Drilling confirms uranium mineralisation over 800m of strike at Duke Batman



    
    Highlights:

    -   New high grade drilling results at Duke Batman Prospect;
    -   Drilling continues to identify additional high grade zones of
        mineralisation;
    -   Mineralisation now confirmed over 800m of strike traceable from
        surface;
    -   Mineralisation at shallow depths (less than 200m); and
    -   Resource drilling is continuing at Valhalla North Project.
    

    PERTH, Western Australia, June 5 /CNW/ - Fusion Resources Limited
("Fusion" or the "Company") (ASX: FSN, TSX: FNS) is pleased to announce that
further drilling at the Duke Batman Prospect ("the Prospect") located within
the Company's 100% owned Valhalla North Project ("the Project") in northwest
Queensland has confirmed discontinuous, thick, high grade zones of uranium
mineralisation over 800m of strike.
    The Company's current aim is to identify shallow (less than 200m) uranium
mineralisation that is open-pittable. The assay results from these additional
15 new holes have recorded significant intercepts from as shallow as 30m down
hole and to a maximum of 118m down hole. Furthermore, 20% of holes recorded
two or more intercepts, indicating the potential for multiple mineralised
zones. The mineralisation is open down dip.
    Assay results returned from the first 15 reverse circulation ("RC") holes
drilled at Duke Batman during the Company's 2008 drilling program include the
following intercepts:

    
    -------------------------------------------------------------------------
                                                                 From Depth
    Hole No.                   Down Hole Intercept               (Down Hole)
    -------------------------------------------------------------------------
    FVN061              14m @ 1,595 ppm (0.160%) U3O8               37m
    -------------------------------------------------------------------------
    FVN075               4m @ 1,237 ppm (0.124%) U3O8               45m
    -------------------------------------------------------------------------
    FVN062              12m @ 732 ppm (0.073%) U3O8                118m
    -------------------------------------------------------------------------
    FVN072               7m @ 691 ppm (0.069%) U3O8                 30m
    -------------------------------------------------------------------------
    

    The drill assay results are significant as they confirm high grade
discontinuous uranium mineralisation over 800m of strike. These new drill
holes were located to the west and the east of the previously identified main
areas of mineralisation, and continue to indicate the presence of thick, high
grade zones of uranium mineralisation traced over a strike extent of 800m in
drilling.

    Figure 1: Duke Batman Drilling:
    http://files.newswire.ca/724/fusion_drill_map.doc

    Summary of all Duke Batman drill results

    The following table summarises all of the Duke Batman drill results
received to date from both the initial drill program completed in December
2007 and the follow-up drill program commenced in March 2008. The table shows
all drill intercepts that returned assay results greater than 1,000ppm (0.10%)
U3O8:

