Yellowcake Mining
Inc. is pleased to announce that along with its JV partner, it has begun a
6,000 m exploration drill program at the Jeep Property, which is located in
the Gas Hills Uranium District of Wyoming. Historically, the Gas
Hills Uranium District is the second largest uranium producing area in the United
States with cumulative production in
excess of 100 million pounds.
The
Jeep property comprises 3,140 acres (1,270 ha) and includes two miles of
contiguously staked lands lying south of the historical drilling area
explored by Federal American Partners during the 1960s to early 1980s. Previous
exploration drilling defined a roll-front deposit within groundwater
hosting sandstones at depths of 280 to 320 feet. This previous drilling
defined an open-ended deposit extending to the southern limit of the
historical property boundary. Significant infrastructure, including
haulage roads, electrical power lines and a gas pipeline, exists on the
property.
The
current exploration program, which uses a conventional mud-circulating
drill rig, is targeted for the area immediately south of the historical
work completed by Federal American Partners. The intent is to further
define and extend the known mineralized roll-front. The program is
scheduled for completion by the end of the summer.
We
are also pleased to announce that an independent Technical Report has been
completed and SEDAR filed for the Jeep property, prepared in compliance
with Canada�s National Instrument 43-101.. The NI 43-101
report provides a Measured and Indicated mineral resource estimate totaling
483,395 lbs.U3O8 at an average grade of 0.08%. An
additional 168,000 lbs. have been classified as an Inferred mineral
resource. Further details on the quantity and grade for each
mineral resource category are summarized in the following table.
Measured
Cutoff
Tons
Ave. Grade
(%)
Pounds Ave.
Thick. GT
0.035% @ 2ft
228,743 0.08%
377,594
5.6 ft
0.46
Indicated
Cutoff
Tons
Ave. Grade
(%)
Pounds Ave.
Thick. GT
0.035% @ 2ft
87,893
0.06%
105,801
3.9
ft 0.23
Inferred
Cutoff
Tons
Ave. Grade
(%)
Pounds Ave.
Thick. GT
0.035% @ 2ft
152,762
0.05%
168,003
3.0
ft 0.16
The technical report was prepared by Charles D. Snow, Certified
Professional Geologist (CPG, Wyoming), who is a qualified person under
National Instrument 43-101. Mr. Snow has over 40 years of
uranium exploration and mine development experience (Utah International/Pathfinder)
in the Gas Hills and Shirley
Basin Uranium Districts, Wyoming,
two of the largest producing uranium districts in the world during the last
uranium cycle. In addition, Mr. Snow was involved with and directed
much of the world's first in-situ leach mining of uranium deposits in Shirley
Basin dating back to
the early 1960s.
The new resource estimates are based on 376 exploration drill holes
completed by previous mining companies. Yellowcake�s JV partner
Strathmore owns this drilling data, which includes drill hole location
maps, cross-sections, drill hole data sheets and historical resource
estimate reports. For the mineral resource estimates, polygons, which
were centered on the drill holes, were constructed by using perpendicular bisectors
halfway between adjacent drill holes (also called areas of equal influence
[AOI]). Uranium content was previously calculated from gamma-ray logs
for each hole by converting counts per second to % eU3O8
(equivalent). Thickness and grade of the mineralized intercepts were
assigned to each polygon for determining tonnage, with an assumed tonnage
factor of 16 cubic feet per ton. A grade cutoff of 0.035% eU3O8
and a thickness cutoff of 2 feet were used to calculate the resource;
selected for direct comparison to the historically generated estimates of
Federal American Partners and because it is recognized that low grade
deposits which lie within sandstone-hosting aquifers confined by shale are
amenable to recovery by the in-situ leach process. Historical drilling
was conducted on a 200 foot by 200 foot grid, with significant offset
drilling of 35 and 50 foot spacing along the mineralized trend. The
AOI of each polygon was limited by the position of adjoining drill holes or
the maximum capped size of the measured (10,000 ft2), indicated
(40,000 ft2) or inferred (160,000 ft2) resource
category.
