VANCOUVER, Feb. 16, 2017 /CNW/ - Uracan Resources Ltd. (TSX.V:URC) ("Uracan" or "the Company") is pleased to provide a corporate update on the Company and the drill program completed in November 2016 on Forum's 100% owned Clearwater Project, on trend from Fission Uranium's Triple R deposit and Nexgen Energy's Arrow Deposit in the Athabasca Basin, Saskatchewan.
High Grade Zinc intercept at Clearwater
In the course of the 2016 exploration drill program on the Clearwater Project, Uracan and Forum Uranium Corp. ("Forum") have intersected a potentially significant zone of zinc mineralization in diamond drill hole CW-16. CW-16 intersected an interval between 259.5 meters and 266.0 meters downhole assaying 3000ppm (0.3%) Lead and 43400ppm (4.34%) Zinc over a 6.5 meter core length that was chip sampled. This high grade interval occurs within a zone of anomalous Zinc mineralization, with assays ranging between 114ppm to 43400ppm Zinc and 14ppm to 3000ppm Lead between 241.8 meters and 272.0 meters downhole. The host rock is a well banded granodiorite/granitic gneiss with variable silicification and sulphide content. These samples have not been composited as they are chip samples and not continuous samples. True widths of this interval are not known at this time. Further work is required to better define the nature of this base metal mineralization.
Chip samples consist of systematically collecting similar sized small fragments of the core at a regular spacing across zones of similar lithology and alteration. These individual chips from discrete lithological intervals are combined into a single sample that is submitted to the lab (SRC Geoanalytical Laboratories or SRC) for geochemical analysis. A systematic chip sampling program of all drill core was conducted as a regular part of the sampling program on the project and is a common sampling method in uranium exploration. The initial geochemical result was of enough interest that the lab was requested to reanalyze the sample, which returned 2750ppm (0.275%) Lead and 45400 (4.54%) Zinc in the reanalysis.
The reader is cautioned that these results are derived from selective composite chip samples that may not be representative of the interval. The chips are typically taken at 1 metre intervals along the length of the core.
CW-16 was drilled on the northern portion of the Clearwater claim group just south of Mongo Lake. Please see http://www.uracan.ca/s/Sask.asp?ReportID=674709 for further details.
Elevated base metals are frequently associated with the Athabasca unconformity uranium mineralization. Base metals, along with clay alteration and hematite alteration noted in drilling (see Uracan's November 16th, 2016 news release for further information) show that a metal bearing, hydrothermal system was active in this portion of the Patterson Lake trend. These results indicate that additional follow up work is needed to determine both the potential for uranium mineralization and the nature and potential for base metal mineralization on the Clearwater Project.
The chip sampled intervals were submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon, Saskatchewan for geochemical analysis. The samples were analyzed using ICP-MS for trace elements for both partial and total digestions, ICP-OES for major and minor elements on a total digestion, and fusion solution of boron by ICP-OES.
SRC has a rigorous QA/QC program as part of their assay program with regular insertion of standard reference material, blank material and duplicate samples in the sample stream.
Marc Simpson, P.Geo., Uracan's President and CEO is the Qualified Person that has reviewed and approved the contents of this news release on behalf of Uracan.
25% Interest Earned in Clearwater Project
Uracan is pleased to announce that it has earned its initial 25% interest in the property, with Forum holding the remaining 75% interest in the property. This interest was earned with the $1.5 million of cumulative expenditures on the property by Uracan as per the earn-in agreement with Forum. Uracan can earn a 51% interest by spending an additional $1.5 million in exploration by August 2017 and up to a 70% interest by funding cumulative expenditures of $6 million by August 2019. Forum will be the Project operator until Uracan earns its 51% interest, after which Uracan may elect to become the operator.
New Chief Financial Officer
Uracan announces the appointment of Jessica Van Den Akker to the position of Chief Financial Officer of the Company. Ms. Van Den Akker is a Chartered Professional Accountant (CA) with over 11 years' experience in the resource sector. She gained extensive experience through a Canadian audit firm providing reporting and accounting assurance services to publicly traded companies, primarily in natural resources. Ms. Van Den Akker is a graduate of Simon Fraser University where she received a Bachelor of Business Administration. The Company wishes to thank Harpreet Dhaliwal for her contributions to the Company, and wishes her well in her future endeavours. Uracan has granted an aggregate of 400,000 incentive stock options to officers of the Company exercisable for a period of 10 years, subject to TSX-V approval. These options will be priced at the closing market price on February 17, 2017.
Uracan Drops Black Lake Option
Due to continued challenges in the junior exploration markets, Uracan has elected to drop its option with UEX Corporation on the Black Lake Project in January 2017.
ABOUT URACAN RESOURCES LTD.
Uracan Resources Ltd. (TSX.V:URC) is a Canadian-based exploration company focused on exploring for uranium deposits in Saskatchewan and Quebec, Canada. In July 2014, Uracan signed an agreement with Forum Uranium whereby Uracan can acquire up to a 70% interest in the Clearwater Property near the southwestern margin of the Athabasca Basin, immediately adjacent to Fission Uranium's Patterson Lake South deposit and on trend with Nexgen Energy's Arrow deposit. Currently Uracan holds a 25% in the Clearwater Property with Forum Uranium holding a 75% interest in the property.
Uracan continues to review additional opportunities worldwide to capitalize on management's exploration and financing capabilities.
ON BEHALF OF URACAN RESOURCES LTD.
President and CEO
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
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. The foregoing information may contain forward-looking information relating to the future performance of the Company. Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the mining industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com ). Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein. The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
SOURCE Uracan Resources Ltd.
For further information: Marc Simpson, President and CEO, Uracan Resources Ltd., 604-506-6996, www.uracan.ca