Cash Minerals Ltd (TSX VENTURE: CHX) ("Cash Minerals" or the
"Company") and Forum Uranium Corp. (TSX VENTURE: FDC) ("Forum") are
pleased to announce that the parties have entered into a Heads of
Agreement ("HOA"), whereby Cash Minerals can acquire an option to
earn a 60% interest in Forum's North Thelon Property, centered
approximately 50km west of Baker Lake, Nunavut Territory, Canada.
The property, which is considered very prospective for the
discovery of a significant world-class uranium deposit, adjoins
AREVA Resources Canada's 114M-lb(i) Kiggavik uranium deposits
(Figure 1). A drilling program is planned for this summer.
The North Thelon Property covers a portion of the eastern margin
of the Proterozoic Thelon Sandstone Basin, a world renowned
Proterozoic basin with a high potential for the discovery of large,
high grade uranium deposits after the uranium-rich Athabasca Basin
in Saskatchewan and the Kombolgie Basin in Australia.
Cash Mineral's President & CEO, Doug Currie commented:
"While exploring for uranium in the Athabasca Basin during the
1970's, I reviewed the potential of the Thelon Basin and concluded
there were many similarities and that the potential of the Thelon
was certainly very high. I am very excited to finally have the
opportunity to join with Forum's first-class exploration team to
explore this area".
The HOA signed between Cash Minerals and Forum provides the
Company an option to acquire 60% of Forum's interest in the North
Thelon Property through the expenditure of an aggregate of
$6,000,000 in exploration over a three year period as follows: (i)
$1,500,000 in 2010; (ii) $2,000,000 in 2011; and (iii) $2,500,000
in 2012. In addition, the Company shall be required to issue an
aggregate of 750,000 common shares of the Company (the "Common
Shares") to Forum through the issuance of 250,000 Common Shares on
each of the first, second and third anniversary of execution of a
definitive agreement (the "Definitive Agreement"). Pursuant to the
terms of the HOA, the Company may earn an additional 10% interest
in the North Thelon Property upon completion of a feasibility study
with respect to the property. Forum will manage the 2010
exploration program.
Completion of the acquisition remains subject to the
satisfactory completion of a 45 day due diligence period, execution
of the Definitive Agreement, and receipt of all required regulatory
and securities approvals, including the approval of the TSX Venture
Exchange.
Forum Uranium's President & CEO, Rick Mazur commented: "We
are pleased to have Cash Minerals as a funding partner to take this
project to the next stage of exploration. Prior work by Forum has
identified highly prospective targets for deposits similar in style
to the Kiggavik uranium deposits currently under feasibility,
environmental impact assessment and permitting by Areva Resources
Canada."
The North Thelon Property, totalling approximately 193,700ha,
includes Forum's 100% owned Kiggavik North and South properties
immediately north and south of the AREVA Kiggavik property, Forum's
option to earn a 70% interest in the Tanqueray Option and Forum's
option to earn a 65% interest in the Agnico-Eagle Option, excluding
gold and base metals (See Forum Press Releases dated March 15, 2007
and March 3, 2008, respectively) (Figure 2).
The Kiggavik deposit, with 114 million lbs of uranium at an
average grade of 0.476% U3O8, one of the largest undeveloped
uranium deposits in the world is in the final stages of feasibility
and, if development approval is received, is scheduled to produce
7.8 million pounds of uranium per year over a 17 year mine life
(Source: (i)Areva Resources Canada Inc., The Kiggavik Project,
Project Proposal submission to the Nunavut Impact Review Board,
November 2008).
Uranium mineralization within AREVA's Kiggavik Project, which
occurs in three deposits, the Kiggavik, End and Andrew Deposits, is
hosted in exposed meta-arkose and meta-volcanic basement rocks
close to the current margin of the unconformably overlying Thelon
sandstone basin. The deposits are aligned in a northeast-southwest
trending structural trend, the "Kiggavik Structural Trend", which
appears to continue to the south onto Forum's South Kiggavik
property. Many of the uranium showings on Forum's property are also
associated with similar trending parallel structures and important
east-west cross cutting structures.
