Cash Minerals Ltd.
TSX VENTURE : CHX

Cash Minerals Ltd.

May 05, 2010 08:00 ET

Cash Minerals Signs Option Agreement to Explore for Uranium & REE on Forum Uranium's North Thelon Property, Thelon Basin, Nunavut

TORONTO, ONTARIO--(Marketwire - May 5, 2010) - Cash Minerals Ltd (TSX VENTURE:CHX) ("Cash Minerals" or the "Company") and Forum Uranium Corp. (TSX VENTURE:FDC) ("Forum") are pleased to announce that the parties have entered into a Heads of Agreement ("HOA"), whereby Cash Minerals can acquire an option to earn a 60% interest in Forum's North Thelon Property, centered approximately 50km west of Baker Lake, Nunavut Territory, Canada. The property, which is considered very prospective for the discovery of a significant world-class uranium deposit, adjoins AREVA Resources Canada's 114M-lb* Kiggavik uranium deposits (Figure 1). A drilling program is planned for this summer.

The North Thelon Property covers a portion of the eastern margin of the Proterozoic Thelon Sandstone Basin, a world renowned Proterozoic basin with a high potential for the discovery of large, high grade uranium deposits after the uranium-rich Athabasca Basin in Saskatchewan and the Kombolgie Basin in Australia.

Cash Mineral's President & CEO, Doug Currie commented: "While exploring for uranium in the Athabasca Basin during the 1970's, I reviewed the potential of the Thelon Basin and concluded there were many similarities and that the potential of the Thelon was certainly very high. I am very excited to finally have the opportunity to join with Forum's first-class exploration team to explore this area".

The HOA signed between Cash Minerals and Forum provides the Company an option to acquire 60% of Forum's interest in the North Thelon Property through the expenditure of an aggregate of $6,000,000 in exploration over a three year period as follows: (i) $1,500,000 in 2010; (ii) $2,000,000 in 2011; and (iii) $2,500,000 in 2012. In addition, the Company shall be required to issue an aggregate of 750,000 common shares of the Company (the "Common Shares") to Forum through the issuance of 250,000 Common Shares on each of the first, second and third anniversary of execution of a definitive agreement (the "Definitive Agreement"). Pursuant to the terms of the HOA, the Company may earn an additional 10% interest in the North Thelon Property upon completion of a feasibility study with respect to the property. Forum will manage the 2010 exploration program.

Completion of the acquisition remains subject to the satisfactory completion of a 45 day due diligence period, execution of the Definitive Agreement, and receipt of all required regulatory and securities approvals, including the approval of the TSX Venture Exchange.

Forum Uranium's President & CEO, Rick Mazur commented: "We are pleased to have Cash Minerals as a funding partner to take this project to the next stage of exploration. Prior work by Forum has identified highly prospective targets for deposits similar in style to the Kiggavik uranium deposits currently under feasibility, environmental impact assessment and permitting by Areva Resources Canada."

The North Thelon Property, totalling approximately 193,700ha, includes Forum's 100% owned Kiggavik North and South properties immediately north and south of the AREVA Kiggavik property, Forum's option to earn a 70% interest in the Tanqueray Option and Forum's option to earn a 65% interest in the Agnico-Eagle Option, excluding gold and base metals (See Forum Press Releases dated March 15, 2007 and March 3, 2008, respectively) (Figure 2).

The Kiggavik deposit, with 114 million lbs of uranium at an average grade of 0.476% U3O8, one of the largest undeveloped uranium deposits in the world is in the final stages of feasibility and, if development approval is received, is scheduled to produce 7.8 million pounds of uranium per year over a 17 year mine life (Source: *Areva Resources Canada Inc., The Kiggavik Project, Project Proposal submission to the Nunavut Impact Review Board, November 2008).

Uranium mineralization within AREVA's Kiggavik Project, which occurs in three deposits, the Kiggavik, End and Andrew Deposits, is hosted in exposed meta-arkose and meta-volcanic basement rocks close to the current margin of the unconformably overlying Thelon sandstone basin. The deposits are aligned in a northeast-southwest trending structural trend, the "Kiggavik Structural Trend", which appears to continue to the south onto Forum's South Kiggavik property. Many of the uranium showings on Forum's property are also associated with similar trending parallel structures and important east-west cross cutting structures.

Since commencing exploration in 2007, Forum's exploration has focussed on further evaluating the numerous historical uranium showings located during early exploration in the 1970's and 1980's and has included prospecting, geological mapping, and extensive geophysics to pursue favourable structural corridors. Uranium mineralization in excess of 1% U3O8 has been reported at several prospects and drilling in 2008 at the Tarzan target, 3km to the southwest of AREVA's Jane showing, within the Kiggavik Structural Trend, intersected 79.5m of anomalous uranium mineralization in a favourable alteration zone. (See Forum Press Release dated November 26, 2008).

In 2009, Forum identified an area, "Nutaaq", within a 10km long inferred east-northeast – west-southwest trending structure where float and outcrop samples of strongly hematized and altered Martell Syenite contained significant Rare Earth Elements (REE). Grades up to 3.8% Total Rare Earth Elements (TREE) were obtained, with 155 samples with > 0.1% TREE. The anomalous REE samples are also accompanied by elevated levels of zirconium, niobium and tantalum. These samples were not part of a previously known anomaly and represent a new, potentially significant, REE discovery (See Forum Press Release dated October 1, 2009).

The 2010 exploration program will include continued prospecting and geological mapping, detailed ground gravity surveying of defined anomalous areas coincident with structural targets and follow-up drilling of the most prospective targets. Additional mapping and sampling of the Nutaaq REE Prospect will also be completed. Details of the program have been agreed between Cash Minerals and Forum and preparations for the field season are well advanced.

About Cash Minerals

Cash Minerals Ltd is a Canadian-based mineral exploration company listed on the TSX Venture Exchange under the symbol "CHX" with a focus on exploration for uranium. The Company has recently entered into an agreement with East Asia Minerals Corp to purchase a 100% interest in EAM Exploration LLC from East Asia Minerals Corp. EAM Exploration LLC owns a portfolio of very prospective uranium, properties in Mongolia, three of which have historic Soviet mineral resources (not NI 43-101 compliant) (See Cash Press Release dated 4 May 2010). In the Yukon Territory, Canada, the Company owns or is earning an interest in a portfolio of advanced uranium exploration properties, including the Division Mountain Coal Deposit, and owns a 100% interest in the Mike Lake Gold Project.

For further information or to register for distribution for future press releases, please contact Doug Currie, President & CEO.

Cautionary Note Regarding Forward-Looking Information

Mr Douglas A Currie, MAusIMM, President & CEO of Cash Minerals Ltd is the Qualified Person as defined by National Instrument 43-101 who has reviewed the technical disclosure in this press release. References to Forum Uranium Corp and scientific results contained herein have been reviewed and approved by Richard Mazur, P. Geo., President & CEO of Forum Uranium Corp and a Qualified Person as defined by National Instrument 43-101.

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the terms of the proposed acquisition, the execution of a definitive agreement with respect to the proposed acquisition; , exploration prospects, requirements for additional capital and regulatory approvals. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; competition; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

To view a map of the North Thelon Project, please visit the following link: http://media3.marketwire.com/docs/May_5-CHX_North_Thelon_Project.pdf.

To view a map of the North Thelon Project, Nunavut Canada, please visit the following link: http://media3.marketwire.com/docs/May_5-CHX_North_Thelon.pdf.

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.

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