Western Prospector Group Ltd.
OTC Bulletin Board : WEPGF

Western Prospector Group Ltd.

April 03, 2006 11:05 ET

Western Prospector Group Ltd.: Saddle Hills Project Continues to Generate Additional Uranium Mineralization

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 3, 2006) - Western Prospector Group Ltd. (TSX VENTURE:WNP)(OTCBB:WEPGF) reports that the 2006 Saddle Hills drilling program is well underway with 3 drills currently turning within the immediate area of the Gurvanbulag deposit. Western Prospector is proceeding with a 100-hole drilling program at Gurvanbulag, with approximately 30 holes completed to date, 18 of which are reported below.

The initial 30 holes were collared to test the following:

- continuity of mineralization between historic resource blocks for the purpose of completing a new resource calculation;

- limits of several historic resource blocks in order to expand mineralization defined within historic blocks; and

- near-surface projection of structural mineralized feeder zones for bulk-tonnage targets.

Drill Hole Grade Variance

A summary table of the initial 18 drill holes follows:

HOLE # SECTION (m) (m) (%)

5079 11050 N 253.0 - 255.1 2.1 0.42

5080 10450 N 250.6 - 252.0 1.4 0.03

5081 9600 N 166.0 - 168.1 2.1 0.18

5082 10500 N 62.0 - 73.0 11.0 0.23
includes 62.0 - 66.0 4.0 0.52

5083 10700 N 353.3 - 356.6 3.3 NSV

5084 10850 N 295.5 - 297.7 2.2 0.15

5085 9425 N 83.0 - 85.0 2.0 NSV

5086 11400 N 25.0 - 44.0 19.0 0.04

5087 9475 N 110.0 - 112.0 2.0 NSV

5088 10000 N 291.0 - 293.0 2.0 0.33

5089 9350 N 102.1 - 104.1 2.0 0.35

5090 9950 N 266.4 - 267.7 1.3 0.05

5091 9392 N 95.0 - 97.0 2.0 0.13

5092 9300 N 61.0 - 63.0 2.0 0.38
and 92.0 - 95.0 3.0 Awaiting

5093 9290 N 87.0 - 89.0 2.0 NSV

5094 9900 N 276.7 - 278.7 2.0 NSV

5095 9325 N 80.0 - 81.5 1.5 0.73

5096 9950 N 298.6 - 301.1 2.5 0.16

(i) NSV - No Significant Values

Block Continuity

Holes 5085, 5087, 5089, 5091 to 5093, and 5095 were collared between previously drilled off-set sectional drilling, in order to determine alignment and projection orientation of the stratabound mineralization in Block 1-6, adjacent to the main Gurvanbulag deposit. Of the 7 holes, 4 intersected uranium mineralization that confirmed projection of mineralized blocks, and 3 holes with low-grade values resulted in a re-interpretation of block geometry. Overall, continuity of uranium mineralization within the historic C2 blocks, as previously outlined by prior Russian explorers, has been verified.

Expanding Block Limits

Drill holes 5079, 5083 and 5084 were collared in the northeastern portion of the Gurvanbulag deposit, targeting a recently identified northerly trending corridor related to a feeder fracture system. Both holes 5079 and 5084 within the corridor intersected attractive uranium grades; hole 5083 overshot the fracture zone without intersecting significant values.

The boundaries of mineralized blocks within the Gurvanbulag deposit as reported by historic drilling are being verified, and continued drilling will now be focused to expanding the overall dimensions of Gurvanbulag.

Near-Surface Targets

Western Prospector is now exploring opportunity for additional near-surface bulk-tonnage uranium mineralization along the surface projection of the mineralized feeder structures above the main Gurvanbulag deposit. Drill hole 5082, located at the northern limit of the deposit, intersected 0.23% U3O8 over 11.0 metres at a depth of 62 metres. Drill hole 5086 intersected 0.04% U3O8 over 19.0 metres at a depth of 25 metres. Both drill holes have indicated opportunity for definition of near-surface uranium mineralization where drilling now continues.

Grade Variance

To assist in determining nugget effect of varying uranium grades, 4 holes were positioned at 50-metre spacing around hole 5004 that reported 0.12% U3O8 over 2.7 metres. Drill holes 5088 and 5096 located 50 metres to the northeast and southeast intersected 0.33% U3O8 over 2.0 metres and 0.16% U3O8 over 2.5 metres, respectively. Drill holes 5090 and 5094, located 50 metres to the north and southeast, respectively, intersected low-grade values. It is notable that the average of all 5 holes approximates the assay of hole 5004.

A geological block model is under construction that incorporates 1,000 historic surface drill holes, 480 underground holes and 100 Western Prospector drill holes from the 2005 and 2006 drilling. Western Prospector has contracted SRK Consulting (Canada) Inc. ("SRK") to produce a NI 43-101 compliant independent resource estimate and technical report on the main Gurvanbulag Uranium deposit. The SRK resource study is expected early in the second quarter of 2006.

J.S. Redpath Limited of North Bay, Ontario, has been retained to dewater and rehabilitate the Gurvanbulag underground workings. Redpath now has crew on-site establishing the surface infrastructure. The underground program is scheduled to begin in June 2006.

All drill core is split at the project site and forwarded in secured containers to Alex Stewart Laboratories in Ulaanbaatar, Mongolia for sample preparation. Pulps are then forwarded to Activation Laboratories in Ancaster, Ontario for uranium analysis. Western Prospector has a QC/QA program that employs random insertion of internal standards and blanks as well as check assays at an external laboratory.

Wayne J. Roberts, P.Geo, Senior Vice-President for Western Prospector and a Qualified Person, has reviewed the technical information presented within this news release.

As noted in news release 06-04 dated March 3, 2006, a lawsuit naming Western Prospector as a defendant has been commenced in the Supreme Court of British Columbia in which the plaintiff, Maximum Ventures Inc., is seeking, among other things, a declaration that Western Prospector holds certain of its material Mongolian properties, including a portion of the Saddle Hills Uranium interests, in trust for Maximum.

Western Prospector is of the view that Maximum's allegations against Western Prospector are without foundation or merit and, as noted in the previous release, Western Prospector will vigorously defend the action and take all appropriate steps to protect Western Prospector's interests.

John S. Brock, 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 future production, reserve or resource potential, exploration drilling, exploitation activities and events or developments that Western Prospector Group Ltd. (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, exploitation and 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.

Information Concerning Estimates of Mineral Resources:

This news release uses the terms "inferred resources", "indicated resources", "mineral resources" and "resources". Western Prospector Group Ltd. (the "Company") advises investors that although these terms are recognized and required by Canadian securities regulations (under National Instrument 43-101 "Standards of Disclosure for Mineral Projects"), the US Securities and Exchange Commission does not recognize these terms. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

For more information on the Company, Investors should review the Company's filings 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

  • Western Prospector Group Ltd.
    Blaine Monaghan
    Manager, Investor Relations
    (604) 687-4951 or Toll Free: 1-800-403-2988
    (604) 687-4991 (FAX)