Western Uranium Corporation

Western Uranium Corporation

November 14, 2007 08:30 ET

Western Uranium Corporation Provides Corporate Activity Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2007) - Western Uranium Corporation (the "Company") (TSX VENTURE:WUC) is pleased to announce an update on corporate activities.


The spin-out of the lithium asset located at the Kings Valley Project, Nevada into an independently publicly traded company, Western Lithium Corporation, is projected for completion in the first quarter of 2008. AMEC is progressing towards completion of a NI43-101 compliant report to be available in December 2007. The new company will begin trading with a NI 43-101 report, a preliminary market study, and advanced metallurgical testing. Each WUC shareholder will receive a proportionate stake in Western Lithium Corporation (WLC) relative to the number of shares issued in WLC to their percentage holding in WUC.

The Company is in the process of advancing the spin-out and potential development of the project by undertaking confirmation and in-fill drilling, which will provide data for a NI 43-101 compliant resource calculation to follow the report. The company is focusing work on one of the five pods of mineralization, which hosts approximately 1.7 billion pounds of the total 25.0 billion pounds of lithium carbonate resource defined by Chevron Resources. This body of mineralization, the PCD lens, has been selected for the first phase of development due to the close proximity to existing infrastructure. The figures quoted above are not NI 43-101 compliant and as such should not be relied upon.

Three large diameter core holes have been completed on the PCD lens for the purpose of providing metallurgical test samples and supplying material to confirm results from initial metallurgical test work completed by Chevron Resources. Quarter splits of the core have been sent to American Assay Laboratories and to Hazen Metallurgical Laboratory. Both laboratories will assay the samples and Hazen is in the process of completing bench scale metallurgical testing on composite samples using an extraction process developed by Chevron Resources for these particular lithium-rich clays. Results from this work should be available by December 2007.

Core drilling is in progress on an additional 17 holes, and is designed to provide in-fill data for calculation of a NI 43-101 compliant resource calculation. Three of the seventeen holes have been completed and a NI 43-101 compliant resource will be available by March 2008. The resource estimate will follow the release of the NI 43-101 report as the drilling will still be in progress at the time of completion of the report.

The company is in the process of securing an additional drill rig to accelerate the drilling process which in turn could advance the timing for completion of a NI 43-101 compliant resource estimate. All of these holes, including the three metallurgical test holes, are being drilled to depths below the lithium mineralization to satisfy Western Uranium Corporation and Cameco Corporation that there is no underlying uranium mineralization.

The company has undertaken an in-house market study, but is seeking an independent study to verify and confirm the internally generated results. Preliminary contacts have been made with both marketing firms and a manufacturer of lithium batteries used in hybrid automobiles. An independent, widely recognized industrial minerals expert, Mr. Peter Harben, is providing the company with an independent analysis of the current lithium market and future growth prospects for the market. The company is also in the process of hiring Senior Management personnel that will take over day-to-day operations of Western Lithium Corporation.


AMEC is nearing completion of the preparation of a NI 43-101 compliant uranium resource calculation for the Kings Valley project. This resource estimate will cover the areas of the historic drilling undertaken by Chevron Resources and The Anaconda Company in the late 1970s and will include Western Uranium's current program up to hole WED06-20. AMEC has indicated that the report and resource estimate should be completed by December 2007.

Significant technical advances have been made in a number of areas including drilling, geochemical and geophysical surveys over various areas of the claim block. However, activities have advanced at a slower pace than initially anticipated due to the high demand placed on the support industries for their services and equipment. Delays are further compounded by the turn-around time from the point a sample enters a laboratory to receipt of the final analytical report due to the high sample volume the laboratories are receiving.

Over the summer and fall at the Kings Valley project in Nevada, both reverse circulation and diamond drilling have been ongoing. To date, during the 2007 calendar year, approximately 7600 meters in 31 reverse circulation drill holes have been completed between the Moonlight, South, and North zones. The analytical results from the drilling have been starting to come in over the past three weeks.

In the absence of available drilling equipment that is capable of drilling the Bull Basin and Old Man Springs anomalies, the Company has pursued a variety of exploration techniques to assist in defining multiple drill targets so that a drill program can be accelerated once additional drill contractors who have the necessary equipment to drill at these locations are procured.

