Nov 27, 2012 08:48 ET
Macusani Yellowcake Reports Drilling Results and Interpretation of Geological Data Acquired in Merger with Southern Andes Energy
TORONTO, ONTARIO--(Marketwire - Nov. 27, 2012) - Macusani Yellowcake Inc. (the "Company" or "YEL") (TSX VENTURE:YEL)(FRANKFURT:QG1) today reported the previously unannounced results of historic drilling completed by Southern Andes Energy Inc. ("Southern Andes") and an initial interpretation of their geological database acquired as a result of the merger completed in April 2012.
- The Company has completed its review and interpretation of the Southern Andes database and believes that significant uranium mineralization targets can be developed, which may assist Macusani Yellowcake in achieving its 2013 corporate resource target of 55 to 65 million pounds of U3O8.
- Existing data in this historic database will be reviewed by The Mineral Corporation, a South Africa-based mining consulting firm, with the goal of calculating additional NI 43-101 compliant mineral resources during 2013.
- The Company continues to drill three target areas with five drills: three on Kihitian to test the Quebrada Blanca and Chilcuno Chico anomalies, and two at Tupuramani (a new target) to test the extension of the Colibri 2 and 3 anomalies.
Selected historic assay results contained in the Southern Andes database from the areas drilled on the eastern side of the Macusani plateau are shown in the following table:
|Target Area /
|* The widths above are drill intercepts and not true widths. True widths have not been determined.|
President and CEO, Dr. Laurence Stefan, stated: "The amount of historic drilling completed on the property in 2006-2007 is impressive. About 65% of the historical database can be used in support of future NI 43-101 resource models. We are encouraged that more anomalous areas had been drilled, some of which appear to be direct extensions of known mineralization and anomalies of YEL's previous ground, where the size and shapes of the anomalies are well defined. Revalidation work continues and we expect to obtain resources modeled on this database sometime during 2013. We believe that targeted drilling along these radiometric anomalies has the potential to produce sizeable mineral resources and enable us to reach our 2013 corporate resource target of 55 to 65 million pounds of uranium."
The drill core preserved by the earlier exploration activity has been transported to YEL's new core shed and storage facility. The assays and drilling data from very shallow drilling in the Calvario I, II and III, Puncopata and Agaton areas are very encouraging. The Company believes that future geological modeling and resource calculation in these areas can increase YEL's existing geological resource base and impact positively on the economic study of uranium mine development on the Macusani plateau. Once identified, reclassified and remodeled all of these previous drill results and exploration data will be sent to The Mineral Corporation in Johannesburg, South Africa for inclusion in an updated resource estimate for the newly designated areas.
The Company notes that the host rock of the mineralization is the same young age Macusani rhyolite rock that displays disseminated and fissure-controlled uranium minerals, principally meta-autunite and autunite. In YEL's existing geological resources, similar mineralization was demonstrated to exhibit high metallurgical recoveries, between 91 and 97% (see YEL press release dated August 9, 2012). Metallurgical testing of the historical Southern Andes core material will start shortly.
Interpretation of Geological Data from Southern Andes
Following the merger with Southern Andes, the Company obtained electronic and hard copies of a database comprised of the available geological and technical information from the initial drilling campaign in 2006-07 by Frontier Pacific in joint venture with Solex Resources Corp., the former name of Southern Andes. This database also includes some basic mapping completed by Southern Andes in 2010 and 2011.
"Working with historic data acquired from third parties can sometimes pose challenges given standards and technology used at the time," added Dr. Stefan. "Over the past six months we have been working diligently to upgrade the quality of the data and feel confident that the results are reliable and that our interpretations are valid."
The Company started processing the historic database but was initially delayed by the lack of access to the primary information, missing data and large gaps in the database. Over the last six months YEL has been able to fill some of the missing gaps and discard any incomplete information. The database has been upgraded, re-filed and reclassified using Arcview, CAD and Gemcom software. It appears that this historic work was aimed at defining small radiometric anomalies from reconnaissance studies. It is apparent that the shapes and sizes of these anomalies were poorly defined by this historic drilling and inclusion into YEL's modeling shows that the drilling was executed, in many cases, across the main mineralized structures. It is also is evident that a majority of the drilling was very shallow, at only 40-60 m from surface, with inclined drill holes at 55 degrees that rarely offered vertical exposures of the litho-stratigraphy deeper than 40m from surface. As a direct result many of these drill holes were stopped in mineralization. Toward the end of the drilling program some inclined holes were drilled to 70 and 80m depth and no vertical holes were drilled.
The exploration program was focused on the concessions Calvario I, II and III that are situated northeast of the Corachapi concession, which contains an estimated NI 43-101 compliant resource. The Agaton area, in the Samilio I concession, is located south of Colibri 2 and 3, which also contains an estimated NI 43-101 compliant resource. The Puncopata area, in the Triunfador I concession is situated northeast of the Corachapi concession. A map illustrating these exploration areas is available at www.macyel.com/pr27nov2012/.
At present, the Company continues to operate 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
Frontier Pacific used ALS Chemex (>50%), SGS as well as CIMM for analysis of drill core, however, the quality control and exact analytical procedures used by Frontier Pacific were not released publicly and are unknown at the time. The reader is cautioned that, although management of Macusani Yellowcake are confident of the data, there is not sufficient information regarding these processes at this time.
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 contactMacusani Yellowcake Inc.
President and CEO