| ||July 26, 2006|
Mesa Drilling Update, District Developments
| ||Mesa Uranium Corp. ("Mesa") is pleased to report that the first eight drill holes have been completed at the 100% owned Lisbon Valley uranium property in Utah, USA. Assays are pending and will be announced when received. Initial assay results are expected soon.|
This initial phase of drilling was focused on exploration potential adjacent to, and southeast of, the largest mine in the Lisbon Valley Mining District, the Lisbon Mine, with past production of over 22 million pounds of uranium. The south shaft of the Lisbon Mine is within 240 meters of Mesa's property.
All holes drilled to date have penetrated thick, favorable Moss Back sandstones consistent in character and lithology with the Moss Back member of the Chinle Formation. The Moss Back member hosted over 85 million pounds of uranium mined in the Lisbon Valley mining district.
A total of 6,553 meters were completed in the eight drill holes with an average depth of 819 meters. The drilling to date is on wide spacing appropriate to exploration in a highly prospective area with a focus on discovery of new sandstone hosted uranium deposits. These uranium deposits are characteristically high grade and thick enough to be mined with underground bulk mining methods.
The current drill spacing is approximately 200 meters between drill holes, with the drill pattern covering about 100 hectares. Overall, Mesa currently controls 7,000 hectares (27 square miles) of prospective ground in the Lisbon Valley Mining District. Mesa continues to expand its land position in the District. The current campaign of exploration drilling will continue to explore a number of highly prospective targets throughout the remainder of 2006.
International Uranium Corporation (IUC) announced on June 14 the re-opening of their White Mesa mill 40 miles to the south of the Company's project. This is a positive development for Mesa. Much of the historic uranium production was facilitated by the toll milling of ores from a number of mines at several large central processing facilities. The re-opening of a large uranium mill may positively impact the economics of any ore body within the Lisbon Valley Mining District, including one that Mesa may discover. IUC is also re-opening several mines in the Colorado Plateau region, including the Pandora Mine located 2.5 miles north of the Company's project. The Pandora ore will be processed at the White Mesa mill. IUC plans initial annual production of 3.4 million pounds of U3O8 and 5.9 million pounds of vanadium from these mines.
Of the 85 million pounds of uranium produced in the District, 63 million pounds were produced from 15 mines that occur along a mineralized trend that is ½ mile wide and 16 miles long. This mineralized trend is on the southwestern flank of a faulted anticline and is primarily hosted by the Moss Back member of the Triassic Chinle sandstone. During the 1960's, miners and geologists working in the District observed this trend and postulated a genetic relationship between the uranium deposits and the anticline, predicting that more mines should occur on the northeastern side of the faulted anticline in a similar pattern as the southwestern flank.
With this geologic framework in mind, exploration efforts focused on the northeastern side of the anticline in the hopes of discovering what could be the other half of the District. The exploration concept was validated in 1968 when a series of wildcat drill holes intercepted uranium ore on the northeast side of the anticline. Surface development drill holes delineated a massive tabular ore body roughly ½ mile wide by 1 mile long containing 22 million pounds of uranium.
The size and high grade of the deposit justified the sinking of two 2,300 foot shafts and the construction of a 700 ton per day mill which produced yellowcake (uranium oxide). During this period between 1972 and 1988, U3O8 prices averaged $21.00 per pound. The current price is $46.00 per pound. The decline of uranium mining in the late 20th century brought a halt to further exploration until now, when Mesa is participating in the revitalization of the District.
The Lisbon Valley district accounted for over 80% of the uranium mined in the state of Utah and had some of the highest uranium grades in the United States, averaging 0.4 percent uranium. The Company controls a large land position (27 square miles) in the District. The Lisbon Valley Mining District is located in the Colorado Plateau region, 30 miles south of Moab in San Juan County, Utah.
The project area is fully described in a current National Instrument 43-101 compliant report available for examination on www.mesauranium.com and on www.sedar.com. A map illustrating the location of the current drilling is available on Mesa's website on the Lisbon Valley Project maps page at http://www.mesauranium.com/i/maps/2006-07-26_NRM.jpg.
The Lisbon Valley Uranium Project is managed by Gregory French, P. Geo., a Qualified Person as defined by National Instrument 43-101 guidelines. This Press Release has been prepared and revised under the supervision of Gregory French, VP Exploration for Mesa responsible for its projects.
ON BEHALF OF THE BOARD
MESA URANIUM CORP.
(signed) Greg French, Vice President, Exploration
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedar.com
For further information call:
Wayne Marsden, toll free 866-337-1235
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.
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