Pitchstone Options Dome Uranium Property to Rio Tinto
September 29 2011 - 6:00AM
Marketwired
Pitchstone Exploration Ltd. (TSX VENTURE: PXP) ("Pitchstone")
announces that it has agreed to option its share of the Dome
Property in the Erongo region of Namibia to Rio Tinto Mining and
Exploration Limited (Rio Tinto). Dome is part of a uranium
exploration joint venture between Pitchstone (71%) and private
company Manica Minerals Ltd. (29%) through Manica's wholly-owned
subsidiary Cheetah Minerals Exploration Ltd. The agreement with
Cheetah allows Pitchstone to earn up to 90% of Dome.
Terms of the Agreement
Rio Tinto can earn into Pitchstone's interest in bedrock uranium
at Dome as follows:
-- an initial 49% interest by making exploration expenditures of $5
million,
-- an additional 15% interest (total 64%) by spending an additional $5
million (total $10 million),
-- an additional 11% interest (total 75%) by funding a Bankable Feasibility
Study.
Rio Tinto will not acquire any rights to surficial uranium
deposits or deposits of other commodities. As with all new option
and joint venture arrangements in Namibia, the agreement is subject
to the approval of the Minister of Mines and Energy.
Ted Trueman, Executive Chairman of Pitchstone noted: "Pitchstone
is pleased to have Rio Tinto as an exploration partner on the 1,830
square kilometer Dome property. As the majority shareholder in
Namibia's largest uranium mine (Rossing), Rio Tinto adds extensive
uranium exploration and mining expertise to the project."
Uranium Mineralization at Dome
The Dome property hosts new discoveries of both bedrock uranium
mineralization in leucogranite (see news release October 13, 2010)
and surficial uranium mineralization in calcrete (see news release
March 30, 2011). Uranium in leucogranite is currently mined in the
region at Rio Tinto's Rossing mine and uranium in calcrete is
currently mined at Langer Heinrich. In reviewing the area around
Rossing, Rio Tinto identified multiple high priority targets within
the Dome licenses. The locations of uranium mines and the Dome
property are illustrated on the attached map and on the company's
website (www.pitchstone.net).
About Rio Tinto
Rio Tinto is a leading international mining group headquartered
in the UK, combining Rio Tinto plc, a London and New York Stock
Exchange listed company, and Rio Tinto Limited, which is listed on
the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral
resources. Major products are aluminum, copper, diamonds, thermal
and metallurgical coal, uranium, gold, industrial minerals (borax,
titanium dioxide and salt) and iron ore. Activities span the world
and are strongly represented in Australia and North America with
significant businesses in Asia, Europe, Africa and South
America.
About Pitchstone
Pitchstone is exploring for uranium in three proven districts in
Canada and Namibia. The property portfolio features 12 projects in
the eastern Athabasca Basin, Saskatchewan, four of which are 100%
owned. In addition, there is a joint venture on two projects in
Namibia and several joint venture projects in the Hornby Bay Basin,
Nunavut. Pitchstone benefits from the collaboration of a unique
group of geologists with extensive uranium exploration and
production experience.
To view accompanying map, visit the following link:
http://media3.marketwire.com/docs/PXPproperty.jpg
On behalf of the Board,
Steven J. Blower, President and CEO
This news release may contain assumptions, estimates, and other
forward-looking statements regarding future events. Such
forward-looking statements involve inherent risks and uncertainties
and are subject to factors, many of which are beyond Pitchstone's
control, that may cause actual results or performance to differ
materially from those currently anticipated in such statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Pitchstone Exploration Ltd. Claire Stewart 604 630
5563 Pitchstone Exploration Ltd. Mark T. Brown CFO 604 687 3520
www.pitchstone.net
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