Regional work has included in-fill and step-out geochemical sampling on the Bull Basin and Old Man Springs anomalies using both radon track-etch sampling and soil gas hydrocarbon sampling. A total of 3337 soil gas hydrocarbon (SGH) and radon track-etch (RTE) samples have been collected over the areas. Analysis of the RTE results received (2150 sample results returned, 1187 outstanding) from the radon track-etch samples has expanded and further defined both anomalies. Due to the analytical technique used by Actlabs when analyzing the SGH samples, it is necessary to process all the results and evaluate the data-set as a whole. Results are expected by mid-December.

The preliminary work at Bull Basin and Old Man Springs is focused on defining specific drill targets within very large areas that demonstrate anomalous uranium geochemistry as defined by radon gas emissions (a daughter product in the emissions decay chain of uranium) and soil gas hydrocarbon emissions that indicate the gases are derived from a uranium source.

Aeroquest has been contracted to fly a helicopter-supported airborne radiometric, frequency domain EM, and magnetometer survey over the entire property. The survey started on October 21st and as of November 13th the survey was 95% complete. The results from this survey will be used to identify additional areas for first pass exploration during the 2008 field season. The results will also be compared with the results from the geochemical surveys over Bull Basin and Old Man Springs to aid in selecting the first-pass drill targets.

The first technical committee meeting was held between Cameco and Western Uranium. Valuable geologic insights into the exploration potential at both the Kings Valley and Thelon projects were learned during the meeting. Cameco personnel had recently visited the Streltsovka Caldera in Russia, which hosts 600 million pounds of uranium. The geologic setting of the Kings Valley caldera is similar to the Streltsovka Caldera. It was noted by Cameco personnel the McDermitt Caldera has considerable potential to host similar styles of uranium mineralization to that found in the Streltsovka Caldera. Future exploration programs at Kings Valley will focus on deeper portions of the system that may host higher grade vein style uranium mineralization in granite basement rocks such as is found at Streltsovka.


Continuation of the 2007 exploration program started on August 3 and continued until October 5th. During this period one core hole was drilled in Area 7 (RHC-07-5) and three holes were drilled on Area 6 (RHC-07-6, 7, 8). 830 SGH samples were collected over select sites on Areas 6 and 7.

Drill hole RHC-07-5 was completed as a continuation of the Area 7 Spring drill program and was drilled in order to assist in defining the alteration and potential trend of mineralization. In addition to encountering weak graphitic zones, RHC-07-05 core also revealed that chlorite, illite, and albite had been introduced into the host rocks. These alteration types are found in relation to Athabasca style mineralization and indicate that potential mineralizing fluids have been active in the area (Press Release, July 9, 2007). During the technical committee review with Cameco, it was noted after examination of altered drill core from this area, additional work was warranted and that for a small, first-pass drill program, it was technically successful.

A total of 554 meters was drilled in the three core holes in Area 6. These holes were drilled to test a 6km long EM conductor oriented in a north-northwest direction. The EM conductor was defined by an airborne survey flown in 2006 and ground-based survey conducted in the spring of 2007. None of the three holes completed in Area 6 encountered structures, alteration, or mineralization that could explain the source of the EM conductors and it is believed that the holes may have been too shallow and should have been drilled deeper and needed to be collared farther to the west.

A soil geochemical sampling program utilizing the SGH technique was undertaken over portions of Area 6 and Area 7. Approximately 700 samples were collected from the same project area as the ground based EM survey of Area 6. In conjunction with the geophysics these samples will assist in defining trends of alteration, mineralization, and structure. Another 130 SGH samples were collected on Area 7. Hand samples of Thelon sandstone from Area 6 show abundant quantities of introduced illite, indicating that mineralizing fluids may have moved through the nearby rock. Assay results from both the drill and soil sampling program are pending.

In summary, considerable activity has been on-going throughout the year in the formation of Western Lithium Corporation and to advance the uranium properties. The company is frustrated by the slow turn-around time with results, but anticipates that the receipt of results will increase considerably over the next couple of months.

About the Company

Western Uranium Corporation is a mineral exploration company with a focus on uranium. The Company has exploration properties in Nevada, New Mexico and in the Thelon Basin, Nunavut and the Northwest Territories. The Company has its head office in Vancouver, Canada; its executive management team is based in Reno, Nevada.

The contents of this press release were reviewed by Pamela Klessig. Ms. Klessig has sufficient experience to review this release and is a Qualified Persons as defined by NI 43-101.

On behalf of the Board of Western Uranium Corporation

Pamela J. Klessig, President & CEO

This news release does not constitute an offer to sell or a solicitation of an offer to buy 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 an exemption from such registration is available.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release.

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