Forum Development Corp.

Forum Development Corp.

February 06, 2006 04:00 ET

Forum Acquires Saskatchewan Uranium Project from Cameco

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 6, 2006) - Forum Development Corp. (TSX VENTURE:FDC) is pleased to announce that it has entered into an agreement with Cameco Corporation ("Cameco") to purchase Cameco's 65% interest in the Costigan Lake Uranium Joint Venture. The property comprises a 743 hectare mineral lease strategically located 14 kilometres (km) southwest of the Cameco/COGEMA Key Lake Mine and Mill complex in the Athabasca Basin, northern Saskatchewan.

Forum has acquired Cameco's combined 65% interest in the Costigan Lake Joint Venture through Cameco's 50% direct interest and its 15% indirect interest through Cameco's wholly-owned subsidiary Central Electrical Generating Board Exploration Ltd. ("CEGBE") for a cash payment of $22,975. Closing of the transaction is scheduled for February 15, 2006. Forum will be the operator and NVI Mining Ltd. ("NVI"), a wholly-owned subsidiary of Breakwater Resources Ltd. ("Breakwater"), will maintain a 35% interest in the joint venture.

Richard Mazur, Forum's President and CEO stated, "The Costigan Lake property is well located in the primary producing trend of the Athabasca Basin and is in close proximity to our existing Key Lake Road project. This is an exceptional advanced-stage project with a number of good exploration targets that remain untested. These targets meet the criteria of Forum's exploration model in search for basement-hosted uranium deposits located at or near-surface in the Key Lake Mine area. We are pleased to have established commercial relationships with Cameco and the Company is looking forward to working with Breakwater on its near-term work programs at Costigan Lake."

Exploration Plans

Forum and NVI are planning an immediate ground geophysical and drill program to be completed on the property during February/March 2006. A geophysical crew will be mobilizing to the property to conduct 45 line km of MaxMin horizontal loop EM surveying in advance of the proposed drill program. A drill contract is currently being negotiated for a minimum of 1,000 metres (m) of drilling which is expected to commence in March 2006.

Historical Work

The conductive trends on the Costigan Lake property are the southern extension of the graphitic metapelite horizons that host the Key Lake uranium deposits which produced 200 million pounds of uranium grading 2.45% U3O8 from 1983 to 1997. From 1978 to 1981, 23 diamond drill holes tested a limited area along a 7.5 km long NNE trending conductor on the property. Uranium mineralization grading 0.43% U308 over 0.36 metres (m) was encountered in one hole at a depth of 112 m within a 3.5m wide clay altered and fractured chlorite-graphite gneiss. Multiple NNE conductors in Wollaston transition rocks on the property are interpreted as zones of thrusting adjacent to the Archean Key Lake Dome. Excellent exploration targets exist where ENE structures parallel to the productive ENE Key Lake Mine structure also transect these conductive trends on the Costigan Lake property.

Richard Mazur, P. Geo. and President & CEO of the Company and Dr. Boen Tan, P. Geo. (Saskatchewan), Forum's Chief Geological Consultant, are the Qualified Persons supervising the evaluation of Forum's uranium exploration projects and have reviewed all technical data related to the Costigan Lake Joint Venture.

Forum Development Corp. is a Canadian-based energy company with a focus on the acquisition, exploration and development of energy projects. The Company has a 100% interest in over 160,000 hectares of uranium exploration properties located in the prolific Athabasca Basin, Saskatchewan. Forum is also evaluating a Coalbed Methane (CBM) project in the Merritt Coalfield in southern British Columbia. For further information about Forum, visit our website at


Richard J. Mazur, P.Geo., President & CEO

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

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