Western Uranium Corporation (TSX VENTURE:WUC) is pleased to announce the results from the on-going regional exploration Program at the Kings Valley Project in Nevada, USA.
Exploration Update
Recent exploration on the Company's Kings Valley Project has identified several large geochemical and geophysical anomalies in areas peripheral to previously identified zones of drill defined uranium mineralization. These anomalies are in areas with similar geology to other known uranium deposits within the prospective McDermitt Caldera, a collapsed volcanic feature some 18 kms in diameter. The Kings Valley project is located in the northeast corner of Nevada and covers over 80,000 acres of ground in and around the McDermitt Caldera (Figure 1). The Company believes that the geologic setting of the McDermitt Caldera is similar to that of the Streltsovka Caldera in Transbaikalia, Russia which hosts reported uranium resources of greater than 600 million pounds U3O8 distributed in 20 deposits. Although the geologic ages of the calderas vary, the internal rock types, complex structural components, the geologic environment, and nearly identical geographical dimensions are analogous.
Geologic Prospectivity of the McDermitt Caldera
Exploration programs conducted by Chevron Resources and The Anaconda Company during the late 1970's in the McDermitt Caldera were successful in identifying drill defined historical inventories of approximately 17 million pounds of uranium that are hosted within geologic structures on the margin of the caldera and occupy an area of approximately 450 acres. This historical inventory is not considered NI 43-101 compliant and should not be relied upon. The company is currently in the process of upgrading the historic resources to meet NI 43-101 compliance. Earlier work by Chevron and Anaconda in and around the McDermitt Caldera was focused on the southwestern margin of the geologic feature and only scratched the surface of the potential of this large, multi-element mineralized system. The Company's current regional exploration program has been successful in identifying additional localities within the caldera itself that have potential for containing additional uranium, lithium and possibly molybdenum mineralization.
In 2005, a large regional modified stream sediment program was conducted over a large part of the caldera. Over 500 samples were collected and at each site 10-12 sample subsets were taken for each sample site providing a large and more representative bulk sample from each site. The data from this survey generated three highly prospective target areas, Bull Basin, Old Man Springs, and Horse Canyon. Each of these targets has similar geology to another known uranium deposit within the caldera as well as highly anomalous uranium and radon geochemistry that are several times normal background.
Orientation Surveys Within The McDermitt Caldera
During 2006, with the permission of Energy Metals Corporation, an orientation survey line was run over the Aurora Deposit (18 million pounds U3O8) that is located in the northeast corner of the McDermitt Caldera in Oregon. Uranium mineralization at the Aurora deposit is hosted in a thick, flat lying layer of both moat sediments and an iron-rich andesitic volcanic unit. The orientation survey was undertaken to determine which geochemical and geophysical techniques might assist in identifying similar styles of mineralization elsewhere in the caldera. It is postulated that additional uranium mineralization could be hosted in the moat sediments which underlie a large area on top of the caldera. Western Uranium has staked over 3800 Federal Mining claims over a broad area of the caldera which covers the most prospectable ground. The results from the survey show that the Aurora deposit is characterized by a strong magnetic signature as well as an anomalous radon gas signature. One of the geochemical techniques employed was the Track-Etch method which measures radon gas emissions that migrate up and through soil cover and are captured by sampling devices which 'count' the tracks of radon emissions. Radon concentrations above normal background levels can reflect buried sources of uranium mineralization.
These same procedures were then employed over the regional anomalies mentioned above and have further defined the three regional zones identified to date. The Bull Basin anomaly has a coincident signature of a strong geochemical radon gas response and a geophysical magnetic high. The anomaly covers an area of approximately 2300 meters x 2000 meters that remains open in three directions. The Bull Basin area lies approximately 10 km to the northeast of the Kings Valley North drill area (KV North) which hosts part of the 17 million pounds of known uranium mineralization on the adjacent western caldera margin.
The Old Man Springs target covers approximately 2000 meters by 1000 meters, is open to the north and south, and appears to lie along the same structural trend that controls uranium mineralization in the KV North drill zone which is located approximately 7 km to the south. Along with the strong radon gas signature found in this area, the ground magnetometer survey revealed a magnetic low corresponds with the area of the radon gas. Both magnetic highs and lows are often associated with mineralization and are a function of the style and intensity of associated alternation (Figure 2).The Horse Canyon target area is located just to the east of KV North and due to time constraints was only tested with a ground magnetometer survey. However a strong magnetic high has been identified with dimensions of some 3200 meters x 800 meters that corresponds to a uranium soil anomaly defined by Chevron Resources that was never drill tested during their tenure on the project.
A broad scale follow-up geochemical survey is currently underway to try and close off and add better definition to the existing anomalies as well as infill areas on closer spacing in the zones of the strongest emissions of radon gases. In addition, an airborne geophysical survey is being planned to cover the entire 3800 claim block. Upon the completion of additional geologic, geophysical, and geochemical work it is the intent of the company to begin drill testing the most prospective targets later this year.
In summary, the size of the currently defined anomalies and their proximity to the previously delineated KV areas of mineralization as well as the geologic, geochemical and geophysical similarities to the nearby Aurora Deposit demonstrate that a large mineralizing system has been active on the margins and within the McDermitt caldera. It is the company's belief that considerable potential remains to find additional sources of uranium mineralization outside of these areas of currently known mineralization. The similarity in geologic setting and rock chemistry to the Streltsovka caldera in Russia is supportive of this conclusion.
About the Company
Western Uranium Corporation is a mineral exploration company with a focus on uranium. The Company has exploration properties in Kings Valley, Nevada, Treeline, New Mexico and in the Thelon Basin, Nunavut and the Northwest Territories. The Company has its head office in Vancouver, Canada; its executive management team is based in Reno, Nevada.
The contents of this press release were reviewed by Pamela Klessig and Victor Calloway. Both Mr. Calloway and Ms. Klessig have sufficient experience to review this release and are both Qualified Persons as defined by NI 43-101.
On behalf of the Board of "Pamela J. Klessig"
Western Uranium Corporation
Pamela J. Klessig
President & CEO
For further information contact:
Western Uranium Corporation
Telephone: 775-827-3311
Email: info@westernuranium.com
Website: www.westernuraniumcorp.com
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved or disapproved of the contents of this press release.
Forward-looking statements: This document may contain statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
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