    
    -------------------------------------------------------------------------
                                                                 From Depth
    Hole No.                   Down Hole Intercept               (Down Hole)
    -------------------------------------------------------------------------
                        29m @ 7,450 ppm (0.745%) U3O8               97m
    FVN035(xx) --------------------------------------------------------------
                         7m @ 1,137 ppm (0.114%) U3O8               48m
    -------------------------------------------------------------------------
                        32m @ 1,118 ppm (0.112%) U3O8               22m
    FVN058(xx) --------------------------------------------------------------
                        14m @ 1,024 ppm (0.102%) U3O8               61m
    -------------------------------------------------------------------------
                        25m @ 1,107 ppm (0.111%) U3O8               82m
    FVN036(xx) --------------------------------------------------------------
                         4m @ 2,165 ppm (0.216%) U3O8              110m
    -------------------------------------------------------------------------
    FVN032(xx)          23m @ 2,251 ppm (0.225%) U3O8               63m
    -------------------------------------------------------------------------
    FVN044(xx)          11m @ 4,074 ppm (0.407%) U3O8              120m
    -------------------------------------------------------------------------
    FVN031(xx)           8m @ 1,899 ppm (0.190%) U3O8               59m
    -------------------------------------------------------------------------
    FVN046(xx)          11m @ 1,804 ppm (0.180%) U3O8              117m
    -------------------------------------------------------------------------
    FVN050(*)           14m @ 1,630 ppm (0.163%) U3O8               49m
    -------------------------------------------------------------------------
    FVN061(xx)          14m @ 1,595 ppm (0.160%) U3O8               37m
    -------------------------------------------------------------------------
    FVN001(xx)          10m @ 1,289 ppm (0.129%) U3O8               73m
    -------------------------------------------------------------------------
    FVN045(xx)          13m @ 1,132 ppm (0.113%) U3O8              120m
    -------------------------------------------------------------------------
                         3m @ 1,745 ppm (0.174%) U3O8               91m
    FVN054(xx) --------------------------------------------------------------
                         5m @ 3,154 ppm (0.315%) U3O8               99m
    -------------------------------------------------------------------------
    FVN043(xx)           4m @ 2,103 ppm (0.210%) U3O8               93m
    -------------------------------------------------------------------------
    FVN053(xx)           3m @ 2,074 ppm (0.207%) U3O8               71m
    -------------------------------------------------------------------------
    FVN075(*)            4m @ 1,237 ppm (0.124%) U3O8               45m
    -------------------------------------------------------------------------
    FVN048(xx)           3m @ 1,569 ppm (0.157%) U3O8               62m
    -------------------------------------------------------------------------
    FVN047(xx)           3m @ 1,004 ppm (0.100%) U3O8               97m
    -------------------------------------------------------------------------
    (*)  New drill hole (refer this news release)
    (xx) Previously announced drill hole (refer ASX announcements dated
         March 6, 2008, January 10, 2008 and November 26, 2007)
    

    Duke Batman Prospect

    The Duke Batman Prospect is located within the Company's 100% owned
Valhalla North Project and approximately 45km north of Summit Resources
Limited's (ASX: SMM) Valhalla uranium deposit. The mineralisation at Duke
Batman appears to be of a similar style to that of Valhalla, which contains an
Indicated Mineral Resource of 21.3Mt @ 1.76lb/t U3O8 for a contained 37.4Mlb
of U3O8; and an Inferred Mineral Resource of 12Mt @ 1.65lb/t U3O8 for a
contained 19.6Mlb of U3O8. These resources were estimated using a lower
cut-off grade of 0.5lb/t U3O8 and reported in accordance with the JORC code
(refer Summit ASX release dated 22 August 2006).
    The Company completed its maiden RC drilling program over the Project in
December 2007, which comprised 36 drill holes at Duke Batman. Refer to the
Company's ASX announcements dated 6 March 2008, 10 January 2008 and
26 November 2007 for the full assay results of these holes.
    In March 2008 the Company commenced a follow-up 10,000m RC and Diamond
drilling program. To date in the current program, 36 RC holes have been
drilled at Duke Batman for a total of 4,631m and six Diamond holes (two failed
to reach target depth) have been drilled for a total of 641m. Assay results
for the remaining 21 RC holes and the Diamond holes are pending.
    The Company's main priority now is to define the limits to the known
mineralisation and complete a mineral resource estimate in accordance with the
JORC code during 2008.

    Recent Drilling

    Assay results from 15 of the new RC holes drilled at Duke Batman have
been received and confirm discontinuous, thick, high grade zones of uranium
mineralisation over 800m of strike. Significant intercepts from these new
holes have been recorded from as shallow as 30m down hole to a maximum of 130m
down hole. Furthermore, 20% of holes recorded two or more intercepts,
indicating the potential for multiple mineralised zones. The mineralisation is
open down dip.
    All significant intercepts returned from the drilling are listed in
Table 1. Details of the collar positions and depths of the drill holes are
summarised in Table 2.
    The location of the Duke Batman drill holes is shown in Figure 1.
    The recent drilling has intersected thick, high grade zones of uranium
mineralisation, which is observed to be hosted within albitite altered
dolerites and basalts of the Eastern Creek Volcanics. The mineralisation is
spatially associated with brecciated albite, apatite, haematite, carbonate and
silica alteration giving a distinct pink-red colour in fresh rock. The local
stratigraphy is interpreted to be a series of basalts with minor interbedded
sediments intruded by dolerites.

