The company announced that its 2008 exploration program for the 50:50 Athabasca joint venture with Uranium One had been approved: the budget is $6.5 million.  The program will largely be comprised of drilling.

The company signed a contract with Bryson Drilling Ltd. for a minimum of 14,000 m of diamond drilling in 2008.  The contract with Bryson also provides Pitchstone with options for additional drilling in 2009 and 2010.

Drilling of 3,080 m in six holes on the Waterfound property was completed with weak radioactivity observed in four of the holes, all in proximity to the unconformity.

The company completed the planned 2007 exploration program on its three optioned properties in Namibia.  The main target on the Dome property is a covered geophysical feature five km long that is very similar in size, shape, geophysical expression and interpreted geology to that at the large Rössing uranium deposit.  A radon survey over the Dome area has outlined several anomalous zones around the margin of the elliptical feature; the next step will be to drill test some of these zones.  The Dome property is located approximately 70 km southwest of Rössing in west central Namibia.

Pitchstone resumed drilling on the Waterfound property in the eastern Athabasca Basin with five holes totaling 2,750 m planned to follow up on uranium mineralization encountered in earlier drilling.  Of the nine holes previously completed, seven intersected anomalous radioactivity in proximity to the unconformity; these holes occur over a strike length of 1,600 m.  The current drilling program will utilize the results of a DC-Resistivity survey completed in late 2006 to help focus drilling within this widespread zone of anomalous radioactivity.

The 2007 Hornby Bay Basin exploration program was completed.  Eleven holes totaling 2,818 m were completed during the program.  Three holes at the north end of the Mountain Lake deposit, the only identified uranium resource in the Hornby Bay Basin, intersected thin zones of weak radioactivity and have effectively delineated the northern margin of the deposit.  Eight holes were completed on two targets on the Dismal Lakes property.  More drilling is required to complete testing of the Dismal Lakes targets; targets at Helmut, Jenny Lake and Kendall River have yet to be drill-tested.

To date, drilling progress on Pitchstone operated projects in the Athabasca Basin has been excellent with a total of 11,764 m completed in 17 holes during the summer program.  Including the February-March program, a total of 13,132 m was completed on the Darby, Candle, Gumboot and Fireweed properties.

The company intersected anomalous uranium in two of three holes completed at Gumboot.  Two holes were also completed at Fireweed in an initial test of conductors on this large property; no significant radioactivity was recorded.

During the month, the company acquired two new properties in the eastern Athabasca Basin through staking.  These properties, named Wolverine (3,632 ha) and Marten (2,768 ha) are located east of the McArthur River mine and southwest of the West Bear deposit.  Pitchstone now has ten properties in the eastern Athabasca Basin - five are 100% owned.

A helicopter-borne magnetic-radiometric survey was completed with 13,352 line km flown covering an area of approximately 170,000 ha of uranium exploration permits in the Franceville Basin, Gabon.  Preliminary data are of excellent quality and provide valuable information on numerous subsurface features.  Ground geophysical and geochemical orientation surveys have also been completed.  Two Transient Audio Magneto-Telluric test lines totaled 75 line km.  A variety of geochemical samples were collected from 50 sites.

The Proterozoic Franceville Basin is geologically analogous to the Hornby Bay and Athabasca basins of Canada.  Deposits in the Oklo-Mounana district of the Franceville Basin have produced in the order of 100 million pounds of U3O8 ranking it as one of the world’s most significant uranium districts.

Motapa’s exploration permits for uranium, gold and manganese cover ~600,000 ha of the Franceville Basin in east-central Gabon.  Cameco and Pitchstone are funding exploration for uranium on Motapa’s permits to earn up to 80% participating interest.  The work is being carried out by Motapa under the technical direction of Cameco and Pitchstone. 

Also this month, the company closed its previously announced non-brokered private placement for gross proceeds of $3,000,000. 

Early in the month, a zone of radioactivity was intersected in drill hole CD-14 on the Candle property.  The hole, collared at -81°, intersected the unconformity at a down hole length of approximately 623 m.  Results were received near the end of the month.  A 3.2 m core length from 647.1 to 650.3 m averaged 0.31% U3O8 including 0.9 m and 0.4 m sections that contained 0.76% U3O8 and 0.72% U3O8 respectively. Many other metallic elements are also anomalous in this enriched zone.  Insufficient information is available to determine a true thickness of mineralization. 

CD-14 is only the third hole drilled on a conductor that extends 2 km across Candle and continues a further 4 km on the contiguous Darby property.  The other holes, CD-02 and CD-08, are 800 m south of CD-14; both of these holes intersected narrow zones of weak mineralization.

CEO Ted Trueman noted that, “deposit discovery in the Athabasca Basin requires a systematic, step by step process of acquiring data and building a model.  The results of CD-14 represent a big step forward in this process on Candle.  The extent of this zone of alteration and metal enrichment is very encouraging."  Considerable additional drilling will be required to follow up on these results

Also, during the month, the company arranged a non-brokered private placement to raise $3,000,000 by the issuance of 1,000,000 units at $3.00 per unit to one institutional placee.  The proceeds of this private placement will be used for exploration on Pitchstone’s uranium property interests and for general working capital.

Results from diamond drill hole CD-08 on the Candle property were received.  A 0.1 m interval, from 627.0 to 627.1 m, averaged 0.06% U3O8 (521 ppm U) plus anomalous arsenic, cobalt, nickel and lead values.  These pathfinder elements are usually elevated proximal to significant mineralization in the region.  The interval straddles a clay-gouge fault zone in basement rocks, 10 m below the Athabasca Group basal unconformity.  Anomalous uranium was also intersected at the unconformity and deeper in the basement.

