White Canyon Uranium Limited

White Canyon Uranium Limited

August 19, 2010 08:30 ET

White Canyon Announces Initial JORC Estimate of Daneros Deposit

- First JORC compliant Resource Estimate for Daneros Deposit, Utah (USA)

- Indicated 96,600st@3,660ppm U3O8 for 700,000lbs of U3O8 at (1000ppm U cut-off)

- Inferred 122,000st@1,860ppm U3O8 for 455,000lbs of U3O8 at (1000ppm U cut-off)

- Resource remains open with further targets available

- The limits of mineralisation were not identified during the study indicating that mineralisation extends beyond the current drill data

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 19, 2010) - US-focussed uranium production company White Canyon Uranium Limited (TSX VENTURE:WU)(ASX:WCU) ("White Canyon" or "the Company") is pleased to announce an initial JORC compliant resource of 96,600 short tons grading 3,660ppm U3O8 (within a 0.1% U cut-off) for 700,000 pounds of U3O8 and 122,000 short tons grading 1,860ppm U3O8 (within a 0.1% U cut-off) and 455,000 pounds of U3O8 for the Daneros Deposit, which is within its 100% owned Red Canyon Projects. 

The Resource, which is the first JORC compliant resource (see Table 1 below), represents a key milestone for White Canyon Uranium. The establishment of an initial JORC compliant uranium resource within the Red Canyon district (which covers an area of approximately 15,500 acres) provides a strong platform for WCU to progress exploration at Daneros and its other projects. 

The Daneros Deposit is located in the Red Canyon area of the White Canyon mining district approximately 65 km west of Blanding and some 120 kilometres southwest of Moab in San Juan County of south-eastern Utah, USA. (Figure 1). 

Resource estimates for Daneros are based on the results of the 44 diamond and rotary drill holes drilled in 2008 and the indicated resource was based on the assayed samples (24 holes) using ICP method. The remainder of the resource was determined from the 2008 drill holes and 344 historical drill holes. 

The Daneros Resource (Table 1) was estimated by Inverse Distance Squared (ID2) and reflects the current mining selectivity of sub blocks of 5 x 5 metres in plan view with a 1 metre block in RL. The resource uses a Specific Gravity of 2.35 tonnes per cubic metre based upon the average value of 36 assayed results of Daneros core. 

The resource has both indicated and inferred estimates and the classifications were developed from the confidence levels of key criteria including drilling QC information available, geological understanding and interpretation, sampling, data density and location, grade estimation and quality. 

Table 1: Daneros Resource Estimate with a 0.1% cut-off
Category Short Tons (st) U3O8 (ppm) U3O8 (lb)
Indicated 96,623 3,662 707,584
Inferred 122,398 1,862 455,819

In addition to the Resource Estimate for Daneros, the Company through the estimation processes identified uranium mineralisation within the Daneros wireframe that was not classified due to a lack of quality control data in outlying historic drill holes. This mineralisation can be readily added to the Daneros resource with a programme of verification drilling. This mineralisation will represent an additional 150,000 – 220,000t of mineralisation at a grade similar to the current resource in a range of 0.20% - 0.25% U3O8. This additional mineralisation is an Exploration Target and until the confirmation drilling is completed the tonnage and grade are conceptual in nature and do not form any part of the Daneros Mineral Resource.

During the study, the limits of mineralisation were not identified indicating that the mineralisation also extends beyond the current drill data.

To view Figure 1: Location of Daneros Deposit Map, please visit the following link: http://media3.marketwire.com/docs/Figure1LocationOfDanerosDeposit.pdf.

Peter Batten has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Peter Batten consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About White Canyon Uranium:

White Canyon listed in March 2008 as an advanced uranium exploration company holding 100% interest in the advanced Thompson, Daneros, Lark Royal, Geitus, Blue Jay and Marcy Look Projects in south-east Utah, comprising of approximately 15,500 acres of mining claims and mineral leases. The projects contain JORC (NI 43-101) defined high grade uranium deposit. White Canyon entered the ranks of uranium producers in December 2009 with first production from the Daneros mine.

Neither 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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