In the technical report, Mr. Snow writes:
"In the author�s opinion, there is excellent potential for discovery
of additional uranium mineralization on the Jeep Property. The
mineralized trend is open on both ends, especially the southern extent,
leaving considerable room to increase reserves from exploratory
drilling.� In addition, �The Jeep Property is considered a viable
target for in-situ recovery of the uranium ore. The ore is at depths
of 280-320 feet, lying beneath the local water table and confined by
bounding shale and mudstone.�
David Miller, Director of Yellowcake commented
that he is "very pleased that Mr. Snow has again completed a thorough
43-101 technical report. Mr. Snow is one of the preeminent uranium
geologists in the world, having worked extensively in the Gas Hills uranium
district discovering and mining significant uranium deposits. I am
very pleased with the progress made by the team at the Jeep project, and
look forward to updating our shareholders on our exploration discoveries
this summer. I previously drilled on the property during the 1980s,
having defined the southern limit of the ore body at that time. The
area to the south was never explored and it will be enjoyable to return to
the property and watch the progression of the mineralized trend."
Terrence Osier, Senior Geologist coordinating the exploration from
Strathmore�s Riverton office located 45 miles west of the Jeep project commented
that he is �excited to begin exploring the Jeep ore body. We believe
a million pounds is needed to develop a second satellite ISR
operation, and we are half way there resource wise. Jeep appears to
have all the necessary parameters for successful in-situ recovery.
Also, the Gas Hills was the 2nd largest US
uranium mining district during the last cycle and much ore remains,
possibly 100 million pounds. We have aggressively acquired projects
in the Gas Hills and I look forward to advancing our significant
historically defined resources to production, in addition to exploring for
and possibly finding the next Lucky Mc1 on our vast
district-wide holdings.�
(1 Lucky Mc was Utah
International/Pathfinder�s 30 million pound uranium ore body mined during
the 1950s to 1980s.)
The 43-101 technical report for the Jeep property can be viewed in
its entirety on the Yellowcake Mining website www.yellowcakemining.com
The technical information in this news release has
been prepared in accordance with the Canadian regulatory requirements set
out in NI 43-101 and reviewed by David Miller, President and Chief
Operating Officer for Strathmore Minerals Corp., a qualified person under
NI 43-101 guidelines. It should be noted that mineral resources which are not
mineral reserves do not have demonstrated economic viability as defined by
NI 43-101 guidelines.
YELLOWCAKE MINING INC. (OTCBB: YCKM)
is a Uranium company focused solely on exploring and developing Uranium
properties in the United
States. Current properties and potential future
acquisitions give Yellowcake the expectation of near to medium term
production. Yellowcake Mining successfully raised $6 million in February
2007, and there are currently 50,940,000 shares outstanding in the company.
Contact:
Yellowcake Mining Inc. Carson Seabolt, 1-877-338-4438 www.yellowcakemining.com
LEGAL NOTICE
REGARDING FORWARD LOOKING STATEMENTS
Statements in this news
release that are not purely historical are forward looking statements,
including any statements regarding beliefs, plans, expectations or
intentions regarding the future. Forward looking statements in this news
release include that it is our intent
further define and extend the known mineralized roll-front; that the
program is scheduled for completion by the end of the summer; that there is
excellent potential for discovery of additional uranium mineralization on
the Jeep Property and is a viable target for in-situ recovery of the
uranium ore; and that we have the expectation of near to medium term
production. It is important to note that the
Company�s actual outcomes may differ materially from those statements
contained in this press release. Factors which may delay or prevent these
forward looking statements from being realized include misinterpretation of
data, that we may not be able to raise sufficient funds to complete the
payment obligations; that weather, new equipment may not perform as
anticipated; logistical problems or hazards prevent us from exploration,
development or from fulfilling our joint venture obligations once
formed;the likelihood that no resource is available for exploitation
on these properties; that we may not be able to attract or retain key
employees or advisors in the current competitive environment; that results
that we have found in any particular holes are not necessarily indicative
of larger areas of our property; we may not be able to reach agreement with
Strathmore on aspects of our agreements; and that despite encouraging data
there may be no commercially exploitable mineralization on the properties
based upon the applicable world uranium prices and the quality or grade of
the resource. Readers should refer to the risk disclosures outlined in our
periodic reports filed on Edgar with the Securities and Exchange
Commission.
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