TORONTO, ONTARIO — (Marketwire) — 07/14/11 — Macusani Yellowcake Inc. (the “Company”) (TSX VENTURE: YEL)(FRANKFURT: QG1) is pleased to announce that drilling from the ongoing exploration program was restarted last week, as well as various other surface exploration activities.
As a result of the social unrest that occurred during the month of June 2011 in the province of Puno in southern Peru, after the recent general elections in the country, the Company had restricted its exploration activities to a minimum. The Company now confirms that exploration activities including, full drilling, were restarted last week.
The Company considers its relationships with the local communities of Corani, Isivilla and Tantamaco to be very good. The Company would like to emphasize that the above-mentioned communities support mining in the province and the various exploration activities in their areas. The local communities sent a large delegation to the Ministry of Energy and Mines in Lima and informed the Ministry that they are supportive of mineral exploration and mining activities on their surface right areas and specifically of the activities run by the Company in their areas of interest.
As presented in the local and international press and media, the town of Juliaca was badly affected by the strike as well as the provincial road and the general status of transport in Puno Province. Due to the blockage of the roads in the Province by the strikers, the Company was unable to transport drill cores to the CIMM Laboratory in Juliaca. These cores were recently dispatched to the laboratory and therefore more assay results are expected in the next few weeks.
The results attached in this press release are from platforms 15 and 17 on the Chilcuno Chico area of the Kihitian Property situated north of the adits dug by IPEN during the 1980s, at 150m towards N and 120m towards NW, respectively, as illustrated on Figure 1 (). Both boreholes are located next to the access road built by the Company towards the drilling area, on a lower elevation zone where Manto “A”: was completely eroded and Manto “B” is closer to surface. These two platforms are 110m apart on a SW-NE direction.
In the two boreholes one can see various lower grade mantos starting almost from surface. The main uranium-bearing structure was intersected 12 metres with a weighted average grade of 0.173% U3O8 (3.46 lbs/ton), including 2.0m at 0.583% U3O8 (11.66 lbs/ton) and 3.0m at 0.282% U3O8 (5.64 lbs/ton) at a depth of 86m in borehole CH17-TNE.
In borehole CH15-TNW the main uranium zone was intersected 18 metres with a weighted average grade of 0.048% U3O8 (0.96 lbs/ton), including 5.0m of 0.139% U3O8 (2.78 lbs/ton) at a depth of 54 m from surface.
Both boreholes were drilled at 55 degrees. The intersections may not represent true widths. Details are shown in the table below.
The Company–s CEO, Peter Hooper, stated: “We are very pleased that full drilling activities have recommenced on the Kihitian uranium property as well as exploration activities on the Company–s properties on the rest of the Macusani plateau. The drilling results at Kihitian continue to demonstrate high-grade uranium intersections in the Chilcuno area. The Company will continue its drilling activities during the winter season at Macusani and will periodically publish the results of this drilling.”
Quality Control and Analytical Procedures
Core samples have been crushed and representative samples analysed for Uranium (U) abundance and a suite of 40 elements. The necessary analytical quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material. After crushing, the core is placed in sealed bags and shipped to the CIMM–s preparation laboratories in Juliaca. Following the preparation stage, the sample pulps are sent to CIMM analytical laboratory in Lima where U and a suite of forty other elements are analysed using ICP-MS methodology.
CIMM Peru is an ISO certified assay laboratory. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.
Qualified Person
Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed the scientific and technical data contained in this release.
About Macusani Yellowcake
Macusani Yellowcake Inc. is a Canadian uranium exploration company with over 24,000 hectares (240 km2) of mineral properties in southeastern Peru, on the Macusani Plateau. The shares are traded on the TSX Venture Exchange under the symbol –YEL– and on the Frankfurt Exchange under the symbol –QG1–. The Company owns a 99.5% interest in the Kihitian project. The Company has a cash balance of approximately $14.7 million and no debt.
There are 107,775,714 common shares of Macusani Yellowcake Inc. outstanding.
Figure 1 is a drill hole location map of the portion of Kihitian explored by the Company to date and can be accessed on the Company–s website by following the link below: .
This news release includes certain forward-looking statements concerning the future performance of Macusani–s business, operations and financial performance and condition, as well as management–s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in the Company–s recent securities filings available at . Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Macusani nor its management assume any obligation to revise or update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Macusani Yellowcake Inc.
Peter Hooper
President and CEO
+1-416-360-3402