RSDS UPDATE - I just spoke to Josh Bleak of US MINERALS, LLC in Arizona (US Minerals LLC. Josh Bleak, Mining Projects Manager Tel. 480-776-3385). They are the owners of the LEASE for East Canyon where RSDS claimed in the PR below they were going to "acquire 63 mining claims from East Canyon LLC." Josh told me that Russell Industries NEVER followed through with their agreement and did NOT complete the acquisition nor did RSDS PAY for the subsequent GEO Report from Edge Consulting who was hired by US MINERALS to conduct a GEO Report of the property. FACT: RSDS NEVER ACQUIRED THESE CLAIMS AS PR'd. Furthermore, Mr. Bleak told me the company was CURRENTLY pursing LEGAL action against RSDS and Rick Berman and mentioned also the NASD was looking into some of the claims this company has been making. More info coming.
Russell Industries to Acquire 63 Uranium Mining Claims
HOUSTON, TX -- (MARKET WIRE) -- September 11, 2006 -- Russell Industries, Inc. (PINKSHEETS: RSLI) announces that on September 15, 2006 it will acquire 63 mine claims located in San Juan County, Monticello, Utah from East Canyon, LLC. The payday Mine Claims are located northeast of Monticello, Utah. Rick Berman, President and CEO, "The claim group consists of 63 claims, located in Township 32 South, Range 24 East, Sections 25, 26, 35. Area elevation is approximately 5500 to 6000 feet. The main drainage area is the East Canyon Wash. Excellent access to the claims is provided by a two lane county maintained road from Highway 191 north to Road 105 south for approximately 10 miles to the property."
The claims are part of the Morrison formation known for the many valuable deposits of Uranium. The sandstone formation along the East Canyon Wash contains a good grade of Uranium and is easily mine able.
Adjacent to the claims, a drift runs 800 feet. A full face of ore ranging from 8-12 feet in thickness is average. The sides and back of the drift indicate ore values ranging from .35 to .80 Uranium, and up to 2 to 3% Vanadium. The dump from the drift shows values from .15 to .20 Uranium.
The ridge to the north of East Canyon Wash has many notable addits, including Dermo Shaft Mine, Locust Mine, Rim Shaft Mine and the Vanadium Queen. Several thousand pounds were removed from the 1950s thru 1970s.
The south ridge of the East Canyon Wash, where the Payday is located, is scattered with addits as well. The owner has followed the ridge for 20 plus miles to the west, locating well over 10 addits that range from 400 to 800 feet in depth, all showing ore consistent with the addit adjacent to the block of Payday Claims. A prominent geologist who visited the property feels that these addits are merely the tip of the iceberg and many million pounds of ore are located behind these outcroppings. A drilling program would bear out this theory with minimal costs as the ore is close to the surface. The area lends itself to open pit mining as overburden is 30-80 feet thick.
An aerial photo of the property shows many roads pushed in a grid formation consistent to those used for drilling. Physical inspection of the property bears out that indeed the property was drilled extensively at one time, however, any records of past studies are not available. Section 36, a State School section adjacent to the Payday Claims, has been drilled and surveyed with many holes drilled on 20-foot centers. Russell Industries believes that surely a prudent company would not have conducted and continued such an extensive drilling program without having ample success as the project progressed.
East Canyon is included within the Lisbon Valley district. Since 1952 until the early 1990s, it has produced over 85 million pounds of Uranium along the flanks of the Lisbon Valley anticline. All of the major ore bodies did not outcrop and were discovered by exploration drilling.
The White Mesa Mill is a fully permitted uranium mill with a vanadium co-product recovery circuit. It is located in rural southeastern Utah, near the town of Blanding in San Juan County. Access is by state highway. The Mill has been in operation for over 25 years since its startup in 1980. The climate and geology in the area are ideal for receiving, processing and permanently disposing of radioactive materials. The tailings system is below surface grade, and is separated from the nearest aquifer by nearly 1,200 feet of low-permeability rock. Twenty-five years of monitoring have demonstrated no release from the tailings impoundments. Construction of the White Mesa Mill started in 1979, and conventionally mined uranium-mineralized material was first processed in May 1980. The Mill cost $40 million to construct. With inflation, more stringent permitting requirements, and the lack of suitable sites, the cost of constructing a facility such as the White Mesa Mill, if possible, would be considerably more than that amount today.
During mining, uranium-mineralized material is received at the Mill and stockpiled. The material is initially fed to an 18-foot diameter SAG Mill, then stored in slurry form in one of the two pulp storage tanks. The Mill utilizes a two-stage leach process where overflow solution from the No. 1 CCD Thickener is combined, in an "acid kill" step, with feed from the pulp storage tanks. The slurry from this first stage leach is then separated in the pre-leach thickener, with the solids going to the second stage leach and the clarified solution going to the solvent extraction circuits. Concentrated sulfuric acid, steam, and an oxidizer are added in the second stage leach. This slurry is subsequently fed to the 8-stage CCD Circuit where the underflow is discharged to tailings. In full operation, the Mill employs approximately 100 people. While on standby, the Mill is maintained in good operating condition and is capable of commencing a Mill run at any time without the need for regulatory approvals or any significant capital expenditures. White Mesa will begin to purchase ore in early 2007.
Safe Harbor
Forward-Looking Statements: Except for historical information contained herein, statements are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in the future periods to differ materially from forecasted projections. These risks and uncertainties include, among other things, energy market volatility, product demand, market competition, and risk inherent to the company's research and development operations.
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CONTACT:
Rick Berman
President & CEO
Russell Industries
Tel: +1 713 446 7231
Fax: +1 281 298 9055
e-mail: Email Contact
SOURCE: Russell Industries, Inc.
AI
