Dauntless Capital Corp. Receives Resource Estimates on Uranium Properties Totalling 34.467 Million Pounds U(3)O(8) Indicated

Jun 15, 2010, 09:00 ET from Dauntless Capital Corp.


VANCOUVER, June 15 /PRNewswire-FirstCall/ - Dauntless Capital Corp. (TSX-V:DTL.P) ("Dauntless") is pleased to announce that it has received three National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") compliant technical reports (the "Technical Reports") covering the Crownpoint and Hosta Butte properties (the "Properties") located in the Grants Uranium District of McKinley County, New Mexico, USA.

Dauntless has proposed to option the Properties from NZ Uranium, LLC ("NZU") of Phoenix, Arizona, USA pursuant to an option agreement dated May 20, 2010 (the "Agreement"). Assuming closing of the Agreement, the optioning of the Properties will constitute Dauntless's Qualifying Transaction (as defined in TSX Venture Exchange (the "Exchange") Policy 2.4) and Dauntless will have a right to earn a 100% interest in and to certain properties in McKinley County, New Mexico, USA (which include the Properties) subject to a sliding scale gross proceeds royalty (the "Transaction") (see Dauntless News Release dated May 27, 2010).

The Technical Reports calculate indicated mineral resources as defined by Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") ("Indicated Resources") totalling 34.47 million pounds of U(3)O(8) at an average grade of 0.0949% eU(3)O(8) on the Properties as follows:

                              Million Tons   Grade         Contained U(3)O(8)
                                             eU(3)O(8) %   Million Pounds
    Crownpoint Section 19     2.80           0.1006        5.634
    Crownpoint Section 29     4.26           0.0943        8.038
    Crownpoint Section 24(1)  2.85           0.1041        5.980
    Hosta Butte               6.60           0.1123        14.822
    Total                     16.51          0.0949        34.47

    (1) Disclosed tonnage represents a 60% interest in the Crownpoint Section
        24 Property.

Crownpoint Section 19/29 Deposit

The first Technical Report, entitled "Technical Report of the Section 19 and 29 Portions of the Crownpoint Property, McKinley County, New Mexico" (the "Crownpoint Section 19/29 Property Technical Report"), dated May 26, 2010, covers Section 19 and the west half of Section 29, T17N R12W, New Mexico Prime Meridian (approximately 960 acres) (the "Crownpoint Section 19/29 Property"), in which NZU has a 100% interest. The Crownpoint Section 19/29 Property Technical Report calculates Indicated Resources of 13.672 million pounds of U(3)O(8) in 7.06 million tons at a grade of 0.0880% eU(3)O(8). This resource estimate is based on a minimum of 667,000 ft of drilling in 325 holes drilled by Conoco during the 1970s. Metallurgical testing by Hydro Resources Inc. demonstrated that the Crownpoint Section 19/29 Property deposit is amenable to in situ leach ("ISL") mining.

Crownpoint Section 24 Deposit

The second Technical Report, entitled "Technical Report of the Section 24 Portion of the Crownpoint Property, McKinley County, New Mexico" (the "Crownpoint Section 24 Property Technical Report"), dated May 26, 2010, covers the majority of the SE 1/4 of Section 24, T17N R13W, New Mexico Prime Meridian (approximately 140 acres) (the "Crownpoint Section 24 Property"), in which NZU has a 60% interest. The Crownpoint Section 24 Property Technical Report calculates an Indicated Resource of 4.75 million pounds of U(3)O(8) in 9.966 million tons at a grade of 0.1041% eU(3)O(8). The 60% interest represents 2.85 million pounds of U(3)O(8) in 5.980 million tons. This resource estimate is based on 316,750 ft of drilling in 157 holes drilled by Conoco during the 1970s. Metallurgical testing by Conoco demonstrated that the Crownpoint Section 24 Property deposit is amenable to ISL mining.

Hosta Butte Deposit

The third Technical Report, entitled "Technical Report of the Hosta Butte Property, McKinley County, New Mexico" (the "Hosta Butte Property Technical Report"), dated May 26, 2010, covers Sections 3, 9 and 11, T16N R13W, New Mexico Prime Meridian (approximately 1,920 acres) (the "Hosta Butte Property"), in which NZU has a 100% interest. The Hosta Butte Property Technical Report calculates an Indicated Resource of 14.822 million pounds of U(3)O(8) in 6.6 million tons at a grade of 0.1123% eU(3)O(8). This resource estimate is based on 325,285 ft of drilling in 133 holes drilled by Conoco during the 1970s. Metallurgical testing by Conoco demonstrated that the Hosta Butte Property deposit is amenable to ISL mining.

The Technical Reports on the Crownpoint Section 19/29 Property, the Crownpoint Section 24 Property and the Hosta Butte Property are authored by Dr. Gregory Myers, P. Geo. (Washington State), a member and chartered professional of the Australian Institute of Mining and Metallurgy and an independent Qualified Person as defined in NI 43-101. Dr. Myers has reviewed and approved the technical information in this news release. The Technical Reports will be filed on SEDAR (www.sedar.com) in the next 45 days.


