International Uranium Corporation
TSX : IUC

International Uranium Corporation

October 03, 2005 16:00 ET

IUC Signs Letter of Intent to Acquire 51% Interest in Huard-Kirsch Lakes Uranium Property in the Athabasca Basin, Saskatchewan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 3, 2005) - International Uranium Corporation ("IUC" or "the Company") (TSX:IUC) and Consolidated Abaddon Resources Inc. are pleased to announce that the two companies have entered into a Letter of Intent whereby IUC can acquire an exclusive option for a 51% interest in Consolidated Abaddon's Huard-Kirsch Lakes uranium property.

The Huard-Kirsch Lakes property is located in the eastern Athabasca Basin of northern Saskatchewan and is approximately 20 km northwest of the McArthur River Mine and 40 km southwest of Cigar Lake - considered to be the largest high-grade uranium deposits in the world.

IUC can earn a 51% interest in the property by incurring Cdn $1,500,000 of exploration expenditures on or before September 21, 2008 and a cash payment of Cdn $25,000. The parties intend to conclude and execute a Definitive Agreement by October 31, 2005. The foregoing is subject to all requisite regulatory approvals.

A MegaTem survey carried out for Consolidated Abaddon by Fugro in the early winter of 2005 has revealed three previously untested conductive trends having a combined strike length of up to 15 km on the Huard-Kirsch Lakes property. The conductive responses are interpreted to be derived from a basement source along the favourable Wollaston - Mudjatik transition zone.

IUC will undertake geophysical surveys including moving loop TEM and gravity prior to April 30, 2006 to define drill targets.

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 Basin in Canada. The Company also processes and recycles uranium-bearing waste materials as an environmentally superior alternative to direct disposal. In addition, the Company is a significant shareholder in Fortress Minerals Corp., a public company engaged in precious and base metal exploration in Mongolia and Russia.

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.

ON BEHALF OF THE BOARD

Ron F. Hochstein, President

Contact Information

  • International Uranium Corporation
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    www.intluranium.com