| Thu 24 Nov 2005, 9:14 | | Aflease - Encouraging waterfound drilling results |
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Aflease - Encouraging waterfound drilling results
Aflease Gold and Uranium Resources Limited
(Formerly The Afrikander Lease Limited)
(Incorporated in the Republic of South Africa)
AFL (JSE) AFLUY (NASDAQ)
(Registration number 1921/006955/06)
ISIN: ZAE000061461 & Share Code: AFL
("Aflease")
ENCOURAGING WATERFOUND DRILLING RESULTS
Aflease Gold and Uranium Resources is pleased to announce the results of initial
drilling at the Waterfound joint venture in the eastern Athabasca Basin,
Saskatchewan, Canada.
Southern Cross Resources Inc (SXR), which is in the process of acquiring
Aflease, has the option to acquire a 50% interest in the joint venture, and is
in the process of exercising this option through the funding of these drilling
operations.
With the exercise of this option, the property would become an asset of the
enlarged company.
The following announcement was released last night to the Toronto Stock Exchange
by SXR:
Southern Cross Resources (TSX: SXR) today announces that Pitchstone Exploration
Ltd. (TSX-V : PXP), operator of the Waterfound Project, has today reported
encouraging initial results from the first three drill holes. Rock types,
alteration and radioactivity encountered have significantly upgraded the
project. Drill holes were located to provide a preliminary test of a six
kilometer long geophysical anomaly. SXR has the option to earn a 50% interest
in this project which is situated in the eastern Athabasca Basin, Saskatchewan.
Drilling at Waterfound is the first phase of an 8,600 meter program that will
also test targets at the Darby and Candle Projects during this winter.
Excellent Basement Rocks
All three holes completed to date have encountered a thick sequence of graphite-
pyrite-garnet-cordierite pelitic rocks immediately below Athabasca Group
sandstone. Graphite and pyrite are pervasive in the drill core and each locally
exceeds 10% over core intervals of one meter. This lithological sequence is
very similar to that related to the major uranium deposits in the region, such
as Cigar Lake and McArthur River.
Alteration & Radioactivity Encountered
Also encouraging are the fracturing, alteration and radioactivity encountered in
two of the holes. Hole WF02 intersected anomalous radioactivity over a 2.5
meter core interval that straddles the unconformity. Also, an interval where
core was not recovered in the lower Athabasca sandstone in hole WF03 was
indicated to be weakly radioactive using down-hole gamma logging. Variable
alteration in the lower Athabasca sandstone in these two holes, up to 50 meters
above the unconformity, is accompanied by increased fracturing and broken core;
the alteration halo includes chloritization, silicification, bleaching,
hematitization and moderate clay alteration. Two to three meters of the paleo-
weathered profile in basement rocks immediately below the unconformity have been
overprinted with bleaching and hematitization interpreted to be a result of
hydrothermal fluid action.
Expanded Drilling Program
Based on these positive initial results SXR has agreed with the operator to
expand the originally planned 2,000 meters of drilling at Waterfound to
approximately 2,800 meters in 5 holes.
Initial results appear to have all the characteristics of the major eastern
Athabasca uranium deposits. Typically, the Athabasca deposits occur at the
contact of the Athabasca sandstone and the basement rocks - the unconformity.
Fractures and alteration provide open spaces for mineralization. A large halo
of alteration commonly surrounds the deposits. Graphite and pyrite in the
basement rocks aid in the deposition of uranium. Nick Andrade, P.Eng., P.Geo.,
who is managing the Waterfound project for Ted Trueman, is the Qualified Person
for the purposes of N.I. 43-101 with respect to the technical information in
this news release. Mr. Andrade was formerly Chief Geologist at the Cigar Lake
mine.
Mark Wheatley, SXR"s Chairman and CEO said, `These results are encouraging and
it is always pleasing to see drilling results that confirm the potential
identified by preceding geophysical surveys. It was the Darby and Candle
project that originally attracted us to the Pitchstone properties and to now see
the Waterfound project upgraded is a great result"
Forward-looking statements
This announcement contains certain forward-looking statements. These forward-
looking statements are subject to a variety of risks and uncertainties which are
beyond Aflease"s ability to control or predict (including among others
regulatory and shareholder approval), which could cause actual events or results
to differ materially from those anticipated in such forward-looking statements.
In this announcement, predictions about the Transaction being approved and
finalised are forward-looking statements. Readers should not place undue
reliance on forward-looking statements.
Notice to Investors
This announcement does not constitute an offer to sell or an invitation to
purchase or subscribe for any securities. The securities offered by way of
exchange pursuant to the Transaction have not been and will not be registered
under the U.S. Securities Act of 1933, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements
Contacts : Neal Froneman +27 83 628 0226
Carol Smith +27 82 338 2228
John Fraser +27 82 331 7330
Don Falconer +1 416 350 3657
24 November 2005
Date: 24/11/2005 09:14:05 AM Produced by the JSE SENS Department
