Xemplar Energy Corp.

Xemplar Energy Corp.

November 08, 2010 13:43 ET

Xemplar Provides Update on Namibian Uranium Exploration

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2010) - Xemplar Energy Corp. (TSX VENTURE:XE)(FRANKFURT:E7R)(NAMIBIA:XEM) (the "Company") would like to provide its shareholders with an update on its Namibian uranium exploration program.

Cape Cross Uranium Project

The Cape Cross Project consist of three (3) adjoining EPL's (Exploration Prospecting Licenses) which covers a combined area of 2,041 km2 and are situated within the Uranium Corridor in Namibia. World class uranium mines such as Rossing and Langer Heinrich are located within the Uranium Corridor, as well as uranium deposits (Trekkopje, Valencia, Rossing South, Idadome, Marenica, Tubas and Etango) which are being developed.

Within the boundaries of Xemplar's current property holdings, General Mining & Finance Corporation Ltd, and Gold Fields Prospecting (Pty) Ltd. completed a significant amount of trenching as well as a shallow (maximum 25 meters) surface drilling program in the Mile 72 area during the 1970's to expose both pedogenic and primary uranium mineralization. Regional and detailed surface radiometric surveys discovered approximately eight (8) radiometric anomalies of which Mile 72 Area A and Mile 72 Area B were determined as most promising. In "Linning, K. 1973, Myl Sewe-Twee (Pty) Ltd. Prospecting Grant M 46/3/334, Annual Report 1972 Unpubl. Rep., General Mining and Finance Corporation Ltd.", a combination of two ore bodies (Mile 72 Area A and Mile 72 Area B) was described as ore proven by percussion drilling equalling approximately 200,000 tons grading 0.35 kilograms/ton U3O8. In "Roesener, H. and Schreuder, C.P. (1992). Uranium, 7.1-1-7.1-55. In: Geological Survey of Namibia. (1992). The Mineral Resources of Namibia., 1.1–1-9–17pp.", a probable reserve of 386,000 tons averaging 230 grams/ton was stated. This estimate used "Labuschagne, A.N. 1976. Report on the Damara Mining Company Uranium Proposition. Grant M46/3/399. Unpubl. rep., Gold Fields Prospecting (Pty) Ltd." as its reference (unavailable for viewing).

The historical reserve estimates do not include assays or details of the calculations, therefore it is not possible to compare the categories of reserve with those required by NI 43-101. The company believes that the estimate is relevant to an appraisal of the merits of the property because the estimate was based on all drill data available at the time, and because there is no evidence of any subsequent work on the property. The company believes that the estimates may, to a limited extent, be reliable because they appear to have been prepared internally, for major companies. No more recent data or resource estimates are available in the public domain. No work has been done by a qualified person to classify the historical reserve estimate as a current resource or reserve. The company is not treating the historical reserve as a current mineral resource or reserve. The historical reserve estimate should not be relied on.

Extensive ground exploration has now been undertaken by Xemplar geologists and grab samples have returned values ranging from 938 ppm to U-13,300 ppm U (spectrometer readings). A single grab sample taken in the Mile 72_Area B has returned the following assay result:

U (XRF 75g) U 3 O(XRF 75g) Th (XRF 75g)
11,275 ppm 13,296 ppm less than 10 ppm

A new target area has been identified to the west of these historic workings, and it displays high grade surface mineralization with spectrometer readings increasing with depth in excavated areas and in naturally exposed bedrock. An extensive and systematic surface exploration program along seven (800m long) traverses is in progress. Geological mapping is being carried out along with a surface radiometric survey with lines spaced 200m apart. Small pits are being dug to expose the lithologies underlying the alluvial cover which is masking the surface radiometric response. Background total count average 170 tcps (spectrometer) with a noticeable increase in readings where the alluvial cover has been removed and the underlying lithologies have been exposed. Spectrometer readings collected to date are very promising and presented in following table:

