Airborne Radiometric Survey Starts In Central Mineral Belt
Universal Uranium Ltd. (TSX Venture: UUL) – is pleased to announce that Fugro Airborne Surveys of Toronto, ON, have begun the approximately 10,000 line km helicopter borne radiometric and magnetic survey of the Central Mineral Belt (CMB) and Seal Lake areas of Labrador. The surveys are based out of Postville on the coast and a camp on Seal Lake for the interior. The 4,963 claims, totaling approximately 124,000 hectares or 1240 sq km, are the second largest claim holdings in the CMB and are being explored jointly under an agreement with Silver Spruce Resources Inc. (SSE). Under the terms of the agreement, Universal can earn a 60-per-cent interest in the properties by spending $2-million on exploration over a three year period. Silver Spruce is the operator during the earn-in period. The government of Newfoundland and Labrador, through its Junior Exploration Assistance Program, has provided a total of $150,000 towards the cost of the survey. This assistance is gratefully acknowledged.
As a result of the exploration results and the rise in price of uranium, the CMB has seen extensive claim staking and exploration over the past few years making it the second most active area for uranium exploration in Canada. Targets are: unconformity type uranium deposits related to sedimentary contacts; IOCG type deposits, shear hosted uranium mineralization associated with felsic volcanism, similar to the Michelin deposit of Aurora Energy, and granite hosted deposits.
The properties lie along strike, and in proximity to, properties held by Aurora Energy Inc., Crosshair Exploration and Mining Corp. and the Santoy – Monster Copper JV. These companies staked known uranium showings and deposits, and then carried out airborne radiometric / magnetic surveys, which resulted in the location of new uranium showings in a number of areas (company press releases – November 05 to January 06). Compilation work by SSE has shown that the properties cover anomalous government uranium in lake sediment values ranging from 10 to 213 ppm against a background of approximately 5 ppm underlain by units that are favorable as hosts for uranium mineralization, such as the Bruce River formation, Sylvia River formation, fluorite bearing granites and Aillik Gneiss. Previous radiometric surveys which were widely spaced (422 m minimum flight line spacing), carried out by, or on behalf of, Brinex in the 1960’s and 1970’s, also show radiometric anomalies, with little follow up documented, in the northeastern claim block.
The exploration budget for regional exploration, consisting of data compilation, the airborne radiometric / magnetic survey followed by prospecting, and sampling to evaluate targets, is approximately $1 M. Follow up will consist of gridding, trenching and drilling with a budget dependent upon results. Field work will begin once targets have been generated by the survey, expected by late July.
This release has been approved by Peter Dimmell, P.Geo., a Qualified Person (QP) as defined in National Instrument 43-101.
Universal Uranium Ltd. is a publicly held Canadian uranium exploration company focused on acquiring, exploring and developing uranium properties located in favorable geo-political climates. The Company is led by an experienced and highly skilled board and management team with significant successes in managing early stage mineral exploration companies.
ON BEHALF OF THE BOARD:
(signed) “Clive H. Massey”, President
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. In addition, this release is not for distribution to U.S. newswire services or for dissemination in the United
For further information
Bill Galine, Investor Relations, (604) 662-3903, firstname.lastname@example.org Renmark Financial Communications Inc.: Christina Lalli, email@example.com Jason Roy, firstname.lastname@example.org
(514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com
Source: UNIVERSAL URANIUM LTD.