Message #4 From:
NewsBot Date: February 14, 2008 03:02:36 PM
American Uranium Announces NI 43-101 Resource for Reno Creek Deposit
American Uranium Corporation (OTCBB: AUUM) ("American" or the
"Company") is very pleased to announce the completion of an NI 43-101
Resource calculation for its Reno Creek deposit in northeast Wyoming's
Powder River Basin. The Resource determination was based on the
analysis of the original logs for 1,083 holes drilled by previous
owners of the property. The Reno Creek Property covers 2,400 acres (970
ha) and is located midway between AREVA's idled Christensen Ranch
in-situ recovery (ISR) operation and Cameco's producing Smith Ranch ISR
facility, located 30 miles to the south. The project was extensively
explored by a number of previous owners during the 1970s to mid-1990s.
Dr. Bob Rich, the Company's CEO commented: "We were very pleasantly
surprised to find the actual Reno Creek resource is 10.8 million lbs
U3O8-- more than twice our previous estimate."
Strathmore Resources (US) Ltd commissioned and SEDAR-filed an
independent National Instrument 43-101 Technical Report for the Reno
Creek Uranium Property, Wyoming. American joint ventured the
PineTree-Reno Creek properties with Strathmore in 2007.
The NI 43-101 report covers only the Reno Creek (formerly West Reno)
portion of the Pine Tree Reno Creek properties, which comprises
approximately 15% of the total project area. Historical resources for
the remaining 85% of the property total approximately 9.7 million lbs
U3O8.
American previously reported 4.0M lbs U3O8 historical "demonstrated
resource" for the portion of the Reno Creek deposit it currently
controls. International Uranium Corporation held the entire deposit
until 1999 and reported a resource containing 3.8 million lbs U3O8
ISR-recoverable at 75% for its somewhat larger property. The NI 43-101
resource in all categories is 10.8 million lbs U3O8.
The results of the NI 43-101 Resource calculation are presented in the table below.
Measured & Indicated Mineral Resource:
Short Tons Av Grade lbs U3O8 Av Thickness (ft) GT --------------------------------------------------------------------- 5,677,929 0.065% U3O8 7,433,499 11.9 0.77
Inferred Mineral Resource:
Short Tons Av Grade lbs U3O8 Av Thickness (ft) GT --------------------------------------------------------------------- 2,633,800 0.065% 3,406,771 13.2 0.86
Mineral resources as defined by National Instrument 43-101 are
not economic "reserves". Resources were calculated by the
perpendicular-bisector polygon method using bisectors one-half the
distance between the nearest drill-hole locations. The resulting
polygons were capped at a 100ft x 100ft (10,000ft2) area of influence
(AOI) for the Measured resource class, at a 200ft x 200ft (40,000 ft2)
AOI for the Indicated resource class, and at a 400ft x 400ft (160,000
ft2) AOI for the Inferred resource class. Uranium content was
previously calculated from gamma-ray logs for each hole by converting
counts per second to % eU3O8 (equivalent). A tonnage factor of 16 cubic
feet per ton was used for the host sandstone, and the minimum cutoff
grade was 0.03% eU3O8. The resources were then calculated using a grade
times thickness (GT) product of 0.3. The grade and GT parameters were
selected because it is recognized that low grade, thick deposits can be
successfully mined using the in-situ recovery (ISR) method. Previous
studies determined an average radiometric disequilibruim factor of 1.0.
In the 1980's field pilot plant testing confirmed the deposit's ISR
amenability and the ability to restore the aquifer to pre-mining
conditions. In the 1990's Reno Creek was nearly fully permitted by the
State of Wyoming, US EPA and the US Nuclear Regulatory Commission for
construction and operation, but the permitting effort was discontinued
in 1999 following the collapse of the uranium market.
The Reno Creek technical report was prepared by Charles D Snow,
Certified Professional Geologist (CPG, Wyoming), who is a qualified
person under National Instrument Policy 43-101. Mr. Snow has over 40
years of uranium exploration and mine development experience (Utah
International/Pathfinder) in the Gas Hills and Shirley Basin Uranium
Districts, Wyoming, which are the two largest historical producing
uranium districts in Wyoming. In addition, Mr. Snow was involved with
and directed much of the world's first in-situ leach mining of uranium
deposits in Shirley Basin in the early 1960s.
In the technical report, Mr. Snow writes:
"In the author's opinion, there is excellent potential for discovery
of additional uranium mineralization on the Reno Creek Property,
especially to the east of the main deposits". In addition, "The Reno
Creek Property is considered a viable target for in-situ recovery of
the uranium ore. The ore is at depths of 170-450 feet, lying beneath
the local water table within permeable sandstone and confined by
bounding shale and mudstone."
