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Press Release

Dec 10, 2012 07:56 ET

Macusani Yellowcake Reports New Near-Surface, High-Grade Uranium Drill Results at Flagship Kihitian Project

TORONTO, ONTARIO--(Marketwire - Dec. 10, 2012) - Macusani Yellowcake Inc. (the "Company") (TSX VENTURE:YEL)(FRANKFURT:QG1) is pleased to report further high-grade intersections from its ongoing drilling program at the Quebrada Blanca anomaly on its flagship Kihitian Property, which is located in south-eastern Peru.

Highlights

  • The Company has completed 4 511 m of drilling on the Quebrada Blanca anomaly to date and has published results from the initial 10 holes including one of the Company's most significant results from hole #QB36-TSW, which returned a weighted average of 1 530 ppm U3O8 over 22.0 m (or 3.06 lbs/ton over 72.2 ft) (see news release dated October 17, 2012).

  • The new results include high grade uranium assays returning a weighted average of 9 286 ppm U3O8 over 2.0 m from 20.0 to 22.0 m (or 18.57 lbs/ton over 6.6 ft).

  • All ten platforms drilled to date at Quebrada Blanca have intersected the mineralized manto "B" target.

  • A new mineralized target intersected 80-100 m below manto "B".

Drill Results

Selected assay results from boreholes drilled on platforms 34, 36, 42 and 44 include:

Depth From To Intersection Grade Grade
Drill hole (m) (m) (m) (m) (ppm) (lbs/ton)
PT-QB44-TV 139.0 9.0 30.0 21.0 927 1.85
including 20.0 22.0 2.0 9,286 18.57
116.0 123.0 7.0 326 0.65
PT-QB44-TNW 105.0 3.0 5.0 2.0 205 0.41
19.0 29.0 10.0 843 1.69
including 22.0 26.0 4.0 2,064 4.13
PT-QB36-TNW 93.0 15.00 25.00 10.00 869 1.74
including 19.00 23.00 4.00 2,052 4.10
PT-QB36-TNE 109.0 17.00 33.00 16.00 371 0.74
including 21.00 24.00 3.00 1,604 3.21
40.00 42.00 2.00 170 0.34
PT-QB42-TNW 115.0 38.00 72.00 34.00 327 0.65
including 45.00 51.00 6.00 1,075 2.15
PT-QB34-TNW 114.0 17.00 23.00 6.00 61 0.12
35.00 37.00 2.00 785 1.57
45.00 69.00 24.00 156 0.31
103.00 106.00 3.00 97 0.19
PT-QB36-TV 150.0 13.00 25.00 12.00 218 0.44
including 19.00 24.00 5.00 403 0.81
124.00 132.00 8.00 125 0.25
* The widths above are drill intercepts and not true widths. True widths have not been determined.

The Quebrada Blanca anomaly is located approximately 2 km northwest of the Chilcuno Chico anomaly on the Kihitian property, on the northwest border of the concession. A map and a vertical cross section can be found on the Company's website at: http://www.macyel.com/pr10dec2012/.

Drill holes PT-QB44-TV and PT-QB36-TV appear to have discovered a new mineralized horizon occurring at depths between 80 to 100 metres below manto "B". This new mineralized sequence, also intercepted in hole 42V, has a thickness of 7-8 m and grades ranging from 0.25 to 0.65 lbs/ton.

President and CEO, Dr. Laurence Stefan, stated: "The latest assays at the Quebrada Blanca anomaly continue to demonstrate the encouraging near surface uranium mineralization potential of the western area of the Kihitian concession. In addition, the presence at depth of a new mineralized sequence located 100m below manto "B", consistently intercepted by three vertical boreholes, is a new addition to our geological model. We now have discoveries covering a 5 km strike length and continue to explore with three drills on the Kihitian property."

Several intersections of high-grade uranium from Quebrada Blanca were previously reported in the Company's press releases dated May 17, 2012, August 21, 2012 and October 17, 2012. Historically, one of the most significant boreholes on the Quebrada Blanca anomaly was on platform 43 from borehole #QB43-TV1 returning a weighted average of 26 717 ppm U3O8 over 5.0 m from 34.0 to 39.0 m (or 53.43 lbs/ton over 16.4 ft). The drill hole was abandoned due to technical difficulties and ended in mineralization.

The host of the mineralization is the same young age Macusani rhyolite rock that displays disseminated and fissure-controlled uranium minerals. The main mineral species are meta-autunite and autunite that have demonstrated to provide high metallurgical recoveries, between 91 to 97% (see the Company's press release dated August 9, 2012).

Previous assay data, maps and a sample cross section are available on the Company's website at www.macyel.com/kihitian/.

Current Exploration

Drilling continues at the Quebrada Blanca anomaly, with one rig extending the drilling activities towards south and east of the main ravine, in order to test at depth visual uranium mineralization that outcrops on surface.

At present, the Company is operating five diamond drill rigs on the Macusani plateau: three drills on the Kihitian project (one drill at Quebrada Blanca and two drills at Chilcuno Chico) and two drills that have recently started working at the new Tupuramani anomaly in order to test the western extension of Colibri 2 and 3. The exploration target for the Company is to reach 55 million to 65 million pounds of uranium resources by the end of 2013.

Previous assay data, maps and a sample cross section are available on the Company's website at www.macyel.com/properties/.

Quality Control and Analytical Procedures

Core samples have been crushed and representative samples analysed for Uranium (U) abundance and a suite of 40 elements. The necessary analytical quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material. After crushing, the core is placed in sealed bags and shipped to the CIMM's preparation laboratories in Juliaca, Peru. Following the preparation stage, the sample pulps are sent to CIMM analytical laboratory in Lima where U and a suite of forty other elements are analysed using ICP-MS methodology.

CIMM Peru is an ISO certified assay laboratory. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.

Qualified Person

Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed and approved the scientific and technical data contained in this release.

About Macusani Yellowcake

Macusani Yellowcake Inc. is a Canadian uranium exploration and development company focussed on the exploration of its properties on the Macusani Plateau in south-eastern Peru. The Company owns a 99.5% interest in concessions which cover over 90,000 hectares (900 km2) and are situated near significant infrastructure. Macusani Yellowcake is listed on the TSX Venture Exchange under the symbol 'YEL' and the Frankfurt Exchange under the symbol 'QG1'. The Company has 159,473,613 shares outstanding. For more information please visit www.macyel.com.

This news release includes certain forward-looking statements concerning the future performance of Macusani's business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in the Company's recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Macusani nor its management assume any obligation to revise or update these forward-looking statements.

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.


For more information, please contact

Macusani Yellowcake Inc.
Laurence Stefan
President and CEO
+1-416-628-9600
laurence@macyel.com