NI 43-101 COMPLIANT RESOURCE
Cue Resources indicates 7.76 million t 0.03% eU3O8
2008-05-14 12:33 ET - News Release
Mr. Chris Healey reports
CUE RESOURCES LTD. REPORTS NI 43-101 COMPLIANT RESOURCE ON A PORTION OF THE SAN ANTONIO URANIUM DEPOSIT, YUTY PROJECT, PARAGUAY
Cue Resources Ltd. has received a resource study on a portion of the San Antonio uranium deposit of the Yuty project, Paraguay. The study was carried out by Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), of Toronto. The resource estimate and classification of the mineral resources conforms to the reporting requirements of National Instrument 43-101.
The estimate was carried out using the GT (grade times thickness) contour method, which is the industry standard method for this type of sandstone-hosted uranium deposit. A cut-off grade of 0.02-per-cent U3O8 equivalent was used, and a minimum vertical thickness of 1.5 metres. These cut-offs are consistent with common practice for the evaluation of this style of mineralization.
The estimate of mineral resource covers only that portion of the deposit which has been drilled in sufficient detail to meet the indicated and inferred resource definitions contained in the CIM guidelines. This includes less than two-thirds of the mineralized strike length identified by previous drilling. The depth to the mineralization ranges from 80 metres to 150 metres, and averages about 100 metres.
The Yuty project
Cue has the right to earn a 100-per-cent interest in the project; it currently owns a 30-per-cent interest in Transandes Paraguay S.A., and is in the process of completing an earn-in for the remaining 70 per cent. Transandes has a 236,000-hectare exploration permit granting the exclusive rights to explore for uranium on the Yuty project in southeastern Paraguay.
Between 1976 and 1982, Anschutz Corp., along with joint-venture partners Kepco and Taiwan Power, drilled approximately 280 holes in the vicinity of the San Antonio deposit. Since July, 2007, Cue has drilled an additional 170 holes. The results of this drilling show that the core portion of the deposit is considerably wider than had been previously identified, with more consistent mineralization. This drilling has enabled Cue to move the project from the historical-estimate stage to a compliant resource in both the indicated and inferred categories after only eight months of drilling. This is a major step forward for this exciting project.
A program of core testing, as reported in Stockwatch on Feb. 8, 2008, shows that disequilibrium is not a problem for the deposit. Indeed, at grades over 0.10-per-cent U3O8 equivalent, the true grade may be significantly understated by the use of radiometric grades.
Preliminary leach testwork, as reported in Stockwatch on March 27, 2008, indicates that very high recoveries (up to 96.7 per cent) can be obtained from core samples, using an acid lixiviant. Environmental baselines studies are under way to position the company for an early production decision.
Although fieldwork to date has concentrated on the known mineralization at San Antonio, there are many other high potential targets on this very large project. Several received limited drilling by Anschutz, yielding very positive results.
Paraguayan politics
The results of the recent presidential elections in Paraguay are considered by Cue to be extremely positive. The president-elect Fernando Lugo is an Independent who is strongly linked to the centrist Liberal Party. The Liberal Party is fully committed to maintaining a climate conducive to industrial development.
RESOURCE ESTIMATE
Layer Tonnes % eU3O8 Contained lb eU3O8
Indicated
1 7,100,000 0.030 4,750,000
2 660,000 0.022 320,000
--------- ----- ---------
Total 7,760,000 0.030 5,070,000
--------- ----- ---------
Inferred
1 2,180,000 0.044 2,080,000
2 300,000 0.020 130,000
--------- ----- ---------
Total 2,480,000 0.040 2,210,000
--------- ----- ---------
This resource estimate is based on downhole radiometric logging data, and is therefore reported as equivalent U3O8. The validity of using this type of data has been demonstrated in extensive chemical assay program as reported in Stockwatch news on Feb. 6, 2008. A report, conforming to the reporting requirements of National Instrument 43-101, will be filed on SEDAR as soon as it is available, and not later than 45 days from the issuance of this news release.
Future plans
Given this major advance in the project, Cue now intends to pursue an aggressive work program. Planned work includes additional metallurgical testing, mineralogy studies, continued baseline environmental work and a substantial drilling program. This work will lead to the initiation of a prefeasibility study at an early date.
Chris M. Healey, PGeo, chief operating officer of Cue, is the qualified person responsible for the technical content of this release, and Hrayr Agnerian, PGeo, is the qualified person for the resource estimate
We seek Safe Harbor.