Ultra Uranium (TSX.V:ULU) Acquires Athabasca Uranium Project
Ultra Uranium disappointed investors recently with the announcement of a lower than expected N.I. 43-101 report on its Slovakian Uranium prospect. However, the outlook for Ultra is decidedly improved with the recent announcement of a Joint Venture with International Montoro Resources Inc. (TSX.V-IMT), and Belmont Resources Inc.(TSX.V-BEA).
Under the terms of the deal, Ultra entered into an option agreement to acquire a 65% interest in the Orbit Uranium Project located 10 km west of Uranium City, Saskatchewan. Upon earning a 65% interest in the Orbit Uranium Project, Ultra will then have the right to acquire a 65% interest in the Crackingstone Uranium Project.
To earn a 65% interest in the Orbit Uranium Project, Ultra will pay total of $150,000 cash, issue 175,000 common shares and complete $2 million in exploration expenditures over three years. Exploration expenditures of a minimum $300,000 are to occur in the first year. Upon Ultra earning a 65% interest in the Orbit Uranium Property, a joint venture agreement will be formed between Ultra and the Vendors with the parties contributing to exploration and development in their respective interests. Ultra will be the operator and has a right of first refusal on the Vendors’ remaining 35%.
Upon Ultra earning a 65% interest in the Orbit Uranium Project, it will have the right to acquire a 65% interest in the Vendors’ Crackingstone Uranium Project adjacent to the Orbit Uranium Project. To acquire that interest Ultra will either incur three times the amount of exploration and development expenditures incurred by the Vendors on the Crackingstone Uranium Project within four years or incur a combination of exploration and development expenses and payments in shares and/or cash (at Ultra’s option) to the Vendors for an equivalent amount. Ultra’s right to earn into the Crackingstone Uranium Project is exercisable for a period of one year after the latest date for Ultra to earn its interest in the Orbit Uranium Project.
A zone was tested by 10 diamond drill holes. An inclined shaft was sunk down to the 50 foot level and was drifted for 147 feet along vein. A mineralized shoot graded 0.42% across 1.75 feet for 50 feet on strike.
In addition, zone strikes for 300 feet were identified. Nine channel samples across 26 feet for 300 feet length averaged 0.336% uranium.
Trenching and 5 diamond drill holes tested a 75 foot length of the system with assays up to 0.24% uranium.
The Orbit Uranium Project also features several radiometric anomaly trends that have received no previous exploration for uranium.
During 1940-1960’s period, four uranium mines were producing uranium within 10 to 20 kilometers of the eastern boundary of the Orbit Uranium Project.
Since the completion of the staking of the Orbit Uranium Project by Belmont and Montoro, there has been a significant increase in exploration activity in the northwest area of the Athabasca Basin with announcements by JNR Resources Inc. (TSX.V:JNN) completing an airborne electromagnetic and magnetic geophysical survey on their 10,655 ha. Crackingstone project, and similar programs by CanAlaska Uranium Ltd. (TSX.V:CVV) adjacent to the south boundary of Orbit, and Cameco Corp. (TSX:CCO), the world’s largest uranium producer, holding a block of claims immediately to the west of the Orbit claim block.
Earlier this year, Montoro and Belmont announced the completion of a first phase exploration program on the Crackingstone Uranium Project consisting of 87 km. of line cutting, the establishment of grid lines and the initiation of a geophysical survey along the lines, as well as 4 km. of boundary surveying. The geophysical survey included 87 km of Mag/VLF-EM. This geophysical survey is the first time that a modern geophysical approach has been carried out on the property. Both ground and airborne geophysical surveys have been used extensively in the search for structural features which control uranium mineralization. Interpretation of the survey results is expected shortly.
Historical uranium exploration on the Crackingstone Uranium Project through trenching, surface channeling and grab sampling, with numerous shallow drill holes from a depth of 9 meters to 122 meters resulted in obtaining uranium values from grab samples up to 12.53% U3O8, drill core intersection of up to 15.6% U3O8, (# 7 Adit) and two bulk samples (46 ton and 6.5 ton) assaying 0.5% uranium. A sample (#336915), taken from the # 7 Adit during the 2006 property visit assayed 6.54% Uranium. A NI 43-101 compliant technical report on the Crackingstone Uranium Project is available for viewing on Montoro’s website at www.MontoroResources.com.
With exposure to both Canadian and European Uranium projects, Ultra is now well diversified geographically, which can only be seen as an improvement in the company’s potential.
About the Author
"James West is a newsletter writer who has been active in the management, finance and public relations of public companies in both the resource and technology sectors for over twenty years. His access to the cream of the crop of global resource company management, entrepreneurs, financiers, and other fund managers provides his readers with an unparalleled depth of research that few newsletter writers can match." Jim West can be reached on-line at www.devilsadvocatereport.com
Tell others about
this page:
Comments? Questions? Email Here