Further high grade uranium identified at Honey Pot Prospect



    
    Highlights:

    -   Drilling continues to identify high grade zones of uranium
        mineralisation;
    -   Mineralisation now confirmed over 1.6km of strike traceable from
        surface;
    -   Mineralisation at shallow depths (less than 200m); and
    -   Excellent potential for further mineralisation along strike
    

    PERTH, Western Australia, July 9 /CNW/ - Fusion Resources Limited
("Fusion" or the "Company") (ASX: FSN, TSX: FNS) is pleased to announce that
further drilling at the recently discovered Honey Pot Prospect ("the
Prospect") located within the Company's 100% owned Valhalla North Project
("the Project") in northwest Queensland has continued to intersect high grade
zones of uranium mineralisation.
    Assay results returned from 25 holes recently drilled at the Honey Pot
Prospect, which is located 16km northeast of the Company's Duke Batman
Prospect, include the following significant intercepts:

    
    -------------------------------------------------------------------------
                                                             Down Hole Depth
    Hole Number              Down Hole Intercept                  (From)
    -------------------------------------------------------------------------
    FVN086           17m @ 1,294 ppm (0.129%) U(3)O(8)           39m
    -------------------------------------------------------------------------
    FVN091           10m @ 1,357 ppm (0.136%) U(3)O(8)          131m
    -------------------------------------------------------------------------
    FVN092            8m @ 1,200 ppm (0.120%) U(3)O(8)           54m
    -------------------------------------------------------------------------
    FVN096            5m @ 1,254 ppm (0.125%) U(3)O(8)          146m
    -------------------------------------------------------------------------
    FVN095            5m @ 1,165 ppm (0.116%) U(3)O(8)          118m
    -------------------------------------------------------------------------
    FVN090            5m @ 1,134 ppm (0.113%) U(3)O(8)          113m
    -------------------------------------------------------------------------
    

    The assay results indicate the presence of a high grade zone of uranium
mineralisation over more than 1.6km of strike which can be traced down dip
from surface. The mineralisation is open at depth. Further drilling is planned
to the north and south to explore for potential offsets and extensions.
    The surface expression of the mineralisation is defined by a 2km
continuous radiometric anomaly. The northern 400m of strike of this
radiometric anomaly is yet to be drill tested.

    Summary of Honey Pot drill results received to date

    The following table summarises all of the Honey Pot drill results
received to date from both the initial drill program completed in December
2007 and the current follow-up drill program commenced in March 2008. The
table shows drill intercepts that returned assay results greater than 500 ppm
(0.050%) U(3)O(8) over the mineralised intercept.

