Anglo-Canadian Uranium to buy O8 property in Mexico
2006-08-10 10:53 ET - News Release
Mr. Len Harris reports
ANGLO-CANADIAN URANIUM CORP.: ACQUISITION OF URANIUM CLAIMS IN NEW MEXICO
Anglo-Canadian Uranium Corp. will acquire 95 claims of uranium-bearing lands located in the Grants uranium district and Ambrosia Lake region in northwestern New Mexico, United States. This project, known as the O8 property, consists of 1,920 acres and is adjacent to a previously producing uranium mine for a major mining company. This region was the largest producer of uranium in the United States from 1952, to the mid-1980s, with documented past production of over 340 million pounds of U3O8 during this period. Production in this region was suspended in the 1980s due to low uranium prices and has recently seen an increase in exploration and development activity as uranium prices appreciated. Management intends to investigate the permitting process and review environmental issues during the next 90 days required for an assessment of mining operations. It is expected that company personnel with experience in uranium development and mining will visit the property during this period as well.
The Grants uranium district extends for almost 100 miles in a band five to 15 miles wide, with sandstone formations containing uranium mineralization. During periods of operation the Grants uranium district was home to the largest producing uranium mine in the U.S., which recovered 1,000 tons of ore per day, yielding four pounds per ton. The Ambrosia Lake region was highly active in uranium mining, having 15 headframes scattered over the region until the mid-1980s. Ambrosia Lake is also home to one of the largest uranium mine complexes in the U.S. and it continues to extract uranium from groundwater that flows through the mine shafts under a regional valley. Several well-known mining companies operated in the region during the peak of uranium activity.
New Mexico was a prominent area of uranium mining in its peak, with seven uranium mills operating in the Grants uranium district. Numerous public and private companies operate in the region today, with two companies actively involved in permitting their properties for production.
Purchase of this acquisition will be facilitated through the payment of $26,000 (U.S.), the issuance of 200,000 common shares and a net smelter return royalty of 2 per cent. Anglo-Canadian has the right to purchase each 1-per-cent net smelter return royalty for a price of $300,000 (U.S.) at any time
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