EDITOR: | August 14th, 2013

Macusani Yellowcake Announces Updated Resource Estimates for Uranium Deposits in Peru

| August 14, 2013 | No Comments
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August 14, 2013 — Toronto, Ontario (Source: Marketwired) — Increases Measured and Indicated Resources by 167%

Macusani Yellowcake Inc. (the “Company”) (TSX VENTURE:YEL)(FRANKFURT:QG1) is pleased to announce updated NI 43-101 mineral resource estimates for its uranium properties located on the Macusani Plateau in the Puno District of southeastern Peru. The most recent figures show a 167% increase in the contained U3O8 in measured and indicated resource categories and a 9% increase in inferred resources from totals previously reported.

“The completion of updated resource estimates for each of our properties is significant on a number of levels,” said Dr. Laurence Stefan, CEO of Macusani Yellowcake. “First, we have surpassed a U3O8 geological resource of a threshold level that sets us apart from many of our peers. Second, this allows us to consider a much larger uranium production scenario. And finally, it paves the way for us to complete a Preliminary Economic Assessment Study, which we expect to release in the fall of 2013, subject to various conditions and consultants availability.”

Highlights of Resource Estimates by Category

The resource estimates, based on a 75ppm U cut-off grade, are as follows:

  • Measured and Indicated: 47.86 M tonnes grading 253 ppm U and containing 14.273 M kg U3O8 (52.76 M short tons grading 0.596 lbs/ton U3O8 and containing 31.467 M lbs U3O8)
  • Inferred: 40.46 M tonnes grading 286 ppm U and containing 13.648 M kg U3O8 (44.595 M short tons grading 0.675 lbs/ton U3O8 and containing 30.088 M lbs U3O8)
Highlights of Resource Estimates by Property
Kihitian Colibri 2 & 3 / Tupuramani Corachapi ** Triunfador
Measured & Indicated * 11.76 M lbs U3O8
@ 1.27 lbs/ton
(8.4 M t @ 635 ppm U3O8)
14.69 M lbs U3O8
@ 0.48 lbs/ton
(27.9 M t @ 240 ppm U3O8)
5.02 M lbs U3O8
@ 0.39 lbs/ton
(11.6 M t @ 195 ppm U3O8)
n/a
Inferred * 17.38 M lbs U3O8
@ 1.23 lbs/ton
(12.8 M t @ 615 ppm U3O8)
7.67 M lbs U3O8
@ 0.34 lbs/ton
(20.4 M t @ 170 ppm U3O8)
1.91 M lbs U3O8
@ 0.46 lbs/ton
(3.8 M t @ 230 ppm U3O8)
3.13 M lbs U3O8
@ 0.82 lbs/ton
(3.5 M t @ 409 ppm U3O8)
* 75 ppm U cut-off grade.
** For information on the Corachapi resource estimate please refer to news release dated Sep. 8, 2010.

The updated resource estimate is based on 600 bore holes totalling 55,000m.

Due to current market conditions, the Company has greatly reduced its drilling activities in order to conserve its cash resources. This will allow our staff to concentrate on the completion of the Preliminary Economic Assessment (PEA) study.

DETAILED RESOURCE ESTIMATES

Updated mineral resource estimates have been undertaken by The Mineral Corporation for the Colibri 2 & 3 / Tupuramani Project area and for the Kihitian Project area, which includes the Chilcuno Chico and Quebrada Blanca deposits. A maiden mineral resource estimate has been undertaken for the Triunfador project area, which includes the Puncopata and Calvario 1 deposits. The mineral resource estimate for each project area appears below, followed by explanations describing the Mineral Resource estimation methodology for each deposit. The Mineral Corporation and Qualified Person has visited these areas on a number of occasions, most recently in May 2013.

Kihitian (Chilcuno / Quebrada Blanca)

The mineral resources have been estimated on the basis of drilling and analytical results. The identified mineral resources are based on samples taken from crushed diamond drilled core. 24,315.9m of drilling was carried out in 136 boreholes drilled from a series of platforms, with up to 5 boreholes drilled radially from each platform. The resulting separation distance between intersections of the mineralised zone is a maximum of 175m.

