VANCOUVER, April 28 /PRNewswire/ - Athabasca Uranium Inc. ("Athabasca" or the "Company") (TSXV: UAX) (OTCQX: ATURF) is pleased to announce that it has entered into an agreement with an arm's-length vendor by which the Company has the option to earn a 100% interest in the Hamilton Lake Property in northeast Saskatchewan.
The 5,873-hectare Hamilton Lake Property is located on the eastern margin of the uranium-rich Athabasca Basin, the most productive uranium-producing region in the world. The Company will earn a 100% interest in the Property by paying $25,000 and issuing 600,000 common shares to the Vendor on Closing, and by filing $3,000,000 in qualified exploration assessment credits either on the Property itself or on Athabasca's other properties under option within its Webb River Project area within four years. A 1% net smelter return royalty has also been granted to the Vendor, which may be purchased by the Company for $1,500,000. The Agreement is subject to regulatory approval.
The Property is contiguous with the Company's Webb River Project, and is the third of three strategic acquisitions in the Athabasca Basin on which the Company had negotiated an exclusive right of first offer, as announced January 20, 2011. "The Hamilton Lake prospect, as part of the overall Webb River Project, is an excellent addition to our property portfolio in the Basin. The Z-TEM heli-borne survey conducted this past winter season over Webb River and Hamilton Lake showed indicators of uranium prospectivity on both properties, and our upcoming resistivity ground survey should delineate targets for drilling", commented Gil Schneider, Athabasca President & CEO.
Results of the Z-TEM (Z-Axis Tipper EM) airborne survey conducted over the Project area strongly correlate with the Saskatchewan government's EXTECH IV regional Mag/EM survey conducted in 2004. The center of the property, which has a relatively low magnetic response, appears to be strongly dilated to the northeast. An array of northeasterly trending conductors was also identified by the Z-TEM, correlating strongly with airborne and ground VLF-EM and magnetometer surveys carried out by Sander Geophysics and Phantom Exploration Services in 1979-1980. Strong magnetic features appear to be acting as controls for the northeasterly trending conductors. Refinement of the Z-TEM data is expected to produce viable exploration targets within the conductive array.
About Athabasca Uranium
Athabasca Uranium Inc. is a junior uranium exploration and development company trading on the TSX Venture Exchange under the symbol UAX. The Company's stated vision is to acquire and explore prospective properties located in the uranium-rich Athabasca Basin in northeast Saskatchewan, utilizing leading-edge technologies to become a world-class uranium mining company. Additional information on Athabasca Uranium, its properties and exploration activities is available at the Company's website: www.athabascauranium.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Gil Schneider, President & CEO
Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Athabasca Uranium Inc.