Western Uranium Corporation Enters Into Agreement With AuEx Ventures for New Iron Oxide Copper Gold District in Spain
October 14 2009 - 7:30AM
Marketwired
Western Uranium Corporation (TSX VENTURE: WUC) ("Western" or "the
Company") is pleased to announce the Company has entered into an
Option Agreement with AuEx Ventures, Inc. (XAU) to earn a 70%
interest in the Baza property in south east Spain. Western believes
after review of the data and site visit that this project offers
exceptional potential for discovery of one or more significant gold
and copper deposits as the area exhibits characteristics associated
with Iron Oxide Copper Gold (IOCG) deposits. The most advanced
prospect area, Cerro del Gallo has yielded gold and coppers values
in rock samples ranging from 1.53 g/t Au and 0.33% Cu over 1.2
meters to 6.8 g/t Au, and 1.86% Cu over 3.4 m from mineralized
structures and prospects along a 2 km strike length. Individual
rock chip samples have returned gold values up to 20.0 g/t and
copper values up to 10%. The Company believes this property
represents a rare and unique opportunity to explore a property with
widespread indications of hosting a large mineralized system that
has not been subject to modern exploration methods (Refer to
attached map).
The expansion of exploration into gold and copper provides
important diversification into the rapidly rising gold market and
as the economic recovery continues, into the base metal arena.
Management believes both commodities have potential to provide
nearer term value to shareholders and spreads the risk from
focusing solely on one commodity. In addition, WUC is very pleased
to have AuEx as a partner. AuEx has a successful track record of
acquiring properties of merit and has a management and technical
team that WUC management has known for a number of years.
The project is in a region that was historically mined for iron
with the last iron mine closing in 1992 but there are no records of
copper and gold being exploited. Significant quantities of gold and
copper are found in many samples taken from various small mine
workings and dumps scattered over the entire 25 kilometer length of
the project area, suggesting that both commodities were not
recovered during any of the historic periods of small scale mining
activity. Currently two areas have been identified that with some
additional field work will be drill ready by first quarter of 2010.
Due to the large size of the property and the number of areas that
have significant amounts of mineralization at surface, drilling
programs will be conducted in several phases. The first phase of
drilling will be focused on testing the near surface gold/copper
target at Cerro del Gallo. A ground magnetic survey is currently
underway over this location which will supplement the geochemistry
and geologic mapping to assist in defining drill targets. A larger
airborne survey designed to cover the entire project area is in the
planning stages and will be initiated in the near term.
WUC has the right to carry EuEx (a wholly owned subsidiary of
AuEx) through bankable feasibility on any given exploration permit
to earn up to 70% of the project and by paying an aggregate of
US$400,000 to AuEx of which US$100,000 has been paid. To maintain
the option US$100,000 must be paid on the first, second, and third
anniversaries of the Agreement to AuEx and minimum annual
expenditures must be incurred at the rate of:
EUR$500,000 on or before the first anniversary;
EUR$600,000 on or before the second anniversary;
EUR$1,000,000 on or before the third anniversary;
EUR$500,000 in each subsequent year until such time as a
bankable feasibility study is obtained in respect of a particular
Permit;
If WUC spends at least EUR$3,000,000 on any given Exploration
Permit or Application, it is entitled to a 5% NSR which reduces to
a 1% NSR after EUR$6,000,000 in payments.
The Company is very excited about the potential of the project
and believes the terms to acquire a 70 % interest are reasonable.
WUC believes this is a great opportunity to have acquired a
property that exhibits this level of potential at such an early
stage with minimal exploration undertaken to date.
Elsewhere the Company is currently drilling several core holes
to test a newly defined area, JJ, for uranium mineralization at the
Kings Valley Property, Nevada. This is an area that lies
approximately 3 km to the east-southeast of the known Moonlight
Zone. Surface sampling in soils and rocks along with a radon
track-etch survey has revealed anomalous levels of radioactivity.
Three to four holes are planned as a first pass test to gather
geologic information and determine the controls on potential
mineralizing sources.
All assay results have been received for the drilling on the
Albisu gold target at the north end of the Kings Valley project. As
with the other reported results, the outstanding intervals returned
scattered, low grade (0.10 - 0.50 g/t) of gold mineralization along
with elevated levels of pathfinder elements such as mercury and
arsenic. The most significant zone intercepted was in ALB-014,
119.0 m - 120.5 m of 2.87 g/t gold. Due to the amounts of gold,
albeit low grade and scattered, the Company believes this area
warrants further examination and is currently evaluating the next
course of exploration which may include seeking a joint venture
partner for this area.
About the Company
Western Uranium Corporation is a mineral exploration company.
The Company has exploration properties in Nevada, New Mexico and in
the Thelon Basin, Nunavut. The Company has its head office in
Vancouver, Canada; its executive management team is based in Reno,
Nevada.
The contents of this press release were reviewed by Ms. Pamela
Klessig for WUC. Ms. Klessig has sufficient experience to review
this release and is a Qualified Person as defined by NI 43-101.
To view the map associated with this press release, please click
on the following link:
http://media3.marketwire.com/docs/wuc1013.jpg
On behalf of the Board of Western Uranium Corporation
Pamela J. Klessig, President & CEO
The TSX Venture Exchange has neither approved or disapproved of
the contents of this press release. Neither the TSX Venture
Exchange nor its Regulation Services Provider (as such term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Contacts: Western Uranium Corporation Pamela Klessig Chief
Executive Officer 775-827-3311 info@westernuranium.com
www.westernuraniumcorp.com
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