Strateco Resources: $23M in cash for drilling

Chief Properties

Matoush – An exceptional uranium project on its way to become a world-class uranium mining camp

The Matoush project is located in the Otish Mountains in northern Quebec, about 300 kilometres north of Chibougamau and consists of the Matoush, Matoush Extension, Eclat and Pacific Bay – Matoush properties. The Matoush project presently covers 590 claims for a total area of 31,197 hectares. The property is accessible by air and in winter by the Eastmain winter road, which runs about seven kilometres west of the property. The province of Quebec is considered to be among the most favourable region in the world for mining development.

On April 14, 2008, Strateco announced that it had received permission to begin the process of obtaining the authorizations required to proceed with underground exploration planned for mid-2009.
As part of a feasibility study, this work will essentially consist of site preparation, excavation of an access ramp to the -300 metre level and the excavation of exploration drifts for definition drilling. Excavation will take place in waste rock and ore. The exploration work will also allow assessment of the quantity and processing of mine water, ventilation, mining methods and ore stockpiling.
Strateco will become the first Quebec Company to advance a uranium exploration project to the underground exploration stage and the first so-called junior company to do so in the present uranium cycle, or in nearly 25 years.
On July 15, 2008, Strateco has presented for guideline a Preliminary Project Description to the Nuclear Fuel Cycle and Facilities Regulation, the Canadian Environment Assessment Agency and to the Ministère du Développement Durable, de l’Environnement et des Parcs du Québec. The Preliminary Project Description for the underground exploration program includes: Project components, Metallurgy and mine water, Health and Safety program and 15 different appendices on environmental assessment study, water treatment plant, Metallurgical test works, project schedule, etc.
The final Project Description document will be filled on SEDAR as soon as available.

Project highlights

• A new NI 43-101 resource estimate completed at the beginning of August 2008 showed a 300% increase of the Mineral Resources in 10 months. Indicated mineral resources are estimated to total 250,000 tonnes grading 0.68% U3O8 containing 3.73 million pounds U3O8. Inferred mineral resources are estimated to total 1.3 million tonnes grading 0.44% U3O8 containing 13.07 million pounds U3O8. The Mineral Resources are contained within three zones: AM-15, MT-22 and MT-34.
• The new NI 43-101 Mineral Resource estimate will be used as base for the ongoing scoping study report. The report should be completed at the end of September 2008 and will provide first economics of the project.
• An underground exploration program is scheduled to start mid-2009. Strateco will be the first uranium company in Quebec to do so.
• Between January 9 and June 30, 2008, 63 holes were drilled on the Matoush property for a total of 33,794 metres.

Apple property – Uranium (James Bay, QC)

The property is located 80 km southeast of Radisson in the James Bay region. The property is accessible by a 40 km winter road from km 510 on the paved James Bay road.
In summer, the property can be accessed by boat from the Trans-Taïga road. The Apple property consists of 88 claims covering 4,446 hectares.

Project highlights

• The project covers a portion of the Apple Formation, which came to light in the early 1970s with the discovery of several extensive uranium-pyrite matrix, quartz pebble conglomerate zones.
• The non-43-101-compliant estimate, done by Canico in the 1970s, yielded 9,365,000 tons grading 0.054% U3O8 or 1.08 lb/ton for a total of 10.1 million pounds (GM 57894).
• Strateco conducted a helicopter-borne radiometry survey over the entire project in the fall of 2007. Various radiometric anomalies were outlined.
• From February to April 2008, Strateco drilled 13 holes totalling 3,357 metres on the property. A team of geologists and technicians went back beginning of June 2008 to start prospection and an exploration program in order to expand the known resources on the property.
• A NI 43-101 technical report produced by Scott Wilson RPA in June 2008 is now available on SEDAR. “Scott Wilson RPA is of the opinion that Strateco’s Apple Property hosts a significant uranium target with excellent potential to confirm and increase the resource base.”

Management

• Guy Hébert, Geo, MBA – President & CEO
• Jean-Pierre Lachance, Geo – Executive Vice President
• Pierre H. Terreault, P.Eng, MPM – Vice President Operation & Engineering
• Jean-Guy Masse – Director
• Robert Desjardins – Director
• Henri Lanctôt – Director
• Marcel Bergeron – Director

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