Uranium North Resources Corp.
TSX VENTURE : UNR

Uranium North Resources Corp.

August 06, 2009 11:46 ET

Uranium North Outlines 19.3 Million Pound U3O8 Inferred Resource at Amer Lake; Deposit Remains Open Along Strike and Down Dip

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 6, 2009) - Uranium North Resources Corp. (TSX VENTURE:UNR) announces the completion of a National Instrument 43-101 ("NI 43-101") compliant inferred mineral resource calculation for the Main Zone deposit on its 100% owned Amer Lake property in Nunavut. This new resource calculation is significantly higher than the historic estimate and represents what the Company believes is a portion of a much larger deposit on the property.

Based on cut-off grades ranging from 0.01 to 0.06% U3O8, the interim resource calculation outlines 19.3 to 7.3 million pounds of uranium grading at 0.04 to 0.11% U3O8 respectively (Table 1).

Using the current industry standard cut-off grade of 0.01% U3O8, a resource of 19.3 million pounds at an average grade of 0.04% U3O8 has been defined.

The resource calculation outlines 12.9 million pounds U3O8 grading 0.07% U3O8 using a 0.04% cut-off or 9.7 million pounds grading 0.09% U3O8 using a 0.05% U3O8 cut-off. This is a significant increase from the historic estimate of 6.7 million pounds grading 0.07% U3O8 at a cut off of 0.05% U3O8.



Table 1. Details of the resource estimate are as follows:

----------------------------------------------------------
Cut-Off Tonnage U3O8 U3O8
Grade U3O8 T x 1,000 Grade lbs
----------------------------------------------------------
0.010%(i) 21,423 0.04 19,318,000
----------------------------------------------------------
0.020% 15,344 0.05 17,509,000
----------------------------------------------------------
0.030% 11,596 0.06 15,462,000
----------------------------------------------------------
0.040% 8,391 0.07 12,982,000
----------------------------------------------------------
0.050% 5,094 0.09 9,713,000
----------------------------------------------------------
0.060% 3,062 0.11 7,288,000
----------------------------------------------------------

(i) base case

All tabulated data has been rounded to two decimal places
for grades and to the nearest thousand for tonnes and pounds


"Establishing Amer Lake as Canada's newest uranium resource is a major milestone for the Company. We have met our initial goal of defining a compliant resource that is double the historic deposit. Our clear and low cost plan to significantly expand Amer Lake to a shallow large tonnage uranium deposit is well underway," says Mark Kolebaba, President of Uranium North Resources.

This resource is confined to drilling within an area which measures 1,400 metres in an east-west direction and 500 metres in a northwest-southeast direction. Geology and geophysics indicate the Main Zone deposit may extend an additional 1,200 metres to the southeast which will be a focus for future drilling. In addition to the expansion potential of the Main Zone, the Company has identified numerous other similar uranium bearing zones within a 10 kilometre radius of the Main Zone deposit.

Geological modeling using computer software shows that the Main Zone deposit outcrops to the north and extends shallowly to the south where the mineralized body becomes flat lying. This type of geometry may be amenable to low-cost mining methods.

The mineralized zone is hosted within a magnetic sandstone unit that is traceable with geophysics. The traceability using an airborne magnetic survey greatly assists in further expanding this shallow resource making Amer Lake a low-cost exploration project.

Alan Armitage, VP of exploration for Uranium North Resource states, "Based on a solid geological model and firm understanding of our geophysical data, we are confident Amer Lake has the potential to host a large uranium deposit. Going forward, drill programs will focus on expanding the Main Zone resource. In addition, our work to date indicates that the targets identified elsewhere on the property may also add to the uranium potential of the property."

Further drilling completed in 2009 will be represented in an additional resource estimate.

Mineral Resource Estimate Method

Mineral resource estimates were carried out by Mr. Joseph Campbell, President of GeoVector Management Inc., and an independent Qualified Person as defined by National Instrument 43-101.

The inferred mineral resource was calculated using Gemcom GEMS 6.2.1 software. Mineral resources were domained into 8 stratabound mineralized horizons that were based on stratigraphic controls from drill core, magnetic susceptibility and ICP geochemistry. These horizons were wireframed in Gemcom using a minimum width of 1.50 metres. Historical intersections that were below this thickness were increased to 1.50 metres by adding appropriate thicknesses at a background grade to arrive at a minimum of 1.50 metres. The wireframes were then intersected with a block model to arrive at mineralized zone volumes. These volumes were multiplied by an average SG of 2.71, as determined from 38 samples analyzed by the Saskatchewan Research Council (SRC), to arrive at tonnage within the wireframes of mineralized zones.

Grades were interpolated into the block models from 1.50 metre composites of all assays that intersected the wireframe models. In several cases historical drill holes had no assay data in areas of indicated mineralization, and these intersections were given a grade of 0.003% U3O8, which is the calculated background grade within the anomalous stratigraphic package containing the mineralized horizons, as determined from 2008 and 2009 drilling analyses (all drill intervals were sampled).