Since commencing exploration in 2007, Forum's exploration has
focussed on further evaluating the numerous historical uranium
showings located during early exploration in the 1970's and 1980's
and has included prospecting, geological mapping, and extensive
geophysics to pursue favourable structural corridors. Uranium
mineralization in excess of 1% U3O8 has been reported at several
prospects and drilling in 2008 at the Tarzan target, 3km to the
southwest of AREVA's Jane showing, within the Kiggavik Structural
Trend, intersected 79.5m of anomalous uranium mineralization in a
favourable alteration zone. (See Forum Press Release dated November
26, 2008).
In 2009, Forum identified an area, "Nutaaq", within a 10km long
inferred east-northeast - west-southwest trending structure where
float and outcrop samples of strongly hematized and altered Martell
Syenite contained significant Rare Earth Elements (REE). Grades up
to 3.8% Total Rare Earth Elements (TREE) were obtained, with 155
samples with greater than 0.1% TREE. The anomalous REE samples are
also accompanied by elevated levels of zirconium, niobium and
tantalum. These samples were not part of a previously known anomaly
and represent a new, potentially significant, REE discovery (See
Forum Press Release dated October 1, 2009).
The 2010 exploration program will include continued prospecting
and geological mapping, detailed ground gravity surveying of
defined anomalous areas coincident with structural targets and
follow-up drilling of the most prospective targets. Additional
mapping and sampling of the Nutaaq REE Prospect will also be
completed. Details of the program have been agreed between Cash
Minerals and Forum and preparations for the field season are well
advanced.
About Cash Minerals
Cash Minerals Ltd is a Canadian-based mineral exploration
company listed on the TSX Venture Exchange under the symbol "CHX"
with a focus on exploration for uranium. The Company has recently
entered into an agreement with East Asia Minerals Corp to purchase
a 100% interest in EAM Exploration LLC from East Asia Minerals
Corp. EAM Exploration LLC owns a portfolio of very prospective
uranium, properties in Mongolia, three of which have historic
Soviet mineral resources (not NI 43-101 compliant) (See Cash Press
Release dated 4 May 2010). In the Yukon Territory, Canada, the
Company owns or is earning an interest in a portfolio of advanced
uranium exploration properties, including the Division Mountain
Coal Deposit, and owns a 100% interest in the Mike Lake Gold
Project.
For further information or to register for distribution for
future press releases, please contact Doug Currie, President &
CEO.
Cautionary Note Regarding Forward-Looking Information
Mr Douglas A Currie, MAusIMM, President & CEO of Cash
Minerals Ltd is the Qualified Person as defined by National
Instrument 43-101 who has reviewed the technical disclosure in this
press release. References to Forum Uranium Corp and scientific
results contained herein have been reviewed and approved by Richard
Mazur, P. Geo., President & CEO of Forum Uranium Corp and a
Qualified Person as defined by National Instrument 43-101.
This press release contains "forward looking information" within
the meaning of applicable Canadian securities legislation. Forward
looking information includes, but is not limited to, statements
with respect to the future financial or operating performance of
the Company, its subsidiaries and its projects, the terms of the
proposed acquisition, the execution of a definitive agreement with
respect to the proposed acquisition; , exploration prospects,
requirements for additional capital and regulatory approvals.
Generally, forward looking information can be identified by the use
of forward-looking terminology such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to:
financing not being available at desired prices; general business,
economic, competitive, political and social uncertainties; the
actual results of current exploration activities; timing and
availability of external financing on acceptable terms; conclusions
of economic evaluations; competition; future prices of mineral
prices; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the
mining industry; and, delays in obtaining governmental approvals or
required financing or in the completion of activities. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward looking information. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
To view a map of the North Thelon Project, please visit the
following link:
http://media3.marketwire.com/docs/May_5-CHX_North_Thelon_Project.pdf.
To view a map of the North Thelon Project, Nunavut Canada,
please visit the following link:
http://media3.marketwire.com/docs/May_5-CHX_North_Thelon.pdf.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Contacts: Cash Minerals Ltd Doug Currie President & CEO
info@cashminerals.com www.cashminerals.com
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