Bluerock Resources Signs Option Agreement on Tramp Mine Project, Montrose County, Colorado, USAadmin
Bluerock Resources Ltd. announces it has signed an option agreement with Mayan Resources Ltd. (Mayan) to lease the Tramp Mine Project also known as (the Peggie Mine) in Montrose County, Colorado, USA.
The Tramp Mine Project consists of eight claims encompassing the underground Tramp Mine and mine site, with an additional 51 claims staked immediately adjacent to the mine site. The Project is located in the historic Urvan Uranium/Vanadium Mineral Belt, west of Urvan, Montrose County, Colorado. The Tramp Mine is currently permitted for mining operations, and Mayan holds a prospecting permit for 50 exploration drill holes.
The Tramp Mine has been operated in various phases from the 1950′s to the early 1980′s with historic production reported to grade 0.28% to 0.32% U3O8. Vanadium credits averaged 1.5% to 1.7% V2O5. Past production grades in the Urvan Mineral belt have ranged from 0.15 to 0.4% U3O8. Historically, Tramp Mine production has been conducted by small mine operators, with production and exploration focused close to development; therefore there has been no serious effort to block out an ore reserve.
Mineralization is exposed in;
– Underground workings with grab samples (by Company Geologists) returning grades of 1.79%, 0.519% and 0.229% U3O8 respectively;
– Two historic drill intersections located proximal to historic workings with grades of 0.30% U3O8 over five feet (1.5m) and 0.82% U3O8 over 2.5 feet (0.75m). This work was conducted by a previous operator and will need to be verified by the Company.
– In 2006, Mayan drilled 19 RC holes with varying depths of 80 to 150 feet (25-45m), 11 of which are reported to have intersections grading between 0.05% and 0.45% U3O8 (calculated by gamma log). This work was not supervised by a qualified person or third party and the work will have to be verified by the Company.
Historic work on the project has identified three high priority targets for drilling that are proximal to historic workings, have the potential to be drilled off, and if economically feasible, developed quickly. The prospecting permit in place allows the Company to immediately drill within the original eight claims that comprise the Tramp Mine Permit area. The excellent ground conditions and trackless portal access, afford relatively low infrastructure costs associated with the reactivation of mining. The historical data stated herein is considered relevant and reliable, however the Company intends as part of its work program to verify the same using methods and calculations recognized under NI 43-101.
Pending TSX Venture Exchange acceptance the Company will immediately move to execute a drill program, to survey and map the underground workings and to develop a scoping study to prepare the Tramp Mine for renewed production. The Company also intends to design and permit an exploration drilling campaign on the adjacent 51 claims that have been staked over the highly prospective ground to west of the claims. These additional claims cover the west extension of the Morrison Formation host rock of the Tramp Mine. It is postulated that this under-tested ground immediately adjacent to the Tramps Mine could hold similar grades of uranium/vanadium mineralization in paleo-channel structures. Data compilation and geological mapping of these areas will commence in the next few months.
Under the terms of the agreement (which is subject to regulatory approval), the Company can lease the Tramp Mine Project by:
– Issuing to Mayan or its assignees 1,500,000 common shares of the Company upon Exchange approval;
– Paying $184,460 as reimbursement of costs incurred by Mayan to locate, record and acquire the Project;
– Paying $100,540 upon the execution of the agreement;
– Paying $50,000 advanced royalties on the first anniversary of the agreement;
– Paying $100,000 advanced royalties on the second anniversary of the agreement;
– Paying $100,000 advanced royalties on the third anniversary of the agreement if production has not commenced, and a like amount annually thereafter on each anniversary of the agreement until production has commenced;
– A sliding scale royalty of 3-15% for U3O8; and
– A net smelter royalty of 12% on V2O5.
Bluerock President Michael Collins commented: “With three high grade intersections (0.30% to 0.82% U3O8) proximal to the permitted Tramp Mine workings, Bluerock Resources Ltd. sees this as an excellent opportunity to build pounds in the ground that could be cheaply and quickly be produced under a toll milling scenario. The additional 51 claims position this project for a strong resource growth profile. This acquisition represents the latest step in Bluerock’s commitment to grow its stable of conventional uranium projects in the US southwest.”
Paul D. Gray, P.Geo. is the Qualified Person with respect to the Tramp Mine Project and has reviewed and approved this press release.
Bluerock Resources Ltd. is a uranium exploration company focused on discovering tomorrow’s energy today through the acquisition and development of conventional uranium resources.
ON BEHALF OF THE BOARD OF DIRECTORS
Michael Collins, CEO, President and Director
Statements contained in this document that are not historical facts are forward-looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company’s filing with the B.C. Securities Commission.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts: Bluerock Resources Ltd. Cary Martin Manager of Investor Relations (604) 687-2471 (604) 687-2472 (FAX) Email: firstname.lastname@example.org