Uranium Power Corp.
TSX VENTURE : UPC

Uranium Power Corp.

October 25, 2005 11:50 ET

Uranium Power Corp. Announces Phase 1 Drill Program on the Arizona Breccia Pipes Project to Commence November 1, 2005

VANCOUVER, BRITISH COLUBMIA--(CCNMatthews - Oct. 25, 2005) - Uranium Power Corp. ("Uranium Power") (TSX VENTURE:UPC) and US Energy Corp (NASDAQ:USEG) are pleased to announce that all necessary permitting clearances have been received to allow commencement of the planned 40 - hole drill program as scheduled on November 1, 2005. The Breccia Pipes project is a joint venture between USEG and Crested Corp. (doing business as the USECC Joint Venture), and Uranium Power Corp., and is located in Mohave County, AZ.

The Arizona Strip was the site of major uranium production in the early 1980's. Uranium-bearing breccia pipes were first located in the Hack Canyon area of Mohave County. The mineralization was of a much higher grade than other uranium deposits located in surrounding areas of the Colorado Plateau. This mineralization has been mined at a relatively low cost per pound by conventional underground methods. Historic mining in the Arizona Strip had produced average uranium contents of up to 0.80% U3O8. The total production from individual mines has ranged from about 800,000 lbs to 4,400,000 lbs U3O8.

This drilling program will concentrate on targets within the STAR claims, which are adjacent to the Arizona I mine. The mine was developed in preparation for mining in the 1980's but no production ever took place. The area is located a short distance south of the Hack Canyon mining area. Mapping on the STAR claims indicates the presence of 23 potential pipes.

The objective of this drilling program is to verify the presence of deeper structural collapse features inferred by surface mapping. This program will consist of up to 40 drill holes, planned to test the stratigraphy surrounding these identified target areas. If successful, a second phase of drilling is planned, consisting of deep tests of the most favourable targets identified by the first phase of drilling.

If any of the targets is developed to a mining stage then the Shootaring Canyon Mill, owned by USEG, (and in which Crested has an interest), and would be the likely location for processing.

To assist in the operation of this and other projects, the USECC Joint Venture, the project operator, has hired Jim Rasmussen as Chief Geologist. Jim has a long and successful history of working in the Arizona Strip, including over 12 years as District Geologist and other senior exploration department positions with Energy Fuels Nuclear. He has been directly involved in the discovery of several breccia pipe producers. Jim will bring the strong technical background that will be necessary to ensure the success of the project.

Chris Healey P. Geo., Vice President - Exploration for USEG and a Director of UPC is the Qualified Person responsible for the technical data presented in this release.

URANIUM POWER CORP.

Rahoul Sharan, President

WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration in available.


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

Contact Information

  • Uranium Power Corp.
    Rahoul Sharan
    President
    (604) 689-1810
    (604) 689-1817 (FAX)