    
    -------------------------------------------------------------------------
                                                                 From Depth
    Hole No.                   Down Hole Intercept               (Down Hole)
    -------------------------------------------------------------------------
    FVN086(*)          17m @ 1,294 ppm (0.129%) U(3)O(8)          39m
    -------------------------------------------------------------------------
    FVN022(xx)         15m @ 1,446 ppm (0.145%) U(3)O(8)          58m
    -------------------------------------------------------------------------
    FVN021(xx)         13m @   754 ppm (0.075%) U(3)O(8)          26m
    -------------------------------------------------------------------------
    FVN015(xx)         11m @   812 ppm (0.081%) U(3)O(8)          98m
    -------------------------------------------------------------------------
    FVN087(*)          11m @   538 ppm (0.054%) U(3)O(8)          94m
    -------------------------------------------------------------------------
    FVN091(*)          10m @ 1,357 ppm (0.136%) U(3)O(8)         131m
    -------------------------------------------------------------------------
    FVN016(xx)         10m @   688 ppm (0.069%) U(3)O(8)          93m
    -------------------------------------------------------------------------
    FVN019(xx)          9m @ 1,866 ppm (0.187%) U(3)O(8)          59m
    -------------------------------------------------------------------------
    FVN017(xx)          9m @ 1,378 ppm (0.138%) U(3)O(8)          97m
    -------------------------------------------------------------------------
    FVN020(xx)          9m @ 1,130 ppm (0.113%) U(3)O(8)          49m
    -------------------------------------------------------------------------
    FVN092(*)           8m @ 1,200 ppm (0.120%) U(3)O(8)          54m
    -------------------------------------------------------------------------
                        7m @   786 ppm (0.079%) U(3)O(8)         100m
    FVN090(*)  --------------------------------------------------------------
                        5m @ 1,134 ppm (0.113%) U(3)O(8)         113m
    -------------------------------------------------------------------------
    FVN030(xx)          7m @   643 ppm (0.064%) U(3)O(8)         100m
    -------------------------------------------------------------------------
    FVN096(*)           5m @ 1,254 ppm (0.125%) U(3)O(8)         146m
    -------------------------------------------------------------------------
    FVN095(*)           5m @ 1,165 ppm (0.116%) U(3)O(8)         118m
    -------------------------------------------------------------------------
    FVN105(*)           4m @   855 ppm (0.086%) U(3)O(8)          46m
    -------------------------------------------------------------------------
    FVN018(xx)          4m @ 2,224 ppm (0.222%) U(3)O(8)         134m
    -------------------------------------------------------------------------
    FVN027(xx)          4m @   749 ppm (0.075%) U(3)O(8)         102m
    -------------------------------------------------------------------------
    FVN107(*)           3m @ 1,109 ppm (0.111%) U(3)O(8)         102m
    -------------------------------------------------------------------------
    FVN025(xx)          3m @ 2,414 ppm (0.241%) U(3)O(8)         132m
    -------------------------------------------------------------------------
    FVN097(*)           3m @   573 ppm (0.057%) U(3)O(8)          65m
    -------------------------------------------------------------------------
    FVN108(*)           2m @   795 ppm (0.080%) U(3)O(8)          70m
    -------------------------------------------------------------------------
    FVN026(xx)          2m @   583 ppm (0.058%) U(3)O(8)          67m
    -------------------------------------------------------------------------
    (*)  New drill hole (refer this news release)
    (xx) Previously announced drill hole (refer ASX announcement dated
         January 17, 2008)
    

    Figure 1: New RC Drilling Results at Honey Pot (over Radiometrics)

    http://www.fusionresources.com.au/upload/documents/investor_relations/asx
/20080709_080709-HoneypotDrilling_FINAL_A4.pdf

    Figure 2:  Honey Pot Cross Section

    http://www.fusionresources.com.au/upload/documents/investor_relations/asx
/20080709_080709-HoneypotDrilling_FINAL_A4.pdf

    Honey Pot Prospect

    The Honey Pot Prospect is located within the Company's 100% owned
Valhalla North Project and approximately 100km north of Mt Isa in northwest
Queensland.
    The Company completed its maiden RC drilling program over the Prospect in
December 2007, which comprised 16 drill holes at Honey Pot. Refer to the
Company's ASX announcement dated January 17, 2008 for the drilling results in
relation to these holes.
    The Company's aim is to identify shallow (less than 200m) uranium
mineralisation that is open pittable with the main priority currently being to
define the limits to the known mineralisation and complete a mineral resource
estimate in accordance with the JORC code and National Instrument 43-101 -
"Standards of Disclosure for Mineral Projects" during 2008.

    Recent Drilling

    In March 2008 the Company commenced a follow-up 10,000m RC and Diamond
drilling program at the Project. To date in the current program, 25 RC holes
(including one redrill) have been drilled at Honey Pot for a total of 2,632m
and three Diamond twin holes (including one redrill) have been drilled for a
total of 330.7m. Assay results for the Diamond holes are pending.
    The recent drilling has continued to intersect high grade zones of
uranium mineralisation over 1,600m of strike. Significant intercepts were
recorded from as shallow as 13m down hole and to a maximum of 167m down hole.
The mineralisation is still open below this at depth. Furthermore, 84% of
holes from the current Honey Pot program intersected mineralisation with 48%
of holes recording two or more intercepts, indicating the potential for
additional hanging and footwall zones that may be blind at surface.
    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 locations of the Honey Pot drill holes are shown in Figure 1.
    The uranium mineralisation is observed to be hosted within dolerite and
basalt of the Eastern Creek Volcanics. The mineralisation is spatially
associated with foliated albite, apatite, carbonate, haematite and silica
alteration giving a distinct pink-red colour in fresh rock. The local
stratigraphy is interpreted to be a series of interbedded sediments, volcanic
tuffs and basalts with cross cutting dolerites. Initial indications suggest a
sub-vertical dip to the mineralization which subtly varies from steeply east
to steeply west dipping along strike.

