Cue Resources has commenced drilling at the San Miguel zone located on its 100% owned Yuty uranium project in south-eastern Paraguay.

One rotary drill and one diamond drill are currently operating at San Miguel and a second rotary drill will be mobilized from the San Antonio zone after a short term project has been completed.

The company said that this first 3500m of drilling is expected to be finished by the middle of April.

Initial drilling will consist of approximately 1500m over a strike length of 1.1km, testing a WSW-ENE trending anomaly partially defined by Anschutz drilling while the additional drilling will continue further to the east and west in previously untested areas. (approximately 2000m).

Sixty-four historic holes have been drilled previously with three holes of significant interest in the 0.10-0.50m% eU3O8 range.

Mineralization occurs within a sandstone unit (San Miguel formation) up to 16m thick and is associated with a Redox front similar to the resource delineated at San Antonio.

The San Antonio deposit consists of a current NI 43-101 compliant resource, Indicated, 9.0M tonnes @ 0.042% eU3O8 containing 8.3M lbs eU3O8 and an Inferred Resource of 1.1M tonnes @ 0.050% eU3O8 containing 1.2M lbs eU3O8.

The column leach tests have demonstrated recovery of up to 86% of the contained uranium from cores taken from San Antonio.