Athabasca Uranium Acquires Volhoffer Lake Property Option
VANCOUVER, Sept. 15, 2011 /PRNewswire/ – Athabasca Uranium Inc. (“Athabasca” or
the “Company”) is pleased to announce that it has entered into an
agreement with an arm’s-length vendor by which the Company has the
option to earn a 100% interest in the Volhoffer Lake Project in
The 8,530 hectare Volhoffer Lake Project is comprised of two contiguous
claims on the eastern margin of the uranium-rich Athabasca Basin, the
most productive uranium-producing region in the world. The Project is
approximately 22 kilometers southeast of the McArthur River Mine, the
world’s largest high-grade uranium mine with proven and probable
reserves of 335.5 million pounds U(3)O(8) and an average reserve grade of over 15%.
The Volhoffer Lake Project was most recently explored by International
Uranium Corp., which in 2005 commissioned a GEOTEM Mag/EM survey. The
survey was successful in defining several conductive targets existing
within magnetic lows. The proposed exploration model is that the
deposition of uranium mineralization exists within an alteration zone
often marked by a graphitic horizon which can be highly conductive and
therefore detectable by geophysical techniques. Magnetic lows in the
survey may indicate possible faulting or breaks in the basement rock
through which mineralized fluids may have penetrated and deposited
uranium at the basement or within the overlying sandstone. Together,
the existence of a conductor in association with a magnetic low can
form a compelling exploration target. The Company’s next step is to
fully evaluate the GEOTEM survey with other historical data to refine
exploration targets. If warranted, targets would then be examined by
ground geophysics, prospecting and diamond drilling.
The Company can earn a 100% interest in the Project by paying an initial
$55,000 and issuing 2,500,000 common shares to the Vendor on regulatory
approval, by completing $5,000,000 in qualified exploration work on the
Project within five years, and by making an additional cash payment of
$1,200,000 on or before the fifth anniversary of the Agreement. A 2%
net smelter return royalty has been granted to the Vendor, of which 1%
may be purchased by the Company for $1,200,000. The Agreement is
subject to regulatory approval.
With this acquisition, the Company now controls over 60,800 hectares on
the shallow eastern side of the Athabasca Basin. “Volhoffer Lake is a
strategic acquisition with a host of viable exploration targets. Its
location, proximal to both our Webb River and Keefe Lake Projects,
should lower our exploration costs through economies of scale”
commented Gil Schneider, Athabasca President & CEO.
About Athabasca Uranium
Athabasca Uranium Inc. is a uranium exploration and development company
exploring an aggregate of over 60,800 hectares strategically located in
the uranium-rich Athabasca Basin region of northeast Saskatchewan. The
Company’s stated vision is to explore the region using leading-edge
technology to become a world-class uranium mining company. Additional
information on Athabasca Uranium, its properties and its vision is
available on the Company’s website at www.athabascauranium.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Gil Schneider, President & CEO
Neither the TSX Venture Exchange nor its Regulations Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Athabasca Uranium Inc.