Delta Uranium Inc.
TSX : DUR
July 21, 2009 09:15 ET
Delta Uranium Acquires Contiguous Claims to Denison Mines Phoenix Discovery in the Wheeler River Area of the Athabasca Basin
TORONTO, ONTARIO--(Marketwire - July 21, 2009) - Delta Uranium Inc. (TSX:DUR) ("Delta ") is pleased to announce that it has entered into an Option Agreement dated July 16, 2009 (the "Option Agreement") with Solitaire Minerals Corp. (TSX VENTURE:SLT) ("Solitaire") whereby Delta will have an option to earn up to an undivided 75% interest (the "Option") in Solitaire's 447 hectare Wheeler River C4 Project, 1,016 hectare Wheeler River C5 Project, and the 161 hectare Wheeler River C6 Project (the "Properties") all contiguous with Denison Mines Corp. ("Denison") recently announced "Phoenix" discovery zone.
The "Phoenix" discovery zone located approximately 1km south of the Wheeler River C6 Project host a six meter intercept of massive pitchblende showing a grade of 55% eU3O8 in WR-273 with other significant intercepts of note in WR-274 (3.0 meter interval of 16.9% eU3O8) and WR-272 (2.1 meter interval of 6.75% eU3O8) all at depths of approximately 400 meters. This is the first time intense alteration of this type has been encountered in the basement rocks along the Phoenix mineralized trend (please refer to the June 30, 2009 release by Denison Mines Corp.).
Pursuant to the Option Agreement, Delta will earn an undivided 75% interest in the Properties upon the following:
a) pay to Solitaire the amount of $75,000 and subject to TSX approval, issue to Solitaire 500,000 common shares in the capital of Delta,
b) expend on exploration and development of the Properties the following amounts within the specified time limits:
i) $1,000,000 ("Phase I") on or before December 31, 2010; and
ii) an additional $1,000,000 ("Phase II") on or before December 31, 2011;
c) pay to Solitaire the amount of $100,000 and issue to Solitaire 250,000 common shares in the capital of Delta, upon completion of Phase I but in any event no later than December 31, 2010.;
d) pay to Solitaire the amount of $150,000 and issue to Solitaire 250,000 common shares in the capital of Delta, upon completion of Phase II but in any event no later than December 31, 2011.;
In the event that Delta only completes Phase I, it would have earned an undivided 55% ownership interest in the Property.
The Properties, Wheeler River Blocks C4, C5 and C6 are contiguous with the south-western and north-western edges of the Denison property. Project C3, which was recently optioned by the Company (refer to the release dated, May 27, 2009), also lies along strike with, and approximately 15km from, the Denison Wheeler River property directly to the south-west.
All Projects (C3-6) lie within the same NE-SW trending magnetic lows, characteristic of the Wollaston Domain metasedimentary/metapelitic basement and considered prospective for unconformity and basement hosted uranium deposits. All Blocks were flown with VTEM in 2007 and interpreted by Condor Consulting. All four Blocks exhibited "Priority 1" EM anomalies and are recommended for further work by Condor. For a geophysical map of the area indicating the location of Blocks C3-6 in relation to the Denison Mines "Phoenix" discovery zone please see map below:
Figure 1: Geophysical Map of Wheeler River Area - Projects C3 - C6
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/durfig1.jpg
Wayne Isaacs, Chairman and CEO states, "As previously stated in our press release of May 27, 2009, we acquired the C3 property which was our initial entry into the Athabasca Basin. Now we are firmly entrenched in the Wheeler River Area of the Basin with the addition of Blocks C4, C5 and C6. It seems clear to me that with such a property portfolio located contiguous to Denison's exciting 'Phoenix' discovery, we can look forward to renewed growth of our company alongside the continued growth of the Wheeler River area. We intend to immediately commence work in the area to further define our high value targets and carry out a structured exploration program on these exciting new properties. I am pleased to present this fantastic opportunity to our shareholders who have been so understanding and supportive during this recent economic turmoil."
Other Discoveries of Note in the Claim Area (All data has been sourced from the October 2007, Condor Consulting VTEM EM and Magnetic Survey Report prepared for Raytec Development Corp.):
-The Wheeler River claim area is situated on part of the original Cogema's Martin Lake-Wheeler River grid where drilling 3km to the north intersected 1.6% U3O8 over 5.2 meters and 0.1% U over 4.0 meters in clay alteration above the unconformity.
-2 km to the south, the Cameco-Uranerz Esker Lake grid Drill hole EL-81 encountered sooty pitchblende mineralization within sheared and altered, grey to black, fine-grained graphitic biotite gneiss. Grab samples taken from this zone returned 2,300 ppm U and 3.5% Cu over 0.1 meters. A second hole EL-103, hit a sequence of pegmatoids within arkosic to semipelitic gneiss which returned 1560 ppm U over 0.5 meters. Drill hole EL-105, encountered two major zones of shearing and brecciation with graphite enrichment within chloritized and sericitised gneiss from 200 to 237 meters. Small sooty pitchblende crystals, 10% to massive graphite, plus pyrite and chalcopyrite occur as infillings within the zones of shearing. A 0.1 meter wide grab sample taken from this zone of shear-bound mineralization returned 1660 ppm U. North-northwest shearing was noted which strikes through S-107753, with uranium mineralization discovered within several kilometers on either side.
-5 km to the west, exploration by Phelps-Dodge on the Shift Lake property encountered uranium mineralization within sandstone at 189 meters which returned up to 1.42% U3O8 over 1.0 meter.
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.
Delta is also pleased to announce the closing of its non-brokered private placement financing (the "Private Placement") originally announced by press release on June 2, 2009. The Company raised gross proceeds of $117,000 from subscribers for 1,170,000 units (the "Units"). Each Unit is comprised of one common share in the capital of the Company and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant will be exercisable into one common share in the capital of the Company at any time on or before the date that is two years after the closing of the Private Placement at an exercise price of $0.15 per share.
ECI Investments Inc., an arm's length finder, was paid a finder's fee of $11,700, and was issued a finder's option to purchase up to 117,000 Units, exercisable at $0.11 per Unit at any time on or before the date that is two years after the closing of the Private Placement. All securities issued in the Private Placement are subject to a four-months hold period expiring November 17, 2009. The proceeds of the Private Placement will be used for general corporate purposes.
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, Athabasca Basin and Western Newfoundland, Canada.
The TSX has not reviewed and does not accept responsibility for the adequacy of this news release.