VANCOUVER, June 14 /CNW/ - Red Dragon Resources Corp. and its joint
venture partner, UraMin Inc., are pleased to report the completion of the
winter drilling program on the Rea Uranium Project in northeastern Alberta.
The diamond drill program (1,908m in 8 holes) tested six airborne
electromagnetic (EM) anomalies, out of several hundred anomalies that were
identified on the property. The anomalies drilled in this program extend over
a distance of 35 kilometres and test several conductors along and parallel to
the north-northwest trending Maybelle River linear that is known to host
economic concentrations of uranium mineralization.
The six EM anomalies were previously profiled by ground induced
polarization surveys prior to drilling to identify areas of low resistivity
and high chargeability, which can be related to clay alteration that may be
associated with unconformity-type uranium mineralization. While none of the
eight drill holes intersected economic concentrations of uranium
mineralization, a number of holes intersected significant alteration and one
of the drill holes (R130107) intersected anomalous concentrations of uranium
(34ppm over 4m including 55ppm over 1m) in sedimentary rocks immediately above
the unconformity with the underlying basement pegmatite. Management of Red
Dragon and UraMin are encouraged by this initial drill program and are
planning additional ground geophysical surveys and diamond drilling in the
second half of 2007.
The Rea Project consists of a large exploration package (446,330 acres)
covering the under explored western margin of the Athabasca basin in
northeastern Alberta. The project surrounds the high-grade Maybelle River
deposit held by AREVA. The Maybelle River deposit has a reported drill
intersection of greater than 20% U(3)O8 over 5 metres. The Athabasca Basin is
host to some of the world's largest and richest uranium mines and currently
contributes about 32% of the world's uranium supply; past production and
resources total almost 1.5 billion pounds of U(3)O8.
UraMin Inc. is earning a 50% interest in the project by making
expenditure of US$5.5 million over a three year period. UraMin Inc. has now
earned 10% interest in the project and has confirmed their continued
participation in the next phase of exploration.
Drill core samples were analyzed by ALS Laboratory Group, Vancouver,
Canada, an ISO 9001:2000 and ISO 17025 certified laboratory. Samples arriving
at the laboratory in Vancouver are sorted, dried with fine crushing of the
entire sample to better than 70% passing 2 millimetres. The sample is then
reduced to a 1 kilogram charge by repeated passes through a riffle splitter
and then pulverized to 80% passing 75 microns. The sample is then dissolved
using a four acid (HF, HNO(3), HCLO4, HCL) "near-total" digestion followed by
inductively coupled plasma with mass spectroscopy finish for 48 elements. Red
Dragon Resource Corp. has inserted quality control samples in addition to
quality control samples inserted by the laboratory.
Background on Red Dragon Resources Corp.:
Red Dragon Resources Corp. (www.reddragonresources.com) is a Toronto
Stock Exchange listed exploration company engaged in the identification,
acquisition and exploration of mineral properties with potential for
world-class mineral deposits in China and Canada.
Background Information on UraMin Inc.:
UraMin Inc. (www.uramin.com) was founded in February 2005 and its shares
are traded on the AIM market of the London Stock Exchange and the Toronto
Stock Exchange under the symbol 'UMN'. The Company was established to acquire
and develop mineral properties, predominantly uranium. The Company currently
has working capital of approximately US$285 million and a market
capitalization of approximately US$2 billion on an undiluted basis.
UraMin is currently focusing on the development of its advanced
exploration projects at Trekkopje in Namibia, Bakouma in the Central African
Republic and Ryst Kuil in South Africa. Through the South African joint
venture, UraMin also enjoys additional prospecting license applications for
important uranium deposits in the Karoo, South Africa. No assurance can be
given that remaining applications for the prospecting rights in the Ryst Kuil
Channel or elsewhere in South Africa will be successful.
The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements as set out in National
Instrument 43-101 and reviewed by Garnet Dawson, P.Geo., Vice President of
Exploration for Red Dragon Resources Corp.
Louis Covello, P.Geo. is the Qualified Person as defined in NI 43-101 on
the Rea Project and is responsible for supervising the drill program, sampling
procedures and quality assurance program. He is employed by Aurora Geosciences
Ltd., Yellowknife, Northwest Territories, who are managing the Rea Project on
behalf of Red Dragon Resources Corp.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of the information
contained herein. The statements made in this press release may contain
certain forward-looking statements that involve a number of risks and
uncertainties. Actual events or results may differ from the Company's
This press release contains statements that are "forward-looking".
Generally, the words "expect," "intend," "estimate," "will" and similar
expressions identify forward-looking statements. By their very nature,
forward-looking statements are subject to known and unknown risks and
uncertainties that may cause our actual results, performance or achievements,
or that of our industry, to differ materially from those expressed or implied
in any of our forward-looking statements. Statements in this press release
regarding the Company's business or proposed business, which are not
historical facts, are "forward looking" statements that involve risks and
uncertainties, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur. Since
forward-looking statements address future events and conditions, by their very
nature, they involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in such
Investors are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made.
For further information:
For further information: UraMin Inc., Ian Stalker, Chief Executive
Officer, Neil Herbert, Finance Director, Tel: +27 (0) 11 783-5056; Canaccord
Adams Limited, Robin Birchall, Tyler Broda, Tel: +44 20 7050 6741; Steve
Vaughan, Tel: (416) 643-6924; Red Dragon Resources Corp., Alvin Jackson,
Chairman and Chief Executive Officer, Tel: (604) 602-8188; Harbour Financial
Inc., Brian N. Barbour, Tel: (403) 813-5832