Ucore Uranium Options 50% Interest in Lost Pond Property to Monroe Minerals
(Vancouver, BC, September 16, 2008) Ucore Uranium Inc. (TSX-V: UCU) is pleased to report that an option agreement has been reached with Monroe Minerals Inc. (TSX-V: MMX) (“Monroe”), allowing Monroe to earn a 50% interest in the Lost Pond uranium and rare earth elements (“REE”) property, located in western Newfoundland, Canada. The transaction is subject to contract and to regulatory approval.
“We are pleased to welcome Monroe Minerals as our partner at Lost Pond,” said Jim McKenzie, Ucore’s President. “This agreement allows the Lost Pond property to continue to be explored for uranium and rare earth elements, while leveraging our exposure to exploration success. It will also allow our personnel to focus at Bokan.”
Monroe President and CEO Derek Moran commented,“We are pleased to expand our portfolio in Newfoundland with the exciting Lost Pond property. Earlier this year (Ucore news release July 16, 2008) Ucore reported highly encouraging drill intercepts identified as part of its ongoing uranium exploration efforts at Lost Pond. The definition of uranium mineralization and the high grade nature of the REE mineralization, multiple zones, proximity to infrastructure, and the well defined nature of the geophysical anomaly will allow for straight forward evaluation by Monroe, which intends to complete further drilling during 2008.”
Ucore’s exploration work has defined uranium mineralization as a 200 metre wide ‘structural/alteration corridor’ hosting the Cataclastic Zone (up to 0.045% U3O8 over 12.3 m) and parallel higher grade fracture controlled mineralization (up to 0.752% U3O8over 0.5 m). At the U3 area, REE mineralization is closely coincident with a distinctive magnetic high. Three drill holes, spaced at 50 metres apart, intersected similar mineralization with a best intersection of 4.47% (REE oxides + Y2O3) over 5.64 m. The REE include a total of 15 lanthanoid elements plus yttrium. Grades are usually reported as calculated rare earth oxides (REO). Rare earths are used predominantly in the manufacture of permanent magnets, metal alloys, batteries, catalysts, and glass. Growth in demand over the past four years has exceeded 10% per year and growth is expected to remain strong at around 10% over the next few years.
The Lost Pond property comprises 1,083 contiguous claims, spanning a territory in excess of 270 square kilometres near Newfoundland’s west coast. Lost Pond covers the northern portion of the St. Georges Basin, an area that features a documented unconformable contact between the terrestrial sedimentary rocks of the Basin and the localized granites. This configuration is an established characteristic of potential uranium genesis and placement. Situated just 30 kilometres east of Stephenville, Lost Pond is within proximity to the province’s west coast economic centre at Corner Brook and is highly accessible. The Trans Canada Highway and existing power lines run through the property, as well as an extensive network of logging roads and pre-existing access routes. The Lost Pond area features a geological setting permissive for hosting uranium and REE deposits. An extensive radioactive boulder field has been traced to a bedrock source within the project’s claim boundary.
Monroe may earn a 50% interest in the Lost Pond property over four years by spending $2,600,000 on exploration, including a minimum first year commitment of $700,000, and making share payments to Ucore of 3,000,000 Monroe shares, including 500,000 shares on signing.
Upon Monroe fulfilling its earn-in obligations, the parties will form a 50:50 joint venture, with each partner contributing its pro-rata share of future expenditures, or Ucore may elect to convert to a 35% interest, which will be carried through to completion of a pre-feasibility study. If either party dilutes its interest to less than 10% in the joint venture, its interest shall be converted to a royalty of 1.0% or 1.5% of gross sales, depending on underlying royalties, of which 0.5% may be bought-out for $500,000.
Harmen Keyser, P. Geol. is the qualified person responsible for the technical content of this news release in accordance with NI 43-101.
Monroe Minerals is engaged in the assembly of an international portfolio of uranium exploration projects. For more information, please visit www.monroeminerals.com
Ucore Uranium Inc. is a junior exploration company focused on establishing uranium resources through exploration and property acquisition. With more than twenty projects, Ucore’s primary focus is the Bokan Mountain uranium and rare earth element property in southeast Alaska. The Bokan Mountain project contains Alaska’s only prior producing uranium mine. For more information, please visit www.ucoreuranium.com
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 Ucore expects, are forward-looking statements. Although Ucore 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.
For more information, contact
Ms. Dawn McKim
Tel: 604 484 9402