White Canyon Uranium Limited

White Canyon Uranium Limited

November 09, 2010 14:35 ET

White Canyon Uranium Revised Announcement: Initial Drilling at Lark Royal Project Hits 8 Feet of 0.21%U3O8

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2010) - White Canyon Uranium Ltd (ASX:WCU)(TSX VENTURE:WU)

  • Initial drilling intercepts significant U3O8 mineralisation

  • Mineralisation at Lark Royal is immediately along strike from White Canyon's current mining operations at Daneros

  • Lark Royal is an historical mine

White Canyon Uranium Ltd (ASX:WCU)(TSX VENTURE:WU), is pleased to report that initial drilling at the company's 100% owned Lark Royal project in South East Utah, USA, has intersected significant mineralisation with hole LR-03 returning 8 feet at 0.21% U3O8.

Drill hole data is currently being appraised along with a complete assessment of historical drilling and mine data to determine additional drill hole targets at Lark Royal. Lark Royal is located immediately along strike and north west of current mining operations at the Daneros Mine. The company's objective is to potentially expand on the previously announced 1.16Mlb's JORC resource estimate confirmed as 219,000st @ 2,656ppm (See announcement dated 19 August, 2010 and refer to Table 1 below). The resource remains open with further drill ready targets identified in which the company has an exploration target of potentially delineating a further 1Mlbs U3O8.

The Lark Royal project is located in the Red Canyon area of the White Canyon mining district approximately 65km west of Blanding and some 120km southwest of Moab in San Juan County of southeastern Utah, USA. Historical mining at Lark Royal was well established prior to suspension of activities in 1985. Significant un-mined mineralisation is also evident from historical mine level plans which could add to the known resource.

Resource estimates in the area are based on the results of 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.

Table 1: Daneros Resource Estimate with a 0.1% cut-off

Category Short Tons
Indicated 96,623 3,662 707,584
Inferred 122,398 1,862 455,819
Total 219,021 2,656 1,163,403

About White Canyon

White Canyon Uranium Limited (ASX:WCU)(TSX VENTURE:WU) listed in March 2008 and has fast tracked to become an advanced uranium production company holding 100% interest in the Daneros Mine and the advanced Lark Royal, Thompson, Geitus, Blue Jay and Marcy Look projects, located in SE Utah, USA; which comprise approximately 15,500acres of mining claims and mineral leases. White Canyon entered the ranks of uranium producers in December 2009 with toll milling commencing November 2010 and 'yellow-cake' sales expected in December 2010.

Competent Persons Statement

Greg Burns 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'. Greg Burns consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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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