Field work in Aricheng exploration area

Aricheng Epsilon marks another new mineralized zone that has been identified in the fall 2009 scout drilling campaign. Aricheng Epsilon lies at the point of convergence of several geophysical features – a characteristic shared with other mineralized structures in the Kurupung Batholith. Scout drilling has identified an east-northeast trending principal structure marked by brecciation and albite-chlorite-hematite-calcite alteration and a second significantly mineralized structure, which ground magnetic data suggest may have a northeast trend. Further drilling will be required to establish the width and plunge direction of the higher-grade principal structure at Aricheng Epsilon as well as to confirm the orientation and extent of uranium mineralization in the second structure.

U3O8 Corp’s current interpretation is that Aricheng Epsilon forms the western extension of an east-trending structural zone that contains two uranium mineralized shoots: one at Aricheng Epsilon and the second at Aricheng West. Further scout drilling will be required to confirm this interpretation as well as to determine whether the 100 metre gap between the Aricheng West and Aricheng Epsilon areas contains uranium.

Scout drilling to date at Aricheng Epsilon has delineated mineralization over a strike length of about 100 metres and to 80 metres below surface. Mineralization remains open along strike to the east and at depth.

Drill Hole Locations

A total of 818 metres in the first five bore holes (Phase I scout drilling) have been completed to date on the Aricheng Epsilon structure.

Plan view (Figure 3A) shows the location of Phase I drill holes at Aricheng Epsilon. The collar position of each hole is shown as a dot and the extent of each inclined hole is shown as a black line. U₃O₈ grade (%) is shown as a histogram along the trace of the bore hole. The coloured background is ground magnetic data (blue marks least magnetic areas while green areas have higher magnetism). Radiometric data is marked by contour lines. Figure 3B is a wider view of Figure 3A, which shows the location of Aricheng Epsilon relative to the uranium zone drilled at Aricheng West. These areas lie about 100 metres apart.

Long Section

Phase I scout drilling at Aricheng Epsilon to date has traced uranium mineralization over a strike length of about 100 metres and remains open along strike to the east, and to about 80 metres below surface and is open at depth. An east-northeast trending principal structure was intersected along with a second significantly mineralized structure, which ground magnetic data suggest may have a northeast trend. Further drilling will be required to establish the width and plunge direction of the higher-grade principal structure as well as to confirm the orientation and extent of uranium mineralization in the second structure.

A provisional long section of the Aricheng Epsilon structure shows the distribution of grade-thickness values (the product of the width of the mineralized interval and its U₃O₈ grade in %) on a vertical projection of the structure. The coloured circles demarcate the pierce points on the structure. A pierce point is the approximate location at which each bore hold intersects the structure.

Assay Results

Summary of significantly mineralized intercepts cut in the five bore holes totaling 818 metres drilled in the Phase I program at Aricheng Epsilon.

* Note: lb/st is an abbreviation for pounds per short ton. 
1 short ton = 2,000lbs or 0.907 metric tonnes.