CRLJ - Core Resources Enter Uranium Mining Business
Wednesday May 16, 6:00 am ET
Core Signs Mineral Rights Deal for Quebec Uranium Property
VANCOUVER, BC--(MARKET WIRE)--May 16, 2007 -- Core Resources (Other OTC:CRLJ.PK - News) announced today that it has reached a preliminary agreement to acquire the rights to mine Uranium in the Pontiac region in Quebec, Canada. The terms of the agreement are not available at this time pending customary due diligence on the property. It is projected by management that the transaction should be consummated in less that 30 days and initial testing can begin in June 2007. The management team has been actively seeking opportunities in this industry and has reached an agreement to acquire certain mineral rights for the mining of Uranium in the Quebec province of Canada. Additional properties are currently under consideration and industry experts are being consulted to determine the most attractive strategy to employ for maximum shareholder return.
Since 2003 the price of Uranium has increased approximately ten fold and government estimates indicate that Uranium demand will continue to be strong as independence from fossil fuels becomes government policy. The company's previous strategy of acquiring operating business in the alternative fuels sector is still active. Compelling opportunities in the Uranium markets, in the view of the Core Resources management team, provide the best opportunity to build a viable company for the CRLJ shareholders.
THE URANIUM INDUSTRY
The only significant commercial use for Uranium is to fuel nuclear power plants for the generation of electricity. Uranium is an element found in nature that is used for emission free energy source throughout the world. When an Uranium atom is split (fission) it releases 50 times more energy than the combustion of one carbon atom. Nuclear fission produces far more energy than burning a comparable volume of hydrocarbon fuel such as oil, natural gas or coal. Currently, the leading countries for the production of Uranium are Australia (28% of global supply), Kazakhastan (16%) and Canada (12%).
Price of Uranium
The price of uranium was approximately $10.75 per pound in early 2003. By early 2007 the price approached $100.00 per pound. Many commodities experts are projecting long term prices as high as $500 per pound.
Nuclear Power Plants
There are 440 nuclear power reactors operating worldwide providing about 16% of the world electricity. There are 82 new reactors that are under construction or planned for completion within the next 10 years. There are currently 104 operating US nuclear power plants that produce over 20 percent of US electricity.
Primary production
The uranium production industry is international in scope with a small number of companies operating in relatively few countries. In 2005 eight producers provided approximately 80% of the estimated world production of 108 million pounds U3O8. Leading companies include Cameco, Cogma, Energy Resources of Australia, WMC Resources Ltd, Kaz AtomProm, Priarggunsky Uranium Ltd, and Navoi Mining Mettallurgical Kombinant.
Cautionary Statement Regarding Forward-Looking Information:
Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "potential," "estimate," "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
Contact:
Investor Contact:
Patrick Rost
PMR and Associates, LLC
760-703-6753
PMRandCo@aol.com
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Source: CORE Resources Limited
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