Energy

Macusani Yellowcake Inc. – Exploring Uranium Mineral Properties in South-Eastern Peru

Overview:

Macusani Yellowcake Inc. (CVE:YEL) is a Canadian junior natural resource exploration company with over 24,000 hectares (240 km2) of uranium mineral properties in South-Eastern Peru, on the Macusani Plateau. The Company was formed in 2006 and is based in Toronto, Ontario. It holds interests in various concessions located in the Macusani, Munani, Lagunillas, and Rio Blanco areas of Peru. Exploration activities are primarily focused on four Macusani Plateau projects: Colibri 2 & 3, Corachapi, Kihitian and Colibri 1 & 5.

The Company says any production realized would be expected from large, low-grade, heap leach, near surface deposits. Metallurgical work indicates that more than 90% of the uranium is recoverable using conventional heap leach-IX technology.

Macusani Yellowcake Inc. is also listed on Frankfurt Exchange under the symbol ‘QG1′.

What We Like About Macusani Yellowcake Inc.

• Macusani Yellowcake recently announced a high grade discovery of initial assay results from the first drill hole on its Kihitian property.

Chief Properties:

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*75 ppm cutoff grade

Kihitian Property

Macusani Yellowcake Inc.’s 99.5%-owned Kihitian uranium property on the Macusani Plateau, Peru was acquired as part of the Corachapi concession transaction with RAM Resources Ltd. in June 2009. In late 2009, Macusani initiated a re-sampling program, consisting of numerous channel samples over the exposure of approximately 1,000m of adits excavated by IPEN in the 1980’s

A drilling program commenced in Kihitian property in August of 2010. In September of 2010, Macusani Yellowcake announced a high grade discovery of initial assay results from the first drill hole. Discovery Hole Intersects 12.0 m Grading 0.92% U3O8 (39.4 ft grading 18.3 lbs/ton U3O8) including 3.0 m Grading 3.58% U3O8 (9.8 ft grading 71.6 lbs/ton U3O8) The results represent only the upper 100 metres of the first drill hole in the Chilcuno zone. The total depth of this hole is 200.0 metres. The Company had previously announced that 297 m of existing adits in the Chilcuno zone of the Kihitian property had been channel sampled and returned an average of 0.626% U3O8 (12.52 lbs U3O8 per ton) from 146 samples.

The concession area is situated in the relatively flat Altiplano of the Eastern Cordillera of the Andes Mountain Range. Elevation ranges from 4334m to 4580m above sea level. The nearest towns to the project are Macusani and Corani in the Puno District which is approximately 650km south east of the Peruvian capital city of Lima.

The closest airport to the project area is Juliaca which is approximately 180km from the southern boundary of the concession. The Juliaca airport receives daily flights from Lima and Cusco. The Interoceanic Highway passes 11km to the east of the property. An untarred road, in good condition, connects the project area to the Interoceanic Highway.
Macusani is now planning to conduct more drilling in order to determine the true widths of the mineralized intersections.

Colibri 2&3 property:

The Colibri uranium properties in the Macusani Plateau of Peru are 100% owned by Macusani Yellowcake Inc.. Preliminary Economic Assessment was completed in April 2010 by GBM Minerals Engineering Consultants and solvent extraction tests show recoveries of 98.53% and 84.37%, after only 31 days, with low acid consumption.

In August of 2010, Macusani announced in an updated NI 43-101 report showed resources of 20.55 million pounds of U3O8 based on 8,255m of drilling over 127 diamond drill holes. The report on Colibri concessions indicated 5.41 M lbs Triuranium octoxide (U3O8) at grade of 0.535 lbs/t (indicated resource) and 15.5 M lbs U3O8 at grade of 0.389 lbs/t (inferred resource).

An NI 43-101 report has been completed for the Colibri 2 & 3 concession. The total in ground numbers at 75 ppm cut off are: Indicated Resources of 2,095,658 lbs at a grade of 0.44 lbs per short ton and Inferred Resources of 14,492,321 lbs at a grade of 0.34 lbs per short ton. The details of the identified mineral resources for Colibri 2 & 3 are as follows:

Indicated Mineral Resource:

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Inferred Mineral Resource:

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Current drilling platforms include strike length of 3km, width of 0.5km, average hole depth of 60m and U3O8 grade of 0.4 pound per tonne. Further drilling is planned, as 82% of the available strike has been drilled to date.

Corachapi Property:

Macusani Yellowcake Inc. has 100% ownership in the Corachapi property, located in the Macusani Plateau of Peru. A 43-101 compliant resource report on Corachapi concession indicates 0.32 M lbs U3O8 at grade of 0.283 lbs/t (measured), 4.90 M lbs U3O8 at a grade of 0.404 lbs/t (indicated) and 1.91 M lbs U3O8 at a grade of 0.461 lbs/t (inferred).

Macusani purchased all technical data related to Corachapi from RAM Resources Ltd. (formerly Contact Uranium Ltd.) in June 2009. RAM completed over 10,000 meters of drilling in 193 diamond drill holes on Corachapi which covers the largest radiometric anomaly outlined by IPEN in the 1980s

In September 2009, Macusani announced high grade results including 0.06% of U3O8 over 36 m and 0.05% of U3O8 over 49 m from some of the 87 unassayed drilled holes by RAM.

