Western Uranium Corporation

Western Uranium Corporation

October 14, 2009 08:30 ET

Western Uranium Corporation Enters Into Agreement With AuEx Ventures for New Iron Oxide Copper Gold District in Spain

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2009) - Western Uranium Corporation (TSX VENTURE:WUC) ("Western" or "the Company") is pleased to announce the Company has entered into an Option Agreement with AuEx Ventures, Inc. (XAU) to earn a 70% interest in the Baza property in south east Spain. Western believes after review of the data and site visit that this project offers exceptional potential for discovery of one or more significant gold and copper deposits as the area exhibits characteristics associated with Iron Oxide Copper Gold (IOCG) deposits. The most advanced prospect area, Cerro del Gallo has yielded gold and coppers values in rock samples ranging from 1.53 g/t Au and 0.33% Cu over 1.2 meters to 6.8 g/t Au, and 1.86% Cu over 3.4 m from mineralized structures and prospects along a 2 km strike length. Individual rock chip samples have returned gold values up to 20.0 g/t and copper values up to 10%. The Company believes this property represents a rare and unique opportunity to explore a property with widespread indications of hosting a large mineralized system that has not been subject to modern exploration methods (Refer to attached map).

The expansion of exploration into gold and copper provides important diversification into the rapidly rising gold market and as the economic recovery continues, into the base metal arena. Management believes both commodities have potential to provide nearer term value to shareholders and spreads the risk from focusing solely on one commodity. In addition, WUC is very pleased to have AuEx as a partner. AuEx has a successful track record of acquiring properties of merit and has a management and technical team that WUC management has known for a number of years. 

The project is in a region that was historically mined for iron with the last iron mine closing in 1992 but there are no records of copper and gold being exploited. Significant quantities of gold and copper are found in many samples taken from various small mine workings and dumps scattered over the entire 25 kilometer length of the project area, suggesting that both commodities were not recovered during any of the historic periods of small scale mining activity. Currently two areas have been identified that with some additional field work will be drill ready by first quarter of 2010. Due to the large size of the property and the number of areas that have significant amounts of mineralization at surface, drilling programs will be conducted in several phases. The first phase of drilling will be focused on testing the near surface gold/copper target at Cerro del Gallo. A ground magnetic survey is currently underway over this location which will supplement the geochemistry and geologic mapping to assist in defining drill targets. A larger airborne survey designed to cover the entire project area is in the planning stages and will be initiated in the near term.

WUC has the right to carry EuEx (a wholly owned subsidiary of AuEx) through bankable feasibility on any given exploration permit to earn up to 70% of the project and by paying an aggregate of US$400,000 to AuEx of which US$100,000 has been paid. To maintain the option US$100,000 must be paid on the first, second, and third anniversaries of the Agreement to AuEx and minimum annual expenditures must be incurred at the rate of:

€$500,000 on or before the first anniversary;

€$600,000 on or before the second anniversary;

€$1,000,000 on or before the third anniversary;

€$500,000 in each subsequent year until such time as a bankable feasibility study is obtained in respect of a particular Permit;

If WUC spends at least €$3,000,000 on any given Exploration Permit or Application, it is entitled to a 5% NSR which reduces to a 1% NSR after €$6,000,000 in payments.

The Company is very excited about the potential of the project and believes the terms to acquire a 70 % interest are reasonable. WUC believes this is a great opportunity to have acquired a property that exhibits this level of potential at such an early stage with minimal exploration undertaken to date.

Elsewhere the Company is currently drilling several core holes to test a newly defined area, JJ, for uranium mineralization at the Kings Valley Property, Nevada. This is an area that lies approximately 3 km to the east-southeast of the known Moonlight Zone. Surface sampling in soils and rocks along with a radon track-etch survey has revealed anomalous levels of radioactivity. Three to four holes are planned as a first pass test to gather geologic information and determine the controls on potential mineralizing sources. 

All assay results have been received for the drilling on the Albisu gold target at the north end of the Kings Valley project. As with the other reported results, the outstanding intervals returned scattered, low grade (0.10 – 0.50 g/t) of gold mineralization along with elevated levels of pathfinder elements such as mercury and arsenic. The most significant zone intercepted was in ALB-014, 119.0 m – 120.5 m of 2.87 g/t gold. Due to the amounts of gold, albeit low grade and scattered, the Company believes this area warrants further examination and is currently evaluating the next course of exploration which may include seeking a joint venture partner for this area. 

About the Company

Western Uranium Corporation is a mineral exploration company. The Company has exploration properties in Nevada, New Mexico and in the Thelon Basin, Nunavut. The Company has its head office in Vancouver, Canada; its executive management team is based in Reno, Nevada.

The contents of this press release were reviewed by Ms. Pamela Klessig for WUC. Ms. Klessig has sufficient experience to review this release and is a Qualified Person as defined by NI 43-101.

To view the map associated with this press release, please click on the following link: http://media3.marketwire.com/docs/wuc1013.jpg

On behalf of the Board of Western Uranium Corporation

Pamela J. Klessig, President & CEO

The TSX Venture Exchange has neither approved or disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as such 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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