Ucore Uranium Acquires Additional Claims In Newfoundland And Labrador
Date: January 19, 2006
Ucore Uranium Inc. (“Ucore” or the “Corporation”) is pleased to announce it has added by staking 65 claim units adjacent to its Carrol’s Hat property in south-central Newfoundland and entered into two option agreements to acquire a 100% interest in a total of 49 claim units in 8 separate strategically located blocks in Labrador from two vendors.
As a result of ongoing research and data compilation at the Carrol’s Hat property, the Corporation and its joint venture partner Landmark Minerals Inc. (LML:TSXV) have doubled their land position by staking an additional 65 claim units to cover ground considered prospective for the discovery of new uranium, copper, and gold mineralization. The Carrol’s Hat property now consists of 111 claims covering 2,775 hectares in south-central Newfoundland.
The prime exploration target at Carrol’s Hat is an intrusive-hosted, iron-bearing, breccia pipe enriched in copper, gold, and uranium. Work to date has identified metal values up to 0.23% U3O8, 2 g/t Au, and 5% Cu in selected samples of bedrock. Immediately to the west of the mineralized bedrock, a distinctive gravity high 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 in an area of no outcrop. The geological, geochemical, and geophysical setting is consistent with an Iron Oxide-Copper-Gold (IOCG) deposit model.
As announced on November 21, 2006, the Corporation is earning an initial 60% interest in the property by paying $35,000 and issuing 38,235 Ucore shares over three years to an underlying vendor and spending $500,000 in exploration costs within three years. The property is subject to a 2.5% NSR in favour of the underlying vendor. Ucore is initiating a combined magnetic and induced polarization survey to provide additional data in the area of the coincident gravity-radiometric-magnetic-geochemical anomaly prior to drilling.
In addition to expanding its land position at Carrol’s Hat, Ucore has entered into two new option agreements in the highly prospective Central Mineral Belt (CMB) and the area south of Voisey’s Bay in Labrador.
The first option agreement covers a total of 29 claim units in five blocks. One of the blocks is a 10 claim unit group located 8 kilometers east of the Michelin deposit currently held by Aurora Energy Resources. The claims cover a granite intrusive surrounded by anomalous lake sediment uranium values. Three other claim blocks totalling 16 claim units are located in the Otter Lake and Pocketknife Lake area of the CMB. The final block of four claim units is located in the Lake Melville area of the Torngat Mountains. The Corporation will make a one time payment of $7,000 and issue 10,000 common shares of the Corporation to the Vendor to earn a 100% interest in the properties. The Vendor will retain a 2% Net Smelter Return (NSR) on any future mineral production and the Corporation will have the right to purchase 50% of the NSR for a lump sum of $500,000.
The second option agreement covers a total of 20 claim units in three blocks located in the Notakwanon River area approximately 200 kilometers northeast of the CMB and approximately 60 kilometers south of Voisey’s Bay in proximity to the Corporation’s recently staked claims in the same area (see press release dated November 6, 2006). The Corporation will make a one time payment of $1,000 and issue 25,000 common shares of the Corporation to the Vendor to earn a 100% interest in the properties. The Vendor will retain a 2% Net Smelter Return (NSR) on any future mineral production and the Corporation will have the right to purchase 50% of the NSR for a lump sum of $500,000.
The above agreements are subject to regulatory approval.
The Company’s Qualified Person (“QP”) is Wayne Reid, P.Geo. As the QP, he has prepared or reviewed the technical information for this release. Wayne Reid is the Vice President of Exploration for Ucore Uranium Inc.
For further information, please contact Mr. Jim McKenzie, President and Chief Executive Officer of the Corporation 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.
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)