SOURCE: Raytec Development Corp.

January 16, 2008 12:29 ET

Raytec Metals Corp. Announces: Work Commences on Athabasca Properties

VANCOUVER, BC--(Marketwire - January 16, 2008) - Raytec Metals Corp. (the "Company") (TSX-V: RAY) (FRANKFURT: XZT) has been advised by Solitaire Minerals Corp. (TSX-V: SLT) of the commencement of a work program on the "D" and "C" claim blocks located near Key Lake in the Athabasca Basin of Saskatchewan. The three mineral claims known as the "D" block consist of approximately 14,415 hectares and the seven mineral claims known as the "C" claim blocks comprise approximately 3,913 hectares in area. The claims are held by Raytec Metals Corp., with an option agreement in favour of Solitaire Minerals Corp.

Solitaire Minerals Corp. has contracted Durama Enterprises Ltd. of La Ronge, Sask., to conduct extensive ground geophysics on the claim parcels. This program will commence during approximately the week of Jan. 21, 2008.

At the Little Cree River claim group (D block of claims), located 45 kilometres west of the McArthur River uranium mine site, a detailed airborne magnetic and VTEM survey was conducted by Geotech Ltd. in 2006. Condor Consulting Ltd., a recognized expert in the field of airborne electromagnetics, performed detailed interpretation of the results and provided final conclusions regarding the significance of the survey. The program at Little Cree will involve grid establishment and UTEM surveys to pinpoint the strongest conductive response for location of possible drill targets.

A prominent magnetic low extends through the central and eastern part of the block with localized highs on the western and eastern sides of the survey area. A VTEM anomaly sits directly over a portion of the magnetic low where the strike changes from north-northeast to east-southeast suggesting there may be an underlying folding event in the basement. The CDS section shows that the conductive zone is very close to the unconformity surface and is seen as the best chance of representing a basement conductor.

The C5 claim area is located 24 km southwest of the McArthur River uranium mine and is situated over 4.5 km of the nine-kilometre-long WV trend identified by Cameco in its Wheeler River project area. The original Wheeler River project outlined anomalous uranium and rare earth elements in many zones from Wheeler Lake in the southwest, to the McArthur River uranium mine in the northeast. The project area is situated along the P2 rift, which extends northeast through the basin and hosts the McArthur River uranium mine, and other zones.

On the C5 claim the main structural feature is a thrust fault that vertically offsets the unconformity by approximately 72 metres. This thrust likely forms the locus for the circulation of hydrothermal alteration and mineralizing fluids. A series of basement step faults, which are reflected in the sandstone by a series of splay faults, have resulted in the basal sandstones being fractured into a series of rotated blocks. The VTEM results show a conductive response that appears to extend well above the indicated unconformity level but as well extends well into what is interpreted to be bedrock.

The current program on the C5 claim will involve grid establishment and UTEM surveys to pinpoint the strongest conductive response at the unconformity and deeper into the basement for location of possible drill targets.

About the properties

The 10 uranium properties total 18,328 hectares. The D parcel is located approximately 40 km west of the McArthur Lake uranium mine, and constitutes a total of three contiguous claims. The C parcel constitutes a total of seven non-contiguous claims, and stretches from C7, which lies approximately 10 km west of the Cigar Lake uranium mine, to C1, C2 and C3, which are located within 25 km and as close as eight kilometres from the Key Lake uranium mine, where historical production from two mined-out unconformity-type uranium deposits once contributed 15 per cent of world uranium production (reference -- Natural Resources Canada). All of the claims are located within or proximal to the Key Lake/McArthur River and Cigar Lake geological trend. The claims are situated within the Athabasca basin, underlain by rocks of the Wollaston domain, which is the favourable geological setting hosting most of the major deposits in the eastern portion of the basin.

During the past year, an airborne VTEM and magnetic survey, performed by GeoTech, was performed over the entire property package, identifying a priority 1 basement target on the D blocks, and identifying priority 1 shallow targets on five of the seven C blocks. In addition, other priority 2 and 3 targets were identified on both the C and D blocks. Results of the airborne survey have been compiled and interpreted and have been incorporated into a technical report in compliance with National Instrument 43-101, which has been filed by Raytec on SEDAR.

We seek Safe Harbor.

On behalf of the Board,

RAYTEC METALS CORP.

Per:

Brian Thurston, President

Cautionary note: This report may contain forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 43-101 report on the Key Lake properties. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

Contact Information

  • RAYTEC METALS CORP.
    Suite 1130 - 789 West Pender Street
    Vancouver, BC, V6C 1H2
    Tel: (604) 669-9330
    Fax: (604) 669-9335