Consolidated Abaddon Resources Inc.
TSX VENTURE : ABN

Consolidated Abaddon Resources Inc.

June 06, 2006 08:30 ET

Consolidated Abaddon Resources Inc.: Option Agreement Signed with International Uranium Corp., Exploration Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 6, 2006) - Consolidated Abaddon Resources Inc. (TSX VENTURE:ABN) announces that a formal Option Agreement has now been signed with International Uranium Corporation (TSX: "IUC") pertaining to Consolidated Abaddon's Sims Lake mineral claims totaling 4,390 hectares located northwest of Churchill Falls in west Labrador, Canada. (See News Release February 23, 2006)

IUC has been granted the sole and exclusive right and Initial Option to acquire a 51% interest in the uranium rights to the Sims Lake property over a period of 2 years. As consideration for the grant of the Initial Option, IUC has paid Consolidated Abaddon the sum of $20,000 and must incur exploration expenditures in the amount of $225,000 on or before January 2007, and pay the sum of $20,000 and incur exploration expenditures in the amount of $225,000 on or before January 2008.

Provided IUC has exercised the Initial Option, IUC shall be entitled to acquire an additional 24% interest in the Sims Lake property to bring its total interest in the property to 75%. As consideration for the grant of the Second Option, IUC shall incur exploration expenditures on the Property of $1,000,000 on or before January 1, 2010.

The Sims Lake property covers parts of the known Sims geological formation where uranium was discovered near the Sims - Knob Lake Group unconformity in the early 1980's. The Sims formation is a flat lying clastic sequence of late Proterozoic age that overlies deformed sediments of the early Proterozoic Knob Lake Group. The similarity in ages and relationships between these groups of rock makes the setting analogous to many other Proterozoic basins around the world that host 'unconformity-type' uranium deposits, most notably the Athabasca Basin of Northern Saskatchewan. The depth to the unconformity in the Sims Lake basin, however, is only 50 to 150 metres deep.

Consolidated Abaddon is also pleased to provide an update on exploration of its uranium projects in the Sims Basin of Western Labrador and the Athabasca Basin of Northern Saskatchewan.

SIMS BASIN, LABRADOR

Location Map: http://www.consolidatedabaddon.com/i/maps/ABN-Sims-Gabbro.jpg

Consolidated Abaddon's Sims Lake Uranium Project (4,390 hectares), under option to International Uranium Corporation ("IUC") as operator, is located between the towns of Churchhill Falls and Wabush in west central Labrador.

A summer 2006 field exploration program is scheduled to commence approximately July 15, 2006. IUC has committed to undertake a detailed HLEM geophysical survey (28 km) to ground proof and further delineate drillable targets defined from the recent Airborne Geophysical Survey conducted by Consolidated Abaddon. Cable spacing will be 200 metres and conducted over a strike length of 2 kilometres.

This program will be immediately followed by a Phase 1 drill program consisting of a minimum of 650 metres in three holes. These holes are designed to test conductors intersecting the unconformity. It is believed that the depth to the unconformity is not more that 150 metres. A composite geochemistry survey for uranium content in known boulder trains will be conducted in conjunction with the geophysical survey and the impending drill program.

ATHABASCA BASIN, SASKATCHEWAN

Location Map: http://www.consolidatedabaddon.com/i/maps/ABN-Huard-Kirsch.jpg

Consolidated Abaddon's Mann Lake Uranium Project (3,500 hectares) is under option to Triex Minerals Corp. (TSX: TXM) as operator and is located on strike to the immediate north (12 km) of the newly discovered Millennium Uranium Project and to the south (25 km) of the high-grade uranium producing McArthur River Mine operated by Cameco Corporation.

To date, detailed gravity coverage in the Marean Lake area on the Mann Lake property has mapped 5 geophysical features which could represent reactivated basement structures extending through the 600 metre thick Athabasca Group sandstones.

Triex Minerals has now completed a second gravity survey to compliment the original surveys. Final processing of all gravity data and integration with the TEM Data from the past winter programs is in the final stages of interpretation. The Company expects to have a complete and final report on all data from the past winter's work within a few weeks.

Triex Minerals has also now completed a detailed time domain EM survey over the northern 3/4's of the Mann Lake property using the Geotech V-TEM system to cover historic geochemical anomalies. The survey was designed to map magnetic, conductivity, and resistivity features. All data from this airborne survey is now being analyzed and preliminary results are in-hand. This survey was scheduled for March but was delayed due to interference from ground geophysics being carried out by Cameco Corporation on their property adjacent to the eastern border of Consolidated Abaddon's Mann Lake property. Cameco continues to carry out detailed geophysical surveys on their property immediately adjacent to the Mann Lake property.

Follow-up drilling later this summer/fall season or the winter of 2007 is anticipated for the Mann Lake property once all data sets are integrated and drill targets prioritized.

Consolidated Abaddon's Huard-Kirsch Lakes Uranium Project (13,400 hectares) is under option to International Uranium Corporation (TSX: IUC) as operator and is situated approx. 20 km to the NW of Cameco Corporation's high-grade McArthur River Uranium Mine.

International Uranium Corporation ("IUC") has established a 65 km line cut grid on the Huard-Kirsch property as a follow up to an airborne survey that was completed by Consolidated Abaddon in 2005. IUC has now completed an HLEM (Horizontal Moving Loop) survey, an Audio Magneto-Tellurics Geophysical Survey, and testing of the IP Resistivity using a Titan 24 System to further enhance the airborne geophysical data. IUC is currently awaiting final results and comprehensive reports covering all of the geophysical surveys to date. International Uranium Corp. is preparing a summer geological exploration program for June - July on the Huard-Kirsch Lakes property. A boulder Geochemistry Survey of the entire project area is planned. IUC is anticipating mobilizing their field crews into the Athabasca Basin on June 1, 2006. If the geophysics and the summer program substantiate the recent geophysics, IUC will be prepared to drill the Huard-Kirsch Lakes project next winter.

BHP Billiton and Gallery Resources have failed to exercise their option to earn a 51% interest in all "non-uranium" minerals on the Company's Sims Lake and Gabbro Lake properties in Labrador, and therefore the agreement has terminated.

Consolidated Abaddon Resources Inc. is a Canadian uranium exploration company actively involved with the development of uranium properties in the ATHABASCA BASIN of northern Saskatchewan and the SIMS BASIN of west Labrador. The Company is also developing a gold property in the RED LAKE MINING DISTRICT of northwestern Ontario.

For further information on Consolidated Abaddon Resources Inc. (TSX.V: ABN), visit the Company's web site at www.consolidatedabaddon.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"Jim Pettit"



James G. Pettit
President


This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • Consolidated Abaddon Resources Inc.
    James G. Pettit
    President
    (604) 687-3376 or Toll Free: 1-800-567-8181
    (604) 687-3119 (FAX)
    or
    Consolidated Abaddon Resources Inc.
    Don Myers
    Director
    (604) 687-3376 or Toll Free: 1-800-567-8181
    (604) 687-3119 (FAX)
    Email: info@consolidatedabaddon.com