U3O8 Corp. to focus on Aricheng South

Uranium drill results from U3O8 Corp.’s (UWE-V) Aricheng South zone in Guyana have confirmed the continuity of mineralized shoots in the host structure.

The zone is still open along strike and at depth, leaving lots of room for resource expansion.

Highlights from the most recent 2,200-metre 10-hole program include intersections of 14.6 metres (true width) grading 0.106% U3O8, 5.5 metres grading 0.138% U3O8 and 6.6 metres grading 0.125% U308.

With the current uncertainty in the capital markets, the company has decided to focus on expanding Aricheng South while still focusing on other areas in the Roraima basin.

The company says the South zone is similar to Aurora Energy Resources’ (AXU-T, AUEGF-O) Michelin uranium deposit in Labrador because the South zone is basement-hosted and is concentrated in mineralized shoots that are enclosed by albite alteration. Aricheng South extends 270 metres along strike and to a depth of 180 metres.

“Given its resource prospects, we will focus on expanding the overall size of the mineralized zone at Aricheng South by using wider-space drilling to add potential pounds of uranium in a cost-efficient manner,” said U3O8 Corp. president, Richard Spencer in a statement.

The company wants to cut monthly spending by 40%, which will lower the burn rate enough so that current cash reserves of $12 million will last the company for about 18 months.

Already, U3O8 Corp. owns two drills, reducing the cost of drill programs to about $67 per metre, which is about half what a contract driller would charge. Owning the drills also allows the company to do as much or as little drilling as it likes.

U3O8 Corp. is expecting initial resource estimates for its Aricheng North and Aricheng South deposits before the end of the year.

In September, the company reported a 5.5 metre drill intersection grading 1.01% U3O8 at Aricheng North.

Further drill results will are expected in November for the North deposit as well as Aricheng West.

U3O8 shares were down 2.5 today to 25 apiece on a trading volume of 8,500 shares. The company has a 52-week high of $1.95 per share, a low of 22 and 16.89 million shares outstanding.