News Release (NR 09-11) - June 02, 2009
Snowfield completes agreement to aquire 100% interest in four Uranium claims.
Snowfield Development Corp. ("Snowfield" or the "Company") announces that it has negotiated and signed option agreements with Mr. David Smith of Yellowknife, N.W.T. ("Smith") and Luxwing Holdings Limited of Hong Kong ("Luxwing") whereby Snowfield can earn a 100% interest in four uranium claims, the Gennen 1 and Gennen 2 claims from Smith and the US081 and US082 from Luxwing (collectively the "Claims"), located on Simpson Island, East Arm, Great Slave Lake, in the South Mining District of the Northwest Territories.
The terms of the agreements with Smith and Luxwing are identical whereby Snowfield will earn its 100% interests in the Claims by respectively, subject to Regulatory Acceptance, making cumulative cash payments totaling $50,000 each to Smith and Luxwing over a 23 month period to be completed by April 30, 2011; issuing a cumulative total of 12,000,000 shares from treasury each to Smith and Luxwing over a 19 month period to be completed by December 31, 2010 and expending a cumulative total of $450,000 on three programs of exploration and development each on the Smith and Luxwing Claims to be completed by December 31, 2011.
The Company views this acquisition very positively, especially in light of the recently increasing spot price for uranium. With the outlook for commodity prices generally regarded as positive and the increase in the number of nuclear power generation plants planned at record levels, the demand for uranium fuel is anticipated to remain strong for the foreseeable future.
These four contiguous Claims are located on Simpson Island within the East Arm of Great Slave Lake. The Claims are approximately 120kms SE of Yellowknife and some 65kms from Snowfield's Ticho Diamond Project near Drybones Bay, Great Slave Lake and the Company's existing Pebble Beach camp. This summer's exploration activities on the Simpson Island uranium project will be conducted out of the Company's base at Pebble Beach.
Uranium exploration in the Simpson Island area was originally carried out by Vestor Exploration during the early 1970's. Uranium was located in Proterozoic sandstones and conglomerates of the Hornby Channel formation in 3 main zones. The first of these radioactive zones was shown to contain Pitchblende and the other two to contain Liebigite (hydrated Uranyl Carbonate). Pitchblende in the first zone was found to run from 0.01 to 1.9% U3O8. It was concluded that these were mainly leached surface samples and that higher grades would be found at depth.
As of March 12, 1971, some 3,036 feet of diamond drilling had been completed. Results from drilling was encouraging and demonstrated the following concerning the uranium mineralization on Simpson Island as summarized below:
(a) The Sosan Group is a highly uniform sequence of sandstones and conglomerates that extend to at least 400 feet below the surface.
(b) Subsurface extensions of the surface outcrops of the rich uranium mineralization exhibit grades of up to 0.42% U3O8 over widths of up to 7 feet and 0.10% U3O8 over 39.7 feet. These assay grades compare favorably with those from Elliot Lake which run from 0.08 to 0.12% U3O8.
(c) Uranium mineralization encountered to date exhibits chemical, mineralogical and spatial characteristics indicative of a post depositional, diagenetic or epigenetic process of uranium mineralization. This process would appear to be analogous to that which formed the rich uranium deposits of the Wyoming and Colorado Plateaus in the USA.
(d) This drill program has only tested one of 10 known mineralized zones in the Simpson Island area and a mere fraction of the many radioactive sandstones known to exist between Simpson Island and Reliance Island.
Further drilling was carried out by Vestor in 1971 and 1972. In a report dated February 2, 1972 the following comments were made:
"Mineralization is concluded to be analogous to sandstone deposits in SW USA. Un-oxidized sections contain interstitial Uraninite. Abundant hematite in the formation is believed to be due to oxidation. It is expected that better grades and more consistency of mineralization will be found in the unoxidised zone presumably at depth. In the high-grade zone, grades run from 0.5 to 1.2% U3O8. The uranium is also associated with fine disseminated pyrite. The reduced mineralization is not surficial but is continuous in depth. The in depth dimensions of the reduced mineralization are greater than the surface dimensions. The uranium mineralization is concentrated near or adjacent to illitic shale units. The uranium mineralization is not related to the fault or vein system present. There is no evidence of any structural control of the uranium. The conglomeratic unit which contains Zone #5 dips steeply to the northwest beneath an impermeable "chloritic" cemented sandstone unit and to the west beneath finer grained lithologies. Because oxidation and leaching would result in the migration and concentration down dip and because the host unit is capped by impermeable strata that would prevent leaching, the down dip extension of the host unit is therefore an obvious high priority target."
It should be noted that all of the above mentioned grades are historical grades and have not been confirmed by the Company.
Surface sampling by Mr. David Smith in the summer of 2006 along the southern boundary of the Claims resulted in a sample returning an assay value of 1.33% U3O8. In view of this high value Mr. David Smith entered into a contract with Terraquest Ltd. to carry out a detailed airborne radiometric survey over all of the Claims. This survey was carried out in August 2006. The survey was flown using a line spacing of 100 meters and a flying height of 70 meters. The spectrometer used for the survey utilized a detector measuring some 2,048 cubic inches, 256 channels of data were recorded. This airborne survey identified numerous discrete uranium anomalies and a large number of anomalous zones within the four Claims. These anomalies have not yet been ground checked. The ground checking and sampling of these targets will be carried out this summer.
A 9.5% finder's fee will be payable with respect to each of the aforementioned transactions.
Snowfield continues to pursue and negotiate the acquisition of an interest in the Silver Oy project in Finland announced in NR 09-04, March 2, 2009.
Marvin A. Mitchell, P. Eng, a qualified person under National Instrument 43-101 has approved the contents of this NR09-11.
ON BEHALF OF THE BOARD
"Robert T. Paterson"
President
SNOWFIELD DEVELOPMENT CORP.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents hereof.
You need the best companies with the strongest fundamentals to make money in the stock market.
