Hawk Precious Minerals Inc.
CNQ : HAWK

Hawk Precious Minerals Inc.

March 06, 2007 09:26 ET

Hawk Precious Minerals Inc. Options Additional Interests Contiguous to its Grand Calumet Uranium-Fluorite Property

TORONTO, ONTARIO--(CCNMatthews - March 6, 2007) - Hawk Precious Minerals Inc. (CNQ:HAWK) (the "Company") is pleased to announce that it has signed an option agreement dated March 5, 2007 with A Better Search inc. whereby the Company may acquire a 100% interest in 6 registered mining claims and 13 pending mining claims that are located in Grand Calumet Township, Quebec and are contiguous to claims over which the Company already has an option. The Company's interest would be subject to a 2% net smelter return royalty (subject to certain buy-back provisions which are described in the Form 9 filed with the CNQ with respect to the option agreement, as well as in the underlying option agreement).

In order to earn the option, the Company must pay A Better Search inc. a total of $100,000 (of which $50,000 is payable immediately), issue a total of 1,100,000 common shares in the capital of the Company (of which 300,000 common shares are issuable immediately) and incur an aggregate of $100,000 of work costs.

The cash and share payments are due in the following amounts by the following dates:

- $50,000 in cash and 300,000 common shares are due immediately;

- $25,000 in cash and 300,000 common shares are due by September 15, 2007; and

- $25,000 in cash and 500,000 common shares are due by February 28, 2008.

The Company must incur the following work costs by the following dates:
- $50,000 by September 15, 2007; and

- an additional $50,000 by February 28, 2008.

If the Company determines not to proceed with the acquisition of the option from A Better Search inc., it is nonetheless required to incur at least $50,000 of work costs.

A Better Search inc. has undertaken to register the 13 pending mining claims within 120 days of the date of the option agreement.

The Company is reviewing the 19 mining claims that are subject to the option agreement, and will complete other appropriate due diligence. A Better Search inc. also made representations regarding the mining claims in the option agreement. Pursuant to the option agreement, the Company has a 60 day period to evaluate the claims and determine whether it is satisfied with their condition. If the Company is not satisfied with the results of its investigation, during the 60 day period it may terminate the option agreement and have any payments made by it to A Better Search Inc. refunded.

The Grand Calumet Uranium-Fluorite property is situated in Grand Calumet Township (31F15) approximately 35 km northwest of Hull, Quebec and Ottawa, Ontario. The property was worked initially between 1953 and 1954 by Calumet Uranium Mines Ltd. during which period diamond drilling and scintillometer surveys outlined two uranium-fluorite zones. Mapping, stripping, surface sampling and a small bulk sample (680 kg grading 0.10% U3O8 and 0.15% ThO2) further defined the mineralization with individual grab samples ranging up to 4% U3O8 and 20% ThO2. The mineralization is described as being highly erratic in nature. Calumet Uranium Mines Ltd. reported a resource of 490,000 tons averaging 0.05% U3O8 and 0.15% ThO2 on one area of the property (Quebec Geological Report 80, 1958).

Quebec government files (Cogite 31F/15-0026) report a historical non NI 43-101 conformable calculated tonnage of 1 million tonnes grading 0.08% U3O8, 0.29% ThO2 and 10% to 15% fluorite referencing Albarmont Inc.'s 1983 annual report. This historical reference has not been independently verified by the Company.

About the Company

The Company has both direct or option interests in a mineral property in Quebec, two mineral exploration properties in Ontario and a petroleum and natural gas property in Ontario, plus a core holding of approximately 3.48 million shares in Wits Basin Precious Minerals Inc. (OTCBB:WITM), which company is currently funding a mine rehabilitation in Colorado USA and a gold exploration program in South Africa operated by AfriOre Limited, and approximately 1 million shares and 2 million warrants of MacDonald Mines Exploration Limited (TSX VENTURE:BMK), which company is carrying out an active exploration program in the McFaulds Lake area of the James Bay Lowlands, the site of a new potential VMS base metal play.

CAUTIONARY STATEMENT

The CNQ does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements or historical fact included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and results to differ materially from the Company's expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.

Contact Information

  • Hawk Precious Minerals Inc.
    H. Vance White
    President
    (416) 214-2250 or 1-866-214-9486
    (416) 367-1954 (FAX)
    or
    Hawk Precious Minerals Inc.
    Walter Brooks
    Chief Financial Officer
    (416) 214-2250 or 1-866-214-9486
    (416) 367-1954 (FAX)
    Email: info@hawkpreciousmeinerals.com
    Website: www.hawkpreciousminerals.com