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UC Resources Resumes Exploration at McFaulds Lake Project

UC Resources Ltd. (TSX VENTURE:UC) has reported that exploration has resumed on the McFaulds Lake project area in the James Bay Lowlands in the "Ring of Fire".

A 1000 km airborne survey has begun using the SHA three-axis, helicopter towed, magnetic gradiometer and VLF-EM system which will be flown very close to the ground and at a flight path separation of 100 meters. This is a very low flying close gradient survey and is expected to provide vivid magnetic detail on a live read basis. The flight area will consist of McFauld's #3, #5, #6, and #2 to better define drilling targets. The SE claim block of the McFaulds East block of claims will also be flown as this area presently has no geophysics data.

Orbit Garant drilling has mobilised a crew of drillers to the area in preparation for drilling which will begin in the coming days. A second drill crew is presently sitting on standby ready to mobilise a second drill rig in the next few days.

Drill targets will consist of further testing of the McFauld's #5 & #6 occurrences as well as shallow and deep drilling to be conducted on the McFauld's #3 massive sulphide occurrence which comprises the majority of the presently existing 43-101 resource. McFauld's #2 is being looked at as a target dependant on current drilling conditions.

The La Yesca mill has now achieved a mill throughput rate of 250 metric tonnes per day. It is planned to stabilize the mill feed at this rate over the next few months before slowly moving higher to test maximum throughput potential of the mill. Two independent studies suggest that the mill is capable of providing the grinding capacity required of a higher feed rate but at this time the optimum rate is unknown.

Once the milling facility is stabilised at a rate of 250 tonnes per day the focus will shift to maximizing recoveries through metallurgical chemical balancing, etc., which is presently just beginning and will take time as with all mill start-ups. This week the companies mill and metallurgist consultant is on-site monitoring results and preparing plans to further advance the fine tuning process. To date during the start-up process testing, in excess of US$110,000 dollars of material has been produced and sold while going through normal starts and stops, tests and low chemical values which is a normal part of any start-up operation. The company believes the mill is now ready for this next phase of the commissioning process with the 250 tpd rate having been achieved over an extended number of days.

Drilling in the peripheral area of the Xora claim has resulted in some interesting larger than expected intercepts of low grade silver zones. Although these widths do not represent true width, further investigation is warranted to investigate the possibility of a larger low grade system and exploration for the higher grade source. Drilling of the area closer to the historic mining area continues under the supervision of a government geologist compiling data for the Mexican mining authorities under the grant we have received for drilling the La Colorada occurrence. Four holes remain in the program at which time analysis and review will occur to evaluate the next drilling program in conjunction with the Mexican mining authorities.

The area associated with the drill targets has historically been mined to varying extents, with La Colorada having a non-compliant 43-101 resource calculation which was compiled by the Mexican Ministry of Mines, by way of wall rock chip sampling, of 11,000 tonnes grading .7 g/t Gold and 619 g/t silver.

Source: UC Resources Ltd.


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