Aricheng A is the eighth uranium-bearing structure identified so far and underscores the growing size potential of the Kurupung system. Geologically similar albitite-hosted uranium deposits worldwide including the Valhalla deposit in Australia and Michelin deposit in Canada, typically host resources in the 50 to 130 million pound range with typical grades of 0.06% to 0.10% U3O8, contained within multiple mineralized structures.

To date, U3O8’s drilling has delineated uranium mineralization in eight structures of which an initial National Instrument 43-101 (NI 43-101) indicated resource of 5.8 million pounds at an average grade of 0.10% U3O8 and Inferred resource of 1.3 million pounds at an average grade of 0.09% U3O8 have been defined on two of these structures.

Through further scout drilling, the company aims to show that the Kurupung has an estimated potential to host a conceptual target of 20-30 million tonnes grading 0.08% to 0.10% U3O8 (for an estimated 30-50 million pounds U3O8) aggregated from multiple structures.

Uranium mineralization at Aricheng A is associated with a set of northeast-trending structures, marked by a conspicuous radiometric anomaly. Aricheng A is located about 500mt southeast of the Aricheng North uranium zone that coincides with another strong radiometric feature.

The Aricheng A mineralization zone occurs in veinlets and micro-breccias within an envelope of albite-chlorite-hematite-calcite-magnetite alteration that is weakly to moderately magnetic. The structures have a northeast strike and dip approximately 80º to the northwest. Mineralization has been encountered over a strike length of 300mt, to a depth of 120mt, and remains open at depth.

Potential quantity and grade are based on drill results that define the approximate length, thickness, depth and grade of the Aricheng A target, but are considered conceptual in nature. Furthermore, the size potential for the Kurupung Batholith is conceptual in nature. It is uncertain if further exploration drilling will result in a mineral resource of significant size being defined in the Kurupung or will result in a mineral resource being defined in Aricheng A structure.

Diamond drilling at Aricheng A was undertaken with U3O8’s own drill rig that produced NQ (nominal 47.6 millimetre diameter) core. A down-hole spectral gamma probe was used on the seven bore holes reported here to determine the extent of the mineralized intervals by providing an estimate of the uranium grade based on the radioactivity measured.

Core from each mineralized interval was halved with a diamond saw on-site and half core samples were delivered to ACME Laboratory’s preparation facility in Georgetown, Guyana. Sample blanks and certified standards were inserted at an average frequency of 1 per 25 samples.

Sample pulps were then shipped by ACME to their analytical facility in Vancouver, BC, Canada, for analysis for uranium by ICP-MS after hot, four-acid digestion. The other half of the core was logged and is stored on-site, providing a complete record of the geology and mineralized zones drilled.