Additional High-grade Uranium Drilling Results, Wate Breccia Pipe Arizona, USA
|Hole WT-37;||18.5 feet @ 0.35% U3O8 from 1,299.5 – 1,318.0 feet|
|11.5 feet @ 1.25% U3O8 from 1,362.5 – 1,374.0 feet|
VANE Minerals today announces continued successful results from further delineation drilling at the Wate project. The Company’s wholly-owned subsidiary, VANE Minerals (US) LLC, has encountered two significant ore-grade intercepts in Hole WT-37. On the 25th of May 2010, the Company announced the completion of an NI43-101 resource of 695,000 lbs U3O8 grading 0.80% U3O8 on the Wate Pipe which is located on state lands held in the joint venture (JV) with Uranium One Exploration U.S.A. Inc (U1). The JV intends to complete limited additional drilling in order to increase the resource to 1 million pounds U3O8 which is the resource needed, based on internal guidelines, to move the project to prefeasibility.
The collar of Hole WT-37 is located 30 feet west of previously identified mineralization. The hole encountered two main mineralized zones as follows using a cutoff grade of 0.20% U3O8:
1,299.5 – 1,318.0 feet (18.5 feet) @ 0.35% U3O8
1,362.5 – 1,374.0 feet (11.5 feet) @ 1.25% U3O8
Due to hole deviation at depth, the mineralized intercepts are approximately 35 feet, S55W from where the hole was collared. These new intercepts add significantly more dimension to the mineralization and pipe diameter in a southwest direction. The next hole is planned for a location designed to test for mineralization in the inferred location of the southeast part of the pipe. As new mineralized intercepts are encountered, the data will be provided to SRK to update the resource model until the 1mm lbs total is obtained. With this additional drilling, management anticipates converting the “inferred resource” into “indicated resource”. The planned prefeasibility study could then convert the resources into reserves in line with NI 43- 101 rules.
Previous drilling from surface by Rocky Mountain Energy (RME) resulted in resources calculated by RME of between 1.1mm and 2.4mm lbs U3O8 grading 0.80% to 0.83% U3O8. It is important to note that historically, delineation drilling from underground of similar pipe ore bodies has resulted in the deposit enlarging by an average of 3.5 times.
Kristopher K. Hefton, Chief Operating Officer VANE Minerals (US) LLC, BSc Geology, who meets the criteria of a qualified person under the AIM Rules - Guidance for Mining, Oil and Gas Companies, has reviewed and approved the technical information contained within this announcement. VANE Minerals, as operator of the joint venture, is responsible for the contents of this press release
Steve Van Nort, CEO, commented: “These results are encouraging in that high-grade mineralization was encountered and the pipe dimensions were increased. Our plan remains to delineate 1mm lbs of U3O8 from our surface drilling and to initiate the Arizona State Mineral Development Report which will lead to a Mineral Lease at which time underground development work would begin. We also look forward to announcing results from our Mexican precious metals production expansion JV and our US porphyry copper portfolio over the coming months. ”