Full-core samples have been taken, owing to the friable nature of the mineralization and host rocks. These samples are crushed and representative samples analysed for uranium (“U”) abundance. The necessary quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material.

Uranium mineralization in two mineralized zones is visible in the core, and identifiable by hand-held radiometric instruments. The Mineral Corporation utilised a nominal cut-off of 75ppm to delineate the evaluation cuts, but typically the margins of the zones are sharp, and the U abundance increase sharply within the zone. At Chilcuno, two distinct zones referred to as Zone A and Zone B are identified, which are separated vertically by about 100m of rhyolite, and which both outcrop. The maximum depth of Zone A is approximately 125m and of Zone B, approximately 240m. At Quebrada Blanca, Zone B is interpreted to be present, while Zone A is not identified.

Ordinary kriging was carried out to estimate true thickness and U accumulation, using composites which represented the full true-width intersection of each zone. The zones have a shallow dip of between 5 and 10° and have an average thickness of 7m and 7.5m for Zone A and B, respectively.

Mineral resource classification is based on geostatistical confidence (kriging efficiency) as well as the proximity to the outcrop.

Kihitian Mineral Resource estimate (75ppm U cut-off)
Metric units Imperial units
Zone Resource Category Tonne (000s) Density (t/m3) U grade (ppm) U3O8 Content (000s kg) Ton (000s) U3O8 Content (000s lbs) U3O8 Grade (lbs/ton)
Zone A Indicated 186 1.95 650 143 205 314 1.53
Zone A Inferred 4 239 1.95 564 2 819 4 673 6 216 1.33
Zone B Indicated 8 196 1.95 537 5 190 9 035 11 442 1.27
Zone B Inferred 8 554 1.95 502 5 064 9 429 11 164 1.18
Notes:
(i) Minor discrepancies due to rounding may occur
(ii) There are currently no known risks that could materially affect potential development

Colibri 2 & 3 / Tupuramani

The Mineral Corporation last updated the mineral resource estimates at Colibri 2 & 3 in September 2010. The Tupuramani deposit, which is located immediately to the west of the Colibri 2 & 3 deposit, was not part of the Macusani mineral rights portfolio at the time. On the basis of the drilling results obtained at Tupuramani, and an improved understanding of the geological and mineralization controls since the last mineral resource update, The Mineral Corporation has undertaken a remodelling exersize of the combined Colibri 2 & 3 / Tupuramani project.

The Mineral Corporation visited the Colibri 2 & 3 / Tupuramani project during a site visit in May 2013 to observe drilling operations on the Tupuramani area and view certain drill cores.

The mineral resources at the Colibri 2 & 3 / Tupuramani project are based on 149 diamond drillholes, which represent some 12,673.2m of drilling. Full-core samples were taken, owing to the friable nature of the mineralization and host rocks. These samples were crushed and representative samples analysed for U. The necessary quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material.

A sub-horizontal, near surface zone of high-grade mineralization, dipping at approximately 2°-3° to the north-east is interpreted and a deeper zone of mineralization with a similar orientation also occurs. The base of the near surface high-grade zone of mineralization has a depth of approximately 35m below surface at Tupuramani and 50m below surface at Colibri 2 & 3.

Multiple Indicator (“MI”) analysis, oriented parallel with this zone, has been undertaken to take cognisance of the log-normal distribution of U abundances. Well-structured MI variograms were obtained for the Colibri 2 & 3 area of the deposit, and for the deeper zone, but poorly structured MI variograms were obtained in the Tupuramani area. MI kriging has been employed to estimate the U grades into 25 x 25 x 5m blocks. The estimation was undertaken in 3D into the near surface and deep zones, separated by the base of the interpreted high-grade wireframe.

The mineral resource classification is based upon classical log-normal statistical estimation errors per indicator group and weighted by the MI kriging probability estimates per indicator group. The majority of the near-surface mineralization at Colibri 2 & 3 is classified as Indicated whereas the Tupuramani area, and the deep zone has been classified as Inferred.

