SOURCE: Uranium City Resources

August 17, 2007 15:55 ET

UCR Provides Summary of Field Activity and Update on Planned Exploration

KIRKLAND LAKE, ON--(Marketwire - August 17, 2007) - Uranium City Resources Inc (TSX-V: UCR) (BERLIN: A0F7F5) is pleased to provide shareholders with a summary of recent field activity and also insight into planned exploration activities.

1) Hanson Bay project

i. Three holes have been drilled in the Hanson Bay area of Beaverlodge Lake to test strong EM conductors and inferred fault structures near the unconformity contact between the Martin group sediments and the underlying basement rocks. Although assay results received from SRC Laboratories show no significant U mineralization, it is encouraging to note that the EM conductors that were intersected correspond to graphitic schists with a variable and high percentage of pyrite similar to the graphitic schists that host U mineralization at the former Lorado Mine located nearby.

2) Quartzite Ridge project

i. Drilling has now been completed at the Quartzite Ridge project with 16 holes drilled at various locations to test targets such as major faults, quartz vein networks, alteration zones and radioactive fractures present both in Martin Group sediments and in the underlying basement rocks.

ii. Assays for 150 samples of Martin sediments and basement rocks were submitted to SRC Laboratories for U assay as well as a multi-elements package and results of 12 holes out of the 16 have been received. No significant U mineralization has been found. Although the U values appear low, the presence of altered, silicified, quartz veined and hematized Martin Group sediments is a positive feature. And although low, the fact that these U values are two to ten times higher than background U values is an important feature associated with U mineralization. Haloes of these low U values have commonly been reported in Athabasca Basin sandstones and conglomerates and haloes with high U values have been noted to occur within tens of meters from higher-grade U deposits (e.g. McClean deposits, Wheatley et al., 2006). (1)

iii. Looking forward, encouraged by this halo effect of U mineralization, UCR will undertake additional field mapping, prospecting, PIMA II analysis and data compilation work to better understand the complexity of the geology, structure and mineralization of the Martin Group sediments and basement rocks at the Quartzite Ridge project.

3) East Target project

Since the end of the Phase 2 drilling program, field mapping and prospecting has been ongoing by two UCR geologists and has included the following:

a) Prospecting program:

i. SPP2 scintillometers have been used to identify additional faults, fractures and veins at the East Target that extend up to 20 meters (and sometimes greater) in length and that host anomalous radioactivity from 1,000 to 15,000cps. Some of these radioactive areas correspond to surface extensions of U mineralization intersected in drill holes during previous Phase 1 and 2 drilling on the East Target.

b) Rock sampling program:

i. A program of chip sampling of radioactive veins and fractures occurring on surface is ongoing and so far about 35 samples have been submitted to SRC Laboratories for assay.

ii. Radioactive rock samples have also been collected and submitted to SRC for assay.

iii. A PIMA II spectrometer has been recently acquired by UCR and will be used to identify and map alteration minerals associated with U mineralization in core samples and rocks sampled in the field.

c) Tree biogeochemistry sampling program:

Tree twig biogeochemistry surveys done recently at the East Target, and on other properties of UCR, have shown that results from twig sampling of trees in the Uranium City Mining Camp are strongly correlated to U mineralized zones and vein systems. Such twig geochemistry studies are faster and easier to collect than soil samples year around.

Since the early winter months of 2007, more than 1,247 trees have been sampled from the East Target area. Twig samples were submitted for ashing and INAA analysis for 35 chemical elements to Actlabs (Ancaster, Ontario). All the results have been received and now compiled.

i. Results indicate that U and the associated elements As, Co, Ce (and other REE), Fe, K, Na, Th and V were found to be anomalous near known and recently prospected U veins and fractures on the East Target area.

ii. Results also show that new and stronger U anomalous areas (and its associated anomalous elements) were found in the western part of the East Target property. These new areas of anomalous radioactivity have subsequently been confirmed during prospecting by scintillometers where radioactive veins and fractures were found present in outcrops on surface and underneath the overburden cover.

d) Drilling program:

A new phase of drilling (Phase 3) is set to resume using a new smaller drill to access more difficult and hilly terrain portions of the East Target project.

