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Northern Canadian Updates Collins Bay Extension
Uranium Exploration Program
Vancouver, British Columbia – June 5, 2007 – Northern Canadian
Uranium Inc. (TSX Venture Exchange: NCA; Frankfurt Stock Exchange: N4I)
(the “Company”) is pleased to announce the results from the winter
drilling program from the Collins Bay Extension (“CBE”) uranium project.
The CBE project contains over 37,000 hectares of contiguous mining
claims that are located at the eastern end of the Athabasca Basin
adjacent to Cameco’s Eagle Point uranium mine, and the Rabbit Lake
uranium mine and mill. The CBE project is exploring for uranium in areas
immediately east of the cover rocks of the Athabasca Basin. Uranium
mineralization occurs in the basement rocks, where the Athabasca
sandstone has been removed. These areas have the potential to host
uranium mineralization that is near surface with favorable metallurgy
and competent host rocks, similar to the Eagle Point Mine. The Eagle
Point and Collins Bay deposits have a global resource of approximately
140 million pounds U3O8 where the deposits are closely associated with
the Collins Bay fault zone. The CBE claim block covers over 25
kilometers of the prospective strike extension of the Collins Bay
structure.
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The CBE winter drilling program was designed to first identify the
location of northeast extension of the Collins Bay fault zone, and
secondly to explore for alteration and uranium mineralization within it.
New geological interpretations indicate that the Collins Bay fault is
present on the northwest side of Snowshoe Island, located 15 km along
strike from the Eagle Point mine, and continuing northeast beneath
Wollaston Lake, and onto Greenway Peninsula. The Company identified two
target areas on the fault zone, based on the presence of geophysical
conductors in proximity to fault zones that separate the Archean
basement rocks from the Wollaston Group rocks. The target areas are
separated by a distance of 2.0 km, and each target received two core
holes (4 core holes, total 1153.6 m).
Drill holes CBE 06 and 07 tested the northern target area and were
drilled from lake ice, 300 metres offshore from Snowshoe Island. Both
holes intersected multiple strongly altered fault zones, containing
elevated gamma radiation (up to 300 cps) and elevated uranium
geochemical values (20 – 60 ppm). Drill hole CBE 06 intersected
favorable chlorite–illite–hematite alteration from 46.0 to 79.0 m and
121.0 –138.0 m, and included:
Drill
Hole
From (m) To (m) Intercept -
U3O8 %
CBE
06 67.0 69.0 2.0 m @
0.03%
Drill hole CBE 07 intersected a similar alteration zone from 36.3 m
-118.7 m containing pegmatitic intrusives with elevated gamma radiation
and uranium geochemical values.
Drill holes CBE 09 and 10 tested the southern target zone, located
2.0 km to the south, on Snowshoe Island. Both holes intersected two
graphitic conductor zones, with anomalous gamma radiation and uranium
geochemical values ranging from 20 – 60 ppm. Drill hole CBE 09
intersected graphitic zones from 145.0 – 168.0 and 180.0 – 201.0 and a
pegmatitic intrusive containing the following uranium values:
Drill
Hole
From (m) To (m) Intercept -
% U3O8
CBE
09 90.5 93.0 1.5 m @
0.024 %
94.5 98.0
3.5 m @ 0.012%
Two additional drill holes were attempted on the Ellis Island fault,
which parallels the Collins Bay, 2.5 km to the southeast. Drill holes
were collared on lake ice but both holes were lost due to drilling
error. A fifth hole was collared and lost on the Collins Bay fault
target.
Management Discussion and Analysis
The Company has developed a two-phase exploration strategy at the
Collins Bay Extension project. The initial focus is to target the
extension of the Collins Bay Fault, which is a major controlling feature
for uranium deposits in the eastern Athabasca Basin. The Company’s
winter drilling program intersected the targeted fault zones, hosted in
favorable geological settings, with prospective alteration that includes
early chlorite–illite assemblages superimposed by texture destructive
hematite-quartz alteration. The altered fault zones contain elevated
gamma radiation and uranium mineralization in places that assayed up to
0.03% U3O8. While these values are sub-economic, the combined results of
favorable structure, strong alteration and anomalous uranium content
confirm the prospectivity of the targeted Collins Bay fault zone
extension which has been identified over a strike length of 6 km. The
Company will explore additional target areas within this 6 km long zone.
The Company has recently prepared an integrated high-resolution
exploration data base covering the entire 37,000 ha property. The data
set has integrated regional geological data with recently acquired V-TEM
time domain EM and airborne magnetics data from its recently completed
survey. The exploration data base will be utilized to identify
additional uranium exploration targets, both further to the northeast of
the current drilling program in the Northeast Block and in the Southwest
Block, adjacent to the historic Rabbit Lake uranium mine. Target areas
are now being defined in anticipation of additional drilling planned for
the 3rd quarter of 2007. A second news release is being prepared to
describe the forthcoming exploration program for the Company’s Coin
Canyon project located on the north side of the Athabasca Basin.
QA/QC
Project manager for the program is Coast Mountain Geological Ltd. of
Vancouver, BC. All geochemical samples were collected in accordance with
accepted industry standards and procedures. The samples were submitted
to accredited ACME Analytical Laboratories Ltd. in Vancouver, BC and
analyzed for uranium and trace elements using a four acid digestion (HF–HClO4-HNO3-HCL)
and analysis by ICP-ES/ICP – MS. The Company conducts routine QA/QC
analysis on all assay results, including the systematic utilization of
certified reference materials, and umpire laboratory check assays. Total
gamma radiation measurements were obtained using a portable field
spectrometer (GR-135 GEO) manufactured by Exploranium.
Northern Canadian Uranium Inc. (NCA)
Northern Canadian Uranium is a Canadian public company focused on the
acquisition, exploration and development of uranium resources. The
Company’s exploration programs are headed by Keith Laskowski (MSc., VP
Exploration), a designated Qualified Person (NI 43-101) and a geologist
with over 25 years of exploration experience. NCA has a pipeline of
uranium projects, ranging from resource definition to grassroots
exploration. The Company is also exploring the Canyon Coin project,
located on the north side of the Athabasca Basin and six uranium
exploration projects in Wyoming and three projects in South Dakota. The
Company has three properties in southwest Nevada which are being
examined and has acquired over 50,000 square kilometers of uranium
prospecting concessions in Mali, West Africa.
Forward Looking Statements
Some of the statements in this news release contain forward-looking
information, which involves inherent risk and uncertainty affecting the
business of Northern Canadian Uranium Inc. It is uncertain if further
exploration will result in discovery of an economic mineral resource on
any of the properties. Actual results may differ materially from those
currently anticipated in such statements.
ON BEHALF OF THE BOARD OF DIRECTORS
“Praveen K. Varshney”
Praveen K. Varshney, C.A.
President
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