SASKATOON, Jan. 20 /CNW/ - Titan Uranium Inc (TSX-V:TUE, FSE:T4X) is pleased to announce a significant increase to the Mineral Resources at the company's 100 percent owned Sheep Mountain uranium project in Fremont County, Wyoming. The new estimate of Indicated Mineral Resources totals approximately 30.4 million lbs eU3O8 (13,841,000 tons averaging 0.110% eU3O8). This represents an increase of 14.4 million lbs, a 90.0% increase from the mineral resources previously reported on March 4, 2010.

Most of the additional resources reported here are directly adjacent to the planned Congo open pit and will be available for open pit mining. A review of economics of these resources will be incorporated into an updated Preliminary Feasibility Study to be completed in the 2nd half of 2011.

Chris M. Healey, President and CEO for Titan, commented "The on-going evaluation of the Sheep Mountain property continues to add to the economic viability of the project. This evaluation will include a substantial drill program in the summer of 2011 to further delineate the limits of the Congo pit, and also to explore for additional resource expansions."

The reported resource conforms to the Standards of Disclosure for Mineral Properties as stated in National Instrument 43-101. The estimate was completed by BRS Inc., of Riverton Wyoming. Doug Beahm P.E, P.G., president of BRS, is the independent qualified person responsible for this estimate, and will be the lead author of a technical report which will be filed on SEDAR within 45 days of the date of this release.

The new additions to the resource base are located immediately adjacent to the areas of Mineral Resources previously disclosed. All the reported resources are located within the existing Mine Permit. Permitting and licensing for the planned open pit/underground mines and heap leach operation are well underway.

The new estimates are based partially on the results of a 62-hole drill program (20,120 ft) completed in the area of the Congo Pit in the summer of 2010, and partially on a re-evaluation of old drill data from adjacent areas. There has been no change to the previously reported resource for Sheep 1 and 2, and a minor change to that reported for the Congo Pit. Three new mineralized areas have been added to the resource, being the Sun-Mc, North Gap and South Congo zones.

The new estimate of Indicated Mineral Resource is detailed in the following table:

  GT Cutoff >0.30 >0.60 >0.90
    Pounds  eU3O8     13,245,000             9,040,000             6,065,000
    Tons        5,640,000             2,790,000             1,515,000
    Avg Grade % eU3O8                0.117                     0.162                     0.200
    Avg. Thickness (ft) 6.7 7.5 8.7
Congo Pit   GT Cutoff >0.10 >0.25 >0.50
(with 2010 drilling)   Pounds  eU3O8        7,686,000             7,085,000             5,766,000
    Tons        4,143,000             3,400,000             2,374,000
    Avg Grade % eU3O8                0.093                     0.104                     0.121
    Avg. Thickness (ft) 6.5 7.5 8.9
Sun-Mc   GT Cutoff >0.10 >0.25 >0.50
    Pounds  eU3O8        2,000,000             1,700,000             1,100,000
    Tons        1,080,000                780,000                396,000
    Avg Grade % eU3O8                0.093                     0.109                     0.139
    Avg. Thickness (ft) 5.1 6.1 7.7
North Gap   GT Cutoff >0.10 >0.25 >0.50
    Pounds  eU3O8        5,737,000             5,465,000             4,687,000
    Tons        2,398,000             2,088,000             1,485,000
    Avg Grade % eU3O8                0.120                     0.131                     0.158
    Avg. Thickness (ft) 8.1 8.9 10.3
South Congo   GT Cutoff >0.10 >0.25 >0.50
    Pounds  eU3O8        1,750,000             1,700,000             1,600,000
    Tons           580,000                540,000                450,000
    Avg Grade % eU3O8                0.151                     0.157                     0.178
    Avg. Thickness (ft) 6.0 5.6 5.5
Total Indicated Resource   GT Cutoff LOW MID HIGH
    Pounds  eU3O8     30,418,000           24,990,000          19,218,000
    Tons     13,841,000             9,598,000             6,220,000
    Avg Grade % eU3O8                0.110                     0.130                     0.154
    Avg. Thickness (ft) 6.7 7.6 8.8

As with the previously reported Mineral Resource (see Titan release dated March 4, 2010, this estimate was made at three GT cut-offs for the Sheep 1 and 2 underground portion of the deposit: 0.30, 0.60 and 0.90 ft% eU3O8. For the Congo Pit, Sun-Mc, North Gap and South Congo zones the three cut-offs were 0.10, 0.25 and 0.50 ft% eU3O8. The mid-range cut-offs were used as Titan's base case for the previous resource report.  In all cases a minimum grade of 0.03% eU3O8 was applied.