    Summary

    The results of drilling at the Honey Pot Prospect in northwest Queensland
have confirmed the presence of a high grade zone of albitite hosted uranium
mineralisation.
    The follow-up 10,000 metre RC and Diamond drilling program, which
commenced in March 2008, has confirmed high grade uranium mineralisation over
1.6km of strike at Honey Pot with over 400m of strike of the anomalous zone
yet to be drill tested.
    The results of Fusion's recent exploration work are extremely encouraging
and continue to highlight the potential of the Valhalla North Project, and in
particular the Honey Pot and Duke Batman Prospects, to host significant high
grade open pittable uranium mineralisation.
    The Directors of Fusion are extremely pleased with results of drilling to
date. With its established technical and operational capability and strong
cash reserves, the Company 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: Summary of Significant RC Drill Intercepts

    -------------------------------------------------------------------------
    Prospect    Drill Hole    From    To    Interval    U(3)O(8)    U(3)O(8)
                    ID         (m)    (m)      (m)        (ppm)        (%)
    -------------------------------------------------------------------------
    Honey Pot     FVN086       30     37        7          482        0.048
    -------------------------------------------------------------------------
                               39     56       17        1,294        0.129
    -------------------------------------------------------------------------
                               60     64        4          104        0.010
    -------------------------------------------------------------------------
                  FVN087       94    105       11          538        0.054
    -------------------------------------------------------------------------
                  FVN088       81     86        5          262        0.026
    -------------------------------------------------------------------------
                              109    111        2          157        0.016
    -------------------------------------------------------------------------
                  FVN089       57     59        2          120        0.012
    -------------------------------------------------------------------------
                  FVN090      100    107        7          786        0.079
    -------------------------------------------------------------------------
                              113    118        5        1,134        0.113
    -------------------------------------------------------------------------
                  FVN091      131    141       10        1,357        0.136
    -------------------------------------------------------------------------
                              155    157        2          118        0.012
    -------------------------------------------------------------------------
                  FVN092       54     62        8        1,200        0.120
    -------------------------------------------------------------------------
                  FVN093       93     95        2          183        0.018
    -------------------------------------------------------------------------
                  FVN094       82     84        2          178        0.018
    -------------------------------------------------------------------------
                               98    104        6          434        0.043
    -------------------------------------------------------------------------
                  FVN095      106    108        2          189        0.019
    -------------------------------------------------------------------------
                              118    123        5        1,165        0.116
    -------------------------------------------------------------------------
                  FVN096      146    151        5        1,254        0.125
    -------------------------------------------------------------------------
                              165    167        2          426        0.043
    -------------------------------------------------------------------------
                  FVN097       65     68        3          573        0.057
    -------------------------------------------------------------------------
                  FVN098       86     91        5          176        0.018
    -------------------------------------------------------------------------
                               93     95        2          318        0.032
    -------------------------------------------------------------------------
                  FVN099       46     51        5          371        0.037
    -------------------------------------------------------------------------
                  FVN100       71     75        4          183        0.018
    -------------------------------------------------------------------------
                  FVN101                       NSA
    -------------------------------------------------------------------------
                  FVN102                       NSA
    -------------------------------------------------------------------------
                  FVN103                       NSA
    -------------------------------------------------------------------------
                  FVN104       51     53        2          158        0.016
    -------------------------------------------------------------------------
                  FVN105       13     17        4          144        0.014
    -------------------------------------------------------------------------
                               38     55       17          333        0.033
                           Inc. 46    50        4          855        0.086
    -------------------------------------------------------------------------
                               57     60        3          166        0.017
    -------------------------------------------------------------------------
                               64     66        2          141        0.014
    -------------------------------------------------------------------------
                               68     70        2          132        0.013
    -------------------------------------------------------------------------
                  FVN106       47     53        6          234        0.023
    -------------------------------------------------------------------------
                               37     39        2          147        0.015
    -------------------------------------------------------------------------
                  FVN107       97    106        9          497        0.050
                           Inc. 102  105        3        1,109        0.111
    -------------------------------------------------------------------------
                               90     92        2          116        0.012
    -------------------------------------------------------------------------
                  FVN108       70     72        2          795        0.080
    -------------------------------------------------------------------------
                               79     81        2          143        0.014
    -------------------------------------------------------------------------
                  FVN109       56     60        4          133        0.013
    -------------------------------------------------------------------------
                  FVN110                       NSA
    -------------------------------------------------------------------------

