MOAB, UT--(MARKET WIRE)--Oct 25, 2007 -- Utah Uranium Corp. (the "Company") (OTC BB:UTUC.OB - News) is pleased to announce the signing of a Joint Venture Agreement (the "Agreement") on the Pinto group of claims, located near Hanksville, Utah, with Consolidated Abaddon Resources Inc. (CDNX:ABN.V - News) (Frankfurt:E2L.F - News) ("Abaddon") of Vancouver, B.C.
Under the terms of the Agreement, Abaddon will be responsible for payments to Utah Uranium totalling $550,000, the issuance of a total of 550,000 shares over the life of the agreement, and they will be required to complete a minimum of $605,000 in work on the property in a two-phase work program prior to June 1, 2008. On completion of certain milestones within the agreement, Abaddon will be deemed to have earned up to a 60% interest in the property.
The first phase of the work program will encompass the previously announced drill plan on the Pinto (see UTUC NR, August 14, 2007), which will comprise the drilling of up to 50 holes to test the Salt Wash sandstone member of the Morrison formation. The Company announced October 24, 2007 the signing of a drilling contract with operations to commence within two weeks.
About the Pinto
The Pinto property covers 344 mineral claims, consisting of 6,800 acres in the Henry Mountain Syncline of East Central Utah. The Henry Mountain Syncline is an enclosed structural basin within the Colorado Plateau of southeastern Utah that is entirely underlain by the massive uranium bearing Salt Wash sandstone member of the Morrison formation. The hydraulic migration of oxygenated water containing liberated uranium tends to flow down-dip within the formation into the trapped, oxygen free static water creating a zone of major ore concentration known as a roll-front environment.
The first discovery, known as the Tony M mine, was made in the 80s by Plateau Resources, a division of Michigan Light and Power, and consists of 10,898,000 pounds U308. Subsequently, the Bullfrog mine was discovered adjacent and north of the Tony M mine by Imperial Oil Corporation, and consists of an additional 12,924,000 pounds U308. These mines are currently owned by Denison Mines and are collectively known as the Henry Mountains complex, one of the largest known uranium resources in the Colorado Plateau district.
Utah Uranium Corp. "UTUC" has acquired the Pinto claims from Christian (Ted) Murer P.Geo, the prospector geologist who conceptualized, discovered and currently holds a production royalty on the Tony M mine. Ted has assembled the Pinto uranium claim package using the same data and methodology. Based on area extrapolations, the "Pinto" could hold significant amounts of uranium and vanadium.
About the company
Utah Uranium Corporation is a Moab, Utah based junior exploration and development company focused on the acquisition of past producing underground uranium mines, highly prospective new uranium projects and other conventional and non-conventional energy projects. All of the uranium projects acquired to date, in addition to those under review by the Company are within economic haul distances of the White Mesa Uranium Vanadium Mill in Blanding, Utah owned by Dennison Mines.
On behalf of the Board,
Peter Dickie, President
Cautionary note: This report may contain forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. Unless otherwise stated, any and all resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
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