Hole CD-08 was drilled to follow up on anomalous uranium encountered in hole CD-02 (0.05% U3O8 over 0.5 m).  CD-02 and CD-08 are initial tests of conductor 97G, a prospective zone that has a 2 km strike length on the Candle claim and extends an additional 4 km on the contiguous Darby property.  Pitchstone is encouraged by the results in these holes and will continue to explore the 97G conductor as well as numerous other targets on the property.

Following spring break-up, drilling resumed at Darby-Candle where the joint venture partners plan to complete an additional seven holes in 2007, totaling approximately 4,900 m.  All of the targets on Darby-Candle are along the 55 km of EM conductors on the property.  The large Darby-Candle property is located in proximity to the two highest grade, large uranium deposits in the world, McArthur River and Cigar Lake.

Drilling also began mid-month on the company’s 100% owned Gumboot property in the eastern Athabasca Basin.  Drill holes are located to test a strong, 5 km long electromagnetic conductor.  The holes will also follow up on encouraging results obtained in two drill holes completed in 1989 and 1997 by previous operators.

During the month, an initial program of sampling and prospecting was completed on the company’s Nakop property in Namibia.  The goal of this first phase is to identify areas that are prospective for a sediment hosted uranium deposit.  Exploration is also underway at Pitchstone’s other two Namibian properties, Dome and Kaoko.  The Dome property, which hosts a geophysical feature indicative of a Rössing-type setting, is located approximately 70 km southwest of Rössing, a major source of uranium, in west central Namibia.

Diamond drilling was initiated on the Hornby Bay Basin projects in Nunavut, with the main objective of locating additional deposits in proximity to the Mountain Lake deposit.  The exploration budget for 2007 for the Hornby Bay Basin properties is $2.3 million, mostly for drilling, and will be split 50:50 with joint venture partner Triex Minerals. 

The Mountain Lake deposit, which is owned by the joint venture, contains the only identified uranium resource in the Hornby Bay Basin.  An Inferred Resource of 8.2 million pounds U3O8 with an average grade of 0.23% U3O8 contained in 1.6 million tonnes of rock has been estimated (see NI 43-101 Technical Report on SEDAR).

Drill hole CD-08, completed on the Candle property during March, intersected a zone of clay-altered sandstone above the unconformity.  Weak radioactivity was encountered and samples have been submitted for geochemical analysis.   As a result of this drilling, Pitchstone and Uranium One Inc have now jointly earned a 75% interest in the Candle property.  The remaining 25% interest is held by JCU (Canada) Exploration Company, Limited. 

A 25 line km fixed-loop electromagnetic (EM) survey has been completed on the Lynx Lake property.  Preliminary results indicate that weak conductive responses were recorded at Lynx Lake and also during the recently completed EM survey at Darby.

Assays have been received for hole DB-04, which was completed in December 2006 at Darby.  A 1.15 m interval from 638.6 to 639.75 m, immediately below the unconformity, averaged 55 ppm uranium (partial) with elevated As, V, Cu, Ni, Pb and rare earths.  The highest uranium value in this interval was 114 ppm uranium over 0.4 m. 

A 10,000 m contract for core drilling was signed with Bryson Drilling Ltd.  Pitchstone will provide a new drill which Bryson, after the completion of 10,000 m drilling, may purchase from Pitchstone.  Pitchstone will also hold an exclusive option for Bryson to drill up to an additional 20,000 m on the Athabasca properties in 2008.

Fixed-loop electromagnetic (EM) surveys have been completed on the Fisher (22 km) and Darby (25 km) properties.  Linecutting has also been completed on Lynx Lake in preparation for an EM survey.

Pitchstone has successfully completed its due diligence review with respect to a Letter Agreement signed with Manica Minerals Ltd. to earn an initial 51% interest in Manica’s three uranium projects in Namibia.  Discussions with officials of the Namibian Ministry of Mines and Energy and a site visit to the Nakop area were satisfactorily completed by Pitchstone.  Exploration is currently underway on the Dome (Sandwich Bay) and Nakop uranium projects.  Geophysical interpretations are being conducted on both areas and a prospecting, sampling and geological mapping field program was initiated at Nakop. 

A 6,000 m contract for core drilling was signed with Boart Longyear.  Drilling began late in the month on the Darby-Candle property and is expected to continue through February and March.

Pitchstone signed a Letter Agreement with private company Manica Minerals Ltd. (Manica) to explore Manica’s three uranium exploration properties in Namibia.  Terms of the Letter Agreement provide Pitchstone with the option to earn a 51% interest in the properties by incurring exploration expenditures of C$900,000 by November 9, 2008 and making cash payments totaling $75,000 within two years.  Upon earning a 51% interest, Pitchstone will have options to acquire an additional 20% interest by expending a further C$1,400,000 within four years of the date of the Letter Agreement, and an additional 9% by completing a positive feasibility study.  Pitchstone can earn a total 80% interest in the properties and also has the right to enter into an agreement with a third party at any time.  The Letter Agreement is subject to the satisfactory completion of due diligence by Pitchstone by March 31, 2007.

Pitchstone and JV partner Uranium One Inc. have approved a budget of $5 million to drill a total of 13,000 m at Darby-Candle, Waterfound and Moon Lake.  Electromagnetic (EM) surveying is also planned for Darby-Candle and Lynx Lake projects.  In addition, Pitchstone has budgeted $1.2 million for exploration on its 100% owned eastern Athabasca Basin properties in 2007, including 3,000 m of drilling on Gumboot and Fireweed.  Pitchstone and JV partner Triex Minerals Corporation have also outlined their 2007 exploration program for the Hornby Bay Basin, Nunavut and Northwest Territories; a $2.3 million budget has been approved and includes 5,000 m of diamond drilling.