newsRed Rock's 'Mining' of Historic Data at the Beaverlodge Uranium District Identifies 715,700 Pounds of Un-mined Uranium Resources
CALGARY, ALBERTA, Mar 2, 2011 (Marketwire via COMTEX News Network) --
Red Rock Energy Inc. (TSX VENTURE:RRK) announced today that it has identified 715,700 pounds of U3O8 (Non 43-101 compliant) of un-mined historical resources within its properties.
These additional resources were identified with information from RRK's 2010 exploration program, the continued review of archived Eldorado Nuclear Limited (ENL) exploration data obtained from National Archives Canada and RRK's ongoing geological compilation of historical work at the Beaverlodge Uranium District.
The historic resources occur in eleven distinct zones (see Table I) that were referred to by ENL as the Eagle area (02, 12, 22, 32, 41 and 42 Zones), Tam Lake area (28 Zone), Foot area (46 Zone), George Lake-St. Louis area (11 Zone), K260 area (21 Zone) and Moran Lake area (83 Zone) as defined by Don Ward, former ENL Senior Staff Geologist in his 1982 Mine Closure Report. Regionally the Eagle and Tam zones occur northeast of the ABC Fault, whereas the Foot, George Lake and K260 zones occur along the geologically favorable St. Louis Fault, and the Moran Lake zone occurs north of the Fish Lake Fault, not far east of the St. Louis Fault.
From the early 1950's to 1982, when ENL was actively mining and exploring in the Beaverlodge District, eight of the eleven zones in Table 1 (i.e., 02, 12, 32, 42, 46, 11, 21 and 83) produced a total of 640,400 pounds of U3O8 from surface mining operations with the bulk of the production coming from open pits at the 12 (Intermediate) and 32 (Lost Vein) zones in the Eagle area.
On Aug. 31, 2009 Red Rock announced an inferred resource of about 523,000 pounds of U3O8 (43-101 compliant) at the 46 Zone, which may in whole or part include the 267,500 pounds of U3O8 (non 43-101 compliant resources) of historic un-mined resources that Ward reported for the 46 Zone in his 1982 report (Table 1).
To date Red Rock staff have continued to compile, review, integrate and interpret data from both past exploration activities and archived data from historic work carried out by prior operators such as ENL, with the goal being to identify prospective drill targets and to define new ore resources in the Beaverlodge Uranium District. This work by Red Rock, coupled with the historical resources reported by Ward (1982), has allowed Red Rock to continue to build upon new discoveries such as the 'Redox' Zone and its current resource base at the Fusion Zone, which is near the former Cinch Lake mine, and the 46 Zone, which is not far north of ENL's former Verna mine.
Reg A. Olson, Ph.D., P. Geol., a Qualified Person under NI 43-101 and supervisor of Red Rock's 2007 to 2010 exploration programs, has reviewed and is in agreement with the contents of this release. Readers are cautioned that historical mineral estimates and resources referred to herein are non NI 43-101 compliant. Further, mineral resources that are not mineral reserves do not have demonstrated economic viability.
READER ADVISORY
Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
Table 1: Summary of Historic Resources (Non 43-101 compliant) reported in
Appendix XII of the Beaverlodge Mine Geology Closure Report by D.M. Ward,
October 1982.
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Total Grade Pounds
Locale Zone(3) Name (% U3O8) (U3O8)
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Eagle Area 02 Gulley Zone 0.510 47,900
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12 Intermediate Zone 0.360 50,400
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22 Eagle Surface 0.250 7,500
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32 Lost Vein 0.230 46,200
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41 Shaft Lake 0.130 2,300
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42 Spur Zone 0.240 41,300
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Tam Lake Area 28 Tam 0.040 11,200
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Foot Area 46 Foot 0.280 267,500(1)
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George Lake - St. Louis Fault
George Lake Area 11 intersection 0.060 104,600(2)
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K260 Area 21 K-260 0.090 62,300(2)
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Moran Lake Area 83 Moran Lake 0.170 74,500
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Subtotals 715,700
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(1) Note: May in part or whole be included within the inferred resource
reported on Aug. 31, 2009 by Red Rock Energy for the 46 Zone
(2) Note: Previously reported in Red Rock's N.I. 43-101 Athabasca Lake North
Project issued Mar. 12, 2007
(3) Note: Historically the 22, 41 and 28 zones produced no U3O8 (ENL Mine
Closure Report 1982 by D.M. Ward, Appendix VI)
SOURCE: Red Rock Energy Inc.
Red Rock Energy Inc. Sandy Loutitt President 403-685-1047 Red Rock Energy Inc. Lara Cull Operations Manager 403-685-1047 www.redrockenergy.ca
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