Aurora drills wide uranium at Michelin

Vancouver — Drilling on Aurora Energy Resources’ (AXU-T, AUEGF-O) Michelin deposit in the Central Mineral Belt of coastal Labrador has intersected a number of wide, higher-grade uranium intervals.

Hole M-06-16 cut 59.4 metres (from 442.6 metres down-hole) of 0.18% U3O8, including an 11.4-metre interval averaging 0.25% U3O8, expanding the core zone of the deposit to depth. Another hole (M-06-13) also testing the deeper central zone, intersected 48.5 metres (from 408 metres) grading 0.19% U3O8 with a 9.5-metre interval of 0.29% U3O8. True widths are estimated at about 90% of drilled widths.

Other holes successfully tested the eastern and western flanks of the deposit in addition to infill drilling, which will provide data to upgrade the project resource estimate.

In early 2006, engineering firm Roscoe Postle Associates reviewed a measured and indicated resource of almost 9 million tonnes grading 0.113% U3O8 (containing 22.2 million lbs. U3O8) at Michelin, occurring from surface to about 250 metres depth. An additional 4.1 million tonnes of inferred resource grading 0.148% U3O8 was calculated in deeper portions of the deposit (to about 700 metres), based on seven widely spaced drill holes.

Both stratabound and shear-hosted uranium mineralization occurs at Michelin within a volcanic suite of porphyritic tuffs and fragmental rhyolites, and is associated with structural zones parallelling the east-northeast-trending and moderately south-dipping stratigraphy. The deposit consists of several sub-parallel mineralized zones occurring from surface to at least 700 metres depth.

Aurora, which was initially formed in early 2003 to hold projects of partners Fronteer Development Group (frg-t, frg-x) and Altius Minerals (als-v, atusf-o) in the Central Mineral Belt, became a public company earlier this year through an initial public offering. Fronteer and Altius retain 49.3% and 19.9% interests in Aurora, respectively, with Altius also holding a 2% royalty on the projects.

Shares of Aurora Energy rallied 9% on the drill results, closing up 40 at an even $5.00 apiece on strong volume. The company posts a $304-million market capitalization based on its 60.8 million shares outstanding.