Uracan increases Double S near surface NI 43-101 compliant inferred resource
in Quebec to 44 million lbs U3O8
TSX - V: URC
VANCOUVER, May 10 /CNW/ - Uracan Resources Ltd. (the "Company") is pleased to announce an updated National Instrument (NI) 43-101 compliant inferred resource calculation has been completed on the Double S Zone, located within Uracan's 100% owned 1,000 Km(2) North Shore Uranium Property in Quebec. The mineralized zone hosts 81.464 million tonnes at an average grade of 0.013% U3O8 containing 10.516 million kilograms (23.185 million pounds) of U3O8 using a 0.01% cutoff.
The limited drilling conducted in 2009 contained both infill drilling, used to increase the confidence level of the resource, as well as drilling designed to test the mineralization potential on the periphery of the zone. Positive results indicate that while the overall size of the resource in the Double S zone has increased it also still remains open in all directions. Only the Double S Zone has had economic parameters applied to the resource with a whittle shell. See below for more details.
Details of the new resource estimate are as follows:
Table 1: SRK-l Double S Inferred Resource Table within Whittle Pit shell
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Cutoff Tonnes Average Contained Contained
U3O8 % ('000) U3O8 % U3O8 (Kg) U3O8 (lbs)
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0.010 81,464 0.013 10,516,000 23,185,000
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0.015 14,273 0.018 2,606,000 5,746,000
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All tabulated data has been rounded to three decimal places
for U3O8 grades
A comparison table between the 2008 and 2010 resource estimates is included below:
Table 2: Double S Inferred Resource Comparison Table
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Cutoff Average
Grade Grade Contained
Zone Year U3O8 % U3O8 % Tonnes (MT) U3O8 (Mlbs)
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Double S 2010 - SRK 0.010 0.013 81.464 23.185
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2008 -
Double S Resource Eye 0.009 0.012 74.215 19.970
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All tabulated data has been rounded to three decimal places
for U3O8 grades - all resources are in the inferred category;
Combining all three zones (Double S, MZ and TJ) produces a total inferred resource estimate of 162.153 million tonnes at a weighted average grade of 0.0123% U3O8 containing 19.935 million kilograms (43.952 million pounds) of uranium using a 0.009% cutoff.
Table 3: Total Combined Double S, MZ and TJ Inferred Resource Table
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Inferred Resources
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Cutoff Average Contained Contained Resource
Grade Grade Tonnes U3O8 U3O8 Calculated
Zone U3O8 % U3O8 % (MT) (M Kg) (Mlbs) By
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SRK
Double S 0.010 0.013 81.464 10.516 23.185 Consulting
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Middle Zone 0.009 0.012 52.027 6.209 13.688 M Jutras
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TJ 0.009 0.011 28.662 3.211 7.079 M Jutras
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Weighted
Total 0.012 162.153 19.936 43.952
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All tabulated data has been rounded to three decimal places
for U3O8 grades
Double S Mineral Resource Estimate Method
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The geologic model and grade block model was prepared by SRK Consulting (Canada) Inc. of Vancouver, British Columbia using Data Mine Studio 2(R) and GEMS(R) software. The resource estimation was completed by Abolfazl Ghayemghamian P.Geo with assistance from Marek Nowak P. Eng., both of whom are independent Qualified Persons for the purposes of NI 43-101. Jean-François Couture P. Geo. completed the site visit for SRK. Jim Robertson of SRK designed the Whittle shell considered for resource reporting.
SRK is of the opinion that the current level of drilling is sufficient to classify some of the mineral resource as Indicated. However additional metallurgical test work must be carried out before this can be done. Uracan has retained SGS Lakefield to carry out preliminary metallurgical test work in order to upgrade the resource category. This work is expected to be completed in the next 3-4 months.
Geological interpretation of the distribution of various rock types were defined by Uracan in Gems software, on 100 meter spaced cross-sections which were the basis for coding the block model and drill holes with 3D lithological wireframes. Grade interpolation consisted of 3.0 meter composites from granites and pegmatites (host rocks to uranium mineralization at Double S). A parent block size of 10 meters by 20 meters in plan by 5 meters in height was used for the block model. Sub blocks were estimated individually. Wireframe models of the topography and the bedrock surface were also created.
