VANCOUVER, Sept. 29, 2011 /CNW/ - Tigris Uranium Corp. (TSX.V: TU) ( "the Company") is pleased to announce the acquisition of the Treeline project in Cibola and McKinley counties, New Mexico, in addition to five uranium projects located in the Powder River Basin of Wyoming. The 35-75, Wild Buck and Coal Hill projects are located in Converse County and the Turnercrest project is located in both Converse and Campbell counties, Wyoming. The Wyoming projects have the potential for in situ leach recovery (ISR) of uranium from either rollfront-type sandstone hosted deposits in the Eocene Wasatch Formation or the Paleocene Fort Union Formation.
Treeline Project-New Mexico
The Company has entered into an Assignment Agreement with Western Energy Development Corp., a subsidiary of Concordia Resource Corp. (TSX.V:CCN) whereby the Company will acquire the Treeline project, which includes a sandstone hosted uranium deposit, located in McKinley and Cibola Counties, Grants Uranium District, New Mexico.
An internal Conoco Inc. memorandum from 1978 estimated that there was approximately 1.5 million pounds of U3O8 contained in 593,448 tons at a grade of 0.13% U3O8 at Treeline. The mineralization, as defined by Conoco, is not National Instrument 43-101 compliant and the resource categories used by Conoco in its historical estimate would not match the resource categories and definition of mineral resource contained in NI 43-101 and therefore, while relevant, the resource estimate made by Conoco should not be relied upon. Additional drilling work will need to be done to confirm the presence of the mineralization, and there is no assurance that the historical estimate can be confirmed. The key assumptions, parameters and methods used by Conoco to prepare the historical estimate are not available. To verify the historical estimate the Company will need to conduct additional work, including reviewing the logs and where required conducting additional drilling. The Company's QP has not done sufficient work to classify the historical estimate as a current mineral resource, and the Company is not treating the historical estimate as a current mineral resource.
The Treeline project consists of a mining lease and certain unpatented mining claims covering approximately 2,000 acres. In consideration for the assignment of the Treeline project, the Company will issue 200,000 common shares. The Assignment Agreement is subject to several conditions precedent, including regulatory approval.
35-75, Wild Buck, Turnercrest and Coal Hill Projects, Wyoming
The Company has also entered into a Purchase and Sale Agreement with Energy Fuels Inc. with respect to the 35-75, Wildbuck and Turnercrest projects, which provides for the acquisition of the royalty deeds, mining leases, unpatented claims and related data in exchange for cash payments totalling $411,322.
The 35-75 project contains approximately 1,170 acres comprising two private mineral leases and 26 unpatented mineral claims. The project hosts uranium bearing sandstones of the Eocene Wasatch Formation, and is adjacent to, and on trend with Cameco's Smith Ranch ISR uranium mine. Based on exploration drilling conducted in the 1960s and 1970s, together with anomalous areas identified by an alpha track radon survey conducted by Magnum, it is estimated the project may host a mineral resource occurring as stacked roll front type. The target of further exploration has a potential of about one million, or more pounds U3O8, at an average grade in the range of 0.1% U3O8. The potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Wild Buck Project
The Wild Buck project contains approximately 370 acres in 18 unpatented mineral claims. Historic drilling in the 1960s and 1970s identified a mineralized roll front in the Eocene Wasatch Formation. Based on the results of the historic exploration drilling it is estimated the project may host a uranium mineral resource occurring as the stacked roll front type. The target of further exploration has a potential of about 600,000 or more pounds U3O8 at an average grade of approximately 0.07% U3O8. The potential for additional resources exists as the roll front is unexplored at both ends. There is also potential for stacked roll fronts deeper in the stratigraphic section. The potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Turnercrest project contains approximately 1,400 acres comprised of a Wyoming State Mineral Lease, a private mineral lease and 25 unpatented mineral claims and lies along trend of the planned Moore Ranch ISR uranium mine, held by Uranium One Inc. Historic near-surface uranium production took place in the vicinity of the project in the 1950s, and Magnum Minerals (a subsidiary of Energy Fuels) conducted a ground scintillometer survey on the project, identifying areas of anomalous radioactivity. Significant untested shallow potential exists for roll front hosted uranium deposits in the Wasatch Formation and possible deeper stacked rolls in the Fort Union Formation.
Coal Hill Project-Wyoming
In addition, the Company has purchased a 100% interest in 28 unpatented lode mining claims located in Converse County, Wyoming for $50,000, subject to a 2% gross proceeds royalty (half of which may be repurchased for $200,000). The Coal Hill Project lies adjacent to the west of the Smith Ranch ISR uranium mine operated by Power Resources, a subsidiary of Cameco Corporation. These claims lie to the north of the 35-75 property described above.
The technical content of this news release has been reviewed and approved by Tigris' Chief Geologist, Douglas Underhill, PhD, MSc, MBA , a Qualified Person as defined by National Instrument 43-101.
The Company also announces that it has agreed to amend 621,250 previously granted incentive stock options. The options were granted at an exercise price of $0.75 per share to certain directors, officers, employees and consultants. The amendment reduces the exercise price to $0.25 per share and will be subject to approval of the TSX Venture Exchange. Amendments to options held by insiders will be additionally subject to disinterested shareholder approval.
About Tigris Uranium Corp.
Tigris Uranium Corp. is committed to maximizing shareholder value and is well positioned with a treasury in excess of $9 million and a low annual expenditure rate. Tigris owns 115,000+ acres (46,400 ha) of private mineral rights, with an indicated resource of 34.4 MM pounds U3O8 (Myers, 2010) in New Mexico's Crownpoint Uranium District, a portion of which is under NRC license, in a new progressive New Mexico regulatory and political environment.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Tigris Uranium Corp's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Tigris Uranium Corp. assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.