International Uranium Corporation

International Uranium Corporation

June 14, 2005 10:52 ET

IUC Completes Option Agreement on Erdene Mongolia Uranium Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 14, 2005) - International Uranium Corporation ("IUC" or "the Company") (TSX:IUC) is pleased to announce that pursuant to a Memorandum of Understanding with Erdene Gold Inc. ("Erdene") announced on April 5, 2005, IUC has signed formal agreements granting the Company the option to acquire a 65% interest in Erdene's Mongolian uranium properties.

The Erdene properties are situated in the central sedimentary basins of southeast Mongolia which host significant uranium resources and are located proximal to the Trans-Mongolian Railway which enters China 400 kilometres to the south. Erdene has carried out an extensive work program since late April, including field evaluations, scintilometer surveys and sampling over the 1.3 million hectare land package. Multiple uranium occurrences, radiometric anomalies and favourable geology for sediment-hosted uranium deposits have been identified throughout the license areas.

Senior management representatives of Erdene and IUC will be visiting the Mongolian field projects in late June to review progress to date and to formulate the plan for the remainder of this year's field program.

Several of the Erdene properties are in proximity to IUC's (70% interest) known uranium deposits. IUC's past work on these deposits has included nearly 150,000 meters of drilling and operation of two successful in-situ-leach mining pilot tests. The uranium mineralization is hosted in Cretaceous age sediments derived from weathered crystalline basement rocks. Grades are typically in the 0.05 to 0.5% U3O8 range. The deposits are relatively thin tabular bodies and occur at shallow depths (less than 150 meters).

Pursuant to the option agreement, IUC has the exclusive right and option to acquire a 65% interest in the Erdene uranium properties through eligible expenditures of Cdn $6 million over a period of four years. Erdene will be the operator for the first year of the exploration program. In addition, IUC and Erdene have formed a strategic alliance for the purpose of staking additional ground in Mongolia for the exploration of uranium over a three year period. Furthermore, IUC has purchased 1.0 million common shares of Erdene at a price of CDN$1.00 per share by way of private placement. The common shares are subject to a four month hold period.

IUC's President, Ron Hochstein, P.Eng., a Qualified Person pursuant to NI 43-101, has reviewed the contents and technical information contained in this news release.

IUC is engaged in uranium exploration and production. It holds significant uranium deposits in Mongolia and uranium and vanadium deposits in the U.S. and a fully permitted 2,000 ton per day uranium/vanadium mill near Blanding, Utah (one of only two operating uranium mills in the U.S.), as well as uranium exploration properties in the Athabasca Region in Canada. The Company also processes and recycles uranium-bearing waste materials as an environmentally superior alternative to direct disposal. In addition, the Company owns approximately 56% of the outstanding shares of Fortress Minerals Corp., a public company engaged in precious and base metal exploration in Mongolia.

Statements contained in this news release which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium and vanadium; the impact of the sales volume of uranium and vanadium; competition; reliance on income from processing uranium-bearing waste materials; the impact of change in foreign currency exchange rates and interest rates; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; changes to reclamation requirements; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; a possible deterioration in political support for nuclear energy; changes in government regulations and policies, including trade laws and policies; demand for nuclear power; replacement of production and failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; ability to maintain and further improve positive labour relations; operating performance of the facilities; success of planned development projects; and other development and operating risks. Although IUC believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this release. IUC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. United States investors are advised that while the term "inferred" resources is recognized and required by Canadian regulations, SEC does not recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this category will ever be converted into reserves.


Ron F. Hochstein, President

Contact Information

  • International Uranium Corporation
    Sophia Shane
    Corporate Development
    (604) 689-7842