Historical assays were obtained from the Geological Survey of Canada from records sent to the Atomic Energy Control Board by Aquitaine Company of Canada Limited in 1971. Uranium North Resources Corp drilling programs in 2008 and 2009 were analyzed by SRC Geoanalytical Laboratories using SRC's Uranium Exploration ICP Package, which includes uranium by total digestion ICP-OES analyses, uranium by partial digestion ICP-OES analyses and uranium by fluorimetry analyses. All samples having more than 1000 ppm uranium were assayed using a uranium assay dissolution procedure. Numbers reported are for uranium by fluorimetry (less than 1,000 ppm).

Block modelling interpolation was carried out using an inverse distance squared method as drill spacing and sample populations were not sufficient to carry out kriging methods. Search parametres were set up to mimic the stratigraphic strike and dip of wireframes which conform to the Amer Lake sub-basin.

In two cases (upper 3 surfaces in historical hole AML-30, and in 2008 drill hole UNR-5) the drill hole location was considered too far from adjacent drill holes to allow confident wireframing. In these cases simple polygonal estimates were made around the holes using the areal dimensions of the smallest surface wireframed for the block model. These polygonal inferred resources were added to the resources calculated in the block model to arrive at total inferred resource.

NI43-101 Compliant Report

The Company plans to file an NI 43-101 compliant technical report covering the inferred resource estimate completed on the Main Zone deposit. The report is being prepared by GeoVector Management Inc. and will be filed within 45 days to regulatory agencies.

QA/QC

Uranium North RC drilling and sample collection 2008 was supervised by MPH Consulting Limited, and 2009 drilling and sample collection was supervised by GeoVector Management Inc., and both programs were performed to industry standards. The 2009 drilling included insertion of blanks and reference standards for assay grade control, as well as duplicate samples. Results were within accepted ranges. In addition SRC performed in-house standards and assay duplicates on a batch basis for in-lab quality control.

Historical assay information was only available from documents prepared by Core Laboratories-Canada Ltd. These documents contained the signatures and seals of the Atomic Control Board of Canada and therefore were considered to be sufficiently accurate for inferred resource reporting.

Drill hole collars were obtained from handheld GPS in the field and cross checked against historical map locations for the drill collars. No down hole surveying was carried out.

All data was checked against original certificates and documentation to verify that information used in the resource estimate was correct.

Resource Classification

Mineral resources have been categorized using the classification of the Canadian Institute of Mining, Metallurgy and Petroleum (2000), with the relevant definitions provided below. This classification is the basis for Technical Reports by Qualified Persons in Canada, and the classification is virtually the same as that of the JORC code (Australia) SME guidelines (USA) SAMREC (South Africa) and that of the European Union.

An Inferred Mineral Resource can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

Due to the uncertainty which may attach to Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful appreciation of technical and economic parametres or to enable an evaluation of economic viability worthy of public disclosure.

Phase 1 Drill Program Results

The resource estimate contained in the Main Zone is defined by historic diamond drill holes and recent reverse circulation (RC) drill hole data, up to July 2009. A total of 21 diamond drill holes totaling 4,396 metres and 14 RC holes totaling 1,765 metres were used to create the model used in the resource calculation.

Phase 1 drill program carried out in 2009 on the Main Zone uranium deposit confirmed historic U3O8 grades, thicknesses and continuity of mineralization within the deposit.

All drill holes intersected multiple stacked, shallow dipping mineralized zones within a dark grey arkosic sandstone unit. Drill hole intercepts of 0.91 up to 14.02 metres returned uranium grades ranging from 0.011 % U3O8 up to 0.304 % U3O8. AM09-23 intersected four mineralized zones between 33.5 and 106.7 metres of surface. Mineralized zones range from 1.52 - 8.54 metres grading 0.02 to 0.304 U3O8 (see table below). AM09-23 was essentially a twin of historic drill AML12, completed by Aquitaine Company of Canada in 1970, which returned values of 0.05% to 0.134 U3O8 over 1 to 3 metres.

The results of the infill drilling indicate mineralized zones are significantly thicker than what was reported in historic drilling. The drill program provided the relevant geological and mineralogical information to allow Uranium North to confidently construct a solid geological model and proceed towards the calculation of the NI 43-101 inferred resource. The geological model constructed as a result of the new drill data indicates the Main Zone deposit has significant expansion potential.

The Data: Phase 1 - Main Zone Drilling

A total of 1,216 metres in 10 reverse circulation drill holes spaced approximately 50 metres apart were completed within the Main Zone deposit. Assay results are presented below.



