The company finalized plans for the next phase of exploration in Namibia and the Athabasca Basin, Saskatchewan. Bryson Drilling began preparing the winter access road to the Gumboot and Johnston Lake properties in the Athabasca Basin. Pitchstone will complete approximately 4,500 meters of core drilling to test three targetes on each of these properties during the perioud January to March, 2011. Drilling will target uranium at the altered and mineralized portions of the 5 kilometer long conductor system at Gumboot and the 10 kilometer long conductor system at Johnston Lake.

Drilling at the Dome property in Namibia will begin in early February and will focus on extending calcrete hosted uranium and vanadium mineralization at the Marble Ridge zone which is open in several directions.

During the month, the company closed a non-brokered private placement of 3,260,000 "flow-through" common shares at $0.50 per share to raise gross proceeds of $1,630,000.

Planning is currently underway for 2011 drilling programs on the Gumboot, Johnston Lake and Wolverine properties in the Athabasca Basin to follow up on previously intersected uranium mineralization and alteration on all three projects. In addition, ground geophysical surveys are planned for the Candle property and also for the northeast portion of the Darby property, 9 kilometers west of the Cigar Lake mine.

Plans are also being made for further work in Namibia in 2011. The company will continue to focus on the Dome property, located in proximity to the Rössing and Langer Heinrich uranium mines in the area known as the Erongo region. A program of reverse circulation drilling is planned at Dome early in 2011 to follow up on encouraging uranium drilling results obtained earlier in the year.

Encouraging analytical results from the August drilling program on the Dome property in the Erongo region of Namibia were received. These results confirm that the elevated radioactivity is due to a horizontal layer of uranium mineralization in calcrete within 15 meters of surface. The layer is continuous over an area measuring at least 400 meters x 200 meters and is open in several directions. Results include 365 ppm U₃O₈ and 205 ppm V₂O₅over 1 meter in drill hole DN10-56, including 699 ppm U₃O₈ and 321 ppm V₂O₅ over 0.5 meter. As the calcrete target drill holes were drilled vertically into a horizontal layer of mineralization, the lengths of the intersections are approximately equal to the true thickness.

Of the thirteen reverse circulation drill holes completed at a six kilometer by two kilometer leucogranite target area, eleven intersected leucogranite. Two of the holes, DN10-67 at the south end of the area and DN10-74 at the north end, intersected particularly thick sections of leucogranite that included sporadic intervals of elevated radioactivity (see September 14, 2010 news release). Geochemical analyses have confirmed that the radioactivity is due to Rössing style uranium mineralization in leucogranite within 80 m of surface. Results include 192 ppm U₃O₈ over 4 meters in drill hole DN10-67, including 274 ppm U₃O₈ over 1 meter. Insufficient information is available to estimate the true thickness of the leucogranite mineralization.

The company is encouraged by the fact that drilling has intersected uranium mineralization with grades that are similar to those found at the major mines and development projects in the Erongo region. Exploration on the Dome property is at an early stage and both the calcrete mineralization and the leucogranite mineralization are open in several directions. Additional drilling to follow up on these results in both areas is planned.

A program of reverse circulation drilling was completed on the Dome property in Namibia during August.  Targets included both calcrete hosted and leucogranite (commonly referred to as alaskite) hosted uranium mineralization, both of which were discovered in outcrop at Dome North in 2009.  A total of 31 drill holes were completed - 18 on calcrete targets and 13 on lecogranite targets.  Six of 10 holes drilled on calcrete targets at the Marble Ridge zone intersected elevated radioactivity in calcrete.  This zone of mineralization is open in several directions and several high priority targets are worthy of follow up drilling.  Geochemical analyses are pending.  Two of the 13 leucogranite drill holes intersected thick sections of leucogranite with sporadic zones of elevated radioactivity up to 10 m thick.  Further drilling is required.  As with the calcrete samples, analytical results are pending.

In the Athabasca Basin, analytical results were received from drilling completed in June on the Wolverine property.  Anomalous radioactivity was observed in one hole (WL-01) associated with faulted hematite and chlorite altered breccia in basement rocks 370 meters below surface and 70 meters below the Athabasca unconformity.  Assay results confirm that the radioactivity is due to uranium.  The highest uranium value is 0.25% U₃O₈ over a 10 centimeter interval within a 2.0 meter interval that averages  0.05% U₃O₈.  Pitchstone is encouraged by this new uranium discovery, particularly due to its association with brecciated and altered basement.  Further drilling will be required to follow up on the results.

A program on diamond drilling was completed on the Gumboot, Johnston Lake and Candle claims in the Athabasca Basin.  One hole drilled on the Johnston Lake property intersected significant alteration at the unconformity and extends a zone of alteration along the MJ-1 conductor.  Further drilling is warranted.

Pitchstone commenced  a summer drilling program on the Gumboot, Johnston Lake and Candle properties, all located within 20 kilometers of the Cigar Lake deposit.  Targets include extensions of the alteration and mineralization previously drilled by Pitchstone at Gumboot.  At Johnston Lake, drilling will test extensions to mineralization and alteration identified by previous operators, including a 1988 drill hole which intersected 0.48% U₃O₈ over 0.25 meter, 10 meters below the unconformity.  Drilling at Johnston Lake will also target a previously untested 2.4 kilometer long conductor.  The program also includes one drill hole on an untested 4 kilometer long portion of the 97H conductor on the Candle property. 

In Namibia, the company followed up on the high definition heli-borne magnetic and radiometric survey completed in June with geological mapping and radon emanometry in preparation for a reverse circulation drilling program planned for August.

The company completed a first phase of drilling on the Wolverine property in the eastern Athabasca Basin, Saskatchewan.  The program consisted of four drill holes totaling 1,409 meters that tested two geophysical target areas.  Anomalous radioactivity up to 10,400 cps (>100x background) was observed in down hole gamma probe data in one of the holes. 

