TORONTO, ONTARIO — (Marketwire) — 03/20/12 — Macusani Yellowcake Inc. (the “Company” or “Macusani”) (TSX VENTURE: YEL)(FRANKFURT: QG1) is pleased to announce additional assay results from the ongoing drilling program at the Chilcuno Chico anomaly on the Kihitian Property in Puno, Peru. These results continue to extend both the “A” zone and deeper Manto “B” zone. The best result was a 10 m intersection from 240 to 250 m that returned a weighted average of 1679ppm U3O8 (or 3.358lbs/ton) in drill hole PT-CH22-TSE. This intersection included a higher-grade zone of 4.00m that averaged 3448ppm U3O8 (or 6.896lbs/ton).
President and CEO, Peter Hooper, stated: “These results exhibit once more the potential for both open pit and underground mineable mineralization within the Kihitian Property. Our geological model continues to advance and displays a continuous mineralised layer – Manto “B” – that appears to extend towards the neighbouring properties owned by Southern Andes Energy (TSX VENTURE: SUR); the company that we have recently entered into a merger agreement with. The drilling programme on the newest Kihitian target, namely Quebrada Blanca, has already intersected widespread visual uranium mineralization close to surface on holes drilled from platform QB-33. Results from these new holes will be published once the assay results become available.”
Assay results are shown in following table:
(i)Note – intersections do not represent true widths.
These results are from boreholes drilled towards the South, West and South West from the initial holes drilled at Chilcuno Chico target on the Kihitian concession. To date drilling within the Chilcuno Chico target has delineated an area of roughly 700m x 750 m that remains open in all directions as far as “Manto B” is concerned. While the “Manto A” structure shows continuity there is less regularly with respect to its shape and the occurrence of uranium mineralization compared to “Manto B”.
The Company is currently operating three drill rigs on the Kihitian property including a recently mobilized rig on the Quebrada Blanca anomaly 2 km NW of Chilcuno Chico.
Previous assay data, maps and a sample cross section illustrating the A and B mineralized zones are available on the Company–s website at .
Quality Control and Analytical Procedures
Core samples have been crushed and representative samples analysed for Uranium (U) abundance and a suite of 40 elements. The necessary analytical quality control and assurance has been completed by insertion of reference material, duplicate samples and blank material. After crushing, the core is placed in sealed bags and shipped to the CIMM–s preparation laboratories in Juliaca. Following the preparation stage, the sample pulps are sent to CIMM analytical laboratory in Lima where U and a suite of forty other elements are analysed using ICP-MS methodology.
CIMM Peru is an ISO certified assay laboratory. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.
Macusani Yellowcake and Southern Andes Energy Merger
On February 3rd, 2012 Macusani and Southern Andes Energy Inc. (“Southern Andes”) entered into a merger agreement pursuant to which Macusani will acquire all of the outstanding common shares of Southern Andes. The merged company will control approximately 900 km2 of uranium exploration ground in the highly prospective Macusani Plateau uranium district in south-eastern Peru. The contiguous nature of the 2 companies– claims demonstrates the strong, clear strategic rationale for the transaction. Building upon Macusani–s successful exploration efforts at Kihitian, Colibri 2 & 3 and Corachapi, the addition of Southern Andes will allow for a more widespread evaluation of the larger Macusani district, as well as targeted exploration along strike from the current projects.
Shareholders are reminded to vote their proxy FOR the Merger before the respective proxy deadlines:
Macusani Yellowcake: Voting Deadline: Wednesday, March 28, 2012 at 4:30 AM (EST)
For more information and assistance in voting your proxy, Macusani shareholders are urged to contact Nisha Hassan, TMX Equicom at +1-416-815-0700 Ext: 258 or .
Southern Andes Energy: Voting Deadline: Wednesday, March 28, 2012 at 4:30 PM (EST)
For more information and assistance in voting your proxy, Macusani shareholders are urged to contact Leslie Haddow at +416-637-3523 or .
Qualified Person
Mr. Ian Foreman, P.Geo., of Foremost Geological Consulting, an independent consultant to the Company, is a Qualified Person as defined under National Instrument 43-101, and has reviewed the scientific and technical data contained in this release.
About Macusani Yellowcake
Macusani Yellowcake Inc. is a Canadian uranium exploration and development company focussed on the exploration of its properties on the Macusani Plateau in south-eastern Peru. The Company owns a 99.5% interest in concessions which cover over 24,000 hectares (240 km2) and are situated near significant infrastructure. Macusani Yellowcake is listed on the TSX Venture Exchange under the symbol –YEL– and the Frankfurt Exchange under the symbol –QG1–. The Company has 107,775,714 shares outstanding. For more information please visit .
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This news release includes certain forward-looking statements concerning the future performance of Macusani–s business, operations and financial performance and condition, as well as management–s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in the Company–s recent securities filings available at . Actual events or results may differ materially from those projected in the forward-looking statements and Macusani cautions against placing undue reliance thereon. Neither Macusani nor its management assume any obligation to revise or update these forward-looking statements.
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.
Contacts:
Macusani Yellowcake Inc.
Peter Hooper
President and CEO
+1-416-360-3402