The Reno Creek data obtained last year is expected to enable the
Joint Venture to expedite regulatory permitting requirements and
advance the project's production timeline. Permitting activities are
now underway. Work scheduled for 2008 includes the installation of
groundwater monitor wells to obtain necessary geologic and hydrologic
information, reserve analysis of the mineralized fronts, preliminary
well field design, and engineering designs of a centralized and/or
satellite in-situ recovery facility.
The NI 43-101 technical report for the Reno Creek Property can be viewed in its entirety on the SEDAR website www.sedar.com or on the Company's website www.americanuraniumcorp.com.
The technical information in this news release has been prepared in
accordance with the Canadian regulatory requirements set out in NI
43-101 and reviewed by David Miller, Chief Executive Officer for
Strathmore Minerals Corp., a qualified person under policy NI 43-101.
Note: Mineral resources (in contrast to "reserves") do not have
demonstrated economic viability.
American Uranium is a US uranium exploration and development company
which is committed, pursuant to the terms of the Company's joint
venture agreement with Strathmore, to spending $12.375 million to earn
an initial 22.5 % in the PineTree-Reno Creek project and $33 million
over 6 years to earn a 60% interest.
STRATHMORE MINERALS CORP. is a Canadian based resource company
specializing in the strategic acquisition, exploration and development
of uranium properties in the United States. Headquartered in Kelowna,
British Columbia, the Company also has U.S. based Development Offices
in Riverton, Wyoming and Santa Fe, New Mexico. STRATHMORE MINERALS CORP
Common Shares are listed on the TSX Venture Exchange under the symbol
"STM".
Legal Notice Regarding Forward-Looking Statements
Statements in this news release that are not historical are
forward-looking statements. Forward looking statements are statements
that are not historical facts and are generally, but not always,
identified by the words "expects," "plans," "anticipates," "believes,"
"intends," "estimates," "projects," "aims," "potential," "goal,"
"objective," "prospective," and similar expressions, or that events or
conditions "will," "would," "may," "can," "could" or "should" occur.
Information inferred from the interpretation of drilling results and
information concerning mineral resource estimates may also be deemed to
be forward looking statements, as it constitutes a prediction of what
might be found to be present when and if a project is actually
developed. Forward-looking statements in this news release include:
that there is excellent potential for discovery of additional uranium
mineralization on the Reno Creek Property, especially to the east of
the main deposits, that the Reno Creek Property is considered a viable
target for in-situ recovery of the uranium ore, that the Reno Creek
data obtained last year is expected to enable the Joint Venture to
expedite regulatory permitting requirements and advance the project's
production timeline. Permitting activities are now underway, and that
work scheduled for 2008 includes the installation of groundwater
monitor wells to obtain necessary geologic and hydrologic information,
reserve analysis of the mineralized fronts, preliminary well field
design, and engineering designs of a centralized and/or satellite
in-situ recovery facility.
It is important to note that the Company's actual outcomes may
differ materially from those statements contained in this press
release. Factors which may delay or prevent these forward looking
statements from being realized include misinterpretation of data; that
we may not be able to keep our qualified personnel; that funds expected
to be received may not be; that our estimates of mineral resources are
inaccurate; uncertainties involved in the interpretation of drilling
results and other tests and the estimation of resources; that we may
not be able to get equipment or labor as we need it; that we may not be
able to raise sufficient funds to complete our intended exploration,
purchase, lease or option payments; that our applications to drill may
be denied; that weather, logistical problems or hazards may prevent us
from exploration; that analysis of data cannot be done accurately and
at depth; that results which we have found in any particular location
are not necessarily indicative of larger areas of our property; and
that despite encouraging data there may be no commercially exploitable
mineralization on our properties. Readers should refer to the risk
disclosures outlined in the Company's most recent Form 10-KSB and other
periodic reports filed from time to time with the Securities and
Exchange Commission.
Information Concerning Mineralization and Resources
All mineral resources have been estimated in accordance with the
definition standards on mineral resources and mineral reserves of the
Canadian National Instrument 43-101. U.S. reporting requirements for
disclosure of mineral properties are governed by the United States
Securities and Exchange Commission (SEC) Industry Guide 7. Canadian and
Guide 7 standards are substantially different. This press release uses
the terms "indicated" and "inferred" resources. We advise investors
that while those terms are recognized and required by Canadian
regulations, the SEC does not recognize them. Inferred mineral
resources are considered too speculative geologically to have economic
considerations applied to them that enable them to be categorized as
mineral reserves.
