Anglo-Canadian Uranium Corp.
TSX VENTURE : URA

Anglo-Canadian Uranium Corp.

August 10, 2006 09:15 ET

Anglo-Canadian Uranium Corp.: Acquisition of Uranium Claims in New Mexico

CALGARY, ALBERTA--(CCNMatthews - Aug. 10, 2006) - Anglo-Canadian Uranium Corp. (TSX VENTURE:URA) is pleased to announce the acquisition of 95 claims of uranium bearing lands located in the Grants Uranium District and Ambrosia Lake Region in North Western New Mexico, USA. This project, known as the O8 property, consists of 1920 acres and is adjacent to a previous producing uranium mine for a major mining company. This region was the largest producer of uranium in the United States from 1952 to the mid 1980's, with documented past production of over 340 million pounds of U3O8 during this period. Production in this region was suspended in the 1980's due to low uranium prices, and has recently seen an increase in exploration and development activity as uranium prices appreciated. Management intends to investigate the permitting process and review environmental issues during the next 90 days required for an assessment of mining operations. It is expected that company personnel with experience in uranium development and mining will visit the property during this period as well.

The Grants Uranium District extends for almost one hundred miles in a band five to fifteen miles wide, with sandstone formations containing uranium mineralization. During periods of operation the Grants Uranium District was home to the largest producing uranium mine in the United States, which recovered one thousand tons of ore per day yielding four pounds per ton. The Ambrosia Lake region was highly active in uranium mining, having 15 head frames scattered over the region until the mid 1980's. Ambrosia Lake is also home to one of the largest uranium mine complexes in the United States, and it continues to extract uranium from groundwater that flows through the mineshafts under a regional valley. Several well known mining companies operated in the region during the peak of uranium activity.

New Mexico was a prominent area of uranium mining in its peak, with seven uranium mills operating in the Grants Uranium District. Numerous public and private companies operate in the region today, with two companies actively involved in permitting their properties for production.

Purchase of this acquisition will be facilitated through the payment of $26,000 US, the issuance of 200,000 common shares, and a Net Smelter Return Royalty of 2%. Anglo Canadian has the right to purchase each 1% Net Smelter Return Royalty for a price of $300,000 US at any time.

This acquisition is subject to TSX Venture Exchange approval.

About Anglo-Canadian Uranium Corp.

Anglo-Canadian is an aggressive uranium and gold exploration company with several properties located in Canada and the United States. The Company's current projects include uranium projects located in Colorado, Utah, New Mexico and Quebec, and gold projects in British Columbia. The Company's mission is to acquire uranium and gold deposits in strategic locations through acquisition and option arrangements, and further develop these projects with experienced management teams.

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

Contact Information

  • Anglo-Canadian Uranium Corp.
    Len J. Harris
    President
    (604) 669-6807 or Toll Free: 1-866-488-3838
    Email: len@anglocanex.com