Long Harbour Capital Corp.

May 16, 2011 13:00 ET

Long Harbour Signs Agreement to Purchase Property in the Eastern Athabasca Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 16, 2011) - Long Harbour Capital Corp. (TSX VENTURE:LHC) (the "Company") reports that it has entered into an Agreement with The Saskatchewan Syndicate (the "Vendor") for the purchase of a 100% interest in the 2Z Lake Property located in the Athabasca Basin in northern Saskatchewan. This transaction is subject to receipt of TSX Venture Exchange approval.

The 2Z Lake Property (the "Property") is located on the eastern edge of the Athabasca Basin at the western end of a 20km long conductive trend orientated approximately N070, a trend that hosts several uranium deposits in the Athabasca Basin. The Property is situated approximately 30km south of the Rabbit Lake mine, 30 km east of the Cigar Lake mine and 28km south of the McClean Lake Sue deposits. The Property includes 4 claims covering 354 hectares, which border, and is surrounded by, properties controlled by Denison Mines, UEX Corporation and Hathor Exploration. The Property is within close proximity to Hathor's Roughrider deposit and adjacent to its Milliken property.

The Property covers the same basement geology as the major eastern Athabasca uranium ore bodies that are responsible for approximately 20% of the world's annual mine production of uranium. As such, the focus of exploration at 2Z Lake is on near surface basement-hosted, structurally controlled uranium deposits. The sandstone layer averages 80 meters in depth attractive for cost effective mining operations. Nearby basement hosted uranium deposits include the past producing AREVA - operated Sue C open pit mine, which produced approximately 25 million pounds of U308 between 1999 and 2002.

The 2Z Claims had been held by Cameco in one form or another since the mid-1970's until 2008 when after a staking competition, the court awarded rights to the current registered owner. Twenty drill holes have been completed on the Property testing for unconformity-type deposits. However, the Property has not yet been adequately tested for basement-hosted high-grade uranium mineralization that has been discovered in many of the properties in the eastern basin.

The purchase price for the Property is $350,000 cash and 1,000,000 common shares of the Company. A 2.0% net smelter returns interest will be retained by the Vendor.

The Company will pay a finder's fee on this transaction, subject to approval of the TSX Venture Exchange.

The technical information in this news release was reviewed by Kent Ausburn, a Qualified Person as defined in NI 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Senergy Communications Inc.
    Graham Johnstone
    Investor Relations

    Long Harbour Capital Corp.
    Geoff Lee
    604-648-2201 (FAX)