    Summary

    The results of drilling at the Duke Batman Prospect in northwest
Queensland have confirmed the presence of thick, high grade zones of albitite
hosted uranium mineralisation.
    The follow-up 10,000 metre RC and Diamond drilling program, which
commenced in March 2008, has confirmed discontinuous high grade uranium
mineralisation over 800m of strike.
    The results of Fusion's recent exploration work are extremely
encouraging, have confirmed historical drill results, and continue to
highlight the potential of the Valhalla North Project area to host multiple
zones of significant high grade uranium mineralisation.
    The Company, with its established technical and operational capability
and strong cash reserves, is well positioned to aggressively pursue the
demonstrated uranium potential of the Valhalla North Project.

    The information in this news release that relates to Exploration Results
is based on information compiled by Mr. Robert Waugh, who is a Member of The
Australasian Institute of Mining and Metallurgy ("AusIMM") and a Member of the
Australian Institute of Geoscientists ("AIG"). Mr. Waugh is a full-time
employee of Fusion. Mr. Waugh has sufficient experience to qualify as a
"Competent Person" as defined in the 2004 Edition of the 'Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

    Information of a scientific or technical nature in this news release was
prepared under the supervision of Mr. Robert Waugh, Exploration Manager of
Fusion, who is a Member of AusIMM and AIG and a full-time employee of Fusion.
Mr. Waugh has sufficient experience to qualify as a "Qualified Person" under
National Instrument 43-101 - "Standards of Disclosure for Mineral Projects"
("NI 43-101"). Mr. Waugh is responsible for the verification and quality
assurance of Fusion's exploration data and analytical results from the
Valhalla North Project. The Qualified Person has verified the data disclosed
in this news release, including sampling, analytical and test data underlying
the information and opinions contained in this news release.

    Mr. Waugh consents to the inclusion in the report of the matters based on
his information in the form and context in which it appears.

    For further information regarding the Valhalla North Project, including a
description of Fusion's quality assurance program, quality control measures,
the geology, samples collected and testing procedures in respect of the
Valhalla North Project please refer to the technical report prepared in
accordance with NI 43-101 entitled "Technical Report on its Valhalla North
Project in Queensland Australia for Fusion Resources Limited" dated May 12,
2008, which is available under the Company's profile at www.sedar.com.

    This report contains forward-looking statements. These forward-looking
statements reflect management's current beliefs based on information currently
available to management and are based on what management believes to be
reasonable assumptions. A number of factors could cause actual results,
performance, or achievements to differ materially from the results expressed
or implied in the forward looking statements. Such factors include, among
others, future prices of uranium, the actual results of current and future
exploration activities, risks inherent in resource estimates, plant and/or
equipment failure, availability of financing, and obtaining Governmental
and/or Native Title approvals and the fact that the Queensland State
Government currently prohibits the mining of uranium.