Colibri 2 & 3 / Tupuramani Mineral Resource estimate (75ppm U cut-off)
Metric units Imperial units
Target Resource
Category
Tonne (000s) Density (t/m3) U grade (ppm) U3O8 Content (000s kg) Ton (000s) U3O8 Content (000s lbs) U3O8 Grade (lbs/ton)
Colibri 2 & 3 Indicated 27 885 1.99 203 6 663 30 737 14 690 0.48
Inferred 9 453 1.99 167 1 859 10 419 4 099 0.39
Tupuramani Inferred 10 976 1.99 125 1 621 12 099 3 574 0.30
Notes:
(i) Minor discrepancies due to rounding may occur
(ii) There are currently no known risks that could materially affect potential development

Triunfador

The mineral resources have been estimated on the basis of radiometric data, drilling and analytical results obtained from the company formerly known as Solex Resources Corp. (“Solex”). During the site visit in May 2013 The Mineral Corporation recorded the location of a number of borehole collars, which correlated with the Solex data. The Mineral Corporation also independently captured the Solex data from electronic borehole records, and scans of borehole logs as well as independent sampling and subsequent analysis of laboratory reject material from three boreholes drilled by Solex.

Within the Calvario 1 deposit, a total of 58 boreholes were completed from a series of platforms, with up to 9 boreholes drilled radially from each platform. The resulting separation distance between intersections of the mineralized zone is a maximum of 100m. Within the Puncopata deposit a total of 34 boreholes were also drilled from a series of platforms with up to 9 boreholes drilled radially from each platform resulting in a spacing between intersections of the mineralized zone up to a maximum of 150m.

In both deposits, uranium mineralization is evident in two discreet, near-horizontal zones. The two zones are separated vertically by about 30m of non-mineralized rhyolite and both mineralized zones outcrop at surface. While mineralized, the upper of the two zones is not considered to be of sufficiently high U abundance to warrant detailed modelling. The Mineral Corporation utilized a nominal cut-off grade of 75ppm to delineate the margins of the lower zone. Typically the margins are sharp and the U abundance increases sharply within the zone. The depth of lower zone is approximately 30m in most parts of Calvario 1 and extends to approximately 70m at Puncopata.

A detailed analysis of the U grade distribution was carried out to establish continuity trends. The top and bottom contact of the mineralized zone was then wireframed to constrain the evaluation cut. In some boreholes, internal low-grade patches were incorporated into the evaluation cut in an attempt to maintain a consistent horizon thickness. The mineralized zone was found to have a shallow dip of between 5 and 6° and an average thickness of between 7m and 8m.

No notable grade variability in the vertical orientation was evident, and hence a 2-dimensional analysis of true thickness and U accumulation was undertaken. Ordinary kriging was carried out, using full-mineralized length composites corrected for true thickness.

Mineral resource classification was guided by geostatistical confidence, supported by the correlation of the interpreted mineralized zones with the surface radiometric data.

Triunfador Mineral Resource estimate (75ppm cut-off)
Metric units Imperial units
Target Resource Category Tonne (000s) Density (t/m3) U grade (ppm) U3O8 Content (000s kg) Ton (000s) U3O8 Content (000s lbs) U3O8 Grade (lbs/ton)
Puncopata Inferred 2 456 1.95 269 779 2 708 1 717 0.63
Calvario 1 Inferred 1 025 1.95 530 641 1 130 1 413 1.25
Notes:
(i) Minor discrepancies due to rounding may occur
(ii) There are currently no known risks that could materially affect potential development

Qualified Person

Mr. David Young, B.Sc. (Hons), FGSSA, FSAIMM, FAusIMM, Pr Sci Nat (No 400989/83) of The Mineral Corporation, South Africa, an independent geological consulting firm, is a Qualified Person as defined under National Instrument 43-101, and has prepared or supervised the preparation of, or has reviewed and approved, the scientific and technical data contained in this release.

About The Mineral Corporation

The Mineral Corporation is based in Bryanston, Sandton (Johannesburg) South Africa and is a leading senior advisor to the international minerals business offering a broad range of services related to mineral exploration, mine development, and mine optimization across a diverse range of commodities and geographies. The Mineral Corporation has been working with Macusani Yellowcake for over six years.

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 southeastern Peru. The Company owns a 99.5% interest in concessions that 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.

Disclaimer: Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral resources may never be converted into mineral reserves. In addition, “inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher resource category.

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.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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