U3O8 Corp. Confirms Continuity of Significant Uranium, Vanadium, Phosphate & Molybdenum Grades from Trenching in the Berlin Project, Colombia Assay Results Show Mineralization Extends 1.25km to 2km in Strike Length
Assay Results Show Mineralization Extends 1.25km to 2km in Strike Length
TORONTO, ONTARIO -- (Marketwire) -- 05/12/10 -- U3O8 Corp. (TSX VENTURE: UWE) a Canadian-based company focused on uranium exploration and resource expansion in South America, reports significant values of uranium, vanadium, molybdenum and phosphate from rock-chip samples collected in an additional seven trenches of the 26-trench program currently underway in the Berlin Project Berlin Project in Caldas Province, Colombia, South America. The Berlin Project is a phosphatic shale uranium prospect with a historic resource(1) of 12.9 million tonnes at a grade of 0.13% U3O8 (38 million pounds U3O8) with associated vanadium, molybdenum and phosphate. The historic resource was defined on only the southern 4.4 kilometres of a 10.5 kilometre long mineralized trend.
'U3O8 Corp's trenching program in the southern part of the Berlin Project is progressing well,' said Dr. Richard Spencer, U3O8 Corp's President and CEO. 'We have now shown relatively consistent uranium and vanadium grades over two kilometres on the western side of the fold and 1.25 kilometres on its eastern flank. The similarity of the assay values from our trenching program to historic results further validates the accuracy of the data from the historic resource estimate. Significant grades of uranium and vanadium, supported by phosphate and molybdenum, underscore the high in situ value of the mineralized rock. Our 2010 work plan aims to complete the trenching program by the end of May, advance to drilling in July, and then to metallurgical test work in the latter half of the year. Our goal is to be in a position to undertake a National Instrument 43-101 resource estimate on Berlin in 2011.'
Table 1 - Assay Results for the Berlin Project
Summary assay results for the thirteen trenches of a 26-trench program that have been excavated in the southern part of the Berlin Project (Figure 1).
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Estimated True Assay Values
Trench Width of ------------------------------------
Number Mineralization (m) U3O8(%) V2O5(%) P2O5(%) Mo(ppm)
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Tb0 1.03 0.090 0.82 18.46 278
--------------------------- ------------------------------------
Tb1 1.28 0.117 0.88 3.79 839
--------------------------- Results ------------------------------------
Tb2 1.73 reported in 0.213 0.98 4.31 162
--------------------------- the press ------------------------------------
Tb3 1.36 release of 0.083 0.94 5.52 165
--------------------------- April 29, ------------------------------------
Tb4 1.22 2010 0.091 1.38 19.92 181
--------------------------- ------------------------------------
Tb4du 1.48 0.127 1.03 18.35 49
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Tb5 2.96 0.108 0.72 8.56 81
--------------------------- ------------------------------------
Tb6 1.86 0.110 0.72 12.95 33
--------------------------- ------------------------------------
Tb8 1.20 0.099 0.61 13.92 10
--------------------------- Results ------------------------------------
Tb10 0.82 reported in 0.068 1.03 15.70 115
--------------------------- this press ------------------------------------
Tb11 0.56 release 0.038 0.85 3.65 14
--------------------------- ------------------------------------
Tb12 1.72 0.101 0.51 5.25 196
--------------------------- ------------------------------------
Tb13 1.10 0.044 0.66 10.01 45
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Potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral resource on the Berlin Project to date and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The uranium, vanadium, phosphate and molybdenum mineralization at Berlin occurs in a continuous shale layer that has been folded into a keel-like syncline. The syncline measures 10.5 kilometres long in a north-south orientation to a maximum width of two kilometres in an east-west direction (Figure 2). The axis of the keel reaches a maximum depth of about 250 metres below surface. The mineralized layer is one to three metres thick, which would suggest a potential underground mining scenario. The Berlin Project is located at an average altitude of 1,200 metres, well below the 3,200 metre altitude above which the restricted Paramo ecosystem lies.
Vanadium and molybdenum are used as alloys to strengthen steel, while vanadium has potential to be used in high-energy batteries for electric cars and for storage of energy generated by solar panels and wind turbines. Phosphate, together with nitrogen and potash, constitute the three principal components of chemical fertilizers.
Trenches on the west flank of the fold are grouped in pairs spaced at 200-400 metre intervals (Figure 1). The wide spacing between trenches provides a confirmation of the extent of mineralization, while the close-spaced trenches provide confirmation on the consistency of grade over several tens of metres. Trenches on the east flank of the fold are currently spaced at 400-1,200 metre intervals, which is being reduced to approximately 200-300 metre spacing. Trenching has encountered mineralization over a strike length of 1.2 kilometres along the west flank of the syncline and for two kilometres on the eastern margin. Uranium and vanadium assay results are consistent over the distance sampled with molybdenum and phosphate values being more variable (Table 1).
