URACAN CONTINUES TO DISCOVER SIGNIFICANT URANIUM MINERALIZATION IN DRILLING ON COSTEBELLE CLAIMS

Dec 02, 2010, 09:00 ET from URACAN RESOURCES LTD.

TSX-V: URC

VANCOUVER, Dec. 2 /PRNewswire/ - Uracan Resources Ltd. (the "Company") reports that further to its news release of October 27, 2010, it is pleased to announce initial assay results from the first drill holes completed during its 2010 fall drilling campaign.  This drilling focused on two areas of the property: the Costebelle A4 and CC11 zones, part of the Company's 100% owned North Shore Project in Quebec.  The CC11 zone represents a new discovery for 2010, emphasizing the potential for the North Shore Property to host additional significant uranium mineralization. 

Highlights include 11.5 meters of 0.053% U3O8 (532ppm or 1.06 lbs/t) in CC11-10-04, 12.8 meters of 0.037% U3O8 (371ppm or 0.74 lbs/t) in CA4-10-25, and 15.25 meters of 0.024% U3O8 (236ppm or 0.48 lbs/t) in CA4-10-21.

The 16 hole, 2,075 meter fall drill program was designed to follow up exploration targets outlined during the winter 2010 drill program at the A4 zone, as well as drilling targeted surface sampling results from the 2010 work program. 

The CC11 zone drilling represents a new discovery in the Costebelle claim area and is located approximately 3 kilometers east of the A4 zone.  Mineralization at the CC11 zone is hosted by a mineralized pegmatite ranging up to 14.65 meters drilled length.  Mineralization in drilling and surface channel sampling has been defined over an 800 meter strike length within a 1200 meter airborne radiometric anomaly. 

Drilling has also confirmed that uranium mineralization at the Costebelle A4 Zone continues down dip from the surface channel samples and previous drill holes.  The area with drill results received to date occurs along an approximately 500 meter length within an overall potential strike length of approximately 1,500 meters, as defined by airborne radiometrics, surface mapping and channel sampling along with previous drilling. 

Mineralization is open along strike and to depth starting from surface throughout this area.  Mineralization has been extended to approximately 200 meters down dip from the surface outcrop mineralization.  

Uranium mineralization at the Costebelle A4 zone occurs as broad multiple stacked mineralized zones hosted by pegmatite dykes and sills with drilled thicknesses ranging up to 41 meters as noted in winter and fall 2010 drilling.  The true thickness of these zones is unknown at this time but is thought to be similar to drilled thickness. 

Costebelle CC11 Drilling

A total of 414 meters in 4 diamond drill holes was completed during October and November 2010 at the CC11 zone.  Drilling was targeted on surface channel results outlined as part of a mapping and sampling program on the area.  Mapping, airborne and surface geophysical work outlined a potential 1200 meter long pegmatite body.  Drilling was carried out over an 800 meter strike length of this pegmatite. 

The drilling encountered significant uranium mineralization in all drill results received to date.  Additional assays are pending for the two remaining drill holes.  The table below summarizes the results from the drill program at CC11.  The Company plans to follow up this drilling this winter with further diamond drilling to further define uranium mineralization in this area.

Area Drill Hole From (m) To (m) Length (m) U3O8 % U3O8 ppm
CC11 CC11-10-01 2.6 15.45 12.85 0.025 246
CC11 CC11-10-02 Assays
Pending
       
CC11 CC11-10-03 Assays
Pending
       
CC11 CC11-10-04 7.5 19 11.5 0.053 532

Costebelle A4 Drilling

A total of 1660.75 meters in 12 diamond drill holes was completed during October and November 2010. Uracan's fall drilling objective was to further identify the extent of mineralization encountered in drill results and surface results outlined during both the winter 2010 drill program and the subsequent summer 2010 sampling program.

Drilling continues to outline mineralization extending to depth with similar widths and grades to those seen in the previous drill program at the A4 zone. 

A summary of selected mineralized zones from the returned assays is included below:

Area Drill Hole From (m) To (m) Length (m) U3O8 % U3O8 ppm
A4 CA4-10-21 32.65 47.9 15.25 0.024 236
A4 CA4-10-21 73.6 94.25 20.65 0.017 168
A4 CA4-10-21 169.5 175.5 6 0.023 234
A4 CA4-10-22 assays pending        
A4 CA4-10-23 15.5 17.6 2.1 0.014 144
A4 CA4-10-24* 14.6 16.1 1.5 0.022 219
A4 CA4-10-25 78.4 91.2 12.8 0.037 371
A4 CA4-10-26 13.5 18 4.5 0.014 138
A4 CA4-10-27 assays pending        
A4 CA4-10-28 assays pending        
A4 CA4-10-29 assays pending        
A4 CA4-10-30 assays pending        
A4 CA4-10-31 assays pending        
A4 CA4-10-32 assays pending        

* Note: CA4-10-24 abandoned at 21 meters due to drilling difficulties - CA4-10-25 completed 1 meter west of CA4-10-24

A map showing the Costebelle A4 and CC11 drill hole locations as well as drill hole coordinates and a complete listing of assay results will be posted on Uracan's updated website: www.uracan.ca.

QA/QC

Samples were shipped by Company personnel in sealed containers to ALS Chemex Laboratories of Val D'Or, Quebec for analysis.  Chemex is the laboratory facility used for all assays from the North Shore Property program.  Samples are weighed and catalogued before sample preparation.  The samples are crushed to 70% less than 2mm, split and then pulverized to 85% of the sample being less than 75 µm.  All samples are assayed using ICP-MS with analysis completed for 47 elements. 

A QA/QC program was implemented as part of the sampling procedure for the drill program.  Field duplicates, field blanks and certified standards were inserted into the sample stream with at least one blank, one duplicate and one standard inserted per group of 20 samples sent to the laboratory.  The laboratory also has an extensive in house QA/QC system as part of their quality control system.   

About Quebec, Canada

Quebec has been voted as the Top Mining Jurisdiction In the World since 2007 by the Fraser Institute Mining Survey and has been in the top 10 since 2001: www.fraserinstitute.org.

Uracan Resources Ltd. is a publicly-listed uranium exploration company, exploring for shallow, bulk tonnage style uranium mineralization in Canada.  Uracan is led by a team of proven exploration and mine entrepreneurs and mine-builders.  The information in this news release has been prepared and reviewed by Marc Simpson, P. Geo., the Company's Qualified Person under National Instrument 43-101 standards. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The foregoing information may contain forward-looking information relating to the future performance of the Company.  Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others, the actual results of exploration activities, changes in world commodity markets or equity markets, the  risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes, change in government and changes to regulations affecting the mining industry, and other risks and uncertainties detailed from time to time in the Company's filings with the Canadian securities administrators (available at www.SEDAR.com ).  Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made.  Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein.  The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. 

SOURCE URACAN RESOURCES LTD.