ATHABASCA EXPLORATION RESULTS & FINANCIAL
UPDATE
· Darby-Candle drilling results
· EM survey completed at Lynx Lake
· Financial update & AGM date
Pitchstone
Exploration Ltd. (PXP-TSX.V) (“Pitchstone”) is pleased to provide
an update on exploration in the Athabasca Basin, Saskatchewan and key points
from its fiscal 2006 audited financial statements.
Darby-Candle
Drilling
Drill hole CD-08R, completed on the Candle property during March,
intersected a zone of clay-altered, friable sandstone above the unconformity
from 610-614 m.
The unconformity between the Athabasca Group sandstone and older basement rocks
was intersected at 617.25 m.
Weak radioactivity was encountered over 0.1 m intervals at the unconformity and at a
fault zone at 627.2 m.
Samples have been submitted for geochemical analysis and results are
pending. There was also a zone of weak radioactivity detected with a
drill hole probe within the zone of clay-altered
sandstone above the unconformity, however, much of this strongly altered
interval was not recovered in drill core.
Drill hole
CD-08R intersected the unconformity 70 m east of drill hole CD-02, which was
completed in 2006. As previously reported (see May 1, 2006 news release)
CD-02 returned the highest uranium geochemistry results on the property to
date, including 0.5 m
from 599.6 to 600.1 m
immediately above the unconformity that contained 422 ppm
uranium (0.05% U3O8).
As a result
of this drilling, Pitchstone and sxr Uranium One Inc
(“Uranium One”) have now jointly earned a 75% interest in the
Candle property. The remaining 25% interest is held by JCU (Canada)
Exploration Company, Limited, and the parties will be proceeding on a 75:25
joint venture basis for all future exploration on Candle. The
Darby-Candle, Waterfound, Lynx
Lake and Moon Lake
properties are joint ventured 50:50 with Uranium One. Drilling on joint
ventured properties, including Darby-Candle, and on other 100% Pitchstone owned
properties in the eastern Athabasca
Basin, is planned to
resume in May after spring break-up.
Athabasca
Basin
EM Surveys
A 25 line km
fixed-loop electromagnetic (EM) survey has been completed on the Lynx Lake
property. Preliminary results indicate that weak conductive responses
were recorded at Lynx
Lake and also during a
recently completed EM survey at Darby (see March 28, 2007 news release).
Financial
Update
Pitchstone’s
annual audited financial statements and management’s discussion and
analysis have been filed and are available at www.sedar.com.
Pitchstone’s revenue for 2006 was $2,575,556 (2005 - $1,130,633) which
included one time gains of $2,129,763. Expenses for 2006 were $721,232
(2005 - $789,737) and the net income for the year was $1,378,359 (2005 -
$166,922) or $0.05 per share (2005 - $0.01). These figures include one time
gains resulting from option agreements entered into in recent years and may not
be repeated in the future.
Exploration
expenditures during 2006 were $2,193,203 (2005 - $650,056). As of
December 31, 2006 Pitchstone had working capital of $10.6 million (2005 - $4.8
million).
The Annual
General Meeting of the shareholders of Pitchstone will be held May 11, 2007 at
10:00 AM at 915 West Hastings
Street, Vancouver, BC.
This release
has been reviewed by Steve Blower, M.Sc., P.Geo.,
Pitchstone’s Vice President, Exploration - a Qualified Person as defined
by National Instrument 43-101.
About
Pitchstone
Pitchstone
is actively exploring worldwide for uranium in four proven districts. The
portfolio features eight properties in the eastern Athabasca Basin,
Saskatchewan, five of which are joint ventured with Uranium One, with the
other three being 100% owned. In addition, there are five joint
venture properties with Triex Minerals in the Hornby
Bay Basin, Nunavut and NWT, an exploration partnership with Cameco
and Motapa Diamonds in the Franceville
Basin, Gabon, and an option on three properties in Namibia. Pitchstone has
a unique group of geologists with extensive uranium exploration and
production experience.
On behalf of
the Board,
E.A.G. (Ted)
Trueman, CEO and Director
For further
information contact: Ted Trueman, CEO,
Pitchstone Exploration (604) 630 5563 ted@pitchstone.net,
or
Dan Barnholden,
CEO, Blueprint Investor Relations Consulting (416) 625 2334, dbarnholden@blueprintir.com,
The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or accuracy of
this release. This news release may contain assumptions, estimates, and
other forward-looking statements regarding future events. Such
forward-looking statements involve inherent risks and uncertainties and are
subject to factors, many of which are beyond the Company’s control, that may cause actual results or performance to
differ materially from those currently anticipated in such statements.
