Drilling Commences at Pancontinental Uranium’s Charley Creek Project; Initial Samples From Kalabity Submitted to Lab
TORONTO, ONTARIO–(May 6, 2008) – Pancontinental Uranium Corporation (“Pancon” or the “Company”) (TSX VENTURE:PUC) is pleased to announce that drilling has commenced at the Charley Creek project in Australia held in Joint Venture with Crossland Uranium Mines Limited (“Crossland”). The objective of this phase of drilling is to probe the extensive sediment accumulations beneath the flats in the Charley Creek project area to determine if they represent a viable target for calcrete or redox-related uranium deposits. Past exploration has identified uranium occurrences in the Teapot Granite which occur in the drainage basin of the sediments.The air core drill being used is capable of drilling to a depth of approximately 120 metres which should be sufficient to reach basement rocks over most of the sediment basin at Charley Creek. This is calculated based on the results of a Tempest airborne electromagnetic (“AEM”) survey conducted by the Joint Venture in 2007. Approximately 5,000 metres of drilling in 100 holes is planned for this phase which is expected to be completed by mid-May. The drill is averaging 200 metres per day. Drill targets were delineated from the analysis of the Tempest AEM survey completed in August 2007.
This phase of drilling will produce several hundred samples for analysis for a range of elements including uranium and thorium. All holes are radiometrically probed inside the air core rods and sample selection is, to some extent, based on the probe results. It is corporate policy to announce only the results of chemical assays of samples submitted to a recognized laboratory.
In addition, ground follow-up of targets generated from the airborne radiometric and magnetic survey completed in January 2008 will proceed once drilling is complete. This analysis will help to identify areas of outcropping mineralization in the Teapot Granite. This follow-up awaits clearance of the proposed reconnaissance areas for Aboriginal sacred sites. These consultations are underway.
At Kalabity, approximately 636 samples from recently-completed auger drilling have been submitted to the laboratory for analysis. These samples are from the Tabita prospect and from follow-up of an area that returned palladium values between the detection limit of 1ppb and 134ppb, from the final line of sampling at the KR4 prospect in 2007.
Exploration work is scheduled to begin at Chilling in late-May. Initial activities will include follow-up of the anomalies outlined in the airborne magnetic and radiometric survey completed in December 2007. Field work at Crossland Creek is expected to begin in July or August 2008.
About Charley Creek
The Charley Creek Project, which encompasses approximately 703 square kilometres, is one of four uranium exploration projects in Australia included in the Joint Venture between Pancon and Crossland. The Charley Creek Project, located approximately 100 kilometres northwest of Alice Springs in the Northern Territory of Australia, is prospective for sediment-hosted uranium deposits, specifically calcrete and redox-related uranium deposits. The area includes an extensive portion of the uranium-enriched Teapot Granite. It is situated on the southern margin of the North Australian Craton.
About Pancontinental Uranium Corporation
Pancontinental Uranium Corporation (“Pancon”) is a Canadian-based company focused on uranium discovery and development. Through a joint venture with Crossland Uranium Mines Limited (“Crossland”) of Australia, Pancon has established one of the strongest management teams in the uranium industry. This management and operating team has unparalleled experience from exploration, through development to operations, and includes people who were instrumental in the discovery of two of the largest uranium deposits in the world. Pancon holds an impressive exploration portfolio with projects in prolific, mining friendly districts. Active exploration is on-going at four Australian projects which include Chilling, Charley Creek, Kalabity and Crossland Creek. The Chilling project has the potential to host a mirror image of a portion of the renowned Alligator Rivers Uranium Field containing the large Jabiluka, Ranger and Koongarra deposits. Pancon is earning a 50% interest in this significant uranium project portfolio through the joint venture with Crossland through the expenditure of A$8 million. Pancon and Crossland are also pursuing exploration beyond Australia through international subsidiary company, Crosscontinental Uranium Limited, and immediate plans include formulating an exploration program in Burkina Faso.
The exploration activities and results contained in this report are based on information compiled by Geoffrey S. Eupene, CP., a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Eupene is the designated Qualified Person for the joint venture exploration activity. He is a director of Pancon and Crossland and is a full time employee of Eupene Exploration Enterprises Pty. Ltd. Mr. Eupene has reviewed this press release.
Cautionary Language and Forward Looking Statements
This press release may contain “forward-looking statements”, which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure documents filed from time to time with the Canadian securities authorities.
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