    
               Table 1: Recent RC Drill Intercepts at Duke Batman

    -------------------------------------------------------------------------
    Drill                                                 U3O8         U3O8
    Hole ID       From (m)     To (m)    Interval (m)     (ppm)         (%)
    -------------------------------------------------------------------------
    FVN061           37          51          14           1,595        0.160
    -------------------------------------------------------------------------
    FVN062          118         130          12             732        0.073
    -------------------------------------------------------------------------
    FVN063                                                  NSA
    -------------------------------------------------------------------------
    FVN064                                                  NSA
    -------------------------------------------------------------------------
                     61          63           2             242        0.024
    FVN065   ----------------------------------------------------------------
                     81          83           2             138        0.014
    -------------------------------------------------------------------------
    FVN066          111         113           2             173        0.017
    -------------------------------------------------------------------------
    FVN067                                                  NSA
    -------------------------------------------------------------------------
    FVN068                                                  NSA
    -------------------------------------------------------------------------
    FVN069           84          88           4             160        0.016
    -------------------------------------------------------------------------
    FVN070           39          44           5             173        0.017
    -------------------------------------------------------------------------
    FVN071                                                  NSA
    -------------------------------------------------------------------------
    FVN072           30          37           7             691        0.069
    -------------------------------------------------------------------------
                     36          39           3             329        0.033
    FVN073   ----------------------------------------------------------------
                     49          59          10             270        0.027
    -------------------------------------------------------------------------
    FVN074                                                  NSA
    -------------------------------------------------------------------------
                     36          39           3             211        0.021
    FVN075   ----------------------------------------------------------------
                     45          49           4           1,237        0.124
    -------------------------------------------------------------------------

    Notes:
    1.  RC drill samples are collected over one metre intervals using
        representative sampling techniques
    2.  Sample preparation and sample analysis by XRF pressed powder by ALS
        laboratory in Brisbane
    3.  Quality control standards, blanks and duplicates are routinely
        included with the drill samples prior to submission to the
        laboratory, where further laboratory control samples are added
    4.  Drill intercepts are calculated using a 100 ppm U3O8 cut-off and
        include no more than 1m of internal dilution by material less than
        100 ppm U3O8
    5.  An exact dip and strike of the mineralisation is yet to be determined
        on an individual intersection basis although the overall strike of
        the mineralised zone is east west and the dip is approximately
        70-80 degrees to the south.
    6.  Accurate true widths for intersections have not yet been determined.
    7.  NSA (No Significant Assay) means no assay above 100ppm U3O8 over
        a minimum 2m interval
    8.  PPM (parts per million)


             Table 2: Recent RC Drill Hole Details at Duke Batman

    -------------------------------------------------------------------------
    Drill
    hole ID     Easting (m)   Northing (m)   Azimuth     Dip    EOH Depth (m)
    -------------------------------------------------------------------------
    FVN061        329246        7789740        360       -60         80
    -------------------------------------------------------------------------
    FVN062        329243        7789704        360       -60        152
    -------------------------------------------------------------------------
    FVN063        329202        7789742        360       -60         80
    -------------------------------------------------------------------------
    FVN064        329159        7789745        360       -60         80
    -------------------------------------------------------------------------
    FVN065        329287        7789739        360       -60         93
    -------------------------------------------------------------------------
    FVN066        329286        7789718        360       -60        140
    -------------------------------------------------------------------------
    FVN067        329326        7789734        360       -60         80
    -------------------------------------------------------------------------
    FVN068        329373        7789728        360       -60         80
    -------------------------------------------------------------------------
    FVN069        328867        7789768        360       -60        160
    -------------------------------------------------------------------------
    FVN070        328842        7789773        360       -60         90
    -------------------------------------------------------------------------
    FVN071        328820        7789777        360       -60         90
    -------------------------------------------------------------------------
    FVN072        328924        7789798        360       -60         60
    -------------------------------------------------------------------------
    FVN073        328874        7789806        360       -60         70
    -------------------------------------------------------------------------
    FVN074        328581        7789782        360       -60         80
    -------------------------------------------------------------------------
    FVN075        328574        7789761        360       -60        152
    -------------------------------------------------------------------------

    Notes:
    1.  Co-ordinates are in UTM grid (AGD66 Z54) and have been measured by
        hand-held GPS
    2.  Detailed geological logging and radiometric profiling (using a
        hand-held scintillometer or RadEye PRD on each drill sample) is
        undertaken for all drill holes
    3.  Azimuth is recorded as true magnetic azimuth
    





For further information:

For further information: David Berrie, Managing Director, Telephone: +61
8 9322 6322, Facsimile: +61 8 9322 6558

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