Ucore Announces Strategic Property Acquisitions
Date: November 20, 2006
Ucore Uranium Inc. (“Ucore” or the “Corporation”) is pleased to announce that, subject to regulatory approval, it has reached agreements to acquire interests in four strategic properties located in Newfoundland.
The Company has entered into an agreement with Landmark Minerals Inc. (LML-TSXV) whereby Ucore has acquired an option to earn a 70% joint venture interest in the Carrol’s Hat property.
Under the agreement between Ucore and Landmark, Ucore can earn an initial 60% of the 100% interest that Landmark had previously agreed to acquire from an underlying vendor by (1) assuming Landmark’s cash and share payments due to the vendor now consisting of $35,000 and 38,235 Ucore common shares in staged payments over three years and (2) spending $500,000 in exploration costs within three years, with a minimum of $100,000 per year. Ucore has the further right to increase its interest from 60% to 70% by funding the next $1 million in exploration costs and paying to Landmark 100,000 common shares of Ucore within two years of earning its 60% interest. Ucore will then own the majority interest under a joint venture with Landmark, with an existing 2.5% NSR in favour of the underlying vendor purchasable by the joint venture for $1 million.
Carrol’s Hat is located in south-central Newfoundland, and is underlain by lower Paleozoic clastic sedimentary rocks intruded by the Ackley granite. Geochemical values ranging from background up to 0.23% U3O8, 2 g/t Au, and 5% Cu in selected samples from narrow quartz stockworks and veinlets have been reported (see Landmark news release October 4, 2006). All of the known mineralization is hosted by the sedimentary rocks and is associated with magnetite veining. A distinctive gravity anomaly of 1.2 milligals flanking the west side of the mineralized veins is covered by hematite-stained granite boulders. The gravity anomaly closely coincides with radiometric and magnetic highs as well as lake sediments carrying anomalous concentrations of copper, uranium, zinc, and several rare earth elements. The exploration target at Carrol’s Hat is an intrusive-hosted, iron-bearing, breccia pipe enriched in copper, gold, and uranium.
Pursuant to the agreement with Landmark, Ucore will also acquire an option to earn a 100% interest in the East River uranium property, located on the Long Range Peninsula in northern Newfoundland. To acquire a 100% interest, Ucore must pay to the underlying vendor a total of $35,000 and 31,845Ucore shares in staged payments before March 7, 2009. The vendor retains a 2.5% NSR purchasable for $1 million.
The East River property covers the highest uranium value in 17,000 lake sediment samples as reported by the Geological Survey of the Newfoundland & Labrador Department of Natural Resources. Preliminary work by Landmark confirmed the anomalous lake sediment values and identified highly anomalous uranium values in radioactive pegmatite dikes.
“Carrol’s Hat is an exciting new addition to our rapidly expanding portfolio of Newfoundland properties,” said Dan Whittaker, President of Ucore. “This is a newly identified coincident gravity-magnetic-radiometric anomaly covered by hematite-stained boulders in an area of no outcrop flanked by uranium, copper, and gold-bearing veins. It has never been drill tested. We will be initiating a ground-based electromagnetic and induced polarization survey over the target area in the new year with an iron oxide-copper-gold model in mind.”
The third property the Company has optioned is the Cormack property in the Deer Lake basin area of western Newfoundland. Subject to regulatory approval, it has reached an agreement to earn a 100% interest in a total of 15 claims in two blocks in the Deer Lake basin, Newfoundland. Under the agreement, Ucore can earn a 100% interest by paying the vendor $3,000 and issuing 5,000 common shares of Ucore to the vendor. The vendor will retain a 2.0% Net Smelter Royalty (“NSR”) and Ucore may purchase 50% of the NSR for $500,000.
The Company has also optioned the Bottom Brook property in western Newfoundland. The property consists of 100 contiguous claims and is adjacent to the Company’s Lost Pond property. Under the terms of the agreement, Freewest Resources has agreed to relinquish its interest in the property for a one time payment of $6,000. To earn a 100% interest in the property, the Company will make option payments totalling $34,000 and issue 46,000 common shares of Ucore over a three year period. The vendors will retain a 2.0% NSR. Ucore will have the right to purchase 50% of the NSR for $500,000.
This news release has been reviewed by Wayne Read, P.Geo., Ucore’s Vice President of Exploration and a Qualified Person in accordance with NI 43-101.
For further information, please contact Mr. Daniel Whittaker, President and Chief Executive Officer of Ucore Uranium Inc. at:
Telephone: (902) 482-5214
Fax: (902) 492-0197
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.
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