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| | May 24, 2007
Powertech Completes NI 43-101 Compliant Resource Estimate On Centennial Project
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| | POWERTECH URANIUM CORP. ("Powertech" or the "Company") is pleased to announce that it has received and filed a National Instrument ("NI") 43-101 compliant report on its Centennial Project located in Weld County, Colorado. The primary purpose of this Report was to establish a resource base for the project under current standards of review. The Report determined that 9.7 million pounds of inferred resources, with an average thickness of 9.0 feet and an average grade of 0.094% U3O8 (average Grade Thickness ("GT") of 0.82), exist within the Centennial Project. The complete Report is available for review on the SEDAR web site at www.sedar.com and on Powertech's web site.
Resource Estimate
CENTENNIAL URANIUM DEPOSIT
INFERRED RESOURCE ESTIMATE
|
|
|
|
Tons
(Millions) |
|
Average
Grade |
|
Average
Thickness |
|
Average
GT |
|
Pounds
U3O8 |
|
| South Zone |
|
2.94 |
|
0.100% |
|
8.6 feet |
|
0.86 |
|
5,887,398 |
| North Zone |
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2.26 |
|
0.085% |
|
9.0 feet |
|
0.77 |
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3,843,092 |
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| Total Resource |
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5.20 |
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0.094% |
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8.8 feet |
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0.82 |
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9,730,490 |
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The South Zone of the Project exists at depths of 80 to 120 feet. The North Zone of the Project exists at depths of 350 to 600 feet.
In addition to the calculated 9,730,490 pounds of U3O8 for the Centennial Project, the authors stated that there is a geological potential of an additional 3 to 5 million pounds of U3O8. These additional potential resources are within the Project area and are based upon identified mineralized trends that have only been partially explored to date.
It is significant to note that the Report also identified a resource of 7.9 million cubic yards of gravel that overlies the South Zone of the uranium resource. The Company and its environmental engineering consultant, R Squared Inc., are currently conducting an economic assessment of this resource for potential development.
Data Verification and Resource Calculation Methodology
All of the data reviewed for the NI 43-101 Report were derived from historical drilling and from studies related to drilling conducted by Rocky Mountain Energy Company ("RME"), a wholly owned subsidiary of Union Pacific Railroad. This data, including 3,500 drill hole electric logs, were obtained from Anadarko Petroleum Corporation ("Anadarko") in conjunction with the purchase of uranium and associated mineral rights by Powertech. The authors reviewed the historical data and concluded the data was of sufficient quality that a current estimate of in-place resources could be established.
The resource estimate was prepared by plotting 2,235 drill holes from the spreadsheet compilation. Collar coordinates and calculated GT values were entered into a licensed "Micromine" mine analysis software program. Resource areas were taken as the areas enclosed by the 0.2 GT contour lines. Those radiometric intercepts that met or exceeded 0.02% U3O8 and were of sufficient thickness to yield a GT of 0.2 or greater were included in the resource calculation. Resources were calculated by multiplying the area in square feet enclosed by the 0.2 GT contour by the average GT times 20 and divided by the tonnage factor (17 cubic feet per ton) to derive pounds of uranium oxide.
The authors of the Report concluded that the mapping of drill hole values and above described resource calculation methodology readily meet the criteria set out in NI 43-101 for the definition of an "inferred resource". The authors of the Report have recommended and the Company plans to conduct confirmation drilling in 2007 to upgrade the definition of the resource at Centennial into the "indicated" and "measured" categories. Upon completion of the recommended work, the authors of the Report stated that they expect that the "inferred resources" calculated will be increased in rank and become available for mine planning.
Project History
RME began uranium exploration on the Centennial Project in 1974. The uranium roll fronts that were discovered in the Centennial area occur in subsurface sandstones deposited within the Fox Hills Formation and are associated with oxidation / reduction interfaces that were found to cover a linear distance of at least 30 miles and extend throughout an area of more than 50 square miles. RME's Exploration Department prepared numerous studies of the amount and tenor of the uranium deposits discovered on the Project before turning the Project over to the RME Engineering Department. This group continued studying the resource and anticipated surface mining the southern portion of the deposit and shipping the ore to their mill in Wyoming. These studies produced several ore reserve estimates by varying the mine cut off grade and the mine limits. A 1980 report, using a 0.2 GT cut off, estimated a reserve of 9,674,632 pounds of U3O8 in both the South Zone and North Zone, with an average grade of 0.10% U3O8. This historical estimate of reserves is not compliant with NI 43-101, however the authors of the Report believed that the historical estimate is relevant and reliable, and it is supported by the current NI 43-101 compliant resource estimates.
Report Conclusions and Recommendations
The Report concluded that the Centennial Project contains a significant amount of delineated and identified uranium. Subject to completion of an evaluation drilling program to enhance the quality of the resources and bring the total data package to a state that it can be considered a "measured" resource for the purposes of a full feasibility study, the quantity of uranium calculated with the historical exploration program shows that the Project contains sufficient uranium resources to support a stand-alone surface mine and ISR production facility.
The authors of the Report recommended that additional work be undertaken on the Project to verify the quality of the uranium deposits for ISR mining in the North Zone as well as for potential surface or shallow ISR mining in the South Zone. This work would consist of a phased evaluation program that
would include as Phase 1:
- core leach testing to establish the amenability of the mineral to low temperature bicarbonate leach;
and
- a pre-mining feasibility study.
This is recommended to be followed by Phase 2:
- environmental base line studies;
- preparation of permit and license applications; and
- delineation drilling program designed to test several miles of known uranium roll fronts and establish the presence of additional ISR resources.
The estimated cost of Phase 1 is US$995,000 and the estimated cost of Phase 2 is US$1,350,000. The Company is moving forward with all of the recommendations that were set out in the Report.
Qualifications of Authors
The authors of the Technical Report have first hand field and data review experience on the Centennial Project. Mr. Voss, a Professional Geologist, is a former RME employee, has over 35 years experience as a geologist, and was familiar with the Centennial Project during its exploration and development by RME. Mr. Voss was also instrumental in the development and use of the RME project exploration and resource calculation techniques used on this and other RME uranium properties. Mr. Gorski has operated as an exploration and mining geologist for over 30 years and has had extensive experience with evaluating uranium data and resource calculations. He has directed mine evaluation projects on mineral deposits throughout the western U.S.
Richard F Clement Jr., P. Geo., President & CEO of Powertech Uranium Corp. and a qualified person as defined by National Instrument 43-101, has reviewed this news release and is responsible for its content.
Powertech Uranium Corp. is a mineral exploration and development company that holds the Dewey-Burdock Uranium Deposit in South Dakota, the Centennial Project in Colorado, and the Dewey Terrace and Aladdin Projects in Wyoming, USA.
POWERTECH URANIUM CORP.
Per: "Richard F. Clement"
Richard F. Clement Jr.,
President& CEO
For further information, please contact:
Thomas A. Doyle, CFO, VP Finance
Phone: (604) 685-9181
Email: info@powertechuranium.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release |
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