September 17, 2008
Pancon-Crossland Drilling Intensifies on Flagship Australian Uranium Target
Pancontinental Uranium Corporation (TSX VENTURE: PUC) ("Pancon" or "the Company") is pleased to report that an aggressive diamond drilling program using modern day exploration technologies will now test historical uranium discoveries made in Northern Territory, Australia in the 1980's by global resources giants Mobil Energy Minerals Australia ("Mobil") and Total Mining Australia Pty. Ltd. ("Total").
A drill rig has now been allocated to an intensive diamond core program at the Company's flagship Chilling Project, 120 kilometres south of Darwin, on the western margin of the prolific Pine Creek Orogen.Mr Geoff Eupene, Director of Pancon and CEO of Crossland Uranium Mines Limited (ASX: CUX), states "The Orogen has been the source of most of Australia's uranium production, and we believe that our Chilling Project could represent part of a western "mirror image" of the Alligator Rivers District's eastern margin, where total uranium production and resources have been estimated at approximately 375,000 tonnes. When you consider that Chilling covers a similar geological setting and is large enough to include the equivalent of the entire Ranger, Jabiluka and Koongarra corridor, you begin to understand why the Pancon-Crossland JV is so enthusiastic about this current drilling program."
Two diamond core holes have already been completed at the Chilling Project, totalling almost 400 metres, with assay results expected in four to six weeks.
The drill rig has now moved to the recently-acquired Mount Thomas licence area (within the Chilling Project) to test for extensions of high-grade mineralization discovered by Mobil and by a joint venture between Total and Power Nuclear Corporation of Japan, which discovered individual 2 metre intersections of up to 11,670 ppm and 4,068 ppm U3O8.
"We expect to have this rig and a second air core rig, which will be arriving soon, to be drilling continuously for the rest of the season. Drilling normally extends until late in November," Mr. Eupene said.
The 67 km2 Mount Thomas licence was acquired from Aldershot Resources Limited earlier this year, bringing the size of Pancon-Crossland's holdings at Chilling to 1,363 km2.
The Chilling Project is one of four Australian uranium exploration projects initiated by Crossland with its Canadian joint venture partner, Pancontinental Uranium Corporation. Pancon has committed $8 million to the projects to earn 50% of Crossland's Australian Uranium interests.
Today's details, regarding the JV's Chilling exploration program, follow last month's announcement of initial results from the Charley Creek uranium project, also in the NT.
The initial rock chip results at Charley Creek confirmed that significant uranium values are present in outcrop in association with the surface radiometric anomalies in a particular phase of the Teapot Granite, which outcrops over an area of several square kilometres. The Company believes that these characteristics enhance the potential for a large primary uranium deposit within Crossland's tenements over the Teapot Granite at Charley Creek.
Pancon's partner, Crossland has an experienced Board and Management team that includes Mr. Bob Cleary, former Chief Executive of Energy Resources of Australia (ERA) and operations manager of the Ranger uranium mine; Mr. Geoff Eupene, formerly Mine Geologist with Geopeko Limited at the Ranger mine, and Mr. Bob Richardson, Geopeko's Chief Geophysicist during the discovery and development of Ranger.
Pancon Director, Mr. David Mosher, led the exploration team that discovered the Jabiluka deposit, Australia's largest undeveloped uranium orebody, about 20 km north of Ranger in the Pine Creek orogen.
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 ongoing 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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Contacts: Pancontinental Uranium Corporation Richard Mark President and CEO (604) 986-2020 or 1-866-816-0118 Pancontinental Uranium Corporation Keith Patey Director of Communications (604) 986-2020 or 1-866-816-0118 (604) 986-2021 (FAX) Website: www.PanconU.com
SOURCE: Pancontinental Uranium Corporation