Western Prospector hits Saddle Hills high grade (September 26, 2005)

Choibalsan, Mongolia — Drilling by Western Prospector Group (WNP-V) continues to intersect significant uranium values on the Gurvanbulag main zone at its Saddle Hills project in Dornod Aimag, northeastern Mongolia.

The second batch of holes in the verification drill program delivered high-grade values in hole 5006, where a 7.1-metre intersection (from 270 metres) returned 2.1% U3O8, including 4 metres of 3.7% U3O8 and a 1-metre intercept grading 8.1% U3O8. Core recoveries have improved over initial drill holes recently completed by the company, delivering a better sample of uranium mineralization.

The high-grade interval confirms prior Russian exploration on the Gurvanbulag main zone in the 1980s, when an extensive underground work program including three vertical shafts and about 30 km of lateral development was started. Although partially flooded, accessible portions of the concrete-lined shafts and main haulage tunnels appeared in excellent condition during a recent site visit by The Northern Miner.

Western Prospector is advancing its grid drill program to bring the Russian C2 category resources in line with National Instrument 43-101. The company currently has three drill rigs testing the area and has completed 30 of 100 holes scheduled for this year.

An additional six holes completed on the northwest updip margin of the Gurvanbulag main zone, Block 6, also returned significant uranium values. Hole 5015 intersected a 2.1-metre horizon from 99 metres below surface averaging 0.46% U3O8. Forty holes in total are planned for Block 6, after which, a resource calculation will be conducted. Results from 20 holes completed on the area to date confirm results from past Russian drilling, but with increased thickness of the zone.

Western Prospector is also well under way on the construction of an extensive water impoundment, as well as settling ponds for the dewatering of the old underground workings, expected to begin in March 2006.

Uranium mineralization at Saddle Hills occurs mainly as stratabound lenses in the lower part of a Mesozoic volcano sedimentary sequence overlying a basement complex of late-Proterozoic to Paleozoic gneisses, schists and granites. Some additional structurally controlled mineralization occurs as steeply dipping to vertical zones, possibly connecting with the stratabound lenses. Uranium occurs as fracture coating yellow uranophane and fracture, vein and disseminated black pitchblende or coffinite.

With the high-grade interval, and uranium spot prices now hovering around US$31 per pound of U3O8, investors leapt on board, driving up the company’s share price to the $6 level on high volume.