Ucore Uranium Announces Conceptual Deposit Model on Initial Two Zones at Bokan-Dotson Ridge
(Halifax, N.S., May 10, 2010): Ucore Uranium Inc. (TSX-V:UCU; “Ucore” or the “Company”) is pleased to announce a conceptual deposit model (the “conceptual model” or the “model”) for the first two of several target exploration zones comprising the Bokan-Dotson Ridge rare earth project in southeast Alaska. The two initial target zones addressed by this model, known as the I&L and Dotson Shear Zones, are components of a larger, multi-zone rare earth system at Bokan-Dotson Ridge.
The conceptual model is intended as a partial estimate of prospective rare earth mineralization at the Bokan project for an initial limited exploration area, and specifically does not include surrounding zones located to the north and south of the subject areas, such as the Sunday Lake, Geiger, Geoduck and Cheri zones, or any of the additional zones comprising the Bokan Intrusive Complex. Further, the model spans a combined strike length of 2425 metres over the initial two target zones, and projects to a limited depth of 200 metres below surface, and therefore does not include prospective mineralization located at greater depth, or extraneous to the target zones.
According to NI 43-101 provisions, a conceptual estimate must be expressed as a range of estimated grade and tonnage for a subject area. Based on a detailed analysis of drill results at the I&L and Dotson Shear Zones, the model has generated an estimated 2.7 million tonnes to 5.1 million tonnes, at a prospective grade range of 0.50% to 0.92% total rare earth oxides (TREO). The model also indicates that heavy rare earths comprise approximately 60% of the total rare earth concentrations in the targeted areas. The estimate is summarized as follows:
|Total Combined Strike Length||2425 m|
|Projected Depth||200 m|
|Estimated Contained Mineralized Tonnage||2.7 million – 5.1 million tonnes|
|Estimated Grade TREO||0.50 – 0.92%|
|Estimated Heavy Rare Earth Content (HREO*/TREO)||60%|
*Heavy Rare Earth Oxides: Eu, Gb, Tb, Dy, Ho, Er, Tm, Yb, Lu + Y
The prospective average grade of the more valuable rare earth elements contained within this deposit model, expressed as ranges of their oxide equivalent, are summarized as follows:
In addition to the rare earth elements (REE’s), the I&L and Dotson Shear Zones contain significant estimated concentrations of non-REE technology metals, including zirconium, tantalum, niobium, and beryllium. The estimated average grades of these metals, expressed as ranges of their oxide equivalent, are summarized as follows:
A detailed long section of the subject areas addressed by the conceptual model is available in PDF format at the following link:
“This estimate applies to a very limited portion of the overall REE-prospective area at Bokan as established by the USBM, and yet the initial figures already establish the area as one of the most significant heavy rare earth deposits in the United States,” said Jim McKenzie, Ucore’s President and CEO. “Our overriding objective continues to be the proving of the historical USBM estimates for Bokan, and this interim conceptual estimate more than delivers on that objective. The projected grades and tonnage of this conceptual estimate surpass the historical USBM estimates for the same target areas: namely the I&L and Dotson Shear Zones. What’s more, our estimate of 60% HREE content exceeds the original USBM projections of 50%, and highlights Bokan as having one of the highest prospective HREE skews in North America.”
“Our geologists believe that the deposit may be hydrothermal in nature and that the mineralization may persist vertically,” continued McKenzie. “If this is confirmed by additional drilling, the initial 200 metre vertical depth projection is potentially the top of a very deep and continuous heavy rare earth deposit. Our drilling this year will work toward further expansion of this and other aspects of the 1998 USBM/ Barker & Warner report, which is available in total on our website.”
This conceptual deposit model includes the areas which have been drill tested to date at the combined I&L and Dotson Shear Zones, as well as potentially contiguous mineralization between those zones to be tested in 2010. The conceptual estimate is the aggregate sum of true widths from multiple intercepts in each hole considered in the model. At the Dotson Shear Zone, the model includes 2200 m of strike length tested to a depth of 100 m below surface and extended 100 m below the limits of drilling based on the demonstrated continuity of mineralization over an elevation range of 400 m along the strike of the zone. At the I&L Zone, the model includes a strike length of 225 m tested to a depth of 100 m below surface as well as potential down-dip areas which will be tested in 2010 to a depth of 200 meters below surface. The model does not include a possible eastern extension of the I&L Zone.
The foregoing model is based on extrapolation from 46 drill holes in the I&L Zone and 29 drill holes in the Dotson Shear Zone supported by preliminary geostatistical analysis. The model is neither a NI 43-101 compliant resource nor a reserve estimate, and a preliminary feasibility study to support a production forecast has not yet been prepared.
In 1989, a U.S. Bureau of Mines study (Barker & Warner, USBM OFR 33-89) estimated that the greater Bokan area contains 37.8 million tons of TREO at an average grade of 0.50%. This historical, non NI 43-101 complaint estimate, equates to 374 million lbs of contained TREO. With an estimated skew toward HREE content estimated at approximately 50% of total rare earths, the area ranks as one of the most prospective and accessible heavy rare earth enriched projects in North America. The USBM / Barker and Warner study included the I&L and Dotson Shear Zones addressed by Ucore’s current conceptual estimate, in addition to multiple surrounding areas such as the Sunday Lake, Geiger, Geoduck and Cheri Zones located in proximity to the Bokan Intrusive Complex.
In 2010, a 5000 m drill program has been planned for Bokan-Dotson Ridge (including a 3000 m program previously announced, in addition to 2000 m of newly planned supplementary drilling). Of the total planned drill metreage, approximately 4000 m will be drilled on the combined I&L and Dotson Shear Zones to support a NI 43-101 compliant resource estimate by year-end. Shallow diamond drilling is also planned along the Cheri, Geoduck and Sunday Lake trends to investigate the continuity of mineralization on strike with the goal of identifying additional mineralization for future inclusion in a resource calculation. Aurora Geosciences (Alaska) Ltd. has been commissioned to oversee the 2010 drilling and to prepare a NI 43-101 compliant resource estimate by the end of 2010.
NI 43-101 Compliance
Readers are cautioned that the exploration information of potential quantity and grade, outlined herein, is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource as defined in the CIM definition standards Dec. 11, 2005. David White, P.Geo., an independent geologist with Aurora Geosciences, has prepared the technical data provided in this news release and is the qualified person responsible for its accuracy. A simplified longitudinal section showing drill hole intercepts completed to date, and holes proposed to be completed in 2010, has been posted to Ucore’s web site.
Ucore Uranium Inc. is a junior exploration company focused on establishing mineral resources through exploration and property acquisition. Ucore owns a 100% interest in 422 Federal lode mining claims at Bokan Mountain, with an option to purchase an additional 90 claims, subject to NSR’s ranging from 1% to 4%. Bokan Mountain is located on Prince of Wales Island in southeastern Alaska on lands that have been recognized by federal and state governments as suitable for mineral development. The area has excellent access features, including immediate ice-free deep water shipping capability, a temperate year-round work climate, and proximity to major sea and rail shipping routes across North America and to Asia.
On behalf of the Board of Directors
Ucore Uranium Inc.
This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.
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