92 Resources Provides Update at Micthell Lake Uranium Project
Vancouver, BC / TNW-ACCESSWIRE / November 25, 2014 / 92 Resources Corp. (NTY-TSX.V) (the "Company") is pleased to update shareholders on it's Mitchell Lake Uranium Project in south eastern Athabasca Basin, Saskatchewan, and provide management commentary on the recent developments in the uranium sector.
Bullish on Uranium
Two weeks ago the uranium commodity sector rallied when Japan granted approval to Kyushu Electric Power Co. to restart two reactors early next year: a strong signal that Japan sees reliance on coal and natural gas as unsustainable and that it must recommit to nuclear power. As a result, the spot price crossed the $40.00/lb threshold, what many industry insiders view as the tipping point of a bull market in uranium, driven by true 'supply and demand' fundamentals. The last run in the commodity saw the spot price peak at $135/lb in 2007.
Since 2007, the number of reactors globally has grown from 785 to 965, while 71 new plants are now under construction. There are another 163 planned and 329 proposed. In addition, it is expected that several other countries, such as Indonesia, Vietnam, Turkey, Kazakhstan, Egypt, Saudi Arabia and several other Gulf emirates, will soon build their first reactors.
The United States is the largest producer of nuclear energy; it maintains 65 active plants and annually consumes 30% of the world's uranium. Nuclear power generates 20% of all electricity in the US and is fundamental to the US energy supply. The US has scheduled the start of six additional plants by 2020, the first since 1973.
Another positive driver is the end of the American "Megatons to Megawatts" deal with the Russians, which saw 1.1 million pounds of weapons grade HEU-highly enriched uranium down-blended to produce over 20 million pounds of annual uranium supply as fuel. This supply is now gone and the US must import over 90% of it's uranium consumption.
Adrian Lamoureux, President & CEO stated, "With key ground in the Athabasca Basin, 92 Resources is well positioned to benefit from the current resurgence in the uranium sector."
Mitchell Lake Project
The Mitchell Lake Project, which covers 2354 hectares in northeast Saskatchewan, has similar lithology to that found at the West Bear deposit, which is located just 2.2 kilometers to the south and situated along the margins of a strongly conductive zone where earlier drilling has confirmed both hydrothermal alteration and anomalous uranium mineralization. UEX's West Bear is a classic unconformity-hosted uranium deposit formed under shallow Athabasca sandstone cover, above a conductive graphitic gneiss unit. The near-surface nature of the mineralization is amenable to shallow open-pit mining. A January 2009 NI 43-101 mineral resource estimate for the West Bear deposit was reported as 85,300 tonnes grading 0.843% U3O8 indicated, at a cut-off grade of 0.04% U3O8 (Palmer et al 2009).
In 2011, a 608km VTEM survey carried out at Mitchell Lake identified the "MAX Anomaly" trending northeast over 10km in strike and concurrent with a magnetic break that straddles the southeast border of the Company's property and the ground held by Cameco Corp. and UEX to the south.
Additionally, the southwestern extent of the MAX Anomaly hosts the North Shore Prospect, which is controlled by UEX and lies ~ 200m south of the 92 Resources' project area. Earlier drilling intersections showed basal Athabasca sandstones and conglomerates containing variable amounts of chlorite-, hematite-, and clay-alteration. Pitchblende occurred in matrix material and in fractures. The best mineralized section was in hole MI-206 where 2.14% U3O8 was returned from a 2.44-meter interval from 42.06 to 44.50 meters.
Also in the southwest, and again on the MAX Anomaly, is the Mitchell Lake Zone, controlled by Cameco. Out of a program of 14 holes, drill hole ML5-77 intersected uranium mineralization from 56.8 to 57.7 m. Core analysis of this 3-foot (0.91-meter) intersection returned U3O8 values ranging from 0.04% to 0.12%. The intersection also contained minor nickel, copper, and arsenic values.
The Company intends to complete a ground survey in the near term to further define diamond drill targets. This program is subject to financing.
Below is a map illustrating the MAX anomaly and its proximity to mineralized intercept, as well as the West Bear Deposit.
Click Image To View Full Size
Edward Harrington P.Geo., Qualified Person as defined in NI 43-101, is responsible for the technical contents of this release.
About 92 Resources Corp.
92 Resources is an emerging junior exploration company focused on acquiring and advancing strategic & prospective assets to the benefit of its shareholders. In addition to the Mitchell Lake property the Company is also advancing its 100% interest in the 807.8 hectare Zim Frac claim group, a high purity silica / quartz property located in close proximity to Golden, British Columbia. The Zim Frac claim group comprises a sizeable quartzite occurrence that lies adjacent to, and on trend with, Heemskirk Canada's producing Moberly silica mine, and is within five kilometers of a major rail line and the Trans-Canada Highway.
For further information, please contact Adrian Lamoureux, Pres. & CEO at Tel: 604-676-9650, adrian@92resources.com , or visit www.92resources.com .
On behalf of the Board of Directors,
"ADRIAN LAMOUREUX"
Adrian Lamoureux, President & CEO
Tel: 604-676-9650
This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
Neither the 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 news release.
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