February 16, 2005- Toronto ,
Canada . Waseco Resources Inc. (“WRI”-TSX-V) is
pleased to report that it has entered
into an agreement whereby Uranium
Mines of Canada, Plc., incorporated
in the U.K. (“UMC”),
has agreed to pay Waseco $200,000
to acquire an option, as more fully
described below, to earn an interest
in 150 recently acquired claims (the “Property”),
in the Central Mineral Belt of Quebec
Labrador, that are highly prospective
for uranium. Waseco will use most of the
$200,000 option payment to undertake an
equivalent amount of exploration work on
the property.
Upon completion of this program, scheduled
for August 2005, UMC shall have the
option of providing Waseco with an
additional Cdn $800,000 to be expended
on further exploration of the Property
prior to December 31, 2006 . Upon
completion of this second program, the
parties would form a joint venture whereby
Waseco would retain a 25% interest in the
Property and UMC would be assigned a 75%
interest. Waseco will be the operator of
the project during the earn-in phase.
The Property contains two types of
sedimentary occurrences, as follows:
(a). Stratabound uranium in sandstone ;
and
(b). Stratabound uranium in mudstone
and siltstone.
Localised mineralization
has given values as high
as 0.445% U 3O 8 near the contact
with the sediment. These values were obtained
in granitic fractures
but government reports do not indicate
what values were recovered in these stratabound
uranium occurrences.
Drilling in 14 holes over an area approximately
8 kilometres by 4 kilometres
was carried out by Uranerz
in 1980.
The uranium values are
invariably associated with
copper mineralization, as well
as gold and silver. Hence an
interesting similarity to the
famous Olympic Dam uranium
and base metal producer in
Australia . (IOCG polymetallic
mineralization).
Historical sampling, as outlined in
reports obtained from
the Quebec Mines Department, has demonstrated
the potential for higher
grade mineralization. For example, narrow veins
of U 3Os at the Bravo (train No.3) reported
some spectacular values
up to 38% U 3O 8, 1.2% copper, 5% lead from
grab samples, and at Lac Cutus South, a drilled
section assayed 0.96% copper over 3.37
meters of core. At Lac Crabe, a
drilled section assayed 3.71% copper
over 1.8 metres and 0.07% uranium over
1.2 metres on train No.4, which is 955
m long. All of the above are located on
Waseco’s
newly acquired claims, where Eldorado
Nuclear worked in the area up until 1982,
when they suspended operations despite
interesting results in drilling.
The Company believes
the properties acquired allow
immediate access to significant
uranium mineralization and
the potential for an iron
oxide type deposit similar
to Olympic Dam in Australia,
owned by Western Mining,
which is a world-class producer
of uranium, copper, silver
and gold with past production
and reserves of 2.0 billion
tones grading 0.06% U 3O 8,
1.6% Cu, 3.5 g/t Ag and 0.60
g/t Au.
Waseco plans to evaluate
each of the five claim
groups it acquired, commencing
immediately. Initial work
will consist airborne magnetic
and deep penetrating radiometric
surveys, together with digital
compilation of all historic
work carried out on the properties
including geological, geophysical
surveys, trenching and drilling.
Reports already obtained from
the Government of Quebec have
indicated the known mineralized
areas. This information will
provide priority targets for
follow-up drilling.
Waseco is a mineral
exploration company with interests
in uranium, diamonds and gold.
Upon issuance of the shares
related to the acquisition
of various uranium claims
announced in January, the
Company will have 27, 201,321
common shares issued and outstanding,
28,401,321 on a fully
diluted basis. For further
information, please visit
the Company web site at wasecoresources.com.
|