Ms. Nancy Chan-Palmateer reports
U3O8 CORP. INTERSECTS 30.7 METRES AT 0.06% (1.2 POUNDS PER SHORT TON) U3O8 AT ARICHENG C IN THE KURUPUNG PROJECT, GUYANA
U3O8 Corp.'s drilling has more than doubled the size of the Aricheng C structure in the Kurupung batholith in Guyana. This ninth uranium-bearing zone now extends 350 metres long and is open along trend and at depth. Results from scout drilling suggest that the Kurupung structures identified to date may contain a conceptual target of 13 million to 18 million tonnes at a grade of 0.08 per cent to 0.10 per cent uranium oxide (U3O8)(for an estimated 30 million to 32 million pounds U3O8) including the initial National Instrument 43-101 resource estimate of 5.8 million pounds of U3O8 indicated and 1.3 million pounds of U3O8 inferred.
"Scout drilling continues to successfully expand our inventory of mineralized structures in the Kurupung district, while demonstrating the resource growth potential of the project," said Dr. Richard Spencer, U3O8 Corp.'s president and chief executive officer. "Drilling will now focus on the Accori area as we progress toward our goal of showing that the Kurupung uranium system could host a resource of comparable size to peer deposits that typically contain 50 [million pounds] to 130 million pounds of uranium. We are focused on expanding our resource potential at shallow depth, to approximately 200 metres, while recognizing that similar deposits elsewhere in the world extend to over 700 metres below surface. This typical depth provides us with flexibility to potentially increase the resource at any time through deeper drilling."
In the associated table is a summary of significantly mineralized intercepts cut in the six bore holes (1,701 metres) drilled in the recent campaign at Aricheng C. A total of 10 bore holes have been drilled for a total of 2,718 metres (results of the previously four bore holes were reported in the press release in Stockwatch dated July 14, 2010). Aricheng C, along with the Aricheng North and Aricheng A, comprise the Aricheng North complex.
ASSAY RESULTS FOR ARICHENG C Intercept Estimated GradeBore hole From To Width true U3O8No. (m) (m) (m) width (m) (%) 69 73 4 3.5 0.070 79 90 11 9.7 0.058ARC-005 99 103 4 3.5 0.113 120 124 4 3.5 0.093 131 136 5 4.4 0.107ARC-006 No significant interceptsARC-007 57 93 36 30.7 0.062Including 75 81 6 5.1 0.148 147 150 3 2.6 0.055 165 169 4 3.4 0.042ARC-008 72 82 10 8.5 0.052 218 224 6 5.1 0.041ARC-009 237 247 10 8.5 0.045ARC-010 187 190 3 2.6 0.149 199 206 7 6.1 0.172
Potential quantity and grade are based on drill results that define the approximate length, thickness, depth and grade of the target area, but are considered conceptual in nature. To date, there has been insufficient exploration drilling to define a mineral resource on the Aricheng C structure reported in this press release, and it is uncertain if further exploration drilling will result in a mineral resource being defined in this area.
Aricheng C structure
The Aricheng C structure is orientated northeast and dips about 70 degrees to the northwest. Mineralization occurs within a brecciated albitite-altered zone and is marked by a corridor of relatively low magnetism that extends eastward through the area in which the 10 exploration bore holes were drilled. Mineralization at Aricheng C extends 350 metres along strike and is open along trend to the west and at depth. The easternmost bore hole (ARC-006) appears to have been drilled to the east of a fault that is suspected to have displaced the eastern extension of the Aricheng C structure to the northeast. Fieldwork is being undertaken to find the possible extension of the structure in that area. Uranium mineralization occurs in the saprolite at surface to the deepest intercept at approximately 235 metres below surface.
Quality assurance and quality control
Diamond drilling at Aricheng C was undertaken with U3O8 Corp.'s own drill rig that produced NQ (nominal 47.6-millimetre diameter) core. A down-hole spectral gamma probe was used in the 10 bore holes reported on here to determine the extent of the mineralized intervals by providing an estimate of the uranium grade based on the radioactivity measured. Core from each mineralized interval was halved with a diamond saw on-site, and half-core samples were delivered to ACME Laboratory's preparation facility in Georgetown, Guyana. Sample blanks and certified standards were inserted at an average frequency of one per 25 samples. Sample pulps were then shipped by ACME to its analytical facility in Vancouver, B.C., Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion. The other half of the core was logged and is stored on site, providing a complete record of the geology and mineralized zones drilled.
Dr. Spencer, president and chief executive officer of U3O8 Corp., a qualified person within the definition of that term in NI 43-101 of the Canadian securities administrators, had overall responsibility for target and drill-site selection at on the Aricheng C target. Dr. Spencer has supervised the preparation of, and verified, the technical information in this release.
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