Updated: 2013-05-21 - 13:44:00
UC Resources Symbol: UC.V
June 22, 2009, UC Resources Ltd.: Vancouver, British Columbia: Trading Symbol: TSX-V: UC
UC Resources (TSX-V-UC) is pleased to provide this brief update for our shareholders. UC continues to focus on its two primary objectives, complete the 55% option earn-in of the McFaulds project and commission the La Yesca production facility.
La Yesca Update
The Company remains committed to achieving successful commercial production at its tailings operation at La Yesca as one of the key goals going forward. Although we have not yet commenced commercial production the company has been actively pursuing further testing of grade, recoveries and grind solutions. The processing facility has been on care and maintenance since the test production runs of November and early December 2008 which provided results that were not profitable due to lower than expected grade and to course a grind.
Beginning in January 2009, MAG Laboratories of Tucson Arizona were commissioned to conduct recovery testing on our tailings while simultaneously the tailings pile itself was being excavated, tunnelled and assayed to better reassess the grade of the tailings stockpile. We also have been actively reviewing and analyzing a previous successful test recovery process developed by SGS Laboratories in Durango, Mexico.
The tailings pile has now been modeled using data from the 600 samples that were recently collected and assays have been conducted both by our in-house laboratory as well as SGS Laboratories in Durango and IPL Laboratories in Vancouver. As a function of the modeling process it was also observed that the La Yesca tailings pile has an estimated non 43-101 compliant 310,000 tonnes rather than the previous 43-101 compliant (Jim Burns 2007) estimate of approximately 225,750 tonnes.
The result of all the process tests and the tailings pile assays has provided a verified solution to what we believe will be a commercially viable tailings operation, as per the original plan, for four to five years. However, the mill will require some modification and UC is presently seeking hard dollar funding and/or a joint venture partner to complete the upgrade to the mill and start the re-commissioning process leading ultimately to full production. The larger ball mill to meet better grinding targets has already been purchased but is not yet on-site or installed.
It is the company's strong belief that the La Yesca area offers significant exploration upside with a number of new veins assays already reported in the March 12, 2009 news release. In the fall of 2008 a sampling program was undertaken on various occurrences on the Xora claim which is situated three kilometres from the La Yesca mill in Nayarit State, Mexico. The area has been host to some very high grade silver mines throughout the past century and there have been 6 mines and 16 mineral occurrences in the general area and assays reported are consistent with data from historic exploration and production in the La Yesca area. The company plans extensive exploration once commercial operation is complete with the objective of providing additional material for future production making La Yesca a key strategic growth prospect for the company.
Additional exploration is also planned for the Mar and Copalquin properties once commercial production is attained plus the company has had discussions regarding future tailings production acquisitions.
McFaulds Project Update
In May 2009 Geotech Ltd. of Aurora, Ontario was commissioned to conduct a ZTEM airborne survey (deep penetrating electromagnetic (EM) and magnetic (Mag) survey) over a very highly magnetic Bull's-eye target that is located approximately 12 kilometres southwest of Noront Resources Ltd. Eagle One discovery and over the confirmed VMS targets of McFaulds No. 5 and No. 6 occurrences which are located a few kilometres south of McFaulds No. 1 and No. 3 VMS deposits, (refer to May 26, 2009 news release for more details).
Preliminary results have been received that indicate the presence of an EM conductor within the highly magnetic area of the Bull's-eye occurrence and a large EM response in the area of McFaulds No. 5 and No. 6. Data is presently being refined and an inversion has been requested on both of these anomalies.
Once final data has been received and the inversion completed, Scott Hogg and Associates will be recommending drill locations on both of these very high priority targets. These targets are in addition to those being reviewed from the Mar 2009 ground gravity survey on the western side of McFaulds East block.
UC Resources has an option to earn up to 55% interest in the approximate 31,000 hectares of the McFauld's East, West and North blocks currently held by Spider Resources Inc. and KWG Resources Inc. At present the company is about $100,000 away from completing a 40% interest.
The company continues in discussion with IBK Capital Corp. to complete the previously announced best-efforts financing with the proceeds used to finance an expanded exploration program on UC's growing high priority McFaulds Lake targets and general working capital.
On behalf of the Board of Directors,
President & CEO
UC Resources Ltd.
For further information:
Contact Vancouver Head Office
#1000, 355 Burrard Street Vancouver, B.C. V6C 2G8 Canada
Toll Free: 1-800-366-8566 (Canada & USA)
We seek safe harbour.
Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.