Uranium and zirconium in the Kurupung Batholith has the geological characteristics of “albitite-hosted”  deposits that typically contain  resources in the 60 to 130 million pound range at  grades of about 0.1% U₃O₈.   Examples include the Michelin deposit in Canada, Valhalla in Australia, Coles Hill in the USA and  the giant Elkon deposits in Russia and Lagoa Real in Brazil².  U3O8 Corp.’s management team sees the Kurupung Deposit as having potential to join the ranks of the larger albitite-hosted deposits known from other parts of the world since:

• A 16 million pound of uranium resource (estimated in accordance of NI 43-101) has been estimated on 4 uranium-bearing zones.  There are another 8 zones in which scout drilling has already identified consistent uranium grades and these areas are ready for infill drilling to provide intercepts that are sufficiently close-spaced to be used for formal resource estimation (Figure 1);
• The 4 zones on which resources have already been estimated are still open along trend and at depth.  For example:
  • 3 uranium-bearing shoots in the Aricheng North vein were used in the resource estimate, but since then, another 2 shoots have been identified by scout drilling, but have not yet been more intensively drilled for resource estimation purposes.
  • A further example of additional potential on the veins on which resources have been estimated is the Aricheng South vein: the widest, richest intercept was from the deepest bore hole drilled, that intersected the uranium-bearing zone at only 220 metres below surface.  Figure 2 shows the Aricheng South vein’s uranium concentration (warm colours are areas of highest concentration and cool colours have the lowest) using the same colour scheme and scale as the Paladin Energy’s 107 million pound Michelin Deposit in Labrador.  Aricheng South appears like a postage stamp on the top right of the diagram, and has very similar uranium distribution to the upper parts of the Michelin Deposit.  This amazing similarity between the deposits begs the question: would deeper drilling on the Aricheng South vein show that it has similar depth extent and therefore resource potential as the Michelin Deposit?  U3O8 Corp.’s management certainly believes so.
• U3O8 Corp.’s exploration has shown that uranium in the Kurupung Project is located in demagnetized parts of the Kurupung Batholith – a granitic rock.  Detailed study of drill core has led to the conclusion that uranium-bearing fluids ascended into the granitic rocks along faults and fractures, and converted the magnetic iron-mineral, magnetite in the granite, to a non-magnetic iron mineral called hematite. This demagnetization of the granite provides an excellent exploration tool for identifying fractures that uranium-bearing fluids ascended along because magnetism is easily measured by aircraft or on the ground.  Figure 1 is a map of the magnetism measured over the Kurupung Project area and the extent of the Kurupung Batholith is shown in a pale gray overlay.  Warm colours are magnetic areas that are not prospective, while cool colours (blues) are areas of low magnetism.  All of the uranium-bearing zones that U3O8 Corp. has so far drilled, lie in blue corridors, and measurements of the magnetism of the drill core confirms that the uranium lies within the demagnetized parts of each bore hole.  U3O8 Corp.’s conclusion is that the blue corridors on the map of the magnetism of the Kurupung Batholith represent targets for a uranium-bearing vein.  Since there are numerous blue (demagnetized) corridors within the Kurupung granite, there is enormous potential for the Kurupung Deposit to grow in size.

Kurupung Batholith

Kurupung Batholith Fig 1

Kurupung Batholith Long Section Fig 2

Quick Facts

• To date, drilled about 440 holes (>86,400 metres) in the Kurupung Batholith

• Initial resource¹ of 8.4 mlb at 0.09% U₃O₈ (Indicated) plus 7.7 mlb at 0.08% U₃O₈ (Inferred) for Aricheng North, South, West and A zones

• Exploration target of an additional 14-19 mlb¹ on 10 uranium-bearing structures identified to date

• 82% uranium recovery from initial metallurgical testing

• Uranium in the Kurupung is characteristic of “albitite-hosted”² deposits worldwide

¹ Resource defined in compliance with NI-43-101. (see Disclaimer)

² Kurupung Project – assays from the multiple structures defined so far may contain an exploration target of 6-11Mt grading 0.08% to 0.10% U₃O₈ (for an estimated 14-19 mlb). Potential quantity and grades are conceptual in nature. There has been insufficient exploration to define mineral resources beyond the current deposits in Guyana. It is uncertain if further exploration will result in additional mineral resources. (see Disclaimer)