VAL D'OR, QC, April 13 /CNW Telbec/ - Abitex Resources Inc. (TSX-V: ABE) (the "Company") is pleased to announce the start of a first drill program on its 100% owned Epsilon uranium-gold property in the Otish Mountains of Quebec. The program will target the outcropping, flat-lying Epsilon-B zone, discovered in 2009, where a 55 kilogram grab sample assayed 3.27% U3O8 and 14.5 g/t Au and two channel samples assayed 0.41% U3O8 and 1.14 g/t Au over 9.6 meters and 0.45% U3O8 and 0.84 g/t Au over 5.1 meters. Several other grab samples from the same outcrop assayed from 0.17% to 8.04% U3O8 and 2.2 g/t to 46.85 g/t Au and one very high grade sample assayed 51.7% U3O8, 86.6 g/t Au, 958 g/t Ag and 20.5% Pb. The Epsilon-B showing exhibits strong similarities with Abitex' nearby Lavoie deposit where a recently completed initial NI 43-101 resource estimate reported Indicated resources totaling 3.9M lbs U3O8 and Inferred resources totaling 9.26M lbs U3O8.
"We believe the significant grades and strong alteration encountered to date on Epsilon-B as well as its striking resemblance with the geological setting of the Lavoie deposit suggest excellent potential for the discovery of a significant uranium-gold deposit on the property" comments Yves Rougerie, President & CEO. "This initial drill program will test the proposed geological model and prepare the ground for additional work this summer, including additional drilling. We also plan to further the exploration of this large property where discovery potential is considered high".
Abitex also announces its intention to raise up to CAN$ 2,500,000 comprised of Flow-through units (the "FT Units") at a price of $0.20 per FT Unit and Non Flow-through units (the "Units") at a price of $0.17 per Unit or a combination of both. Each FT Unit will consist of one flow-through common share and one-half common share purchase warrant. Each whole warrant entitles its holder to subscribe to one non flow-through common share of the Corporation for $0.25 within 18 months following the date of issuance of the warrant. Each Unit will consist of one common share and one-half common share purchase warrant. Each whole warrant entitles its holder to subscribe to one non flow-through common share of the Corporation for $0.25 within 24 months following the date of issuance of the warrant. The private placement is subject to the required approvals of the competent regulatory authorities and all securities issued in connection with the private placement will be subject to a four month plus one (1) day hold period. The funds of the private placement will be used by the Company to carry out exploration activities and improve the Company's working capital.
The Company's public documents may be accessed at www.sedar.com
Neither 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.
SOURCE ABE Resources Inc.
For further information: For further information: Yves J. Rougerie, President and CEO, (819) 874-6200, Fax: (819) 874-6202, firstname.lastname@example.org; www.abitex.ca