Further drilling is planned, as 32% of the available strike has been drilled to date. A Preliminary Economic Assessment expected by end of 2010.

Management and Directors

Alan Ferry, Chairman, Director
Alan Ferry has over 25 years of experience in the investment industry following a career as a geologist, mainly in uranium exploration. He has significant experience in mining analysis, mineral economics and corporate finance. His professional memberships include the Toronto Society of Financial Analysts, the Chartered Financial Analysts Institute, the Prospectors and Developers Association and the Canadian Institute of Mining and Metallurgy. In addition, he is a past president of the Mineral Resource Analysts Group of Toronto. Alan sits on the boards of directors of several publicly traded mining and exploration companies, notably as Lead Director of Guyana Goldfields Inc. and Chairman of Avalon Rare Metals Inc.

Peter Hooper, President and Director
A senior mining executive with experience in production, engineering, reorganization and training, contracting, exploration and corporate affairs, Peter has a track record in the mining industry in South Africa, Canada, Australia and Ghana. He has provided consulting engineering to projects in Canada, USA, Cuba, Columbia, Venezuela, Mexico, Chile, South Africa, Zimbabwe, Australia, Kyrgyzstan, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and France.

Peter was the General Superintendent, Mine Manager, of Beaver Lodge Uranium Mine 1978 -1981, a mine that produced 4,000,000 lbs of uranium and belonged to Eldorado Nuclear, a government-owned agency which was later privatized and became Cameco Uranium, currently the largest producer of uranium in the world. During Peter’s tenure the mine was modernized and mechanized. The digital equipment used world-wide to monitor uranium and radiation by-products was designed by the Canadian Government laboratories and tested at the mine during this period. As a consultant, Peter spent two years on a project exploring ways to handle and store the hot radiometric waste produced from Canada’s Candu nuclear reactors.

Laurence Stefan, Director and Managing Director, Peru
Laurence Stefan is the founder of the Colibri Group of Companies in Peru and Managing Director of Minera Colibri. He has conducted metallurgical and mineralogical evaluation of over 200 mining and exploration projects throughout Central and South America, Europe, Africa and Asia and has compiled in excess of 1000 in-house reports: geological, mineralogical, mineral processing, engineering, mining activity, structural set-up, exploration strategies, resource/reserve evaluation and financial modeling.

He has deep operational experience in the fields of exploration, processing, pilot mining, legal evaluation, labor and social interaction in South America over the past twelve years. He has been involved in basic and specialised research in uranium metallurgical, recovery and enrichment programs at various gold-uranium mines along the Witwatersrand Basin in South Africa.

Jean-Pierre Chauvin, Director
Jean-Pierre has over 30 years of experience in the mining and construction industries. From July 2006 to January 2009, Mr. Chauvin has served as Chief Operating Officer of Globestar Mining Corp. and was promoted to President in October 2006. Prior to March 2006, he was President, Chief Executive Officer and a Director of Patricia Mining Corporation, having assumed these positions in 2004. Since 2001, Mr. Chauvin has also acted as President and Senior Consultant of Chauvin Engineering Ltd., based in Oakville, Ontario. This company consults in the mining industry focusing on operational reviews and feasibility studies. Prior to 2001, he has served as a Director of Battle Mountain Canada Ltd., Crown Butte Resources Ltd., the Mining Association of Canada and the Ontario Mining Association. Mr. Chauvin has also served as General Manager of Canadian Operations for Battle Mountain Gold Co. Mr. Chauvin is an engineer holding a B.Sc. in Mining Engineering from Queen’s University.

Nicholas Tintor, Director
Mr. Tintor is President and CEO of Homeland Uranium Inc. He is a geologist with more than 25 years of experience in the mining industry and previously was President of Anaconda Gold. Mr. Tintor has been involved with all aspects of the management of junior mining company, including finance and project acquisition. Subsequently he has been involved in the management and direction of various mining companies.

Dr. Alan Clark, Advisory Board Member
Dr. Alan Clark has been professor at Queens University since 1977. Dr. Clark has been an advisor to Barrick Gold, Rio Tinto, Rio Algom, Inmet Mining and Noranda, amongst others. He has published 145 articles in recognized journals and presented papers at professional conferences around the world.

Dr. David Robertson, Advisory Board Member
David S. Robertson established David S. Robertson and Associates as consulting geologists and mining engineers to, amongst others, Ken Addison, Northgate, Occidental Petroleum, Noranda, Phelps Dodge, Mobil Oil, and Inco. He is currently a board member of Stanrock Uranium, Placer Dome, Ashton Mining, Union Minere (Canada) and Meridian Gold.

Philip Gibbs, Chief Financial Officer
A Chartered Management Accountant with extensive financial management experience in large corporate environments in the manufacturing and retail sectors, both in North America and in Africa. Philip’s multi-disciplinary exposure includes areas of Market Research, Logistics and IT Systems implementations, providing a broad base of business acumen suited to growing businesses.