A high definition helicopter airborne magnetic and radiometric  geophysical survey was completed  on the Dome property in Namibia.  This 1,880 line kilometer survey will aid in the mapping of Damaran stratigraphy and leucogranite (commonly referred to as Alaskite) at Dome North, in preparation for a drilling program planned for later in the summer.

At the company’s Annual General Meeting, all resolutions were passed, including the re-election of all of the current directors, along with Steve Blower.  At a board meeting following the AGM, Steve was named President and CEO.  Ted Trueman was named Executive Chairman.

The company received all analytical results from the winter drilling programs in the eastern Athabasca basin.  Significant alteration and/or anomalous radioactivity were observed at the unconformity in all six holes drilled on the company’s 100% owned Gumboot property and in one hole on the adjoining Johnston Lake property that was optioned in early 2009 from Denison Mines Corp.  Six holes were also completed on the Marten property.  Four of these holes intersected basement alteration.  Marten was optioned to Japan Oil, Gas and Metals National Corporation (“JOGMEC”) in 2009.  

Analytical results for samples collected during the March 2010 exploration program on the Dome property, Namibia were also received.  The program consisted of geological mapping and sampling designed to follow up on the results of December 2009 exploration that identified a new occurrence of radioactive leucogranite (commonly referred to as alaskite) in outcrop.

A total of 54 samples of leucogranite were collected, thirty four of which are 15 cm long core samples obtained with a portable hand drill.  The others are grab samples.  Nine samples, five of which were core samples, contain greater than 200 ppm U (0.024% U₃O₈).  The highest uranium value was 5,140 ppm U (0.61% U₃O₈) from a grab sample containing visible yellow uranium oxide mineralization; the highest core sample contained 352 ppm U (0.042% U₃O₈).

The analytical results are being compiled with other data to identify targets for a reverse circulation drill program later in the year, following a planned high definition airborne magnetic and radiometric geophysical survey.  The drill program will also test uranium mineralization in calcrete hosted targets generated by ground electromagnetic surveying and drilling late last year.

The company has completed a geological mapping and sampling program to follow up on the results of December 2009 exploration on the Dome North property, Namibia, that identified an occurrence of radioactive leucogranite in outcrop.

Detailed geological mapping of a synclinal structure has outlined leucogranite outcrop or subcrop totaling about 50 hectares in three distinct areas; the North Hinge, South Hinge and Ridge zones.  To date, significant radioactivity has been identified at the North Hinge and South Hinge zones.  The uranium content of some radioactive portions of leucogranite is being estimated with a ground spectrometer survey and rock samples.  Analytical results are pending.

Results of this program will be compiled with other data layers to identify targets for drill testing later in the year.  That drill program will also test uranium mineralization in calcrete hosted targets generated by ground electromagnetic surveying and drilling late last year.

The company completed its winter exploration program in the Athabasca Basin mid-month.  Drilling was completed on the Gumboot and adjoining Johnston Lake properties.  Electromagnetic and gravity surveys and drilling were also completed at Marten and Wolverine, which are under option to JOGMEC.

Six holes, totaling 4,786 m, were drilled at Gumboot.  Significant alteration and/or weakly anomalous radioactivity were observed at the unconformity in all six holes.  The program extended the alteration zone along strike to the north and south.

One 710 m hole was completed on the Johnston Lake property to follow up on the results of a detailed core review and re-sampling program completed in the summer of 2009.  A short interval of intense sandstone alteration immediately above the Athabasca unconformity was intersected.  Oriented core measurements suggest that the primary target at this location is still untested.

A total of 72 km of line cutting was completed on the Marten and Wolverine properties.  This was followed with 72 km of ground gravity surveying on both properties and 18 km of electromagnetic surveying at Marten.   Six drill holes totaling 984 m were then completed at Marten.  No significant radioactivity was observed but anomalous alteration and faulting are present in four of the holes.

A new uranium occurrence was found on the Dome property, Namibia.  Two surface grab samples, collected from an outcrop of coarse-grained, leucocratic granite in the Dome North area, contain 149 and 152 ppm U₃O₈.  Very little exploration has been done in this area and further prospecting and geological mapping are required prior to initiating a drill program.

Also at Dome North, 250 line-kilometers of detailed electromagnetic surveying outlined a large, previously unrecognized area of anomalous conductivity that may reflect buried calcrete paleochannels.  This exploration was following up on calcrete-hosted uranium mineralization intersected in recently completed drill holes.  The mineralization, with grades up to 352 ppm U₃O₈ over 1.0 meter in drill holes, is open along strike.  Surface grab samples in proximity to the drill holes contain up to 0.19% U₃O₈.  Drilling to follow up on previous drill intersections and to test the new conductivity targets is being planned.

Early in the month, core drilling and ground geophysical surveying resumed on the company’s eastern Athabasca Basin properties.  Fourteen drill holes totaling 7,000 meters are planned for the winter season on three different properties; Gumboot, Johnston Lake and Marten.

The first hole of the winter season was collared at Gumboot on January 14.  Seven holes are planned at Gumboot to follow up on significant uranium, nickel and cobalt mineralization intersected in 2009.  One hole will also be drilled on the contiguous Johnston Lake property, optioned in early 2009 from Denison Mines Corp., to follow up on the results of a detailed core review and re-sampling program completed in the summer of 2009. 

Line cutting has been completed and gravity surveying has begun on the Wolverine and Marten properties, which are under option to Japan Oil, Gas and Metals National Corporation (“JOGMEC”).  Ground electromagnetic surveying and 1,200 meters of diamond drilling are also budgeted for the winter program on Marten.