Global Uranium Corporation

Global Uranium Corporation

May 25, 2006 09:00 ET

Global Uranium Acquires Option on Orchid Lake Uranium Property from Forum Development Corp.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 25, 2006) - Global Uranium Corporation (TSX VENTURE:GU) and Forum Development Corp. (TSX VENTURE:FDC) are pleased to announce a letter of intent to enter into an exploration agreement on Forum's 100% owned Orchid Lake Uranium Property, located 20 kilometres west of the Key Lake Mine/Mill Complex in the prolific Athabasca Basin of northern Saskatchewan. The Orchid Lake property is interpreted to lie on an ENE structure that hosts the Key Lake uranium deposit that had an average grade of 2.45% U3O8. The Key Lake mine was discovered by Uranerz Exploration and Mining Ltd. ("UEM") in 1976 and produced over 195 million pounds of uranium from 1983 to 1997. The Key Lake Mine/Mill complex is jointly owned by Cameco Corporation and COGEMA Resources Inc.

The property was staked by Forum based on a review of historical exploration data and its strategic location in proximity to the Key Lake Mine. During the 1970-1980 period, UEM carried out exploration work and identified anomalous uranium in lake sediments near Orchid Lake. Subsequent radiometric prospecting discovered pegmatitic boulders with narrow bands of graphitic gneiss grading up to 0.1% U3O8.

In November 2005, Forum conducted a helicopter-borne VTEM survey by Geotech Ltd. over the 5,285 hectare property. Over 300 line kilometers of surveying were completed at 200 metre line spacings. A two km, ENE trending, strong EM conductor coincident with an ENE magnetic low on the Orchid Lake property is interpreted as the southern limb of tightly folded and dislocated Wollaston metasediments. In addition, a further 10 km long, arcuate, east-west to northeast trending graphitic basement-type conductor was delineated at the boundary between granite and metasediments. The anomalous uranium boulder mineralization, lake sediment geochemistry and electromagnetic conductive horizons are considered highly prospective for economic uranium mineralization.

Global can earn a 60% interest in the Orchid Lake property by making cash payments of $190,000, issuing 700,000 common shares of Global to Forum and incurring a $2.25 million exploration commitment over a three year period. Forum will be the Operator of the project until Global earns its 60% interest, at which time, a formal joint venture agreement is entered into by both parties. Global can earn a further 10% interest by committing to a development drilling program and completing a bankable feasibility study. Forum shall retain a 3% Net Smelter Return royalty interest, with Global having the right to buyback 1% of the royalty for $1 million cash and a further 0.5% of the royalty for another $1 million cash payment. George Heard, the President, CEO and a director of Global and Anthony Balme, a director of Global, are also directors of Forum. As such, the transaction is considered a non-arm's length transaction and is subject to approval by TSX Venture Exchange.

Interpretation of the airborne magnetic and electromagnetic survey is underway. Global plans to conduct a summer geological mapping, radiometric prospecting and lake sediment sampling program to better define targets for a planned 1,500 m drill program to be conducted in the winter of 2006/2007.

The Company is an early stage uranium exploration and development company focusing on properties located in the southwestern United States with special emphasis on Utah.


George W. Heard, President & CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Global Uranium Corporation
    George W. Heard
    President & CEO
    (604) 377-0489
    (604) 605-0009 (FAX)