structures. Two to four holes have been scheduled to test the U-3 target as the trenching has only partially uncovered this mineralization.

U-2 Grid

Trenching on this grid was generally confined to a 200 metre by 200 metre area centred on the recently discovered uranium mineralization. Five of the trenches completed on the U-2 grid resulted in partial definition of distinct uranium zones.

Dome One Showing

The Dome One showing consists of a central uranium fracture system in a heavily hematite and chlorite altered breccia. Initial sampling reported in the earlier press release included results of 0.118% U3O8 over 5.0 metres and 1.839% over one metre. Additional trenching on this mineralization has proven the continuity of the zone and extended it an additional 50 metres to the south. Results include:

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Trench and Location                          U3O8 Grade and Width
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Trench 1B - Middle channel                   0.189% over 3 metres
                                    (incl. 0.453% over 1.0 metre)
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Trench 1B - Floor channel                    0.130% over 3 metres
                                    (incl. 0.377% over 1.0 metre)
-----------------------------------------------------------------
Trench 1B - Lower channel                  0.046% over 3.0 metres
                                       and 0.106% over 2.0 metres
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Trench 1C (50 metres south of Trench 1B)   0.167% over 2.0 metres
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Dome Two Showing

Work on the Dome Two showing included overburden stripping of the hematite altered zone which exposed additional uranium mineralization to the south of the original showing. The original showing had assayed 0.156% U3O8 over one metre. Trenching to the south of the original showing yielded 0.752% U3O8 over 0.5 metres.

New Zones

The trenching uncovered additional mineralization to the east of the Dome One showing. Three areas of high radioactivity associated with hematite/sericite/clay alteration were exposed and sampled. These three areas display moderate to heavy surficial weathering and possible leaching. The three areas are designated by trench number and composite results from each were:

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Trench                                 U3O8 Grade and Width
-----------------------------------------------------------
Trench 3                             0.058% over 3.0 metres
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Trench 10                            0.019% over 2.0 metres
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Trench 11                            0.091% over 1.0 metres
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Additional prospecting on the U-2 grid, north of these trenches has resulted in sample values of 0.375% and 0.158% U3O8 from angular float which is thought to be sourced by additional mineralized zones.

U-3 Target

Trenching was also completed on the U-3 target located two kilometres east of the U-2 grid. Mineralization in this area consists of very high radioactivity associated with heavy hematite and magnetite mineralization which could only be partially trenched due to overburden depths. Channel sample results include uranium values up to 0.035% U3O8 over one metre. The width of the zone was not determined as it disappears under deep overburden.

A second parallel zone is located 100 metres to the south and was defined by a reconnaissance magnetic survey. This area could not be adequately tested as the program was suspended due to winter conditions, however additional linecutting and magnetometer surveying are being completed.

The Company's Qualified Person ("QP") is Wayne Reid, P.Geo. As the QP, he has prepared or reviewed the technical information for this release. Wayne Reid is the Vice President of Exploration for Ucore Uranium Inc.

Please Click Here for a map of the geological interpretation of the Lost Pond Area. http://www.usetdas.com/maps/ucore/ucoreLOSTPONDjan19.jpg

Graphic hosted by Filing Services Canada Inc. website.

For further information on the Lost Pond project and Ucore Uranium Inc., please visit our website at www.ucoreuranium.com, or contact Mr. Jim McKenzie, President and Chief Executive Officer of the Corporation at:

Telephone: (902) 482-5214 Fax: (902) 492-0197

This press 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 exploration drilling, exploration activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation 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 forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.

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

(Not for dissemination in the United States of America)

Contact Information

  • Mr. Jim McKenzie
    President and Chief Executive Officer
    Telephone: (902) 482-5214
    Fax: (902) 492-0197