Trigon Completes Agreement to Acquire White Canyon Uranium Mines



    KELOWNA, BC, June 4 /CNW/ - Trigon Uranium Corp. ("Trigon" or "the
Company") (TSX-V:TEL) today announced that it has completed a definitive
agreement to acquire the mining rights to six Utah uranium mines ("the
Properties") by way of a Lease and Option Agreement with Shumway Brothers
Mining LLC and other owners of the properties ("the Lessors"). This
acquisition is the first step in Trigon's plan to establish a portfolio of
mines in the Colorado Plateau. Trigon believes significant uranium resources
can be developed by re-entering historical Colorado Plateau mines with the
intention of following previously defined ore zones and exploring land
contiguous to these mines.
    The Properties are located in the White Canyon uranium district of
southeast Utah and consist of 73 mining claims and three Utah State Leases for
a total area of approximately 2,627 acres. The mines are historically known as
Blue Lizard, White Canyon No. 1, Yankee Girl, Saddle, Giveaway and Blind Luck,
all of which operated through to the end of the prior uranium cycle in the mid
1980's. Based on United States Department of Energy data the mines produced
over 70,000 tons averaging 0.24% (4.8 pounds U3O8 per ton) prior to 1970.
Specific production data after 1970 is not available. The most significant
mines in the 65 x 10 mile White Canyon district were the Happy Jack mine and
the Radium King mine, which produced more than 3 million pounds and
857,000 pounds respectively prior to 1970. Of these, SXR Uranium One's Radium
King mine is located adjacent to Trigon's Yankee Girl mine.
    Sidney Himmel, President and Chief Executive Officer of Trigon stated:
"Trigon has numerous diversified strategies for growth in the uranium
industry. The strategies include acquiring smaller Colorado Plateau mines in
both Utah and Colorado where historically ores were processed at centralized
mills. From 1949 to 1982 over 11 million pounds of uranium averaging
4.8 pounds U3O8 per ton were mined in the White Canyon district where our new
mines are located. In Utah, only the Lisbon Valley district has produced more
uranium than the White Canyon district. Our mining engineers are currently
establishing mining plans under the leadership of Tom Buchholz, Senior Mining
Engineer and manager of Trigon's Golden, Colorado office. Milling capacity in
Utah is yet to be established, however, at present the Blanding Mill of
Denison Mines Inc. and the Shootaring Canyon Mill of SXR Uranium One Inc. may
be available for custom milling of uranium ore. The uranium industry of the
Colorado Plateau is still being defined and we aim to be a major uranium
player in this region."
    According to the Lease and Option Agreement, the lease term is 20 years
with an automatic extension for as long as the properties continue to be
mined. Trigon will pay royalties in respect of uranium production commencing
at a rate of 6% of net uranium revenues. Royalty rates increase as the price
of uranium increases to above pre-defined levels. Trigon will pay no royalties
to the Lessors if the price of uranium is less than US$60.00 per pound. Trigon
will issue 250,000 common shares to the Lessors on or before August 1, 2007
subject to regulatory approval of the TSX Venture Exchange and the British
Columbia Securities Commission ("the Regulators"). A further 200,000 shares
will be issued on or before August 1, 2008, subject to the approval of the
Regulators. Trigon's lease rights will be held by Trigon Exploration Red
Canyon Inc, a Utah corporation which is wholly owned by the company. Shumway
Brothers Mining LLC may provide mining services and related services to Trigon
at standard commercial rates. The satisfactory environmental status of the
properties is a condition precedent to the closing of the acquisition and
Trigon will immediately initiate an environmental review in this respect.

    About Trigon Uranium Corp.

    Trigon Uranium Corp. is a uranium exploration and development company
focused on the known deposits of the south-western United States, a region
that has produced over one billion pounds of uranium. Trigon has a
highly-qualified team of uranium exploration experts to direct its efforts at
its Marysvale, Henry Mountains and Wray Mesa projects of southern Utah, and
elsewhere in North America. Trigon also operates a portfolio of high potential
diamond exploration properties within a wholly-owned subsidiary, Trigon
Diamond Corporation Ltd. Trigon has 55,075,233 shares outstanding and its
stock trades on the TSX Venture Exchange under the symbol "TEL".
    Should you wish to receive Company news via email, please email
ana@chfir.com and specify "Trigon News" in the subject line.

    The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This release
includes certain statements that may be deemed "forward-looking statements".
All statements in this release, other than statements of historical facts,
that address future developments that the company expects to occur, are
forward-looking statements. Although the company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and
actual results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results to differ
materially from those in forward looking statements include market prices,
exploitation and exploration successes, and continued availability of capital
and financing and general economic, market or business conditions. Investors
are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from
those projected in the forward-looking statements. The Company does not assume
any obligation to update or revise its forward-looking statements, whether as
a result of new information, future events or otherwise.

    %SEDAR: 00021118E




For further information:

For further information: please visit www.trigonuraniumcorp.com or
contact: Sidney Himmel, President and Chief Executive Officer, Trigon Uranium
Corp., Tel: (250) 317-3624, Email: sidney.himmel@trigonuraniumcorp.com; Jeanny
So, Broker Relations Specialist, CHF Investor Relations, Tel: (416) 868-1079
x225, Email: jeanny@chfir.com

Organization Profile

TRIGON URANIUM CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890