ESO Uranium Operational Overview – Athabasca Basin
(EMAILWIRE.COM, September 15, 2006 ) Vancouver, Canada -- ESO Uranium Corp. (“ESO” or “the Company”) has been working throughout 2006 to bring forward the exploration of its mineral claims in Saskatchewan, Canada. The price of uranium broke through previous highs to a spot price of US$ 52.00 per pound of U3O8 on Sept. 4th 2006. A review of the operational activity of ESO and the basic exploration steps undertaken in 2006 and the planned programmes for the new budget year of 2007 follows.
ESO Uranium Corp’s properties comprise almost one million acres (397,726 hectares) strategically located within the Athabasca Basin of northern Saskatchewan in Canada.
The Athabasca Basin is an ancient sedimentary basin which hosts the World’s most important uranium mines and produces almost 30% per cent of the current world uranium production of 108 million pounds U3O8. The Athabasca uranium deposits also have grades substantially higher than the world average grade of about 0.2% U3O8. The two dozen or so known uranium deposits within the Athabasca Basin have average grades of more than 3.0% U3O8. The two largest deposits, Cigar Lake and McArthur River have average grades of 20% and 24% U3O8 respectively.
These high grade uranium deposits are of the unconformity type where uranium mineralization occurs within elongate bodies at or close to the unconformable contact between Athabasca sandstone and underlying meta-sedimentary basement rocks. Uranium mineralization can extend significant distances above and below the unconformity and may be structurally controlled. Gold, nickel and cobalt mineralization may be associated with the uranium mineralization in some deposits. The near surface uranium mines in the Cluff Lake mine area produced more than 60 million pounds of uranium with gold as a by-product.
Uranium mineralization within the Athabasca Basin is primarily hosted by meta-sediments including pelites and calc-silicates and by sandstone of the Athabasca formation. The pelites are commonly graphitic (free carbon) which may have acted as a chemical reductant, fixing uranium from water circulated by large hydrothermal systems. Some Athabasca uranium deposits are associated with faults and these faults may cause displacements of the basal unconformity.
Airborne surveys and ground geophysical magnetic, electromagnetic, seismic and gravity surveys can be utilized to identify pelitic belts, structures and graphitic conductors, all prospective for uranium deposits. Large plumes of alteration, including characteristic clays, occur above and around these uranium deposits. Geochemical surveying can be utilized to identify areas with such alteration and characteristic trace elements associated with uranium deposits. Since the uranium deposits typically have restricted geometry and are a difficult target to hit with a distant drill hole, it is important to develop a number of indicators in order to assign target priorities.
The work to develop targets has been carried out in 2005/2006 by ESO. Its field teams have been building on the considerable and useful work carried out in the previous waves of exploration in the Athabasca Basin. With recent advances in exploration technology and re-interpretation of earlier data, there is a high probability that some new mines will be discovered in the Basin. ESO is well positioned on prospective ground with many of the required indicators or flags that can lead to a discovery. A summary of the 2006 exploration activities is as follows.
Cluff Structure Project
West Athabasca Basin
The Cluff Structure Project is comprised of approximately 52,520 acres (21,254 hectares) which are subject to option agreements entered into with Logan Resources Ltd (LGR: TSX.V), KRL Resources Corp(KRL: TSX.V). and Hathor Exploration Limited(HAT: TSX.V). Grids comprised of 158 line kilometers, to test airborne geophysical Megatem conductors from the 2005 survey within the Cluff structure, have been cut and surveyed using ground geophysical Max Min horizontal loop electromagnetic surveying.
Drilling commenced in 2006 near Gorilla Lake on the claims under option from Logan Resources and intersected three uranium mineralized zones containing up to 0.82% U3O8 over 1 metre and 0.46 per cent (9.2 lbs /st) U3O8 over 1.5 metres within a psammitic schist close to the contact with the overturned, underlying Athabasca sandstone. The shallow depth of the mineralization (approximately 145 meters) makes this a significant intersection. The Phase 1 drilling programme ended at the onset of spring break-up and will resume this fall. The drill programme has identified a structural zone more than 700 meters in length that appears to be prospective for the location of additional mineralization. The work has resulted in ESO completing its agreed work commitments to earn an undivided 50% interest in the claims under option from Logan.
The Cluff Structure hosts uranium deposits in basement rocks that were brought to surface through the Athabasca sediments by an irruptive event. Shallow depths of deposits were typical in the Cluff mine camp and, as a result of this, there has been some adaptation of the ESO exploration approaches to the Cluff structure properties.
Preliminary results of a ground geophysical horizontal loop survey have closely confirmed airborne geophysical Megatem conductors identified in surveys carried out in late 2005. Spectral gamma surveying and prospecting was also performed over the grids. Radon surveying is planned to test areas on the northern margin of the Cluff Structure, where fractures/faults could allow passage of radon, a radioactive gas that is a decay product of the uranium in a deposit through to the surface.
Cluff West Project (100% owned)
(West Athabasca Basin)
Sandstone boulder sampling to identify potential alteration related to uranium mineralization has been completed and results are expected shortly from the Saskatchewan Research Council. Although the target environment is expected to be deeper in this area (greater than 600 meters), a large mineralized system could be expected to have a similarly larger alteration zone associated with it.
High resolution ground resistivity surveying is planned in 2006 for Cluff West to test airborne geophysical Megatem conductors associated with either graphitic material in the basement or low resistivity clay alteration in the sandstone that could be related to uranium mineralization.
