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Ucore Acquires Past Producing Uranium Mine And Extensive Exploration Holdings In Alaska

Date:                February 28, 2007
Symbol:           UCU-TSXV
Ucore Uranium Inc. (“Ucore”) is pleased to announce that, subject to regulatory approval, it has formed a joint venture with Landmark Minerals Inc. (“Landmark”) to acquire, through staking and option agreements with claim holders, a 100% interest in the Bokan Mountain uranium property, located on Prince of Wales Island in southeastern Alaska. Ucore has the right to earn a 75% interest in the joint venture.
Bokan Mountain is Alaska’s only past producing uranium mine. It is located 60 km southwest of Ketchikan, Alaska and 130 kilometres northwest of Prince Rupert, British Columbia.
During the period 1984 to 1987, the US Bureau of Mines conducted an extensive evaluation of uranium and related strategic mineral resources on the Bokan Mountain property.  Their report suggests that the property hosts in situ resources totaling some 11 million pounds of U3O8, 96 million pounds of Nb2O5, 637 million pounds of ZrO2, 240 million pounds of rare earth oxides, 2 million pounds of Ta2O5 and 8 million pounds of BeO, in multiple deposits. Readers are cautioned that the methods of estimating resources used by the Bureau of Mines are not compliant with currently accepted standards. The resource estimates are presented here for disclosure purposes only, are historical in nature, have not been reviewed or verified by a Qualified Person, and therefore should not be relied on.
Uranium mineralization at Bokan Mountain was discovered in 1955 by airborne radiometric surveys. More than 20 uranium-bearing prospects, some with substantial amounts of drill-defined mineralization, are known to exist within the joint venture holdings. All of the prospects are located within, or proximal to, an unusual Jurassic, multi-phase, peralkaline intrusive complex. Two of the most significant are Ross-Adams and I&L.
The Ross-Adams uranium deposit was discovered in 1955 by prospectors Don Ross and Kelly Adams using airborne radiometrics. According to US Bureau of Mines records, a total of 1.3 million pounds of uranium were produced at an average grade of 0.76% U3O8 during three separate production periods between 1957 and 1971 as follows:
Year
Operator
Tons mined
Grade %U3O8
lbs U3O8
produced
1957
Climax Molybdenum
15,000
1.05
315,000
1959-64
Standard Metals
15,000
1.0
300,000
1971
Newmont Exploration
55,600
0.62
687,000
Source: US Bureau of Mines, Open File Report 33-89
 
The cut-off grade has been reported at 0.5% U3O8 Production was terminated each time when sales contracts with the US Atomic Energy Commission were fulfilled. Uranium ore from the Ross-Adams deposit was mined from a steeply dipping pipe-like body with a combination of a small open pit and two underground levels. While the Ross-Adams pipe is known to extend below the lowest production level, it has not yet been explored in detail. The deposit is interpreted by Ucore to remain open at depth.
Another uranium prospect of particular interest to the joint venture is the I&L. Uranium mineralization at the I&L zone is structurally controlled and is hosted in aegerine granite. Historic records show the following table of results from a 1970 drilling program:

 

 
Diamond Drill Hole No.
Length (ft)
Length (m)
lbs/ton U3O8
% U3O8
IL-1
13.5
4.1
10.3
0.52
IL-2
55.0
16.8
7.8
0.39
IL-3
60.0
18.3
13.0
0.65
IL-4
83.0
25.3
13.4
0.67
IL-5
19.5
6.0
1.5
0.08
IL-7
12.0
3.7
6.4
0.32
IL-8
13.5
4.1
2.4
0.12
IL-10
32.5
9.9
7.4
0.37
IL-11
50.0
15.2
3.9
0.20
IL-12
65.5
20.0
2.2
0.11
IL-12
21.0
6.4
6.8
0.34
 
Source: Newmont Exploration Ltd. (1970)
Note: Results are historic in nature and believed reliable but have not been independently validated to date by Ucore. All intercepts are apparent width; insufficient data are available to provide a conclusive determination of true width.
 