--------------------------------------------------------------
Drill hole From (m) To (m) Interval (m) % U3O8
--------------------------------------------------------------
AM09-22 10.06 13.11 3.05 0.015
29.87 31.39 1.52 0.018
42.37 45.11 2.74 0.013
52.12 53.64 1.52 0.019
58.22 67.36 9.14 0.022
Incl. 61.26 64.31 3.05 0.038
74.98 75.90 0.91 0.044
80.47 82.30 1.83 0.143
89.61 103.63 14.02 0.016
Incl. 97.54 99.06 1.52 0.070
--------------------------------------------------------------
AM09-23 33.53 35.05 1.52 0.304
42.67 50.29 7.62 0.047
Incl. 44.20 47.24 3.04 0.095
58.52 67.06 8.54 0.048
Incl. 62.48 65.53 3.05 0.102
79.25 83.82 4.57 0.093
Incl. 80.77 82.3 1.53 0.180
105.16 106.68 1.52 0.020
--------------------------------------------------------------
AM09-24 43.28 45.11 1.83 0.027
51.82 53.34 1.52 0.012
74.68 76.20 1.52 0.026
70.10 71.63 1.53 0.071
74.68 76.2 1.52 0.026
79.25 80.77 1.52 0.025
--------------------------------------------------------------
AM09-25 15.24 19.81 4.57 0.029
Incl. 16.76 19.81 3.05 0.035
27.43 30.48 3.05 0.016
44.50 45.42 0.92 0.069
54.86 56.39 1.53 0.016
--------------------------------------------------------------
AM09-26 No Significant Assays
--------------------------------------------------------------
AM09-27 21.34 24.38 3.04 0.030
35.05 38.10 3.05 0.026
Incl. 35.05 36.58 1.52 0.037
--------------------------------------------------------------
AM09-28 4.57 9.14 4.57 0.012
30.48 32.31 1.83 0.034
40.54 44.20 3.66 0.015
46.94 47.85 0.91 0.030
52.43 53.34 0.91 0.020
67.97 70.10 2.13 0.021
76.20 79.25 3.05 0.021
85.34 86.87 1.52 0.012
--------------------------------------------------------------
AM09-29 7.62 8.53 0.91 0.011
12.19 15.24 3.05 0.014
--------------------------------------------------------------
AM09-30 9.14 12.19 3.05 0.014
21.34 24.38 3.04 0.019
36.58 38.10 1.52 0.118
51.82 53.34 1.52 0.013
60.96 67.06 6.10 0.025
Incl. 60.96 62.48 1.52 0.042
77.72 79.25 1.52 0.017
81.08 81.99 0.91 0.011
91.14 92.05 0.91 0.031
99.36 112.17 12.81 0.018
Incl. 100.3 103.02 2.72 0.034
Incl. 106.69 109.41 2.72 0.029
--------------------------------------------------------------
AM09-31 62.48 64.01 1.52 0.013
71.63 73.15 1.52 0.019
79.25 83.82 4.57 0.018
Incl. 79.25 80.77 1.52 0.042
88.39 89.92 1.52 0.044
--------------------------------------------------------------


QA/QC

A total of 586 samples of 0.91 - 1.52 metres in length were shipped in sealed containers to be processed at the Saskatchewan Research Council (SRC) Geoanalytical Laboratories, which is an ISO/IEC 17025 accredited laboratory for mineral analysis testing located in Saskatoon, Saskatchewan. Samples were analyzed using SRC's Uranium Exploration ICP Package, which includes uranium by total digestion ICP-OES analyses, uranium by partial digestion ICP-OES analyses and uranium by fluorimetry analyses. All samples having more than 1,000 ppm uranium were assayed using a uranium assay dissolution procedure. Numbers reported are for uranium by fluorimetry (less than 1,000 ppm).

Amer Lake is located in an emerging mining district. The property is located 145 kilometres north of Baker Lake, Nunavut and 70 kilometres northwest of an all-season road, which extends from Baker Lake to Agnico Eagle's Meadowbank gold deposit planned to be in production by 2011. Also in the vicinity is Areva's 147 million pound Kiggavik uranium deposit which Areva is working towards a planned production date of 2015.

Allan Armitage, Ph.D., P.Geol, Vice President - Exploration of Uranium North, is a Qualified Person as defined by National Instrument 43-101, and is responsible for quality control of exploration undertaken by the Company and has reviewed and approved the technical information in this release. GeoVector Management Inc. of Ottawa managed the field program this year. Alan Sexton, MSc, P.Geol., the Project Manager and a Qualified Person under NI 43-101, supervised the technical aspects of the 2009 field program.

On behalf of Uranium North Resources,

Mark Kolebaba, President and CEO

Forward-Looking Information

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 exploration drilling, activities and events or developments that Uranium North Resources Corp (the "Company") expects to occur, 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, exploration successes, and 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 actual results or developments may differ materially from those projected in the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

"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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