Delta Uranium Inc.
TSX : DUR

Delta Uranium Inc.

April 21, 2009 12:52 ET

Delta Enters Into Agreement With Citabar Limited Partnership and Citadel Gold Mines Inc.

TORONTO, ONTARIO--(Marketwire - April 21, 2009) - Delta Uranium Inc. (TSX:DUR) ("Delta is pleased to announce that its wholly owned subsidiary, Delta Precious Metals (Ontario) Inc. ("Subco") has entered into an option agreement dated April 16, 2009 (the "Option Agreement") with Citabar Limited Partnership ("Citabar") and Citadel Gold Mines Inc. ("Citadel") whereby Subco will have an option to earn an undivided 60% interest (the "Option") in certain patented and leased mineral claims located two kilometres East of Wawa, in the Province of Ontario (the "Wawa Claims").

The Wawa Claims are registered in the name of Citadel who holds them in trust for Citabar pursuant to a trust agreement. Ownership in the Wawa Claims will automatically be transferred to Citabar and to Subco, in the event that the Option is exercised, upon the Ontario Ministry of Northern Development and Mines ("MNDM") giving its consent and approval to:

(i) the transfer of the Wawa Claims from Citadel to Citabar; and

(ii) the removal of Citadel as a proponent of the Wawa Claims, which is expected to be provided by the MNDM at such time as the MNDM approves the updated closure and site restoration plan, and receives on deposit the required site rehabilitation monies to be held in escrow, relating to the Wawa Claims.

In the event that the Option is exercised prior to the receipt of MNDM's consent and approval, Citadel will hold Subco's interest in the Wawa Claims in trust.

Pursuant to the Option Agreement, Subco will earn an undivided 60% interest in the Wawa Claims upon the following:

(i) pay to Citabar an aggregate of $100,000 of which $50,000 will be held in escrow until such time that MNDM provides its consent and approval;

(ii) expend an aggregate of $8 million on exploration expenses on the following terms and conditions:

(a) $500,000 by April 16, 2010;

(b) $1,500,000.00 by April 16, 2011;

(c) $2,000,000.00 by April 16, 2012; and

(d) $4,00,000.00 by April 16, 2013, and

(iii) subject to the approval of the TSX, Delta issuing an aggregate of 1,000,000 common shares (such shares to be held in escrow until such time that MNDM provides its consent and approval) to Citabar on the following terms and conditions:

(a) 250,000 shares on the execution of the Option Agreement

(b) 250,000 shares by April 16, 2010;

(b) 250,000 shares by April 16, 2011; and

(c) 250,000 shares by April 16, 2012.

Further to its press release dated February 26, 2009, the Option Agreement will form part of the consideration to be acquired by Carlisle Goldfields Limited ("Carlisle") pursuant to the proposed business combination (the "Transaction") whereby Carlisle is to acquire all of the issued and outstanding securities of Subco. For complete details of the Transactions, investors are encouraged to review Delta's press release dated February 26, 2009.

Delta will not be receiving any additional consideration from Carlisle for the Option Agreement. Delta was already in negotiations with Citabar and Citadel for the Wawa Claims when it entered into the Transaction with Carlisle and it was always the intention of Delta to include the Option Agreement in the Transaction. Management of Delta is of the view that the true value of the Wawa Claims will be best developed by Carlisle and the shareholders of Delta will have an indirect ownership in the Wawa Claims through Delta's ownership of 4 million shares in the capital of Carlisle. The Transaction will allow Delta to focus its resources and attention on its various uranium properties while having an indirect ownership in the Wawa Claims.

Wayne Isaacs, President and CEO, stated that "I am pleased that we have completed the final stages of the Option Agreement with Citabar and Citadel with respect to the Wawa Claims. I am looking forward to the completion of the proposed Carlisle transaction, in which Delta contributed a significant gold asset consisting of 8 past producing properties in a well known historical gold mining camp. The proposed business combination of the Carlisle and Delta gold assets will result in an advanced gold exploration and near term gold production company of which Delta will own 4 million shares. As previous stated, the prospective value of these shares will provide Delta with an ability to finance in this difficult market without dilution and, this should have a positive impact on shareholder value."

Information on the Wawa Claims

The Wawa Gold Property encompasses 2,345 hectares in McMurray Township, between 2 and 10 kilometres southeast of the town of Wawa, Ontario. Over 95 percent of the property consists of leases and/or patents for both mineral and surface rights. Between 1902 and 1991, over 120,000 ounces of gold were produced from the property, in eight separate mining operations. The most important mineralized zone on the property is the Jubilee-Surluga zone, a large-tonnage, low-grade gold deposit. Attempts to selectively mine higher-grade sections within this low-grade zone were made in the 1950s, 1960s and 1980s, with limited success. A non 43-101 compliant historical resource estimate from 1997 is 525,000 ounces of gold with a grade of 1.75 grams per tonne gold (g/T Au) using a cutoff of 1.03 g/T Au, to a depth of 350 metres.

In 2007, Citabar carried out a program of surface diamond drilling to test the Jubilee-Surluga gold zone at depth. Three holes intersected significant gold values at depths between 500 and 600 metres:



DDH 07-393: 1.70 metres of 10.67 g/T Au
DDH 07-391: 3.30 metres of 11.43 g/T Au
DDH 07-389: 3.10 metres of 7.50 g/T Au


These intersections indicate that the Jubilee-Surluga zone appears to become narrower and higher-grade at depth, a configuration that has positive implications for the possible development of an underground-mineable resource below the near-surface lower grade portion of the deposit.

The Wawa property also includes claims held under option by Citadel and Citabar (the "Van Sickle Option"). Exploration on the Van Sickle Option in the 1990s resulted in the discovery of a number of high grade gold-bearing veins in trenches and shallow diamond drill holes. Individual surface grab samples assayed up to 325 g/T Au. Channel samples gave up to 129 g/T Au over 1.83 metres. Diamond drill holes gave up to 29.9 g/T Au over 2.5 metres and 758 g/T Au over 0.30 metres.

Before commencing additional diamond drilling on the Wawa property, Delta plans to compile the historical data on the property, including resampling selected parts of core from the approximately 90,000 metres that have been drilled to date. This compilation will allow the definition of a 43-101 compliant resource estimate for the Jubilee-Surluga zone, as well as 3-D modelling that will help guide further drill programs.

Options Re-Issued

Delta also wishes to announce that it has re-issued 1 million options to officers and consultants that were expired on December 2008. All options have a 2-year term and are exercisable at $0.40.

Qualified Person

Technical information in this news release has been prepared and/or reviewed by Colin Bowdidge, Ph.D., P.Geo., V.P. Exploration, Director and Qualified Person as defined in NI 43-101 for Delta. For the purposes of providing information relating to the Wawa Gold Property, Delta is relying on information provided to it by Citabar. All information pertaining to the Wawa Gold Property was derived from historical geological reports and does not presently conform to the standards as outlined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

About Delta Uranium Inc.

Delta Uranium is TSX listed Canadian exploration company actively engaged in the acquisition, evaluation and exploration of uranium mineral properties in northeastern and northwestern Ontario, and Western Newfoundland, Canada.

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

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