Block grades were estimated using ordinary kriging method and inverse distance; however, ordinary kriging estimates were used for reporting mineral resources. Assays were capped at 0.1% U3O8 and 3 meter composites were used. Interpolation parameters for the granite (I1B) and pegmatite (I1G) units were used as outlined below:
Search Pass 1 - X = 90 meters
Search Pass 1 - Y (-25 degrees) = 130 meters
Search Pass 1 - Z (-15 degrees) = 70 meters
Search Pass 2 - X = 180 meters
Search Pass 2 - Y (-25 degrees LLL rule) = 260 meters
Search Pass 2 - Z (-15 degrees LLL rule) = 140 meters
Search Pass 3 - X = 270 meters
Search Pass 3 - Y (-25 degrees LLL rule) = 390 meters
Search Pass 3 - Z (-15 degrees LLL rule) = 210 meters
Minimum number of composites per block= 4 composites for search passes 1 and 2, and 3 composites for search pass 3
Maximum number of composites per block=16 for all search passes
Specific gravity (SG) = 2.63 g/cm3 for mineralized zones, 2.66 g/cm3 for un-mineralized units based on 298 specific gravity measurements acquired by Uracan using water displacement methodology.
SRK used a Whittle pit optimizer to evaluate the reasonableness of economic extraction of each resource block based on certain optimization parameters selected from comparable projects. The optimization parameters include: ore mining and processing costs of CN$14.50 per processed tonne, overall pit slope angles of 45 degrees, metallurgical recovery of 90 %, and appropriate dilution and offsite costs and royalties. A uranium price of US$75 per pound of uranium oxide was considered. The reader is cautioned that the results from the conceptual pit optimization work are used solely for the purpose of reporting Mineral Resources that have "reasonable prospects" for economic extraction by an open pit and do not represent an attempt to estimate mineral reserves.
NI 43-101 Compliant Report
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The Company plans to file a NI 43-101 compliant technical report covering the Inferred Resource Estimate completed on the Double S zone. The report will be filed within 45 days to the TSX Venture Exchange.
Quality Control and Quality Assurance
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The database used to create the model was based on the drill hole database provided by the Company. A total of 94 drill holes were used for the model of Double S. The assay database was checked using the original assay certificates from the laboratory. Any minor errors encountered in the database were flagged and fixed as they were encountered.
ALS Chemex is the laboratory facility used for all assays from the North Shore Property program. Samples are weighed and catalogued before sample preparation. The samples are crushed to 70% less than 2mm, split and then pulverized to 85% of the sample being less than 75 (micro)m. All samples are assayed using ICP-MS with analysis completed for 47 elements.
A QA/QC program was implemented as part of the sampling procedure for the drill program. Field duplicates and field blanks were inserted into the sample stream with at least one standard, one blank and one duplicate inserted per group of 40 samples sent to the laboratory. The laboratory also has an extensive in house QA/QC system as part of their quality control system.
Resource Classification
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Mineral Resources have been categorized using the classification of the Canadian Institute of Mining, Metallurgy and Petroleum (December 2005), with the relevant definitions provided below. This classification is the basis for Technical Reports by Qualified Persons in Canada, and the classification is virtually the same as that of the JORC code (Australia) (note: SME does not recognize the inferred category) SAMREC (South Africa) and that of the European Union.
An Inferred Mineral Resource can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
Due to the uncertainty which may attach to Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful appreciation of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.
Mineral Resources are not mineral reserves and do not have demonstrated economic viability. The Mineral Resources may be affected by subsequent assessment of mining, environmental, processing, permitting, taxation, socio-economic and other factors. There is insufficient information in this early stage of study to assess the extent to which the Mineral Resources will be affected by these factors that are more suitably assessed in a conceptual study. Mineral reserves can only be estimated based on the results of an economic evaluation as part of a preliminary feasibility study or feasibility study. As such, no mineral reserves have been estimated by SRK as part of the present assignment. There is no certainty that all or any part of the Mineral Resources will be converted into a mineral reserve.
Summer 2010 Program
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Uracan has commenced planning for the upcoming summer 2010 exploration program at the North Shore Property. This work will focus primarily on additional drilling at the higher grade Costebelle A4 zone and Grandroy zones. In addition surface mapping and prospecting will continue in order to generate additional targets.
About Quebec, Canada
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Quebec has been voted as the Top Mining Jurisdiction In the World since 2007 by the Fraser Institute Mining Survey and has been in the top 10 since 2001: www.fraserinstitute.org .
Uracan Resources Ltd. is a publicly-listed uranium exploration company, exploring for shallow, bulk tonnage style uranium mineralization in Canada. Uracan is led by a team of proven exploration and mine entrepreneurs and mine-builders. The information in this news release has been prepared and reviewed by Marc Simpson, P. Geo., the Company's Qualified Person under National Instrument 43-101 standards.
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 release. The foregoing information may contain forward-looking information relating to the future performance of the Company. Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the mining industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com). Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein. The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
For further information: Gregg J. Sedun, Chairman & CEO, (604) 682-5580; David Fry, Corporate Development, (778) 330-2759; Keith Schaefer, Vanguard Shareholder Solutions, (604) 608-0824; Marc Simpson, Exploration Manager, (604) 682-5580
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