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 downhole depth) 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 that 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 pounds of 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 paralleling 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.
Initially formed in early-2003 to hold Fronteer Development Group’s (FRG-T, FRG-X) and partner Altius Minerals’ (ALS-V) Central Mineral Belt projects in coastal Labrador, Aurora 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 following its spin-out, 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.
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