| ||August 17, 2006|
Mesa Drilling Results for Three Holes
| ||Mesa Uranium Corp. ("Mesa") is pleased to report analytical results for three drill holes at the 100% owned Lisbon Valley uranium property in Utah, USA. Mesa is encouraged by these first drill holes as all holes intercepted significant and highly anomalous uranium values over a wide area (275 meters by 520 meters).|
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 throughout Lisbon Valley. Mesa is encouraged by the trend of uranium mineralization in the basal Moss Back sands. Mesa is using existing and current drill data to construct a 3-dimensional model of the Moss Back paleo-depositional environment as a guide to future drilling. The Moss Back member hosted over 85 million pounds of uranium mined in the Lisbon Valley mining district. Drill results are as follows, depths are to the base of mineralization:
Hole Depth Thickness eU3O8 % Formation
L-1 2543.0' 4.4' 0.013 Chinle
L-2 382.0' 3.0' 0.015 Morrison
L-3 374.8' 3.4' 0.014 Morrison
All holes were logged by Jet West Geophysical Services of Farmington, New Mexico to produce a log suite of Gamma, Spontaneous Potential (SP), and Resistivity values. The Gamma portion of the downhole logging tool was calibrated at uranium-industry standard pits located in Grants, New Mexico. In situ uranium grades, expressed as equivalent U3O8 (eU3O8) are calculated using the digital gamma ray values acquired by the down hole logging tool and uranium industry standard techniques for gamma log interpretation. Downhole gamma log interpretation has historically been found to be an accurate representation of in situ grades for uranium mineralization in the Lisbon Valley District. The holes were drilled by Bob Beeman Drilling of Moab, Utah. Sample recovery for lithologic and trace element analysis was good to excellent.
Chemical assays of samples are also being conducted and will be used to determine relative trace element concentrations as a guide to future drilling. Mesa Uranium is encouraged by the relatively thick intercept in a basal Moss Back sand encountered in the drilling. Future drilling will test the lateral extent of this mineralization along trend. The mineralization in the Brushy Basin member occurred in a sandstone unit and may be related to copper mineralization like that found near the Lisbon Valley Fault throughout Lisbon Valley, and currently being mined by Constellation Copper. Future drilling will test this mineralization nearer to the Lisbon Valley Fault as part of holes planned to test the Moss Back.
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.
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 $47.25 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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