VANCOUVER, April 16 /CNW/ - Global Uranium Corporation (the "Company" or "Global") (GU: TSX-Venture Exchange) is pleased to announce that on April 15, 2010 it entered into an Option and Joint Venture Agreement (the "Agreement") with Concentric Energy Corp., a USA Corporation ("Concentric") pursuant to which it has acquired the right to incrementally earn up to a 70% interest in and to 280 contiguous, unpatented lode mining claims located in Yavapai County, West Central Arizona covering approximately 5,780 acres of mineral prospective lands (the "Anderson Property").
Under the terms of the Agreement, Global can acquire a 70% interest in earned increments over a six (6) year period by paying US$80,000 on signing, issuing 11,300,000 shares incrementally over a 6 year period and by spending no less than US$2,000,000 on exploration work on the Anderson Property on or before the 5th anniversary of the Effective Date of the Agreement.
1,200,000 shares are due to be issued to Concentric on the Effective Date of the Agreement and a minimum amount of US$200,000 is required to be spent on the Anderson Property in the first year.
By issuing shares each year on the anniversary of the Effective Date and by performing the minimum exploration program to a maximum amount of US$2,000,000, Global will earn a 20% undivided interest at the end of first year; a 15% undivided interest at the end of the second year; a 16% undivided interest at the end of the third year; a 9% undivided interest at the end of the fourth year and a 10% undivided interest at the end of the fifth year.
Once Global has acquired a 70% undivided interest in and to the Anderson Property, Global has the elective option of acquiring the balance of the interest in 15% increments by issuing an additional 1,350,000 shares for each additional 15% interest acquired.
Concentric is a widely held non reporting Company incorporated under the Laws of the State of Nevada.
The terms of acquisition are subject to prior TSX Venture Exchange approval.
The Anderson Property is located in Yavapai County, west-central Arizona, approximately 75 miles northwest of Phoenix and 43 miles northwest of Wickenburg and comprises portions of the claim positions historically held by Mineral Exploration Company ("MinEx") and Urangesellschaft U.S.A Inc. ("Urangesellschaft") in the 1970's. These claim positions were consolidated into single ownership by Hanson Exploration, Inc. (Hanson) of Phoenix, Arizona, in 1995. Hanson dropped the claims by 1998 and Concentric re-staked the claims in 2001.
Concentric also holds 9 placer claims (each 660 ft wide by 1,320 ft long) that superimpose part of the claim block.
The "Anderson Mine" has historically seen limited production between 1955 and 1959 which resulted in 10,758 tons of ore averaging 0.15% U3O8 containing 33,230 pounds U3O8 being shipped to Tuba City, Arizona for custom milling. Production ceased in 1959 when the Atomic Energy Commission (AEC) terminated its ore purchasing program.
MinEx purchased the northern portion of the current Anderson Property in 1975 after a 53 hole, 19,000-ft drill program on 800-ft centers confirmed a much greater uranium resource potential than had been interpreted from prior historical gamma log data. This was followed with further exploration work, consisting of a 180 hole, 74,000-ft drill and core program on 400 ft centers, from November 1975 through February 1976 to further delineate the uranium resource. MinEx had completed a total of 1,047 holes by rotary and core drilling by the cessation of drilling which occurred in 1978.
Based on favorable economics indicated in a Preliminary Feasibility Study completed in December 1977 by Morrison-Knudsen Company, Inc. a detailed Final Feasibility Study was undertaken early in 1978 for a final evaluation of the northern portion of the current Anderson Property. These historical studies pre-date NI 43-101 and should not be treated as current. Global has not performed the necessary work to verify those historical studies. Therefore the results cannot be relied upon.
Urangesellschaft became interested in the former Anderson Property area in 1973 after it was brought to Urangesellschaft's attention by local prospectors who had relocated mining claims on the outcrop mineralization. Urangesellschaft located a claim block, which it referred to as the "Date Creek Project", on the downdip extension of the mineralization immediately to the sourth of MinEx's claims. A subsequent drill program from 1973 to 1979 delineated mineralization from a total of 343 drill holes with 390,550 ft of rotary and core drilling.
Depressed uranium prices stalled exploration activities until 1995 when Hanson Exploration, Inc. (Hanson) of Phoenix, Arizona, consolidated portions of the former MinEx and Urangesellschaft claims under single ownership. Hanson dropped the claims by 1998. In 2001, Concentric re-staked the claims and has controlled ownership of the Anderson Property since that time.
In 2006, Concentric conducted the first drill program on the Anderson Property since MinEx's and Urangesellschaft's field exploration programs were terminated in 1978 and 1979, respectively.
Drilling was completed by Layne Christensen Company, Exploration and Environmental Division, of Chandler, Arizona, under the supervision of Exploration Geologist, Ed Huskinson, Jr. of Kingman, Arizona.
The program consisted of a 25 hole drill program in 2006 to confirm the authenticity of the original MinEx exploration database by "twinning" a spatially-distributed and statistically significant number of historical drill holes. Twenty-four historical holes were twinned using reverse circulation drilling. One of these holes (AM-668) was twinned a second time by coring. The selected holes span all major drilling campaigns conducted by MinEx between 1975 and 1978. It is Global's understanding that Concentric spent approximately $10,000,000 on the Anderson Property since acquiring it by staking.
Although the deposit was heavily drilled in the 1970's and substantial exploration records are available, NI-43-101 standards require demonstration that the historical data are "reproducible" in order to confirm authenticity which has not been done to date.
The program to bring data into a NI43-101 compliant category remains incomplete.
Global's intention in fulfilling its exploration commitments is to complete programs which would permit the publication of historical data in a NI 43-101 compliant manner. This would require future exploration work on the Anderson Property.
A Finder's Fee is payable in connection with the acquisition.
George Heard, P. Eng is the Qualified Person, as defined in NI 43-101, and is responsible for the preparation of the technical information contained in this news release.
Global Uranium Corporation is a uranium exploration and development company focusing on properties located in the south-western United States with special emphasis on Arizona and Nevada. The Company's strategy is to maximize shareholder value through successful exploration and development of its properties.
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.
SOURCE GLOBAL URANIUM CORPORATION
For further information: For further information: Neil Linder, CEO, Director, Phone: (760) 610-9297