A-Cap Resources Limited (ASX:ACB) Exploration Drilling at Serule

Melbourne, July 21, 2008 AEST (ABN Newswire) - Exploration drilling at Serule commenced during June 2008 and initial results are encouraging for the continued growth of A-Cap Resources Limited's (ASX:ACB)("A-Cap") uranium resources within the Letlhakane prospecting licence in North Eastern Botswana.

The Board of A-Cap is especially encouraged by these new results when they are considered alongside the recently released Inferred Resource of 280Mt @ 158ppm containing 98M lbs of U3O8 (100ppm cut off) and believe they further illustrate the potential for the Letlhakane uranium mineralisation to continue to grow substantially.

HIGHLIGHTS FROM NEWDRILLING AT SERULE (all results as e U3O8 ppm)
SERC00157 6.8m @508 ppm including 0.8m @2095 ppm
SERC00161 5.8m @336 ppm and 2.5m @ 1567 ppmSERC00156 3.4m @581 ppm including 1.5m @1111ppm
SERC00165 4.8m @305 ppm including 0.6m @897 ppm
SERC00121 5.1m @272 ppm and 3.8m @231 ppm
SERC00176 5.2m @213 ppm and 7.0m @252 ppm
SERC00189 5.9m @344 ppm
SERC00122 4.4m @282 ppm
SERC00159 4.3m @276 ppm

Significant intersections of uranium mineralisation have been discovered on a broad exploration grid that is approximately 5km south of the recently published Inferred Resource at Letlhakane. Drilling has been conducted on a 200m by 100m to 400m by 200m spaced grid following up large scale airborne radiometric anomalies and uranium mineralisation exposed at surface.

The Serule Mineralisation was initially discovered by Falconbridge in the 1970's using broad spaced airborne radiometric surveys. Work in the area was then followed up by the Metals and Mining Agency of Japan who collected bulk samples from carnotite (uranium vanadate) bearing Karoo Sediments exposed at surface. These bulk samples grading at 1600ppm U3O8 were subjected to preliminary metallurgical testwork and recorded better than 90% recoveries. In 2007 A-Cap completed over 100 line kilometres of surface radiometric measurements, during this survey an area of exposed uranium mineralisation, covering approximately 2 hectares, was discovered to the east of Serule village.

The confirmation of the Serule mineralisation well outside the current Inferred Resource area supports the possibility of further growth in the resource base as drilling on the Letlhakane Project continues. At this stage less than 20% of the 150 square kilometre surface radiometric anomaly has been tested by drilling. Mineralisation discovered in regional diamond drill holes up to 12km outside the current resource area also indicate the scope for further resource growth.

DETAILS

Geology

Uranium mineralisation so far encountered at Serule is associated with fine-grained sandstones of the Karoo Supergroup. Mineralisation sits within the sandstones and is often closely associated with the basal unconformity between the Karoo Supergroup and the underlying gniess of Proterozoic age. At this early stage of exploration the best results have been achieved towards the western end of the prospect where mineralisation of higher grades and better thicknesses have been discovered. Mineralisation is open to the west.

Future Exploration

Reconnaissance exploration will continue to explore for higher-grade, near-surface oxide targets across the Letlhakane Project. The current program of exploration at Serule is scheduled to continue for the next four weeks. Resource definition drilling at a spacing of 100 X 100m for areas of Gorgon, Mokobaesi and Kraken is planned but is yet to commence. Diamond drilling for the purpose of further metallurgical test work is also planned and should commence in July.

Drilling and Sampling Details

A total of 197 Reverse Circulation drill holes for 7,475m have been drilled so far at Serule. All drillholes were radiometrically logged with an A675 -slimline gamma ray probe. The probe has been calibrated at the Pelindaba Calibration facility in South Africa and calibration certification has been provided by Geotron Systems Pty Ltd, a geophysical consultancy based in South Africa. All results reported in this release are derived from downhole radiometric logging. Consequently issues pertaining to possible disequilibrium and uranium mobility should be taken into account when interpreting them. Mineralised intervals logged by radiometric probe are collected and sent for assay at Set Point Laboratories in Johannesburg.

Scoping Study

The scoping study on the Letlhakane project is reaching its conclusion and results including preliminary metallurgy and financial modelling should be available to the markets within the 3rd quarter 2008.

About A-Cap Resources Limited

A-Cap holds six prospecting licences covering a total area of over 4,400km2 and three licences under application covering a further 3,000km2. All of the ground held by A-Cap has been previously explored by major companies such as Falconbridge, BCL, Urangesellchaft and Union. All of A-Cap’s tenements have significant radiometric anomalies and indications of Uranium mineralisation exposed at surface. Significant discoveries have been made at the Letlhakane Project resulting in an Inferred Resource of 30 Million lb Uranium (at an 80ppm cut-off) that has been defined in accordance with the JORC code.

 

Contact

Andrew Tunks TEL: +61-3-9813-3228 FAX: +61-3-9813-2668