i. At this time of writing, several drill locations have been identified to test the U anomalous veins and fracture systems recently noted.

ii. In addition, some previous drill holes performed by Eldorado will be twinned to confirm the previous results in areas of significant U mineralization over several meters. The confirmation of previous results will allow UCR to include this data in a block model calculation of the East Target project by expanding the drill hole database, as recommended by Watts, Griffith and McOuatt who are currently performing the NI 43-101 report to assess the size of the ore body at East Target.

e) East Target NI 43-101 compliant Report:

The NI 43-101 report is progressing, although taking more time than anticipated due to the stringent NI 43-101 requirements and due to the backlog of projects facing companies like Watts, Griffith and McOuatt (WGM) of Toronto. Since initiating this 43-101 compliant report, a field visitation along with a sampling program has been completed by a WGM geologist. Assay results of confirmation samples from UCR drill holes and outcrops have now been received by WGM for a quality control check. Database evaluation and quality control have been completed. Drill hole sections with geology and ore block sizes have been defined and reviewed by UCR and WGM geologists. Block modeling is in progress.

4) Tazin Lake

Exploration drilling permits have now been received for the Tazin Lake property. Future drilling on this property will focus on a major east-west trending fault zone hosting U showings at its boundaries. Drilling targets will be identified from geophysics, lake sediment sampling and biogeochemical surveys conducted over the fault zone.

5) West Target Property

Exploration permits have now been received for the West Target. Future drilling on this property will focus on EM conductors situated north-east of the former Eagle Mine shaft and Eagle pits. It is interesting to note that this entire area is underlain by a series of north-east trending zones of U mineralization. Future drilling in the area will be at the intersection of the north-east EM conductors and a major East-West crosscutting fault, (the Camdeck fault), and its adjacent fault zones.

6) Gunnar Property

Exploration permits have now been received for the Gunnar Property, located in close proximity to the former producing Gunnar Mine. The Gunnar Mine was in operation from 1955 to 1963 and during this time produced about 5.5 million tons of an average tenor of 0.175% U3O8. The Gunnar Mine itself was a pipe-like orebody located within a carbonatized and brecciated syenitic rock dipping at 45o to the southeast (Beck, 1969).(2) Rock sampling and biogeochemistry done by UCR in the Fall of 2006 has indicated anomalous U values to the southeast of Dome Lake located on UCR property. Future drilling will be in the area containing these anomalous U values and will be designed to test for the possible existence of additional pipe-like structures in the altered syenitic rocks plunging toward the southeast.

Commenting on this field activity and planned exploration, UCR's CEO, Robert Kasner, stated, "The new field mapping, prospecting work and geochemistry survey work at the East Target shows the U mineralization is much more extensive through the project area than previously thought and that it appears to trend toward the St Louis Fault and the former Ace Mine. I am looking forward to the next phase of drilling at these new radioactive and geochemically anomalous areas. I am confident that the NI 43-101 report currently being prepared by WGM will confirm UCR's focus on the East Target project. I am also looking forward with great anticipation to undertaking additional exploration work on Tazin Lake, West Target and Gunnar properties."

(1) Wheatley K. et al. (2006) Geology of the McClean/Sue deposits. In Abstracts volume for the 2006 CIM Uranium Field Conference.

(2) Beck L.S. (1969) Uranium Deposits of the Athabasca Region, Government of Saskatchewan

The technical information in this news release has been reviewed by Jim Kermeen, P. Eng. a qualified person as defined by National Instrument 43-101.

Forward-looking statements:

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond UCR's control or prediction and could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Although UCR believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements.

Contact Information

  • For further information please contact:

    Robert Kasner
    President & CEO
    T: 1.705.567.5351
    E: Email Contact

    Malcolm Bucholtz
    V.P. Investor Relations
    T: 1.306.525.0852
    E: Email Contact

    Head Office:

    4 Al Wende Avenue, P.O.Box 546
    Kirkland Lake, Ontario
    P2N3J5
    T: 1.705.567.5351
    F: 1.705.567.5557
    http://www.uraniumcityresources.com