Waseco Resources Inc. - News Release

Uranium Properties - Labrador Trough,
Quebec - Update

Waseco Resources Inc. "WRI" TSX-V
August 8 , 2005 News Release

August 8th, 2005 . Toronto , Canada . WASECO RESOURCES INC. (WRI-V) is pleased to announce that the helicopter supported land gravity survey and GPS positioning has been completed over the 105 square kilometres of prospective uranium properties in the Labrador Trough, Quebec . Readings were taken from some 529 stations covering over 1,100 line kilometres. The airborne high resolution aero-magnetic survey and gamma ray spectrometer survey and gravity observation data over the 5 properties (210 claims) is currently in mobilization.

Each of the properties hosts known uranium occurrences. Prior to the uranium price collapse in 1982, field-work was carried out in the camp by a number of major mining companies, including Hollinger Mines Ltd., Imperial Oil Ltd., Uranerz Exploration, and Eldorado Nuclear.

In a recent qualifying report prepared for Uranium Mining Corporation plc (“UMC”) , Dr. Mousseau Tremblay P. Eng. Ph.D., states: “The conditions that favour uranium and other metals to accumulate into commercially viable deposits are present throughout the Central Labrador Trough. Three mining properties (were) reviewed, all containing potential resources, mostly co-existing uranium, copper, gold and other metals in various minor proportions. The properties belong to two well defined structural and north-north-west orientated sub-parallel geological zones of the Central Labrador Trough. Mining exploration activity by mining companies occurred mostly between 1976 and 1982 when the price of uranium was high. By the end of 1982, the price of uranium had fallen to very low levels. This part of the Trough was abandoned. Today, it knows a new surge of activities as prices for uranium are climbing.”

One of the 12 uranium showings discussed in his Report, the Bravo Lake showing (#181), is described as “disseminated uraniferous mineralization nodules in calcareous dolomites within intense shear zones. The mineralised zone can be traced over a length of 955m at an average width of 4.5m. The uranium minerals are accompanied by chalcopyrite, digenite and malachite, all copper minerals and some gold.

Grab samples reported:

  • 38% Uranium
  • 11.2% Copper
  • 0.04% Zinc
  • 5.0% Lead
  • 0.04% Cobalt

Memo by C. Robert MRN 1988/03/10: Drill sample 0.16% over 1 metre”

Dr. Tremblay’s comments in his Report relating to the Caribou Occurrence (#234) are also noteworthy: “This showing occurs in differentiated granite syenite rock, located within what appears to be a shear zone in the Archean basement. The radioactivity is caused by both uranium and thorium minerals. The pegmatite outcrop is 50m long and 25m wide. A grab sample returned 3% U 3 0 8, another 0.42% and 1.3% U 3 0 8. A channel sample of the pegmatite returned 1.26% U 3 0 8 over 1.8 m. Copper and gold also accompany the uranium. Thorium is relatively abundant (up to 0.08% Th) and barium is present.

It is only 500 meters distant from the flat-lying overlying Labrador Trough unaltered Ferriman Group sedimentary rocks which occupy half of the claim block. These overlying sedimentary rocks have probably not been prospected in detail in the past. Similar rock cover on a neighbour’s block to the north, exhibit important mineralisation containing uranium and copper. The adjacent property contains three showings within a strictly similar geological setting. The three showings are partially or totally disseminated within their host rocks lying relatively flat over the granitic basement. Therefore the cover sedimentary rocks that directly overlie the basement and occupy about half of Block III must be carefully geologised and prospected for uranium and copper-gold and other metals. The possibility of large or larger disseminated uranium-copper-gold is real within Block III…”

Dr. Tremblay’s geological model also warrants mention: “It is possible to envisage that the Central Labrador Trough type of uranium, copper, gold deposit may, and could well be, of the Athabasca Basin type. ( Canada ’s largest uranium deposits occur within the Athabasca Basin .) The latter are evidently hydrothermal in origin, are associated with a major unconformity and contain a curious association with a variety of metals along with the uranium. The hydrothermal solutions came up through a network of fractures and into the sedimentary cover rocks. The Central Labrador Trough mineralised solutions containing uranium, copper and gold appear to have followed a similar process.”

Dr. Tremblay’s report goes on to recommend a thorough program of follow up work on the claim blocks under review.

Waseco President, Richard Williams stated that the compilation and integration of the new data and then the integration with the historical data should generate some first class targets. The program continues to support the possibility of large uranium near surface deposits in sediments which could be amenable to open pit mining methods.

UMC has advanced $200,000 and has an option to contribute a further $800,000 in exploration funding in order to earn a 75% interest in 3 of the 5 claim blocks prior to December 2006. For more information, please visit the Waseco web site at www.wasecoresources.com.


Richard Williams

Contact: Richard William
     tel: (416) 364-3123
     e-mail: Blackwell@tcn.net
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