  Background cps Sample ID tcps U Th
Traverse 1 180 B01501 1290 78 15
Traverse 2 157 B01502 1119 57 25
    B01503 2572 143 17
    B01504 10610 938 71
    B01505 5462 422 48
Traverse 3 548 B01506 1900 112 19
    B01507 1540 93 10
    B01508 3100 220 21
    B01509 4700 345 20
    B01510 6500 528 37
    B01511 6500 528 37
Traverse 4 330 B01512 820 40 20
    B01513 1350 73 25
    B01514 5820 456 19
    B01515 2572 143 17
Traverse 5 270 B01601 5626 456 45
    B01602 4605 375 20
    B01603 2329 156 19
    B01604 4022 319 26
    B01605 3400 270 20
    B01606 3600 245 21
    B01607 3400 270 20
    B01608 7335 510 31
Traverse 6 270 B01609 443 6 25
Traverse 7 170 B01610 12502 900 17
    B01611 2193 142 29

Xemplar will carry out an extensive surface exploration programme in early 2011, which will comprise detailed geological mapping, surface radiometric surveys, surface sampling and a drill program in the Mile 72 target areas.

Warmbad Uranium Project (1,351 km2)

In 2007, airborne radiometric survey data identified fourteen (14) extensive alaskite bodies with an anomalous radiometric signature. Subsequent detailed surface radiometric surveys, geological mapping and surface drilling refined the alaskite bodies to eight (8) major zones displaying continuous low grade uranium mineralization. The Warmbad Project exploration model is similar to Rossing style uranium mineralization, with the potential for a high tonnage / relative low grade uranium deposits.
In 2008 & 2009, Xemplar drilled 71,000 metres and identified a number of sizeable zones of uranium mineralization:

Big Yellow West: Mineralization along a 1,200m strike length has been outlined and remains open in both strike directions. The average uranium grade of the mineralized zone is approximately 120 to 130 ppm. Grades and grade thickness varies along the strike as well as along dip with the best mineralized intercept of 52m @ 170 ppm (including 13m @ 265 ppm).

Big Yellow East: Three (3) relatively thin zones of mineralization have been identified and are associated with a major anticlinal structure. Typical uranium grades and thicknesses of these mineralized zones are 19m @ 152.2 ppm (including 10m @ 167.3 ppm) and 14m @ 144.7 ppm (including 9m @ 167.2 ppm). Sling drilling utilizing a helicopter at the Big Yellow East "New Target" (only two holes drilled) identified low grade mineralisation along a strike length of at least 1,000m. Typical grade and thickness of the foregoing mineralization is 25m @ 116.7ppm (including 7m @ 140.5 ppm)

Houms-River: Uranium mineralization along a 500m strike length has been identified with good potential to extend the zone of mineralization along a 1,800m strike length. Typical grade and thickness along the known 500m strike length is 47m @ 165 ppm, 22m @ 133 ppm, 10m @ 214.9 ppm and 17m @ 204.5 ppm.

Girtis: Limited helicopter sling drilling was carried out during 2009. This drilling has identified potential mineralization along a 3,000m strike length, including a drill intercept with a grade and thickness of 38m @ 146.7 ppm. A further example of the high prospectively of the Girtis Target is demonstrated by the totally unexplored, thin but high order airborne radiometric anomalous zone immediately to the south of the Girtis Main Target Area (Figure following). The high order radiometric response along a 10,000m strike length significantly enhances the probability of identifying mineralization along a considerable strike length.

Aluriesfontein: Surface drilling has identified at least 3 mineralized areas which are associated with fold structures. Typical high grade uranium mineralized intercepts in Target Area 3 is 37m @ 169 ppm (including 13m @ 290.9 ppm), 28m @ 181.3 ppm (including 18m @ 241.5 ppm) and 25m @ 185.1 ppm. Typical high grade mineralized intercepts in Target Area 5 (associated with a fold axis) is 20m @ 152.3 ppm, 41m @ 122 ppm (including 15m @ 161.4 ppm) and 24m @ 161.4 ppm (including 13m @ 188.4 ppm).

Exploration to date confirms our belief that the Warmbad Project could well develop into a new uranium province which benefits from local power and water supply. Xemplar is now at the stage where we need to engage a strategic partner to take the Warmbad Project to its full potential. With Uranium prices having risen 27% this year and a large number of corporate finance deals being announced in the uranium sector, projects of this caliber are of interest to those entities searching for high potential uranium assets.

Mike Magrum, P. Eng, a qualified person under National Instrument 43-101, has approved the technical content of this news release.

On behalf of the Board of Directors,

Xemplar Energy Corp.

Simon Tam, CEO and Director

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

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 press release.

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