Multiple uranium targets with a varied exploration history at Bokan Mountain collectively present an excellent starting point for both exploration and deposit delineation programs by the joint venture. Existing roads, camp facilities, two accessible underground mine haulage levels, a deep-water dock at Kendrick Bay, proximity to supply and transportation centers, a temperate climate, and an extensive collection of pertinent historic exploration data will facilitate an aggressive exploration program and could support early re-activation of mining operations at Bokan Mountain.
 
Systematic exploration of the property will begin with a compilation of historic information – now underway – that will serve to establish and prioritize multiple exploration targets. A high resolution airborne radiometric and magnetic survey is being planned to guide the 2007 exploration program. Previously mined and disturbed areas are being investigated under the Comprehensive Environmental Review, Compensation, and Liability Act of the US Environmental Protection Agency. The joint venture is cooperating with US government authorities as part of the planned exploration process.
 
Under the terms of the joint venture agreement between Ucore and Landmark, Ucore will fund the first US$300,000 of acquisition and exploration costs, by November 20, 2007, to vest its initial 50% interest in the joint venture. Ucore has the right to increase its interest from 50% to 75% by incurring an additional US$1.7 million in property costs and paying to Landmark 50,000 Ucore common shares.
 
As mentioned above, the joint venture has entered into four option agreements to acquire a 100% interest in 350 hectares of unpatented mineral claims from underlying owners now in place, and has a 100% interest in an additional 1,300 hectares of prospective ground acquired by staking. The Landmark-Ucore joint venture has now consolidated the entire prospective area for the first time since the 1960’s. The four separate option agreements with underlying owners provide for the joint venture to acquire a 100% interest in 84 claims in exchange for making total payments of US$850,000 (US$70,000 of which has been paid) over one year from the date of signing formal option agreements. The vendors will retain NSRs ranging from 2% to 4% on their specific claims. The joint venture has the right to purchase between 33% and 100% of the NSRs for cash payments of US$500,000 to US$1,000,000 per vendor.
 
“We would like to thank all the members of the Keller, Erwin, Anderson, and especially Dotson families for their hard work and the trust they have placed in us to advance their respective properties,” said Jim McKenzie, President of Ucore. “They have held their claims for 50 years, and accumulated a large amount of data and knowledge which will be invaluable as we move forward with the next chapter in this property’s exploration and development. This agreement with Landmark to acquire and explore the Bokan Mountain uranium property adds value to our exploration portfolio and further demonstrates our commitment to acquiring quality early to mid-stage uranium projects.”
 
“This is a significant acquisition,” said Harmen Keyser, President of Landmark. “Bokan Mountain represents a high grade past uranium producer with an impressive upside in exploration potential.  A large amount of exploration and mining data are being compiled and integrated by our joint venture exploration staff.  In addition to 20 known uranium exploration targets, we will also be evaluating the potential significance of rare earths and other metals with an aggressive, multi-disciplined program in 2007.  We are happy to be continuing our relationship with Ucore to acquire and explore quality uranium properties.”
 
Additional information on the progress of data evaluation and exploration work at Bokan Mountain will be released when available and confirmed.
 
As part of this acquisition, Ucore and Landmark welcome John McKenney as Project Manager for Bokan Mountain. Mr. McKenney has over 25 years’ experience in mineral exploration, development, and mining. Prior to joining the Ucore-Landmark joint venture at Bokan Mountain, he was the Chief Geologist at the Marlin Project in Guatemala for Glamis Gold Inc., where he was instrumental in the definition of a gold resource of over two million ounces. He is a graduate of California State University, Sacramento and is a Certified Professional Geologist with the American Institute of Professional Geologists. Mr. McKenney is a qualified person in accordance with NI 43-101 and has verified that the technical data presented in this news release are accurately summarized from historic technical and production reports.
 
For further information, please contact Mr. Jim McKenzie, President and Chief Executive Officer of Ucore Uranium Inc. at:
Telephone: (902) 482-5214
Fax: (902) 492-0197
 
This press release includes certain statements that may be deemed “forward-looking statements”.  All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward looking statements.  Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements.  Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.
 
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
 
(Not for dissemination in the United States of America)