These Megatem conductors are near the north-westerly striking margin between a regional magnetic high to the west and magnetic low to the east. The area to be tested is on strike and has similar geophysical features (conductors & proximity to a magnetic high / magnetic low contact) to those at Shea Creek to the south.
Hook/Mandin Projects (100% owned)
(South Central Athabasca)
Six lines of resistivity surveying are planned for this fall to test the north north-easterly striking airborne geophysical Megatem conductor extending through drill hole HK-003 (reported in assessment files) and one line to test the contact between the broad conductivity high on the east and conductivity low on the east. Hole HK-003 intersected alteration and other features related to potential nearby uranium mineralization. A discontinuity in the basement depth is generally coincident with the conductivity contact.
Boulder sampling has commenced to identify potential alteration related to uranium mineralization and will focus on the Hook claims to the west and to the southeast. An airborne geophysical Megatem survey has been scheduled for September 2006 for the western and south-eastern parts of Hook.
A magnetic low identified in earlier 2006 airborne work in the west part of the Mandin property warrants testing with a high resolution resistivity survey. A generally NNW-SSE striking diabase dyke on the eastern side of this low has a marked flexure which suggests a fault striking down the central part of this magnetic low which adds to the prospectivity of this area.
Eastern Athabasca Basin Properties (100% owned)
Cree North, Cree South, Peterson and Hatchet
ESO’s Eastern Athabasca properties comprise 54 mineral claims with a total area of 621,935 acres (251,688 hectares) which is part of the Athabasca Basin total holdings. They lie to the west of the belt of prolific uranium producers that include Mc Arthur River, Cigar Lake, Midwest Mine and past producer Key Lake.
Research into assessment work has identified several potential target areas for future exploration in the Cree South area. Previous exploration by Uranerz Exploration and Mining Limited has included geophysical surveying and geochemical lake and boulder sampling and core drilling including at least seven holes within a northeasterly striking magnetic low up to ten kilometres wide.
Previous exploration within the properties has discovered basement conductors with a strike length of at least thirty six kilometers, geochemical uranium, boron and clay anomalies within Athabasca sandstone boulders. Drilling has intersected graphitic meta-sediments with a maximum down-hole probe radioactivity of 100 cps. Depth to the unconformity ranges from about eight hundred and seventy to one thousand metres.
At the Waterfound project immediately adjacent to the Cree North property, AREVA, formerly Cogema Resources Inc., has identified conductors with an overall strike length of 30 kilometers within an arcuate magnetic low. These conductors have been tested by at least 43 drill holes. Drill hole WF-08 intersected 3.8 per cent uranium over 10.5 metres within conglomerate immediately above the basal unconformity and seven other holes intersected anomalous uranium, nickel and cobalt values and clay alteration. The Athabasca formation here is about 460 metres thick.
The Peterson property is associated with a northwesterly striking magnetic low; this magnetic low is probably related to pelitic rocks prospective for uranium deposits. Geochemical anomalies and ground geophysical conductors have been identified within the property.
The Hatchet property covers a northwest striking magnetic low close to the margin of the Athabasca Basin and recent (2006) Megatem surveys flown for ESO have identified conductive bodies within the magnetic low. Calc-silicate rocks occur within part of the property and these are significant because of their association with uranium mineralization at the Rabbit Lake mine 45 kms to the south.
ESO has completed 3,875 line kilometers of Airborne surveys with the Megatem system of Fugro, which together with other exploration expenditures resulted in exploration costs of more than $840,000 on the East Athabasca properties to date.
Drilling
Additional exploration drilling in 2006 and 2007 is proposed to test:
• Conductive targets defined by horizontal loop geophysical surveying within Cluff structure
• Targets defined by resistivity surveying in the west Cluff area
• Targets defined by resistivity surveying in the Hook area
• Targets defined by resistivity surveying in the central Mandin area
The initial drilling requirements for the next phase of work will comprise 8 holes of 150 metres each in the Cluff structure, 3 holes of about 1000 metres each in West Cluff area, 3 holes of 500 metres in Hook area and 2 holes of 500 metres each to test targets in the Mandin area.
Proposed Exploration 2007
The preliminary budget for 2007 exploration is estimated to be approximately $4.7 million for the Cluff, Hook and Mandin properties. Planned exploration will include further geochemical surveying, airborne and ground geophysical surveying, prospecting, geological evaluation and diamond drilling.
For the Eastern Athabasca Basin properties a budget of approximately $2.7 million has been estimated to complete additional airborne surveys and ground geophysical and geochemical boulder sampling. ESO plans to conduct a financing in order to fund these work programs.
About ESO Uranium Corp.
ESO Uranium Corp., a Vancouver based mineral resource company, is actively exploring for uranium in the Athabasca Basin in Saskatchewan and for gold in the Casa Berardi deformation zone in Ontario.
Benjamin Ainsworth, PEng, is the Qualified Person responsible for this news release.
On behalf of the Board of Directors of ESO Uranium Corp.
“Ben Ainsworth”
B.Ainsworth, PEng BC, Vice President, Exploration
For corporate communications please contact Investor Relations at ESO Uranium Corp. Phone: (604) 629-0293; Email: tcorcoran@esouranium.com
Web site: www.esouranium.com
Note to Editors:
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http://www.emailwire.com/news/report/ESO_Operational_Overview.pdf.
The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release which has been prepared by management. Statements contained in this news release that are not historical facts are forward looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. The historical information contained in this news release was obtained from reports prepared prior to the implementation of NI 43 101. Though the Company has no reason to doubt the accuracy of this information, readers should use caution when considering such information and should not place undue influence upon such.