Exploration Program
The planned trench program in the Berlin Project includes the excavation of 26 trenches at about 200-metre spacing on both sides of the southern 4.4 kilometre part of the 10.5 kilometre long syncline with the aim of confirming lateral continuity of mineralization over the area in which the historic resource was estimated (Figure 2). Trenching of the southern area is scheduled for completion in May 2010, at which time, trenching will extend into the northern area with estimated completion in September 2010. The application for permission to drill is being processed by the authorities and drilling is expected to commence in July 2010. The drill program of approximately 1,500 metres in seven bore holes will aim to confirm the historic intercepts in the southern area. Contingent on successful drilling of potentially economic uranium grades, metallurgical test work is also planned for 2010. Subject to the results of the 2010 work program, the objective is to position the Berlin Project for an extensive drill program in order to define a potential National Instrument 43-101 ('NI 43-101') resource in 2011.
Quality Assurance & Quality Control
Trenches were sited in areas of outcrop of the shale layer and excavated by hand, perpendicular to the strike of mineralization. Continuous rock-chip samples were taken from the side walls of each trench, bagged and numbered on site and delivered to ALS Laboratory Group's preparation facility in Bogota, Colombia and analysis in Lima, Peru. Analysis was by Inductively Coupled Plasma Emission Spectroscopy (ICP-AES) after multi-acid digestion.
Mr. Richard Cleath (M.Sc.), Vice President of U3O8 Corp., a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, has supervised the preparation of, and verified the technical information in this release.
Historic Resource(1)
The majority of the prior exploration on the Berlin Project was conducted by the French company, Minatome, between 1978-1981 and culminated in the drilling of 11 bore holes and the excavation of 20 trenches and three adits. The historic estimate was generated on the southern 4.4 kilometres of a 10.5 kilometre long syncline (Figure 2). Historic data from trenching shows that anomalous grades of uranium continue along strike to the north. The Berlin Project appears geologically similar to the uranium-vanadium-nickel bearing Alum Shale in Sweden, although the assays reported above and the historic results are significantly higher than uranium and vanadium grades from the Alum Shale.
(1) The Berlin resource estimate is historical and is reported in Castano, R. (1981), Calcul provisoire des reserves geologiques de Berlin, sur la base des resultants des sondages, unpublished Minatome report, 15p. There has been insufficient exploration work completed to verify the historic estimate. U3O8 Corp. is not treating the historical estimate as current mineral resources and it should not be relied upon or considered a NI 43-101 compliant resource. As the 38 million pound U3O8 historic estimate is based only on 11 widely-spaced drill holes, it is regarded by U3O8 Corp. as merely an indication of the magnitude of the uranium resource potential of the southernmost 4.4 kilometre long portion of the syncline containing the Berlin uranium mineralization.
About U3O8 Corp.
U3O8 Corp. is a Toronto-based exploration company, focused on uranium exploration and resource expansion in South America - a promising new frontier for uranium exploration and development. U3O8 Corp. has one of the most advanced portfolios of uranium projects in the region comprising NI 43-101 compliant resources in Guyana to significant historic resources in Colombia and near-resource and discovery potential in Argentina.
For further information on U3O8 Corp's Berlin Project, refer to the technical report entitled 'Review of Historic Exploration Data from the Unaniferous Black Shales of the Berlin Project and Chaparral Concession, Colombia: A guide to future exploration' prepared by Richard Spencer and Richard Cleath dated March 23, 2010 and available at www.sedar.com. Additional information on U3O8 Corp. is available on the company's web site at www.u3o8corp.com.
Forward-Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of U3O8 Corp., including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on exploration projects, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing and exploration risk. There is no assurance that the Berlin Project will add to U3O8 Corp's resource base in the short-term, or at all. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
To view Figure 1 - The Southern 4.4 Kilometres of the Syncline of the Berlin Project, Colombia, please visit the following link: http://media3.marketwire.com/docs/uwe512FIG1.pdf
To view Figure 2 - 10.5 Kilometre Long Syncline of the Berlin Project, Colombia, please visit the following link: http://media3.marketwire.com/docs/uwe512FIG2.pdf
To view the photo accompanying this press release, please visit the following link: http://www.marketwire.com/library/20100511-uwe512800.jpg
Neither the 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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Contacts:
U3O8 Corp.
Nancy Chan-Palmateer
Vice President, Investor Relations
(416) 868-1491
nancy@u3o8corp.com
U3O8 Corp.
Richard Spencer
President & CEO
(416) 868-1491
richard@u3o8corp.com