Measurement of the uranium concentration in drill holes was made with radiometric logging of the drill holes throughout the entire resource area. Natural gamma (counts/second, or cps), self potential (millivolts), and resistance (ohms) were recorded at 1/2 ft increments on magnetic tape and then processed by computer to graphically reproducible form. The eU(3)O(8)% conversions from the gamma log data were then calculated using the raw natural gamma counts and the sample quality is considered to be acceptable and representative of uranium values within the range of acceptable analytical error. Conoco collected the down hole geophysical survey data on the 1/2 ft intervals regardless of rock type or alteration, eliminating any sampling bias. High grade intervals exist and extend with fairly consistent values laterally for several hundred feet. These high grade values have not been cut or weighted for the calculation of the average grade of a bench.

The database consists of more than 74,374 1/2 ft original gamma probe readings (33,000 for the Crownpoint Section 19/29 Property, 28,800 for the Crownpoint Section 24 Property and 12,574 for the Hosta Butte Property) which were used by Dr. Myers to calculate the resource models. Dr. Myers calculated the grade of the mineralized zones as an average, bench by bench, and did not utilize any weighting factors in the calculations. The pounds of U(3)O(8) for each bench were tabulated along with the area and calculated volume for each bench. The total number of tons contained in the mineralized zones and the total number of pounds of U(3)O(8) was summed and the average grade of the entire mineralized zone was calculated from these results. The calculated grades of eU(3)O(8) shown are less than the statistical averages for the sample population above the 0.04% cutoff because of internal waste, which cannot be separated from ore in an ISL mining scenario. The calculated grade utilized the average grade of the 10 ft bench composites and includes 1/2 ft intervals below the 0.04% cutoff grade.

Data Verification

The percentage of eU(3)O(8) contained in drill holes was calculated from the down hole gamma logs at the time of drilling and geophysical surveying under the supervision of Conoco. Original data was collected on 1/2 ft intervals and converted to eU(3)O(8)%. The data available for this analysis were the original gamma logs and grade summary tables for each drill hole. The original logs and the tabulated data were compared to verify the values and there is a reasonable correlation in values. The tabulated data was scanned and entered into an ACCESS database along with collar location data. The scanned data was checked and confirmed and the current database is estimated to be essentially error free. Further verification and correction of the data was completed during sectional interpretations. While the original down hole gamma logs have been reviewed in detail, core samples from the original drilling were not available for check assaying.

Conoco conducted three disequilibrium studies to confirm the eU(3)O(8)% values calculated from the gamma logs. Their conclusions in a 1979 summary report showed a range from a slight chemical depletion (3%) to a moderate enrichment (13%) of the eU(3)O(8)%. Conoco ultimately concluded that the gamma log values tend to underestimate the actual chemical grade.

Cutoff Grades

The mineralized zone was defined as mineralization above the selected cutoff grade of 0.04% eU(3)O(8) over a 10 ft composite. The selection of a 0.04% eU(3)O(8) cutoff grade by Dr. Myers considered ISL recovery factors, maximizing the tonnage of mineralization and maintaining strong positive value at current uranium prices. As the concentration of U in the ISL solution is a function of the grade of the body being leached and leaching is more effective in zones with a higher concentration, the highest possible cutoff grade is preferred. For the Technical Reports, it was assumed that an average grade of 0.1% U(3)O(8) would be a reasonable lower limit for the average grade of a mineralized body being subjected to ISL mining.

Volume Determination of Mineralized Zone

Orthogonal north south and east west cross sections were completed on 200 ft spacings in the mineralized zone utilizing known features of the geologic controls on mineralization. Cross sections with drill hole eU(3)O(8)% values and limited geologic information were generated in the Rockworks 2004 software program from the ACCESS database. The cross sections were then interpreted by hand on a section-bysection basis and digitized. The sectional data was transferred to bench plans, spaced every 10 ft, and the ore zones were interpreted and digitized in order to accurately measure the area of the mineralized body outline. The surveyed drill hole locations in the ore zones were used to adjust the mineralized body shapes. The measured area and volumes calculated from the benches were used to calculate the tons contained on each bench.

Conoco and Hydro Resources Inc. estimated density factors of 16 ft(3)/ton and 15.8 ft(3)/ton, respectively for use in their tonnage calculations. The lower density factor of 15.8 ft(3)/ton was used by Dr. Myers in the Technical Reports.

Grade Continuity

The continuity of grade between drill holes is good at moderate to low values of eU(3)O(8). High grade zones are limited in lateral and horizontal extent. Resource modeling for the Technical Reports calculated a simple average grade for each 10 ft bench, equally weighting each drill hole to limit biasing. Clustering of drill hole data is insignificant and does not bias the bench average.

A competitor company is currently in the permitting process to initiate ISL production in the area of the Properties. They have completed the permit applications and Environmental Impact Statements required and are waiting for final approval. In April 2005, the Navajo Nation imposed a moratorium on uranium development and mining on the Navajo Reservation and on "Indian Country". However the definition of "Indian Country" is not clear and the moratorium's impact on Dauntless's plans for further work at the Properties is unknown at this time. No other limitations or other negative impacts due to environmental permitting or other political issues, which will have an affect on the Indicated Resources, are known to exist.

Completion of the Transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange requirements, majority of the minority shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed on the merits of the proposed Transaction and has neither approved nor disapproved the contents of this News Release.

Disclaimer for Forward-Looking Information

Certain statements in this News Release are forward-looking statements, which reflect the expectations of management regarding Dauntless's proposed Qualifying Transaction. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Dauntless will obtain from them.


SOURCE Dauntless Capital Corp.