KELOWNA, BC, March 7 /CNW/ - Trigon Uranium Corp. ("Trigon" or the
"Company") (TSX-V:TEL) has signed a Letter of Intent and Exclusivity Agreement
with Shumway Brothers Mining and other parties ("LOI") with the intention of
acquiring six former operating uranium mines in Utah's White Canyon district
located in San Juan County. 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 U(3)O(8) 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 are
the Happy Jack mine and the Radium King mine, which produced more than
3 million pounds and 857,000 pounds respectively prior to 1970. SXR Uranium
One's Radium King mine is adjacent to the Yankee Girl mine. Trigon intends to
accelerate its entry into the uranium mining business in part by acquiring
Colorado Plateau mines like the White Canyon mines. Trigon believes resources
can be developed through re-entering old Colorado Plateau mines by following
previously defined zones and exploring land contiguous to these mines.
The properties subject to the LOI comprise 73 claims and three Utah state
leases. The due diligence and exclusivity term is for up to 120 days. Trigon
has agreed to make a non-refundable deposit of US$25,000 and to issue 50,000
shares to the vendors. During the exclusivity period the vendors will not
solicit or entertain competing offers. Trigon's due diligence will involve a
program of engineering and mine modeling as well as geological study, which
Sidney Himmel, the President and Chief Executive Officer of Trigon
stated: "Trigon has numerous diversified strategies for growth in the uranium
industry. This includes acquiring smaller mines in the Colorado Plateau in
both Utah and Colorado where ores were processed at centralized mills. At
present the Blanding and the Shootaring Canyon Mills may be available for
custom milling. We are currently expanding our mine engineering staff to
obtain the requisite expertise to efficiently acquire and develop mines."
Uranium was mined in the White Canyon district from 1949 to 1982,
producing over 11 million pounds of uranium averaging 0.24% (4.8 lbs
U(3)O(8)per ton ore). In Utah, only the Lisbon Valley district has produced
more uranium than the White Canyon district.
In addition to the mines, the Exclusivity Agreement also covers two
unexploited uranium occurrences defined by previous operators. Trigon's
technical team has initiated work to determine the size and nature of these
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 52,212,956 shares outstanding and its
stock trades on the TSX Venture Exchange under the symbol "TEL".
For further information, please visit www.trigonuraniumcorp.com
Should you wish to receive Company news via email, please email
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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.
For further information:
For further information: Sidney Himmel, President and Chief Executive
Officer, Trigon Uranium Corp., Tel: (250) 317-3624, Email:
firstname.lastname@example.org; Jeanny So, Broker Relations Specialist,
CHF Investor Relations, Tel: (416) 868-1079 x225, Email: email@example.com