TSX.V:UCR
TORONTO, Sept. 7 /CNW/ - (Uranium City Resources Inc - UCR:TSX.V,
A0F7F5:Berlin) ("UCR" or the "Company") today announced that it has identified
targets for immediate drilling, based on compiling historical data associated
with the past producing mines in the Uranium City Mining District (UCMD). The
analysis, along with evidence obtained from the Company's ongoing exploration
campaign, has enabled the Company to identify the properties in its portfolio
that offer the most promising development opportunities.
The two targets identified, known as the "East" and `'West" targets, are
located immediately on, or adjacent to the St. Louis Fault and/or Martin-Tazin
Unconformity. The "East" target is situated parallel to the St. Louis Fault
and on-strike to the east from the former producing Verna Mine. The "West"
target is in the immediate vicinity of the former producing Eagle Mine and
west of the Fay mine. Together the Fay, Ace, and Verna mines produced more
than 45 million pounds of uranium, which represents the majority of uranium
production in the UCMD.
Bob Kasner, CEO of UCR said, "UCR's unique advantage among junior uranium
companies is the presence of several past producing mines within properties,
but this has also increased the demands on our geological team because of the
need to prioritize among an abundance of potential targets. To focus our
efforts, it was imperative to analyze the vast amount of historical data
available. From our analysis of historical data, we have decided to
concentrate on two targets that possess historical reserves/resources and also
significant untested exploration potential.
"East" Target
Identified within the "East" target is an area in the footwall of the St.
Louis Fault approximately 1.5 km east of the former Verna Mine. This area was
mined as a small open pit in 1981 and plans were made to drive a ramp and
start mining from underground. Preparations to start the ramp and an in-house
feasibility were completed by Eldorado Nuclear Limited, but due to the
suspension of mining operations in 1982, only part of the pit was mined and
the ramp was not started. This area has only been drilled to a depth of
approximately 100-110 feet below surface and remains open to the east and
west, and also at depth.
Historical drilling returned values in the vicinity of 0.30% U(3)O(8)
over a core length of 19 feet.(1)
According to the mine closure report, surface mining was a total of 8,567
tons of 0.29% U(3)O(8) containing 50,700 pounds of uranium.(2) Remaining
resources to the 100 foot level are 47,800 tons of 0.285% containing 267,500
pounds uranium.(2)
<<
(1) Eldorado Nuclear Ltd, Mining Division. Internal Report, 20-July-81
by Murray Strachan
(2) Eldorado Nuclear Ltd, Mining Division. Mine Closing Report, by D.M.
Ward
"West" Target
The "West" Target is in the vicinity of the past producing Eagle Mine. In
this area 5 small to medium sized open pits were mined and a shaft was sunk to
approximately the 300-foot level. The head frame burned before any underground
mining took place.
The present historical resource (inferred) for these open pits is(3):
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Zone Tons Grade (%U(3)O(8)) Pounds U(3)O(8)
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02 4,700 0.51% 47,900
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12 7,000 0.36% 50,400
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22 1,500 0.25% 7,500
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32 10,000 0.23% 46,200
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42 8,600 0.24% 41,300
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Total 31,800 193,000
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UCR believes that the potential to expand these resources is very good and
will be the goal of the drilling campaign to commence. A drill is planned to
move to the "East" target around mid to late of September.
(3) Eldorado Nuclear Ltd, Mining Division. Mine Closing Report, by D.M.
Ward
(1), (2) and (3) This work was completed prior to NI 43-101 being
implemented. UCR has not verified the historical resource/reserve
values, and is not treating it as a current mineral reserve/resource
estimate and should not be unduly relied upon.
Mr. John Cook, P.Eng is the qualified person for the technical aspects of
this news release.
>>
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About Uranium City Resources:
Uranium City Resources has a number of 100% owned uranium projects within
the Uranium City Mining District, an area with over 30 years of past mining
and nearly 70 million pounds of uranium production. Since 2005, the Company
has spent over C$3 million exploring its properties and has outlined numerous
uranium targets. Recent drill programs have confirmed the presence of uranium
mineralization and drilling is to continue throughout 2006. UCR is well
financed and has approximately C$6.0 million in the treasury (as at
30-Apr-06).
Forward looking statements:
This news release contains certain forward-looking statements. These
forward-looking statements are subject to a variety of risks and uncertainties
beyond UCR's ability to control or predict, which could cause actual events or
results to differ materially from those anticipated in such forward-looking
statements. Although UCR believes that the assumptions inherent in the
forward-looking statements are reasonable, undue reliance should not be placed
on these forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