Subsequent to the reporting of the Mineral Resource in March 2010, Titan completed a Preliminary Feasibility Study (April 12, 2010), which showed that substantially lower cut-offs met economic criteria for inclusion in a Mineral Reserve estimation (0.10 ft% and 0.45 ft% respectively for open pit and underground). In addition, there have been substantial increases in the spot market price for uranium since the reporting of that Mineral Reserve (Ux weekly spot price April 5, 2010 $41.75, January 17, 2011 $68.00). Therefore the low-range cut-offs of 0.30 ft% and 0.10 ft% eU3O8 have been applied to the underground and open pit portions respectively to establish a base case for the new mineral resource estimate. Of the 8,948,000 lb increase in the Indicated Resource, 8,940,000 lbs (62.3%) are attributable to the inclusion of new zones, while 5,428,000 lbs (37.7%) are attributable to the use of lower cut-offs.

Titan believes that this approach is both realistic and is in accordance with current acceptable industry practice.

In the underground portion of the deposit, mineralized intercepts were diluted to a minimum 6 feet thickness (vertical) for compatibility with planned mining methods. For the open pit, the diluted thickness was 2 feet.  Current mine design and methodologies incorporate conventional approaches that were employed successfully at this site in the past and are compatible with the current State of Wyoming mine permit.

This estimate was completed using the GT (grade x thickness) contour method on individual mineralized zones as defined in a full 3D geological model of the deposit. A total of 16 separate mineralized zones have been identified and evaluated in the Sheep 1 and 2 underground areas, as well as 17 zones in the Congo Pit area. For the Sun-Mc area, 12 individual mineralized zones were identified, for the North Gap - 5 zones, and for the South Congo - 10 zones.

The database for the estimate included 1577 rotary drill holes in the area of the proposed Congo pit, 485 in the area of the Sheep I and II underground mine, 704 in the Sun-Mc zone, 1060 in the North Gap zone and 117 in the South Congo all drilled from surface. Underground mine development and production records from previous mine workings, as well as records of underground mapping and sampling were also applied to the estimate.

The uranium quantities and grades are reported as equivalent U3O8 (eU3O8), as measured by downhole gamma logging. This industry standard protocol for reporting uranium in sandstone hosted deposits in the USA has been validated for the Sheep Mountain project by test drilling at the deposit, as well as by correlation with previous mining activities. In the fall of 2009, five rotary percussion holes were drilled on the property to study disequilibrium. Downhole logging of the drill holes was completed using standard gamma technology as well as a uranium spectral analysis tool (USAT), both supplied by Century Wireline of Tulsa OK. The USAT tool gives a direct measurement of uranium content and therefore allows determination of the equilibrium state of the uranium mineralization intersected in the hole.  A total of 34 intervals were measured, which show an overall moderate positive disequilibrium (thus the true chemical grade of the mineralization is slightly higher than the equivalent grade determined by the gamma tool). The results of the resource estimates were not adjusted to account for this positive disequilibrium, and can therefore be considered conservative.

Chris M. Healey, a Professional Geologist licensed in the State of Wyoming, President and CEO for Titan, is the Qualified Person responsible for the technical content of this release.

About Titan Uranium Inc.

Titan Uranium's vision is to be a leading mid-tier North-American uranium exploration, development and mining company. Our mission is to create shareholder value by advancing quality projects to production.

Our growth strategy is driven by three elements:

• Development: A pre-feasibility study has been completed at the Sheep Mountain Uranium Project, Wyoming. The deposit contains a NI 43-101 compliant probable reserve of 14.2M lbs. of U3O8 (6,393,000 tons at 0.111% e U3O8) (see Titan press release April 12, 2010).

• Exploration: The goal is to discover world class uranium deposits by exploring over 1.0M acres of land in the proven Athabasca and prospective Thelon Basins. Exploration programs are also active in Utah and Wyoming.

• Consolidation: The Company is actively pursuing M & A opportunities and focused on uranium-friendly jurisdictions such as Saskatchewan and Wyoming.

Titan has gained market recognition for its ability to attract strategic partners to participate in the exploration of its properties. Japan Oil, Gas and Metals National Corporation and Mega Uranium Ltd. are partners in current exploration programs managed by Titan.

Titan is well-financed and ideally positioned to emerge as a pre-eminent player in the uranium industry.


Chris M. Healey, President

Neither 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 release.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Titan Uranium, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Titan Uranium's expectations are exploration risks detailed herein and from time to time in the filings made by Titan Uranium with securities regulators.

SOURCE Titan Uranium Inc.

For further information:

Investor Relations
Titan Uranium Inc.
Phone: 306-651-2405 or 604-925-1810
Facsimile: 306-651-5105
Email: ir@titanuranium.com

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