Solitaire Minerals Corp. Options its Uranium Properties Adjoining Denison's Phoenix High-Grade Uranium Discovery, Athabasca Basi
November 17 2010 - 8:00AM
Marketwired
Solitaire Minerals Corp. (TSX VENTURE: SLT) (Solitaire) reports
that it has entered into an agreement with Terra Ventures Inc. (TSX
VENTURE: TAS) ("Terra") pursuant to which Solitaire has granted
Terra an option to acquire up to a 95% interest in its C-4, C-5 and
C-6 Properties in the Athabasca Basin of Northern Saskatchewan,
subject to regulatory approval. Upon regulatory approval, Terra
must pay Solitaire $100,000 and issue to Solitaire 100,000 shares.
In order to acquire an initial 55% interest, on or before
December 31, 2011 Terra must pay Solitaire an additional $100,000,
issue an additional 50,000 shares and incur at least $1,000,000 in
exploration expenditures on the Properties. Upon the exercise of
this initial option, Terra will have the right to increase its
interest to 75% on or before December 31, 2012 by paying an
additional $150,000, issuing an additional 50,000 shares and
incurring an additional $1,000,000 in expenditures. For a period of
five years after the exercise of this second option, Terra may
increase its interest to 95% by paying Solitaire $5,000,000,
whereupon Solitaire's remaining 5% interest will be converted into
a production carried interest.
Terra currently holds a 2% Net Smelter Returns Royalty on the
Properties.
The three Properties (designated C-4, C-5 and C-6) cover an
aggregate area of 4,011 acres (1,624 hectares) in the southeastern
part of the Athabasca Basin. The dispositions adjoin the northwest
side of the Wheeler River property of Denison Mines Corp. (60%),
Cameco Corp. (30%) and JCU (Canada) Exploration Co. (10%)
containing the "Phoenix discovery". The C-6 Property lies
approximately one kilometer north of the Phoenix A & B zones.
The Property lies midway between the producing McArthur River mine
and the former producing Key Lake mine.
Denison Mines Corp. (TSX: DML) (press release dated November 9,
2010) has reported an indicated resource of 35,638,000 pounds of
uranium (U3O8) grading 17.99% U3O8 in the Phoenix A Zone and an
inferred resource of 3,811,000 pounds of U3O8 grading 7.27% in the
Phoenix B zone. The McArthur River Uranium Mine owned by Cameco
Corporation (70%) and AREVA Resources Canada (30%) is mining an
orebody with estimated proven and probable reserves of
approximately 334 million pounds of U3O8 grading 19.53 % U3O8, a
measured and indicated resource of 30 million pounds of U3O8, an
inferred resource of 159 million pounds of U3O8 and past production
of 171.2 million pounds of U3O8 (Cameco 2009 Annual Report). This
uranium deposit (approximate size of 700 million pounds of U3O8) is
the world's largest high-grade uranium mine.
The three Properties lie on a structural corridor located along
a belt of Aphebian metasediments in the sub-Athabasca basement.
Previous airborne EM surveys have defined conductors on the C-4 and
C-5 blocks. Previous drilling in the area has resulted in the
recognition of a broad zone of clay alteration of the type that is
always associated with unconformity-type uranium mineralization in
the Athabasca Basin. There is also evidence from prior drilling
that a quartzite ridge in the basement, similar to that which
appears to be at least partially responsible for localizing the
giant McArthur River orebody and the Phoenix zones, is present on
the C-5 block.
A program of boulder sampling carried out (by a previous
operator) in 2009 confirmed the widespread clay alteration in the
property area. Illite is the dominant clay mineral, with local "hot
spots" of kaolinite and dravite. Geochemical analysis of boulder
samples also indicated extensive anomalies in uranium and
pathfinder elements.
Terra plans a program of ground geophysics (IP, resistivity and
seismic surveys) on the properties during the coming winter
followed by an aggressive diamond drilling program. Basement depths
are expected to be between 350 and 450 metres.
James Hutton, Chairman of Terra said,"Terra is pleased to be
acquiring and operating new, high quality uranium exploration
assets where we can be the major partner. New acquisitions will
complement our carried interest in Hathor's Midwest Northeast
uranium deposit."
Exploration costs on the Wheeler River property are expected to
be lower than is common in the Athabasca Basin because all three
dispositions lie within one kilometre of existing roads.
Technical information in this news release has been prepared
and/or revised by Mike Magrum, P.Eng., Director and Qualified
Person as defined in NI 43-101 for Terra.
About Solitaire Minerals Corp.
Solitaire Minerals Corp. (TSX VENTURE: SLT) is a diversified
Junior Canadian Mineral Exploration Company with a specific focus
on precious and base metal properties in North America. In
addition, the Company intends to acquire Metallurgical coal
leases.
For additional information please contact Solitaire Minerals
Corp. or visit www.solitaireminerals.com.
On Behalf of the Board of Directors
SOLITAIRE MINERALS CORP.
Charles Desjardins, President and Director
Cautionary note:
This report contains forward looking statements. Resource
estimates, unless specifically noted, are considered speculative.
Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. By their nature, forward
looking statements involve risk and uncertainties because they
relate to events and depend on factors that will or may occur in
the future. Actual results may vary depending upon exploration
activities, industry production, commodity demand and pricing,
currency exchange rates, and, but not limited to, general economic
factors. Cautionary Note to US investors: The U.S. Securities and
Exchange Commission specifically prohibits the use of certain
terms, such as "reserves" unless such figures are based upon actual
production or formation tests and can be shown to be economically
and legally producible under existing economic and operating
conditions.
Neither the 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: Solitaire Minerals Corp. Charles Desjardins President
and Director 604-683-5445 604-687-9631 (FAX)
info@solitaireminerals.com www.solitaireminerals.com
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