ESO update on Athabasca uranium exploration programs
Tuesday June 12, 1:30 pm ET
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TSX-V: ESO Frankfurt: E2G
VANCOUVER, June 12 /CNW/ - ESO Uranium Corporation (ESO:TSX-V), the Company, has been completing airborne geophysical work and compilation of data from the extensive assessment reports covering its 100% owned Cree Uranium Claims in the East Athabasca Basin, Saskatchewan. These claims cover an area of approximately 625,000 acres (250,000 hectares) and lie parallel to and on the west side of the highly productive belt of uranium mines and deposits in the east margin of the Athabasca Basin. Results of earlier Megatem coverage of the northeast sector of the Cree Claims, completed by Fugro Geophysics, were delivered in late 2006. These data are the basis for defining further airborne radiometric and aeromagnetic work to detail the five strongest anomalies identified. The additional airborne data will be used with data from ground work, including systematic boulder sampling and electrical soundings, to assist in the definition of drill targets for testing later this year.
Fugro have also delivered (June 2007) preliminary Megatem data for the southwest sector of the Cree project area. These claims cover an area of detailed surveys and some follow-up diamond drilling carried out by Uranerz in the 1970's uranium exploration boom.
The ESO results indicate a strong graben-like (rift-valley-type-faulting) development along the NE-SW axis of the Cree Claims that has a low magnetic response with a strong electromagnetic anomaly. This is a geophysical response that could reflect a conductive graphitic zone with strong structural definition that is a classic parallel to that for known uranium deposits in the Eastern Athabasca basin. The structure is parallel to, and may be associated with, the Cable Bay Shear Zone, a long structure that has some similarities to the nearby mineralized Virgin River shear zone structure.
The earlier work by Uranerz, included boulder sampling over an area approximately 30 km by 5 km, covering a large part of the southwest claims. The work identified a boulder train of anomalous alteration products with clay and uranium values that may reflect hydrothermal plumes above mineralization. Follow-up drilling by Uranerz included 6 holes within the Cree Claims that intersected the unconformity at the base of the Athabasca sedimentary package. The holes also confirmed alteration of the type seen in hydrothermal plumes. These data will be used to refine the interpretation of geophysical data required in the new surveys. A Uranerz drill hole close to the southern border of the ESO claims reported uranium mineralization associated with the structure which has encouraged a detailed evaluation of this part of the East Athabasca claims. The budgeted program for the Cree Project work, before drilling is $3.5 million, of which, $1.2 million has been spent on the Fugro airborne surveys.
On the West Athabasca properties of ESO, permitting has been extended for the drill evaluation of targets on the Cluff properties to match extended drilling programs. Renewal of permits for drilling (previously granted) on the 100% Hook property has been initiated using a minimum environmental impact approach with a helicopter supported program. The targets on the Hook claims are airborne magnetic and electromagnetic anomalies that have been ground checked and defined with resistivity surveys carried out by Peter Walcott and Associates in early 2007. The Dirkson structure, on the south side of the ESO Hook claims, appears to continue northwards into these claims and has drill indicated uranium mineralization. The ESO targets are up-ice of boulder train anomalies (in the possible source area) indicating pathfinder alteration values that may be associated with uranium mineralization. Budgeted drilling costs for the Cluff properties are currently $2.5 million and for the Hook claims are $750,000.
The company also announces the granting of 650,000 options under the incentive stock option plan to certain directors, officers, employees and consultants. The options are exercisable at price of 56 cents per share for a period of five years. Of these options, 100,000 are issued to consultants performing investor relations and vest over 12 months in accordance with the policies of the TSX Venture Exchange.
For reference, the current spot price of uranium is now US$138 per pound of U3O8; an assay reported as 1.0% of U3O8 is equal to 20 pounds of uranium oxide per short ton - the conversion of percent metal or metal oxide from percent to pounds per short ton is done by multiplying the percent value by 20.
On behalf of the Board of Directors of ESO Uranium Corp.
"Ben Ainsworth"
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Vice President, Exploration
The Toronto Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release which has been prepared by management. Statements contained in this news release that are not historical facts are forward looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filing with the Securities and Exchange Commission.
For further information
For Corporate Communications please contact: Tom Corcoran or Bob Meister, ESO Uranium Corporation, Vancouver, B.C., Toll Free: 1-866-629-8368, Phone: (604) 629-0293, Email: info@esouranium.com
Source: ESO Uranium Corp. |