    Notes:
    1.  RC drill samples are collected over 1m intervals using representative
        sampling techniques
    2.  Sample preparation by ALS laboratory in Brisbane
    3.  Sample analysis by XRF pressed powder in Brisbane
    4.  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
    5.  Drill intercepts are calculated using a 100 ppm U(3)O(8) cut-off and
        include no more than 1m of internal dilution by material less than
        100 ppm U(3)O(8)
    6.  An exact dip of the mineralisation is yet to be determined and the
        precise true width of the intercepts is not yet known although they
        are expected to be less than the apparent widths intersected.
    7.  NSA (No Significant Assay) means no assay above 100ppm U(3)O(8) over
        a minimum 2m interval.


                  Table 2: Summary of RC Drill Hole Details

    -------------------------------------------------------------------------
    Prospect  Drill Hole ID   Easting   Northing   Azimuth   Dip   EOH Depth
                                (m)        (m)                        (m)
    -------------------------------------------------------------------------
    Honey Pot     FVN086       336596    7805422     265     -60       80
    -------------------------------------------------------------------------
                  FVN087       336612    7805418     265     -60      145
    -------------------------------------------------------------------------
                  FVN088       336588    7806019     265     -60      120
    -------------------------------------------------------------------------
                  FVN089       336596    7805920     265     -60       80
    -------------------------------------------------------------------------
                  FVN090       336619    7805919     265     -60      136
    -------------------------------------------------------------------------
                  FVN091       336645    7805917     265     -60      169
    -------------------------------------------------------------------------
                  FVN092       336600    7805824     265     -60       98
    -------------------------------------------------------------------------
                  FVN093       336597    7805631     265     -60      110
    -------------------------------------------------------------------------
                  FVN094       336446    7806366     265     -60      120
    -------------------------------------------------------------------------
                  FVN095       336467    7806366     265     -60      145
    -------------------------------------------------------------------------
                  FVN096       336495    7806368     265     -60      200
    -------------------------------------------------------------------------
                  FVN097       336438    7806268     265     -60       79
    -------------------------------------------------------------------------
                  FVN098       336457    7806269     265     -60      120
    -------------------------------------------------------------------------
                  FVN099       336483    7806187     265     -60       80
    -------------------------------------------------------------------------
                  FVN100       336419    7806200      85     -60      100
    -------------------------------------------------------------------------
                  FVN101       336590    7805223     265     -60       60
    -------------------------------------------------------------------------
                  FVN102       336620    7805222     265     -60       60
    -------------------------------------------------------------------------
                  FVN103       336647    7805222     265     -60       60
    -------------------------------------------------------------------------
                  FVN104       336680    7805223     265     -60       70
    -------------------------------------------------------------------------
                  FVN105       336595    7805722     265     -60      100
    -------------------------------------------------------------------------
                  FVN106       336415    7806471     265     -60       80
    -------------------------------------------------------------------------
                  FVN107       336441    7806465     265     -60      130
    -------------------------------------------------------------------------
                  FVN108       336421    7806574     265     -60       90
    -------------------------------------------------------------------------
                  FVN109       336422    7806681     265     -60      100
    -------------------------------------------------------------------------
                  FVN110       336420    7806797     265     -60      100
    -------------------------------------------------------------------------

    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 Radeye PRD on each drill sample) is undertaken for all drill
        holes prior to chemical assay.
    3.  Azimuth is denoted 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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