White Canyon Uranium Limited

White Canyon Uranium Limited

March 22, 2010 08:00 ET

White Canyon Expands Uranium Portfolio in Utah, USA

- White Canyon has purchased 93 mineral tenements from Uranium One,

- Acquired tenements consolidate White Canyons project areas at Red Canyon and Geitus in Utah, USA,

- Tenements hold extensions to existing mineralisation on Company owned projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2010) - Utah based uranium producer, White Canyon Uranium Limited (TSX VENTURE:WU) (ASX:WCU) ("White Canyon" or "the Company") is pleased to announce that it has concluded the purchase of 93 mineral tenements in the White Canyon district of Utah, USA, from Canadian listed company Uranium One (TSX:UUU).

The purchase of the 93 tenements was completed as a cash only transaction for US$60,000 and further consolidates the Company's project areas at Red Canyon (Daneros and Lark Royal) and Geitus. This acquisition increases the Company's landholding in Utah from 12,000 acres to approximately 14,000 acres with in excess of 1200 additional acres at Red Canyon and more than 750 acres at Geitus.

At Geitus the Company purchased 37 unpatented claims in three blocks (figure 1). The southern group of claims covers the mineralisation extending from the Company's existing leases identified in historic drilling and increases the known mineralisation from "historical reserves" by 40%.

The package includes the Hideout and Charlie 3 mines that up until 1970 produced 864844.40 lbs combined at an average grade of 0.26% U3O8 (US Govt Contracts data 1948 - 1970). The Hideout continued production through to about 1980. Potential remnant mineralisation has been identified in historic drilling plans and approximately 700m (2,300 feet) of the Shinarump Formation streambed (ore host unit) extends to the edge of the claims.

At Red Canyon the Company purchased 55 unpatented claims and one State School Section in four separate blocks (figure 2). The eastern block covers several historic mines including the Hillside and Maybe mines. The central block covers the Spook mine and the mineralised extensions connecting the Spook to the Maybe mine to the southeast and the Bullseye mine to the north. The two western blocks are targeting the northern extension of the buried stream channel that hosts the Radium King mine, one of the largest producing mines in the White Canyon district. Combined production (1948 – 1970) was 1,224,730 lbs at a grade of 0.27% U3O8 and mining continued until 1980 in this area.

Commenting on the acquisition White Canyon Managing Director, Mr Peter Batten, said "This purchase is a further consolidation of the Company's projects strengthening the Company's holdings and increased exploration potential with the addition of known mineralisation and untested buried river channels, the host unit of uranium mineralisation in the White Canyon district.

The potential exists to replicate the historic production on these projects which is conservatively in excess of 2.2 Mlbs U3O8. The consolidation of mineralisation extending from or in the vicinity of the Company's current project is one of a number of strategies the Company intends to pursue to build on and improve on our position as a US uranium producer."

About White Canyon Uranium:

White Canyon is a US focussed uranium producer holding 100% interest in the advanced Thompson, Daneros, Lark Royal, Geitus, Blue Jay and Marcy Look Projects in south-east Utah, comprising of over 12,000 acres of mining claims and mineral leases. The projects contain historically defined high grade uranium deposits, however the deposits are not JORC or 43-101 compliant.

To view Figure 1. Geitus Map and Figure 2. Red Canyon please click on the link provided below:


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