Nyah Resources discovers new zones at Agnew Lake North uranium project

Having completed a 3,500 metre, 11-hole drill program on its 100%-owned Agnew Lake North uranium project, Nyah Resources (NRU-V) has concluded that favourable geology continues to a distance of 560 metres west of the known deposit. At that point, radiometric readings are 3,700 counts per second. Drill results are consistent with historic resource estimates.

The drilling has tested the mineralized zone to a depth of 212 metres and has intersected mineralized quartz pebble conglomerate in 8 of the 11 holes. Although the last two drill holes to the west (holes 28 and 29) intersected poor mineralization, Nyah believes that the mineralized zone continues westward, but trends to the south of these two holes. This area cannot be tested at present because of poor ground conditions. Samples are being analyzed, and results, including grades for both uranium and rare earths, are expected in October.

The Agnew Lake North Uranium project holds about 16 sq. km and is located about 10 km northeast of Espanola, Ont., and 40 km west of Sudbury. It encompasses the past-producing Agnew Lake Uranium Mine, operated by Kerr-Addison Mines between 1977 and 1983, having produced about 1.9 million lb. uranium from a combination of surface and in-situ leaching. The past-producing mine has a six compartment, 980-metre shaft with development on several levels, and a decline to the 580-metre level. Kerr-Addison discovered five mineralized zones, of which two were developed.

In addition to the past-producing uranium mine, the property covers approximately 6 km of favourable geology, which could be prospective for uranium-mineralized horizons. At Agnew Lake, the uranium /rare earth mineralization is contained within a pyritic quartz-pebble conglomerate that unconformably overlies granitic rocks and is similar to mineralization in the Elliot Lake area to the west.

A historic proven and probable reserve has been estimated in 1979 by Kerr-Addison at 5.4 million tons grading 1.9 lb. uranium oxide per ton, equivalent to 10.3 million lb. uranium oxide. Since mining continued for four years after the estimate, some of this reserve has been mined.

Another historic proven and probable reserve estimate, made in 1983 after the end of mine operations, puts reserves at 5.8 million tons grading 1.04 lb. uranium oxide per ton, equivalent to 6 million lb. uranium oxide.

Nyah also owns 100% of two other uranium exploration projects: one is Agnew Lake South, and the other is the Quirke North property.

The Agnew Lake South project holds 6.5 sq. km south of the Agnew Lake Mine site. The property occurs along the south limb of the Agnew Lake syncline where the geology is similar to that of Agnew Lake Mine. The property lies along strike of several historical showings, the nearest occurring within 300 metres of the property boundary in basal Huronian conglomerates. Nyah interprets that this quartz pebble conglomerate unit, which hosts mineralization, extends through the property. At least one uranium showing has been identified within the property.

Nyah has identified historic showings on the Agnew Lake South Property with preliminary results from radiometric assays indicating up to 12,000 counts per second on surface. The company has also completed 62 line km of ground geophysics at the Agnew Lake North and South properties, establishing geophysical targets on strike with known mineralization and historic showings.

Continuing step-out drilling to the west, more suited to winter drilling, is anticipated for Agnew Lake North, as well as initial drilling to test targets on the Agnew Lake South property. Metallurgical testing to determine the recoverability of the uranium and rare earths is currently being planned for the Agnew North property.

Nyah’s third uranium project is The Quirke North property totaling 15 sq. km immediately north of the past-producing Quirke Lake Mine, 12 km north of Elliot Lake, Ont. The Quirke Lake Mine produced approximately 44 million lb. of uranium grading typically 0.11% uranium oxide (equivalent to 2.12 lb. uranium oxide per ton).

The Agnew Lake North project is subject to a 1.5% net smelter return (NSR) royalty, half of which can be repurchased for $2 million. The Agnew Lake South project is subject to a 2% NSR royalty, half of which can be repurchased for $270,000 by April 2010. The Quirke North project is subject to a 2% yellowcake royalty.

The Company has 69.8 million shares fully diluted and $1.9 million cash.